Category archives: AIMMS
Liberty Global is the world’s largest international TV and broadband company with operations in more than 30 countries. The company started working with AIMMS and our implementation partner Districon in October 2015 to develop a Demand Aggregation tool. Today, they are looking to expand their use of AIMMS for other planning capabilities. We had the pleasure to speak with Willem Vesters, Liberty Global’s VP Global Supply Chain Planning, to learn more about their optimization journey.
Hi Willem, can you please tell us more about your background?
I am originally from Breda, a city in the southern part of the Netherlands. I have a Master’s Degree in Aerospace Engineering from Delft University of Technology but I’ve spend most of my career in operations. I worked at ING for a short period, then moved to Philips and subsequently I became the Supply Chain Planning Director for Office Depot in Europe. These days, I head up the Supply Chain Planning division at Liberty Global.
As we discussed it in our previous blog post on Integrated Supply Chain Optimization (ISCO), with ISCO considerations such as demands, materials and capacities are taken into account simultaneously during Master Supply Chain Scheduling (MSCS). Multiple strategic, financial, demand, supply and delivery scenarios are consolidated into one decision process which respects all restrictions, options and priorities. In an effort to explore how the approach works in a real world case, we explored its application at JBS, a world leader in meat processing. The JBS case revealed that ISCO led to a 25% increase in the company’s gross margin. The approach allowed the company’s sales team to identify opportunities from a margin perspective, fully leveraging opportunities that arise from market situations and production capacity.
As we discussed in our previous blogpost, Integrated Supply Chain Optimization offers undeniable benefits for your organization. The industry is abuzz with talk about this trend as well. ORTEC’S John Poppelaars referred to this approach as the optimization of the value chain in a recent post, and leading supply chain blogger Lora Cecere shared an urgent pitch for horizontal collaboration and planning over the entire value chain on Forbes earlier this month.
Should I make or buy? Should I make to order or make to stock? Where should I keep my inventory, close to my client or in my factory? How much should my safety stock be and when should I reorder? How can I minimize my supply chain costs? Is inventory an asset or a waste?
Companies have always been tormented by these questions. The answer is not hidden in their supply chain network; it is the supply chain network itself. Companies that acknowledge their supply chain as a strategic asset achieve 70% higher performance.* In order to move towards the efficient frontier and achieve higher performance with minimum supply chain costs, a company should understand its uniqueness. Each organization has a unique makeup or configuration. Accompanied by a differentiated brand promise, this configuration can lead to the ongoing evolution of supply chain intelligence. But how can supply chains get smarter nowadays?
What do you do when you seem to have exhausted all options for further inventory reduction, footprint reduction, transport bill reduction, or working capital reduction, and your board demands these things of you once more along with further performance improvements? You’ve gone through all the major Lean programs, adopted 6 Sigma along the way, implemented TQM, deployed the finest forecasting software and tested out multiple vendors only to find yourself at a loss for new options. When you find yourself in this kind of situation, it’s time to move towards an integrated supply chain.