A Roadmap for Designing an Enterprise that Thrives During Supply Chain Disruptions 

Congratulations! You’ve made it to the final installment of our series on building a supply chain that can thrive, not merely survive, during crises and curve balls. That demonstrates a certain amount of resilience on your part! We know there’s a fierce, never-ending battle for attention out there, so thank you for giving Logility some of yours. 

In the first three posts I covered steps 1 through 9:  

  1. Assessment 
  1. Justification 
  1. Vision 
  1. Explore 
  1. Collaborate 
  1. Elevate 
  1. Business Continuity 
  1. Elevate IBP 
  1. Change Management 

Now let’s examine the final three steps.  
 

  1. Alignment. Alignment has been called a “high degree of difficulty move” under the umbrella of change management. Why? Because this journey will require a new shared vocabulary, updated process definitions, new clarity around roles and ongoing synchronization of metrics and compensation. And you need to be prepared for some to say I didn’t sign up for this.  
     
    An aligned, mature organization encourages team members to think like a CEO every day. Instead of sub-optimizing (AKA optimizing locally), you’ll be expected to evaluate potential actions in light of strategic goals like improved customer service, margin growth and time-to-market. (Independent study opportunity for those interested in avoiding the sub-optimization trap: How is Elon Musk able to launch the Falcon 9 at 20% of the cost of the Space Shuttle?)  
     
  1. Culture. Leadership sets the tone, as always. There are many ways to convey an “embrace change” message. Pick one and stick to it. View disruptions as growth opportunities. Run away from the status quo. Change is a tonic. But understand that if you don’t get alignment right, culture will stagnate or even deteriorate. 
     
  1. Celebrate. If you get the first 11 right, I promise you will have plenty to celebrate. Research shows that advanced use of IBP (see step 6) will put you in the upper echelon of your peers when grouped by key supply chain performance measures. Take the time in small and large groups, inside and outside the company, to reflect on success. This practice is a powerful momentum builder.  

When you’re done, you’ll have more than a Center of Excellence, which implies a preference for or superiority of a single physical location. In contrast, you’ll have created a Nexus of Excellence. A dynamic yet stateless collection of people, process and technology on a global scale.  

Guard against complacency by constantly checking your achievements against this list: 

  • Platform has transformed us from data rich to insight rich. 
  • Teams use guided workflows with contextual drill downs. 
  • Accountability is clear and includes actionable outcomes. 
  • Planning and execution are integrated to the point where they feel like a single function. 
  • The organization is at once empowered and hungry. Achievement has unleashed a sense of how much more can be done. 

That completes our series on the 12 steps necessary for building an agile, resilient enterprise that consistently leverages people, process and technology to translate actionable insights into marketplace success regardless of circumstances.  

Success story

The Leatherman Tool Group improves profits with supply chain visibility.

With Logility, The Leatherman Tool Group experienced its most profitable year in a decade. Greater visibility across the entire supply chain resulted in increased efficiency, collaboration and proactive decision-making.

Challenges

The Leatherman Tool Group manufactures the Leatherman brand of multi-tools, knives and pocket tools out of its Portland, Oregon headquarters. 

Leatherman’s pursuit of operational excellence was hindered by a lack of business insight due to the challenges of accessing useful information buried in disparate data sources. 

Desire for operational excellence

The existing structures could not propel the company to the level of operational excellence it desired.

Outdated systems

Fluctuating demand and supply uncertainty required more precise inventory rules.

Disparate data sources

Leatherman’s reporting and analytics disciplines were underpinned by an archaic ERP system that had been implemented in 1994.

Solutions

With Logility in place, Leatherman enjoyed its most profitable year in a decade. Accurate, actionable information is now available across the supply chain in real time. The transformation was so complete that the legacy ERP system was decommissioned. 

Daily meetings have replaced monthly meetings where most ‘data’ was hearsay and the squeaky wheel reigned. Now the team meets every morning to review critical production reports and answer the two most important questions: 1) Why did it happen?; and 2) What are we going to do about it? 

