Supply Chain Management – A 2012 Priority

Supply Chain Management – A 2012 Priority

February 22, 2012

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ChainLink Research and SupplyChainBrain just released “Business Priorities 2012 – Research and Results” which takes a look at where companies will invest in the coming year. The report provides a cautionary, optimistic view of the coming months saying, “Many unsettled issues are still outstanding […]. And yet, our respondents do expect business expansion and intend to invest to make it happen in 2012.”

While the economic climate may be uncertain, many companies realize they have to invest in areas such as supply chain management software to be competitive and profitably grow. It is no longer just about slashing costs, you have to reduce costs and improve service levels at the same time. As the report highlights, retail growth for example, came at the expense of price concessions. Shrinking margins place higher stress on the bottom line, especially when customers expect more service at less cost.

priorities-(3).jpgAccording to the report supply chain applications are one of the top three areas of interest for 2012. While the chart included in the report does not provide exact percentages, we can estimate 53% of respondents plan to evaluate and/or purchase supply chain applications in 2012. This is just below the top two areas Data Management Strategy (approx. 55%) and Business Process Management (approx. 54%).
 
The supply chain market has seen increased interest over the past 12 months. At Logility we see three primary drivers – Sales and Operations Planning (S&OP), Multi-Echelon Inventory Optimization (MEIO) and Optimized Supply Planning.

  • S&OP is critically important as executives try to strike the optimum balance between what generates the most profit and what will satisfy the company’s strategic and operational goals. As companies adopt S&OP, it is the organizations with a more mature process and the full participation of sales, finance, manufacturing, supply chain, marketing, procurement, and distribution departments that achieve the greatest results and synergies enterprise-wide.
  • MEIO has proven to be a sustainable process to free up millions of dollars in working capital by reducing inventory without damaging service levels. Unlike traditional “binge-and-purge” cycles of overproduction followed by brute-force reductions, MEIO enables companies to achieve savings and increase inventory turns while driving more profit to the bottom line. Companies now realize their spreadsheet or APS-based inventory optimizations are inhibiting profitable growth, and true multi-echelon inventory optimizations solutions can help them strike the optimum balance between service levels and costs. 
  • Supply planning optimization enables companies to profitably satisfy market demand while juggling dynamic factors such as constraints, costs and capacities. To stay a step ahead, supply chains need the flexibility to dynamically source materials, optimize product and manufacturing plans, and reduce distribution costs while shrinking lead times. The companies which have adopted advanced supply optimization has been able to reduce sourcing costs, optimize loads and employ the lowest cost and most efficient transportation strategies, support multi-tiered distribution and manufacturing planning, and proactively identify unprofitable products.
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Get Smarter - Inventory Optimization

Get Smarter - Inventory Optimization

February 10, 2012

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Your supply chain mission:

  • Improve service levels to the high 90’s
  • Increase inventory turns
  • Decrease obsolescence by 50%
No problem you say out-loud while you quietly ponder the multiple scenarios that might get you there. You could increase inventory to get you to the high 90s. But that will incur more cost. You can decrease inventory to improve turns and obsolescence but then you sacrifice service. Could this supply chain mission be a lose-lose situation?

This is a win-win situation and in this month’s European Supply Chain Management I wrote an article which highlights how you can achieve these objectives based on just three strategies.
  1. Optimize inventory on multiple levels
  2. Tame SKUs with postponement
  3. Analyze inventory based on form and function

Read the full article, Get Smarter, on their website.

Related Content:
White Paper: 6 Keys to Exceeding Expectations with Inventory Optimization Initiatives
Analyst Research: Aberdeen: Inventory Optimization Technology Strategies for the Chief Supply Chain Officer
Webcast: Is Your Inventory A Competitive Advantage?

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Consumer Goods Technology Releases List of Top Supply Chain Companies

Consumer Goods Technology Releases List of Top Supply Chain Companies

February 10, 2012

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Consumer Goods Technology recently released its 2012 Consumer Goods Technology Reader’s Choice survey results. In Supply Chain Planning, Logility was voted highest in customer experience of all solution providers. This recognition highlights our dedication to developing supply chain software that exceeds expectations and drives tangible results for our customers. 

In addition, Logility was named a top supply chain solution provider in both supply chain planning and supply chain execution for the 12th consecutive year.

The article features Lee Dame, vice president of supply chain at CooperVision on his thoughts of Logility. "Logility's robust product functionality and great customer support allows us to effectively manage Cooper Vision’s complex supply chain, improve customer service and become more sophisticated in our supply chain approaches."

Aggressive competitors, margin erosion, and quickly changing consumer preferences and behaviors pose serious challenges to the consumer goods industry. To remain competitive consumer goods companies must have greater supply chain visibility to understand at a moment’s notice the impact a sourcing, inventory or manufacturing decision will have. The Readers’ Choice recognition highlights our strengths in helping companies overcome challenges and turn them into competitive advantages. Logility Voyager Solutions drive some of the world’s most powerful consumer goods supply chains from driving sales & operations planning (S&OP) to multi-echelon inventory optimization (MEIO) and demand planning through transportation management.

“Our focus on providing intuitive solutions that solve the increasingly complex global supply chain challenges companies face has never wavered,” said Mike Edenfield, president and CEO, Logility in a recent press statement. “To be honored for the 12th consecutive year is a direct reflection of the commitment and drive of everyone at Logility who helps develop Logility Voyager Solutions and provides unrivaled customer support and service.”

The 2012 Consumer Goods Technology Reader’s Choice surveyed more than 100 consumer goods business and IT executives to identify the solutions and solution providers they value most. Each respondent was asked to rate the customer experience from least satisfied to most satisfied, including implementation and use of the software.

