‘‘I want highly automated systems, a value chain network that optimizes my service and costs, the best talent available and the necessary predictability so that I can smartly invest in physical infrastructure.’’
It’s becoming clear that supply chain executives aren’t going to get all that they want. Traditionally it takes at the very least 2 years to realize investments in technology and physical infrastructure. Consider that 2 years ago oil was trading at more than twice the current rate, China wage rates were 20% less than today and 40% of supply chain talent with deep analytical expertise was paid by a different employer.
For most enterprise companies, ERP has become a foundational infrastructure technology and a cost of doing business. However, many are finding that it is not the optimal technology for Supply Chain Planning and Optimization. This has led to usage of spreadsheets to help fill in the gaps. But spreadsheets come with new challenges. Leading companies are overcoming these obstacles and finding success with an alternative that is quickly gaining adoption.
A recent report by the ACE European Group identifies supply chains as of the biggest sources of concern for European businesses today. On the one hand, companies are facing growing uncertainty due to volatile exchange rates, rising oil prices and economic and geopolitical events, such as Greece’s financial crisis and the conflict in Ukraine. On the other hand, there is a rising need for smarter and more flexible tools as well as more staff with analytical capabilities. This post will explore these and other challenges as well as the key innovations defining European supply chains.
An Interview with Christian Olsen, Head of Business Development at Höegh Autoliners
I recently had the pleasure of meeting Christian Olsen, Head of Business Development at Höegh, a leading global shipping company specializing in vehicle transportation services. Christian and his team were in our offices taking part in a new 2 day “hackathon” workshop that involved collaborative app development with AIMMS, Höegh and Ab Ovo, an AIMMS IT implementation partner.
The European Supply Chain and Logistics Summit has established itself as one of the largest conferences in the industry. This year, lots of leading companies shared best practices and learnings from their supply chain projects and innovations. The summit offered an impressive speaker lineup, featuring Nestle, Ikea, Samsung, AIMMS clients like Merck, BP, Nampak, BASF, and Philips and our partner Oliver Wight. It was a pleasure to meet several of our customers and share our insights on supply chain analytics at the event.
This month, I had the pleasure of attending Gartner’s Supply Chain Executive Conference in Phoenix. The theme of the event was “The Art of Supply Chain: Creative Solutions for the Next Generation.” Its agenda included over 60 sessions covering the full spectrum of supply chain—from strategy and planning to distribution and logistics. In almost every way this is a large and very professionally run conference with over 1500 attendees, everything you would expect from a Gartner event. In this post, I will summarize some of my favorite takeaways from the conference.
This was my first INFORMS Business Analytics conference and I was not sure what to expect. Looking at the agenda beforehand it looked like it would be a great opportunity to learn how companies spanning across many verticals were using analytics to make an impact and drive value. There were many interesting sessions that I was looking forward to attending to help me get up to speed on the industry.
Lora Cecere is the founder and CEO of the research firm Supply Chain Insights. She is the author of the enterprise software blog Supply Chain Shaman, which attracts 5,000 readers weekly. She also writes a blog for Forbes and is a LinkedIn Influencer. Currently, Lora’s research focuses on supply chain sensing and revenue management. Her supply chain experience includes specialist roles at AMR Research, Clorox, Gartner Group, Kraft, and Procter & Gamble.
Is there a compelling reason to implement analytics & optimization? STEP 1 – Prove the bridge is on fire
A European department store, very well-known and led by one of the most iconic figures in the retail industry was undergoing a major shift. The business had recently pivoted towards a younger, more frequent buyer with the emphasis on dynamic, on-trend fashion.
Retail analytics are typically fruitful due to the availability of granular EPOS sales data and the ability to predict how products will move through their lifecycle due to the differing levels of fashion maturity in each geography. There was serious talent on the team with one guy in particular, Stefan, able to analyze data in ways that consistently blew people away.
This post was written by Dr. Gerhard Plenert, author of Supply Chain Optimization through Segmentation and Analytics.
We tend to get ourselves locked into a one-size-fits-all solution mentality. We solve a problem and because a particular solution worked for us we automatically replicate that solution by attempting to apply it to every problem we encounter. We talk a lot about “out of the box” thinking, but we feel more secure by staying inside our solution box.
The one-size-fits-all dilemma also applies to solving Supply Chain problems. For example, if a particular planning solution works effectively for one product line or customer or supplier, then it must also be the best solution for all product lines. And we apply this solution across the board. Then we stand back and wonder why it didn’t work when we knew for sure that it had worked well in the past.