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In a previous blog AI and Machine Learning in Manufacturing ERP: Key Benefits , we discussed the benefits of using AI in manufacturing and how it could be enhanced with an ERP system. While manufacturers are keenly interested in using AI, the main question they have is what are the best use cases for AI in ERP?
Procurement in manufacturing companies is often not done correctly. With direct and indirect materials making up at least 50% of typical manufacturing costs, the procurement function could be re-imagined so companies can be more responsive to customer demands and more agile when dealing with supply chain challenges.
A data gateway is essentially a connective tissue across your supply chain, providing unified access to supply chain data from various sources, including enterprise systems, data feeds, data warehouses, data lakes, data marts, and business entities. Achieving these goals requires visibility into the entire supply chain.
Procurement has never played such an important role in the increasingly globalised economy. Has procurement fundamentally changed itself in the past 10 years? Strategic Procurement can mean totally different things in different industries and sectors. The time when Procurement was almost a synonym to Purchasing has long gone.
Just ask any manufacturer who’s had to halt production because a single critical component wasn’t available. Common examples of Supply Chain Disruptions So what are the main reasons that you need to consider supply chain resiliency in the first place? This really is a case where the saying, forewarned is forearmed applies.
For manufacturers, having the right business intelligence on hand at the right time can eliminate the guesswork from decision making, offering real-time visibility into business processes so you can anticipate your next move. Common issues include: Lack of data-source integration. Data warehousing costs rise. Human error.
Data is a crucial component of digital transformation in the manufacturing sector. Many manufacturers aren’t maximizing the value from enriching data and missing out on opportunities to grow, optimize or manage risk. Here are 3 ways manufacturers can monetize data and increase efficiency: 1. Create new revenue models.
A data gateway is essentially a connective tissue across your supply chain, providing unified access to supply chain data from various sources, including enterprise systems, data feeds, data warehouses, data lakes, data marts, and business entities. Achieving these goals requires visibility into the entire supply chain.
Lean and green are not only trendy topics, but they also make good business sense, especially for manufacturers. However, since both concepts have been saddled with a lot of hype, manufacturers have tended to shy away from pursuing these goals. Get Lean the Easy Way. Education and Alignment.
Manufacturers are aware they need to modernize to take advantage of what technology can offer. They saw how technology gave many businesses competitive advantage during the pandemic, and they are aware of how the Fourth Industrial Revolution (4IR) will change industries. The 5th, 10th or is it older? What is 4IR?
How to Reduce Carbon Emissions in Your Supply Chain 1. For example, switching from air to ocean freight for non-time sensitive shipments can reduce carbon emissions by up to 95% per unit shipped. Furthermore, consumers are starting to select products, based on the amount of carbon emissions produced in their manufacture.
Editor's Note: As a third party logistics company with a focus on better Less-Than-Truckload (LTL) freight management, we have several shippers who are in the manufacturing industry. We relay on guest bloggers and the expertise of others for manufacturing best practices. His 5 golden metrics center on performance management.
The past two and half years have certainly brought a variety of challenges and opportunities that have made innovation not just a preference, but essential for manufacturers and distributors to thrive into the future. Optimizing the use of data for manufacturers. Obstacles on the data journey for manufacturers.
Unless manufacturers change, they will find that their ability to forecast demand, and determine what to do to meet it, will be challenging. Supply chain management (SCM) systems help businesses to manage the flow of goods and services right from the sourcing of raw materials, to delivering finished goods to the customer.
Many manufacturers struggle to optimize warehouse productivity and attract skilled employees. Here’s how to do it: Label aisles, rows and bins with floor or overhead placards so employees can identify the correct location quickly and easily. Inefficient working conditions and manual work only worsen the problem.
The new AI revolution presents a great opportunity for manufacturers to retain their staff and attract younger employees by providing new skills for the future world of business where the role of AI will play a greater part. The impact of AI on manufacturing is that the skills used will be more advanced.
If you were tasked with procuring the best supply chain IT system, what would you look for? Think of it managing things like purchase orders, invoices, and inventory records. An ERP is a transactional business management system, designed to manage enterprise-wide resources, from HR to finance and marketing to manufacture.
Supply chain management in manufacturing is by no means a simple process, but the United States is learning from past mistakes and they're poised to start playing a little catch-up in the manufacturing world due to their expertise. Government Weighs In on Supply Chain Management in Manufacturing. The Numbers Are In.
Editor’s Note: We love talking about and reporting on technology which effects and also makes the lives’ of manufacturing companies much better. We’ve been providing manufacturing companies and shippers with a web-based transportation management system since 1998, before web-based TMS was as prolific as it is today.
Ask manufacturing leaders what changes they plan to make in the next three years in the wake of the coronavirus pandemic, and they will likely say their use of technology will deepen as more and more players in their supply chains come to rely on digital connections for daily interactions. Talent gaps: ? Legacy systems:? Managing Inventory.
They discuss what it takes to create green industrial and manufacturing facilities from scratch. Creating Green Industrial and Manufacturing Facilities From Scratch. Product demand has a lot to do with creating environmental issues in the manufacturing industry. IKEA certainly has no problem understanding it.
Newer technologies have created entirely new methodologies for improving manufacturing, and the outlook is brighter than ever. So, let’s take a look at how our predictions for the first four manufacturing technology trends (Predictive analytics, 3D Printing, and VR) to watch for in 2016 stacked up.