Demand Planning and Optimization

Inventory Planning and Optimization

Advanced Analytics

The Leatherman team also cites visibility into formerly hidden costs that drained profits as a huge win. One example is vendor compliance charges — understanding profitability, customer by customer, has given Sales, Operations and Finance new tools to enhance collaboration and make decisions that benefit the enterprise versus one department. 

And in addition to basing production schedules on the most profitable segments of the company’s portfolio, Leatherman now uses Logility to better manage inventory across the entire business. As Jordan Baird, IT applications manager, noted, “Logility is flexible. When it comes to reporting, users are no longer restricted. They get what they need rather than what’s available.” 

Results

The implementation team noted that among everyday users of Logility, the early euphoria has given way to a healthy resolve to make improvements every day. “They are over the initial excitement. Now that they know what’s possible and how valuable Logility is, they’re hungry for more information. That will never change,” said Baird. 

Finally, an important change took place at the top of the company — leadership thoroughly embraced KPI dashboards. To the rest of the Leatherman team, this signaled a lasting commitment to continuous improvement and data-driven decision-making.  

Leatherman has also gained the ability to explore new offerings such as extending capabilities with Logility’s predictive analytics and demand forecasting solutions. The momentum reinforces itself, guaranteeing that the future holds even more great Leatherman-inspired stories. 

With Logility, Leatherman Tool Group has streamlined production schedules, optimized inventory, increased profit margins, reduced IT bottlenecks and established accountability within the business. 

Thanks to Logility, we can meet and make a quick decision with confidence rather than waiting two days for a report and another meeting.

Success story

The Leatherman Tool Group improves profits with supply chain visibility.

With Logility, The Leatherman Tool Group experienced its most profitable year in a decade. Greater visibility across the entire supply chain resulted in increased efficiency, collaboration and proactive decision-making.

Challenges

The Leatherman Tool Group manufactures the Leatherman brand of multi-tools, knives and pocket tools out of its Portland, Oregon headquarters. 

Leatherman’s pursuit of operational excellence was hindered by a lack of business insight due to the challenges of accessing useful information buried in disparate data sources. 

Desire for operational excellence

The existing structures could not propel the company to the level of operational excellence it desired.

Outdated systems

Fluctuating demand and supply uncertainty required more precise inventory rules.

Disparate data sources

Leatherman’s reporting and analytics disciplines were underpinned by an archaic ERP system that had been implemented in 1994.

Solutions

With Logility in place, Leatherman enjoyed its most profitable year in a decade. Accurate, actionable information is now available across the supply chain in real time. The transformation was so complete that the legacy ERP system was decommissioned. 

Daily meetings have replaced monthly meetings where most ‘data’ was hearsay and the squeaky wheel reigned. Now the team meets every morning to review critical production reports and answer the two most important questions: 1) Why did it happen?; and 2) What are we going to do about it? 

Demand Planning and Optimization

Inventory Planning and Optimization

Advanced Analytics

The Leatherman team also cites visibility into formerly hidden costs that drained profits as a huge win. One example is vendor compliance charges — understanding profitability, customer by customer, has given Sales, Operations and Finance new tools to enhance collaboration and make decisions that benefit the enterprise versus one department. 

And in addition to basing production schedules on the most profitable segments of the company’s portfolio, Leatherman now uses Logility to better manage inventory across the entire business. As Jordan Baird, IT applications manager, noted, “Logility is flexible. When it comes to reporting, users are no longer restricted. They get what they need rather than what’s available.” 

Results

The implementation team noted that among everyday users of Logility, the early euphoria has given way to a healthy resolve to make improvements every day. “They are over the initial excitement. Now that they know what’s possible and how valuable Logility is, they’re hungry for more information. That will never change,” said Baird. 

Finally, an important change took place at the top of the company — leadership thoroughly embraced KPI dashboards. To the rest of the Leatherman team, this signaled a lasting commitment to continuous improvement and data-driven decision-making.  

Leatherman has also gained the ability to explore new offerings such as extending capabilities with Logility’s predictive analytics and demand forecasting solutions. The momentum reinforces itself, guaranteeing that the future holds even more great Leatherman-inspired stories. 