Related Content:
- Webcast with CooperVision: Managing SKU Complexity
- White Paper: Successful Sales and Operations Planning in 5 Steps
- Success Story: Kraft Foods
- White Paper: Five Inventory Core Competencies That Can Make or Break Your Competitive Advantage

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Consumer Goods Technology Releases List of Top Supply Chain Companies

February 10, 2012

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Consumer Goods Technology Releases List of Top Supply Chain Companies

Consumer Goods Technology recently released its 2012 Consumer Goods Technology Reader’s Choice survey results. In Supply Chain Planning, Logility was voted highest in customer experience of all solution providers. This recognition highlights our dedication to developing supply chain software that exceeds expectations and drives tangible results for our customers. 

In addition, Logility was named a top supply chain solution provider in both supply chain planning and supply chain execution for the 12th consecutive year.

The article features Lee Dame, vice president of supply chain at CooperVision on his thoughts of Logility. "Logility's robust product functionality and great customer support allows us to effectively manage Cooper Vision’s complex supply chain, improve customer service and become more sophisticated in our supply chain approaches."

Aggressive competitors, margin erosion, and quickly changing consumer preferences and behaviors pose serious challenges to the consumer goods industry. To remain competitive consumer goods companies must have greater supply chain visibility to understand at a moment’s notice the impact a sourcing, inventory or manufacturing decision will have. The Readers’ Choice recognition highlights our strengths in helping companies overcome challenges and turn them into competitive advantages. Logility Voyager Solutions drive some of the world’s most powerful consumer goods supply chains from driving sales & operations planning (S&OP) to multi-echelon inventory optimization (MEIO) and demand planning through transportation management.

“Our focus on providing intuitive solutions that solve the increasingly complex global supply chain challenges companies face has never wavered,” said Mike Edenfield, president and CEO, Logility in a recent press statement. “To be honored for the 12th consecutive year is a direct reflection of the commitment and drive of everyone at Logility who helps develop Logility Voyager Solutions and provides unrivaled customer support and service.”

The 2012 Consumer Goods Technology Reader’s Choice surveyed more than 100 consumer goods business and IT executives to identify the solutions and solution providers they value most. Each respondent was asked to rate the customer experience from least satisfied to most satisfied, including implementation and use of the software.

Related Content:
- Webcast with CooperVision: Managing SKU Complexity
- White Paper: Successful Sales and Operations Planning in 5 Steps
- Success Story: Kraft Foods
- White Paper: Five Inventory Core Competencies That Can Make or Break Your Competitive Advantage

Connect with us:Logility on TwitterLogility on FacebookLogility on LinkedInLogility on Google+
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Video Podcast: Starting the Inventory Optimization Journey

February 07, 2012

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Video Podcast: Starting the Inventory Optimization Journey

One of our resident inventory optimization experts, Chris Russell, recently spoke with Greg Novitsky, global supply chain analyst at Celanese about the journey to optimize inventory. In this video podcast, Greg provides a veteran perspective on the multi-echelon inventory optimization (MEIO) journey and how Celanese has been able to reach the top of the MEIO maturity curve and achieve significant benefits. 

This video podcast will be particularly interesting to supply chain organizations just starting down the highly worthwhile path to inventory excellence. Newcomers to MEIO often can’t appreciate how “big” an opportunity exists to boost service while reducing inventory. As Chris and Greg have seen, it’s a rewarding investment that can be measured in hard dollar ROI and expanded expertise for savvy supply chain professionals. Inventory Optimization can improve the quality of your S&OP process while boosting the efficiency of manufacturing operations.

Greg breaks down the right steps to take when initiating an inventory optimization program in terms of people, process, and technology. Crucial factors include recognizing how inventory cost accrues across the entire supply chain, finding the right people and tools, and understanding the details of your inventory. If you are considering an MEIO initiative or consider yourself an inventory optimization expert, this informative video podcast will help set you on the right path and inspire you to take the next step in your inventory optimization journey.


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Fewer Hunches. More Facts.

January 10, 2012

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Fewer Hunches. More Facts.

Dennis Berman at the Wall Street Journal recently said analytics will change your day-to-day world more than you know. In his article, So, What’s Your Algorithm, he points out that computer systems are now so powerful they can harvest vast stores of data in real-time to make the decisions (or recommendations) for you to act upon. The article provides examples such as analyzing the credit worthiness of tens of millions of homeowners as well as how, by analyzing traffic flows, the system can tell a driver the most efficient route to take on any given day.

How far is this from reality?

It’s not. In fact, today’s supply chain software can analyze vast amounts of information about your network, your demand, your suppliers and customers, and your forecast. So why do so many companies still rely on manual, spreadsheet-driven operations? As the article points out, “We are ruined by our own biases. When making decisions, we see what we want, ignore probabilities, and minimize risks that uproot our hopes.” Basically, we want to believe we know best. And we do; however, it never hurts to have a little quantifiable help and analysis to support our management insights.

Supply chain analytics are driving substantial improvements in supply chain operations. I recently wrote a post, MEIO by the Numbers, which provides some great examples of how the science and algorithms in Logility Voyager Solutions are producing incredible results. The proof is all around us.

-    98.8%: American Italian Pasta Company’s customer service level (source)
-    50%: Increase in service Fender realized immediately (source)
-    30%: Amount Clement Pappas increased production through-put on one line (source)
-    27%: Ashley Furniture’s sales increase with only a 3.9% increase in inventory (source)

Your business may not deal with tens of millions of credit reports or tens of thousands of complicated mortgages but you do have complex supply chains that extend from around the corner to around the world. You have multiple trading partners, fickle customer demand and aggressive competition. So I ask you, are you making decisions based on hunches or facts?


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MEIO By the Numbers   December 09, 2011
VMI Today   August 25, 2011

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