Manufacturers have always struggled to know their customers. Unfortunately, this means manufacturers face an even greater challenge, as more customers translate into greater use of customer service. But, how do manufacturers turn their focus to the customer experience? Determine What Customers Want Today.
For a manufacturer, the Bill of Materials (BOM) is the recipe (the ingredients and their amount, with the preparation instructions) that drives the business. The accuracy of the BOM is critical to ensure a profit is made, to guide procurement when ordering the items, and to prevent having not enough inventory , or the wrong inventory.
The discipline has done a good job of driving collaboration between sales and marketing and manufacturing, procurement, and logistics. Because procurement is a major theme of the conference, I could not help but talk to the top executives of this business unit about the new Elon Musk biography.
We work with a lot of manufacturing companies and one of the questions we get most often is 'Why do we need to blog'? Often followed by 'How do we blog for manufacturing'? So now we know what a blog is but why is manufacturing blogging a great idea and not a waste of time: To Help People. A word about what a blog is.
Editor's Note: Today's blog is the second part of Chuck Intrieri's series on howprocurement and suppliers can avoid issues with their contracts. In part two, Chuck focuses on how to draft your terms and conditions. It Would Benefit Both Procurement and Suppliers To Write in a Clear, Friendly, and Organized Manner.
It has also emphasized how fragile supply chains really are. Manufacturers have realized that while they may aim to be stable, what they really need is to be agile. How rapidly can you adapt if something changes quickly like it has done? How do you ensure delivery if once reliable supply chains break? Operations.
But I often see companies that have more cutting tools, for example, than they need. Machinists may set aside a box of inserts and drills at their work stations, for example, to ensure they don’t run out. Finally, even when companies have well-managed inventories, I’ve seen many examples of poor or incomplete buying practices.
in manufacturing dominance. Manufacturing companies that have relied on China for production materials are feeling the blowback of this dependence; some retailers source more than half their inventory from China, according to 2020 Statista data. An AI system needs to be fed data sets to learn how to behave and react.
When switching suppliers, use a sourcing solution so that you avoid inventory deficits and get back up and running with the new supplier quickly. The closer the supplier is to your warehouse or manufacturing plant or location , the easier it is to reduce lead times. Handling multiple purchase orders. Choose Domestic Suppliers.
This article describes how to incorporate simulation techniques into optimization, build a stochastic optimization model, and end up with a more resilient supply chain model. Optimal sourcing plant is different for different periods A baseline optimization model shows that depending on the period (month), the optimal sourcing location varies.
It touches many departments, from production, procurement, shipping, accounting, and finance to marketing, warehousing, research and development, and sales. For example, a member of the sales team could apply to become a purchasing agent, based on her experience of negotiating sales deals.
For example, you can optimise for cost, profit, or service, but not for all of them. For example, inaccurate forecasts typically lead to: Overstocking — a problem that ties up working capital and can lead to inventory obsolescence. How to Improve Forecast Accuracy for Optimal Inventory. How Does Lead Time Affect Inventory?
Disruptions that have occurred during the pandemic have shown how many manufacturers have not managed their supply chains appropriately and have reaped the consequences in terms of insufficient inventory. When it comes to managing supply chains and inventory, manufacturers ought to be looking at a new operating model.
Before we jump into how to reduce your transportation costs, it’s essential to understand what factors are causing them to rise. For example, you may discover that one carrier consistently adds accessorial charges while another compatible carrier does not. Are you taking the proper steps to do so? WHY COSTS ARE RISING.
For example, are your people going to be driving offroad? In establishing a relationship with a car manufacturer or fleet dealership, begin by providing a list of desired vehicle types and features, including makes, models, and body type. What Kinds of Vehicles Do You Need? What Are Your Insurance Needs?
But for that special class of disruption, the low-probability, high-impact events like natural disasters, epidemics and other upheavals, organizations don’t know how to mitigate the risk and successfully manage their supply chains, and are now trying to find their way through the minefield of issues and challenges with no clear solution.
Image source: Pexels | How can Lean Logistics Transform your Company? The Lean method was created by the Japanese company Toyota with the aim of optimizing manufacturing flows and eliminating everything that generates errors, delays, and bottlenecks. How can Lean Logistics Transform your Company?
Finally, fourteen years ago, a book called ‘Thinking about ERP’ was published, which explained how businesses should think about selecting, deploying and operating an ERP to achieve business requirements. In manufacturing, the constraint is often referred to as a bottleneck. How to bring about the change?
The examples below show you how to do this in AIMMS SC Navigator Apps, but we encourage you to study these scenarios in the tools you have at your disposal. . There is a strategic incentive in understanding the optimal sourcing location for specific customers, and the optimal sourcing location for different resources.
Although seemingly a straight forward concept, this can quickly become complicated when parts of a product may be manufactured in different parts of the world, raw materials may be procured from different parts of the world and finish product itself may be transported to different parts of the world before it is ready for sale.
There are some specific threat areas that manufacturers need to manage. They also need to know how to protect their ERP systems which are critical for a business to run effectively. Some manufacturers have gone even further to protect internal production systems. It is essential to ensure these integrations are secure.
Second, what is autonomous planning in supply chain, and what are some practical examples? And finally, how does a company achieve autonomous planning? Then there’s the question of how much to hold at the central warehouse to replenish the MFCs as well as how to dynamically allocate receipts at the cross-docks.
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