With Logility, Leatherman Tool Group has streamlined production schedules, optimized inventory, increased profit margins, reduced IT bottlenecks and established accountability within the business. 

Thanks to Logility, we can meet and make a quick decision with confidence rather than waiting two days for a report and another meeting.

Success story

The Leatherman Tool Group improves profits with supply chain visibility.

With Logility, The Leatherman Tool Group experienced its most profitable year in a decade. Greater visibility across the entire supply chain resulted in increased efficiency, collaboration and proactive decision-making.

Challenges

The Leatherman Tool Group manufactures the Leatherman brand of multi-tools, knives and pocket tools out of its Portland, Oregon headquarters. 

Leatherman’s pursuit of operational excellence was hindered by a lack of business insight due to the challenges of accessing useful information buried in disparate data sources. 

Desire for operational excellence

The existing structures could not propel the company to the level of operational excellence it desired.

Outdated systems

Fluctuating demand and supply uncertainty required more precise inventory rules.

Disparate data sources

Leatherman’s reporting and analytics disciplines were underpinned by an archaic ERP system that had been implemented in 1994.

Solutions

With Logility in place, Leatherman enjoyed its most profitable year in a decade. Accurate, actionable information is now available across the supply chain in real time. The transformation was so complete that the legacy ERP system was decommissioned. 

Daily meetings have replaced monthly meetings where most ‘data’ was hearsay and the squeaky wheel reigned. Now the team meets every morning to review critical production reports and answer the two most important questions: 1) Why did it happen?; and 2) What are we going to do about it? 

Demand Planning and Optimization

Inventory Planning and Optimization

Advanced Analytics

The Leatherman team also cites visibility into formerly hidden costs that drained profits as a huge win. One example is vendor compliance charges — understanding profitability, customer by customer, has given Sales, Operations and Finance new tools to enhance collaboration and make decisions that benefit the enterprise versus one department. 

And in addition to basing production schedules on the most profitable segments of the company’s portfolio, Leatherman now uses Logility to better manage inventory across the entire business. As Jordan Baird, IT applications manager, noted, “Logility is flexible. When it comes to reporting, users are no longer restricted. They get what they need rather than what’s available.” 

Results

The implementation team noted that among everyday users of Logility, the early euphoria has given way to a healthy resolve to make improvements every day. “They are over the initial excitement. Now that they know what’s possible and how valuable Logility is, they’re hungry for more information. That will never change,” said Baird. 

Finally, an important change took place at the top of the company — leadership thoroughly embraced KPI dashboards. To the rest of the Leatherman team, this signaled a lasting commitment to continuous improvement and data-driven decision-making.  

Leatherman has also gained the ability to explore new offerings such as extending capabilities with Logility’s predictive analytics and demand forecasting solutions. The momentum reinforces itself, guaranteeing that the future holds even more great Leatherman-inspired stories. 

With Logility, Leatherman Tool Group has streamlined production schedules, optimized inventory, increased profit margins, reduced IT bottlenecks and established accountability within the business. 

Thanks to Logility, we can meet and make a quick decision with confidence rather than waiting two days for a report and another meeting.

Success story

The Leatherman Tool Group improves profits with supply chain visibility.

With Logility, The Leatherman Tool Group experienced its most profitable year in a decade. Greater visibility across the entire supply chain resulted in increased efficiency, collaboration and proactive decision-making.

Challenges

The Leatherman Tool Group manufactures the Leatherman brand of multi-tools, knives and pocket tools out of its Portland, Oregon headquarters. 

Leatherman’s pursuit of operational excellence was hindered by a lack of business insight due to the challenges of accessing useful information buried in disparate data sources. 

Desire for operational excellence

The existing structures could not propel the company to the level of operational excellence it desired.

Outdated systems

Fluctuating demand and supply uncertainty required more precise inventory rules.

Disparate data sources

Leatherman’s reporting and analytics disciplines were underpinned by an archaic ERP system that had been implemented in 1994.

Solutions

With Logility in place, Leatherman enjoyed its most profitable year in a decade. Accurate, actionable information is now available across the supply chain in real time. The transformation was so complete that the legacy ERP system was decommissioned. 

