Retailers around the globe struggle to accurately forecast demand and, more importantly, optimise inventory levels. Consequently, this has a massive effect on bottom-line profitability. My last blog post focused specifically on the problem of “getting the size mix right” that retailers face and how advanced analytical techniques can provide a
Wie wäre es, wenn Sie Anomalien in der Lieferkette automatisch erkennen oder vorhersagen könnten? Wenn Sie also die Chance bekämen, rechtzeitig Korrekturmaßnahmen zu ergreifen und so Umsatz, Margen und Kundenzufriedenheit zu steigern? Die Planung einer Supply Chain kann sehr komplex sein. Von der Planung und Beschaffung über die Fertigung bis
What if you could automatically detect supply chain anomalies as they happen, or even predict them in advance? You'd be able to take timely corrective action and help maximize revenue, margins, customer satisfaction and shareholder value. There's no question: Supply chain planning and execution is complex. From design and sourcing, to
With all the technology advancements and innovative trends driving Industry 4.0 right now, you might expect geeky topics like the Internet of Things (IoT) or artificial intelligence (AI) to be the hottest topics of discussion among industry leaders. Instead, many leaders are still more focused on workplace culture. And here’s
Sábado por la tarde. Un aficionado al futbol visita la tienda de conveniencia más cercana para comprar todo lo necesario para disfrutar el partido de su equipo favorito: botanas, comida, bebidas. Recorre los pasillos, pero no encuentra todo lo que quiere. Pregunta al dependiente; éste le responde que algunos de
“Quick response forecasting (QRF) techniques are forecasting processes that can incorporate information quickly enough to act upon by agile supply chains” explained Dr. Larry Lapide, in a recent Journal of Business Forecasting column. The concept of QRF is based on updating demand forecasts to reflect real and rapid changes in demand, both
Depending on who you speak with you will get varying definitions and opinions regarding demand sensing and shaping from sensing short-range replenishment based on sales orders to manual blending of point-of-sales (POS) data and shipments. Most companies think that they are sensing demand when in fact they are
Analytics-driven forecasting means more than measuring trend and seasonality. It includes all categories of methods (e.g. exponential smoothing, dynamic regression, ARIMA, ARIMA(X), unobserved component models, and more), including artificial intelligence, but not necessarily deep learning algorithms. That said, deep learning algorithms like neural networks can also be used for demand forecasting,
The widespread adoption of the term "analytics" reminds me of the evolution of the term "supply chain management." Initially the term focused on supply chain planning. It involved demand and supply balancing and the heuristics and optimization tools that came out of advanced planning and scheduling. Over time practically everything was included
In fast growth markets like the Middle East, supply chain stakeholders are moving quickly to deploy instrumentation for greater visibility and better tracking. The move towards supply chain transparency is a big issue. But how will it be helped or hindered by the proliferation of the Internet of Things (IoT)?
In my new series of posts I will outline typical business problems from manufacturing companies that originate in uncertainty and explain how Analytics is an enabler for improved supply chain transparency, improved stability and – at the end of the day – improved profitability. The main objective for manufacturing companies
Black Friday 2016 took everybody by surprise. The biggest shopping day of the year is a crucial date in any retailer’s calendar. And rightly so. Auditors and analysts predicted that 2016 would see the majority of consumers splashing out more cash than ever before on everything from scented candles to
The digital revolution has affected all aspects of business, including supply chains. The Internet of Things (IoT), with its network of devices embedded with sensors is now connecting the consumer to the factory. Technologies such as RFID, GPS, event stream processing (ESP) and analytics are combining to help companies to transform their existing
On a recent CBS Sunday Morning episode Dr. Phil McGraw of “Dr. Phil” fame was featured. During the segment he talked about shifting his focus from golf to tennis. To paraphrase, he said golf drove him crazy because he couldn’t bear down, run faster, sweat harder and be better. I
I had the opportunity to interview an award-winning, fast-moving, consumer packaged goods (CPG) company in the early 2000’s. They were recognized as one of the best supply chain companies in the United States by all of the major retailers and their CPG peers. Indeed, it seemed every time a new
Over the course of my career as industrial engineer turned supply chain planning advocate I've had the opportunity to work hands-on with many manufacturing and supply chain planning solutions. This has included solutions offered commercially by the usual suspects of ERP and post-SCM consolidation supply chain solution providers. Most of these
Today, we live in a polarized world that divides family members, friends, and business colleagues. It effects everything we do from the way we communicate with one another to how we handle business challenges. I have seen long time business colleagues have passionate discussions to defend their supply chain position
Once upon a time, the festive countdown began when towns and cities switched on their Christmas lights. We all sat at home, eagerly waiting for Christmas adverts to debut. Retailers could plan based on the number of weekends left until Christmas. But last year, all that changed – the Black
When I visit with customers or potential clients, they often ask, "Where should I start in order to get a handle on my supply chain?" There is no clear and concise answer, but I usually say "Follow the inventory!" Inventory is a result of decisions made, not the cause. When you
Profitable growth is at the forefront of manufacturing executives’ minds¹. The math is simple: increase revenue and decrease costs. Easy, right? Unfortunately, getting there isn't that simple. The good news is that analytics can help. The better news is that there’s a new place for manufacturers to discover analytic best
Well okay maybe you can't hear us, but at least you can read what we have to say. Although, I'm not ruling out an occasional video or podcast entry. One of the best kept secrets at SAS is the incredible domain expertise that comes to work here everyday, ready to
Black Friday might seem like a long time ago now, but the impact of this new phenomenon in the UK still ripples. Retailers such as Dixons Carphone embraced the shopping day and once the results were tallied, that turned out to be a good move. The retailer attributes the success to careful planning
Have you ever thought about how to improve your Sales and Operations Planning (S&OP) process beyond where you might be today? There's certainly no lack of advice on the topic of S&OP on the Internet. Some articles focus on the overall process while others focus on S&OP software and related support tools. In
Sales and Operations Planning (S&OP) started out with big aspirations. As initially conceived, S&OP was to cover the entire domain now called Integrated Business Planning (IBP). As S&OP process implementations rolled out during the 1980’s, this broad scope turned out to be a bit much to attempt in one bite. S&OP
What is your primary goal as a supply chain professional? It’s not about demand sensing, demand shaping or even supply planning and demand planning. At the end of the day, it’s about profit optimization. Albeit important, demand sensing and shaping are only a piece of the equation and if isolated, decisions
From managing excess DVD inventory to optimizing digital distribution channels, Hollywood’s supply chain transformation in the last decade has been massive. Knowing this background, and having spent a good part of my life surrounded by the entertainment industry, I was intrigued and inspired by the recent Entertainment Supply Chain Academy
For supply chain managers and analysts Getting Demand in Shape can mean collecting the most pertinent data to support specific business processes and activities. Identifying new or previously unused data sources can be especially important. My most recent article titled “Getting Demand in Shape” in the May / June issue of APICS magazine
Do we ever really get pricing right? Sometimes we do, and some of those times are actually on purpose, but it takes a lot of upstream activities to go right in order for pricing to be optimal as well. Too often pricing is that last variable at our disposal when
Modern manufacturing has come a long way in employing rigorous quality initiatives, but when a defective toy, electronic – or even a baby diaper – does slip past the quality initiatives, the current customer sentiment climate can make the situation go from bad to worse very quickly. It isn’t easy
