Supply Chain Blog

Optimization Intelligence for Supply Chain
Logistics and Planning Professionals

Is there a compelling reason to implement analytics & optimization? STEP 1 – Prove the bridge is on fire

Cambie Bridge, foggy by  colink. on Flickr: https://flic.kr/p/gSz4iw

Cambie Bridge, foggy by colink. on Flickr: https://flic.kr/p/gSz4iw

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.

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This entry was posted in analytics, Supply chain optimization on by .

Supply Chain Segmentation (SCS) – Can it make a difference?

This post was written by Dr. Gerhard Plenert, author of Supply Chain Optimization through Segmentation and Analytics.

BACKGROUND

Segmentation CoverWe 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.

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This entry was posted in analytics, Segmentation, Supply chain optimization on by .

Santa considering the use of AIMMS to fend off slipping standards

There have been one or two tell-tale signs that Santa and his expansive operation of Elves and Reindeer have been struggling to cope with their commitments in recent years.

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Essential moves to shift from firefighting to optimizing short-term planning

Picture this: you are in charge of demand planning at a firm supplying essential base material to various markets, involving OEMs and CP companies. Your challenge is to balance the carefully established forecast with client demand. Since clients usually don’t adhere to the forecast, your task is to address the gap that emerges between your plan and actual demand, and assign the ‘pain’ to either sales or supply. Armed with ‘rules of thumb’ (product demand with high margin prevails over lower margin) and ‘guidelines’ (segment A clients have priority) you pass your judgment. Day after day, you experience that reality requires many more trade-offs than your guidelines allow for. How often are your verdicts met with approval?

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This entry was posted in demand planning, fulfillment, Scenario building, Supply chain optimization on by .

Welcome back to a world of innovation

My Twenty years of Supply Chain Operations, Consulting and Business Management drew to a close in the Spring of 2014 as I elected to take a break from my career and invest 100% of my time into family. It’s been a fairly wild journey which consisted of operational roles in warehousing and logistics across Europe followed by a consulting and business management career that had me employed by companies headquartered in London, Paris, Virginia and Bangalore.

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This entry was posted in Innovation, Optimization on by .

4 ways optimization can be leveraged to improve your supply chain

Recently, we covered four great examples of how organizations are using optimization technology to address social problems in innovative ways. In a similar way, this post highlights four ways optimization can be leveraged to add value to your company’s supply chain.

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The One Key Learning from the Gartner SC Executive Conference 2014

“Innovation differs from invention in that innovation refers to the use of a novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better.” – Wikipedia on “Innovation”

This year’s Gartner summit gravitated strongly towards innovation. In terms of their DDVN (Demand Driven Value Network) maturity model, they focused on the deployment of relatively new ideas or methods on Stage 4. In their language, the focus was on progressing from an ‘Integrated’ supply chain to a ‘Collaborative’ supply chain. Steps in the process fall into two categories: those that work on enabling collaboration, and those that seek to get value out of collaboration.

Interesting as they are, the finding that intrigued me the most at the conference was the struggle to find the right supportive technology. With each conversation we had, be it with companies or analysts, the point was being made that progress had been delayed by the struggle to find the right technology.

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This entry was posted in Conferences, Supply chain optimization on by .

Support for long-haul oil transportation vessel scheduling at Petrobras

BR-SINES-AGBAMI Long-haul oil transportation is a multi-million dollar operation for large oil companies such as Petrobras. The difference between a reasonable and a good transportation schedule may involve millions of dollars in cost savings. To properly schedule each shipment, planners must find a match between cargos, vessels and destinations. Petrobras is one of the players in the spot market of chartering and renting out long-haul oil transportation vessels. How do they manage to combine the computational aspect of searching through the vast space of possible schedules and the human aspect of operating on the spot market of chartering and renting out vessels? This blog post offers an insider’s look into the AIMMS-based decision support system (DSS) that is currently being used by Petrobras to tackle this ship scheduling challenge. Continue reading »

This entry was posted in Optimization, Scenario building on by .

4 Inspiring Ways Optimization is Being Used for Social Good

Since we started this blog, we’ve been exploring how supply chain optimization can aid the decision-making process and bring organizations better results. We have covered a multitude of methods and techniques applied in the pursuit of supply chain excellence, and have discussed some of the most pressing challenges faced by today’s business leaders. Today, inspired by our mission to bring the benefits of optimization to society as a whole, we will look at 4 inspiring AIMMS use cases which leverage optimization technology not only for business advancement, but for the greater good. Continue reading »

This entry was posted in Non-Profit, Optimization, Uncategorized on by .

Key trends in SC continued, as seen at the 2014 European Supply Chain & Logistics Summit in Barcelona

Image Vandaag 12_21_21It was great to visit the European Supply Chain and Logistics Summit again this year. On the whole, supply chain leaders seem to be recovering from the blow of the economic downturn, and are looking ahead to seize opportunities. This contrasted with last year’s SC&L Summit, which was all about declining demand in the face of global economic change. The prospects then seemed daunting. But there were also some positive things. For instance, companies started realizing how important it is to leverage SC Analytics, and there was the growing notion that investing in excellent SC people actually does make a difference. Continue reading »

This entry was posted in Conferences, Supply chain optimization on by .
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