Daily meetings have replaced monthly meetings where most ‘data’ was hearsay and the squeaky wheel reigned. Now the team meets every morning to review critical production reports and answer the two most important questions: 1) Why did it happen?; and 2) What are we going to do about it? 

Demand Planning and Optimization

Inventory Planning and Optimization

Advanced Analytics

Results

The implementation team noted that among everyday users of Logility, the early euphoria has given way to a healthy resolve to make improvements every day. “They are over the initial excitement. Now that they know what’s possible and how valuable Logility is, they’re hungry for more information. That will never change,” said Baird. 

Finally, an important change took place at the top of the company — leadership thoroughly embraced KPI dashboards. To the rest of the Leatherman team, this signaled a lasting commitment to continuous improvement and data-driven decision-making.  

Leatherman has also gained the ability to explore new offerings such as extending capabilities with Logility’s predictive analytics and demand forecasting solutions. The momentum reinforces itself, guaranteeing that the future holds even more great Leatherman-inspired stories. 

With Logility, Leatherman Tool Group has streamlined production schedules, optimized inventory, increased profit margins, reduced IT bottlenecks and established accountability within the business. 

Thanks to Logility, we can meet and make a quick decision with confidence rather than waiting two days for a report and another meeting.

Success story

The Leatherman Tool Group improves profits with supply chain visibility.

With Logility, The Leatherman Tool Group experienced its most profitable year in a decade. Greater visibility across the entire supply chain resulted in increased efficiency, collaboration and proactive decision-making.

Challenges

The Leatherman Tool Group manufactures the Leatherman brand of multi-tools, knives and pocket tools out of its Portland, Oregon headquarters. 

Leatherman’s pursuit of operational excellence was hindered by a lack of business insight due to the challenges of accessing useful information buried in disparate data sources. 

Desire for operational excellence

The existing structures could not propel the company to the level of operational excellence it desired.

Outdated systems

Fluctuating demand and supply uncertainty required more precise inventory rules.

Disparate data sources

Leatherman’s reporting and analytics disciplines were underpinned by an archaic ERP system that had been implemented in 1994.

Solutions

With Logility in place, Leatherman enjoyed its most profitable year in a decade. Accurate, actionable information is now available across the supply chain in real time. The transformation was so complete that the legacy ERP system was decommissioned. 

Daily meetings have replaced monthly meetings where most ‘data’ was hearsay and the squeaky wheel reigned. Now the team meets every morning to review critical production reports and answer the two most important questions: 1) Why did it happen?; and 2) What are we going to do about it? 

Demand Planning and Optimization

Inventory Planning and Optimization

Advanced Analytics

The Leatherman team also cites visibility into formerly hidden costs that drained profits as a huge win. One example is vendor compliance charges — understanding profitability, customer by customer, has given Sales, Operations and Finance new tools to enhance collaboration and make decisions that benefit the enterprise versus one department. 

And in addition to basing production schedules on the most profitable segments of the company’s portfolio, Leatherman now uses Logility to better manage inventory across the entire business. As Jordan Baird, IT applications manager, noted, “Logility is flexible. When it comes to reporting, users are no longer restricted. They get what they need rather than what’s available.” 

Results

The implementation team noted that among everyday users of Logility, the early euphoria has given way to a healthy resolve to make improvements every day. “They are over the initial excitement. Now that they know what’s possible and how valuable Logility is, they’re hungry for more information. That will never change,” said Baird. 

Finally, an important change took place at the top of the company — leadership thoroughly embraced KPI dashboards. To the rest of the Leatherman team, this signaled a lasting commitment to continuous improvement and data-driven decision-making.  

Leatherman has also gained the ability to explore new offerings such as extending capabilities with Logility’s predictive analytics and demand forecasting solutions. The momentum reinforces itself, guaranteeing that the future holds even more great Leatherman-inspired stories. 

With Logility, Leatherman Tool Group has streamlined production schedules, optimized inventory, increased profit margins, reduced IT bottlenecks and established accountability within the business. 

Thanks to Logility, we can meet and make a quick decision with confidence rather than waiting two days for a report and another meeting.