eng
About   |   Newsletter
Demand & Supply Chain Management Evolution




20 Feb 2019
Is it time to integrate your supply chain design with execution?

Jeff Stabell
JDA

It wasn’t that long ago that integrating all the strategic, operational and tactical aspects of your end-to-end supply chain was considered a pipe dream.

Times sure have changed!

Customer expectations for product availability and seemingly endless purchasing channels are driving many companies to move product faster and smarter than ever before. Today, a company’s success is largely driven by:

  • its network design and how that company manages its supply, production and distribution locations
  • its inventory management and where and how well it deploys inventory to optimize customer service levels and profitability
  • its transportation management and how well it continually procures, plans, executes and monitors freight.

Let’s take a closer look at each of these key areas.

 

Network design

Network design — the strategic foundation of your supply chain — has certainly come a long way. It wasn’t that long ago when designing your supply chain network was like doing your tax return. You didn’t necessarily want to do it, but at least once a year you had to dig in and run some analysis, see if you were leaving any money on the table and ensure you stayed out of trouble.

Today, the strategic decision of “where to locate my next distribution center” is critically important for most companies to win customers and compete with companies like Amazon. Equally important, having an optimized plan — one that determines which products should be manufactured at which locations and shipped to which distribution centers and retailers — is more likely to be a weekly exercise rather than an annual one. For many companies, this represents a significant mindset change.

 

Inventory management

Likewise, operational considerations like optimized inventory management have never been more important. Companies today are increasingly using multi-echelon inventory optimization to “slice and dice” product consumption patterns, revenue, margin, cost-to-serve, channels, velocity, seasonality and other key attributes to optimize inventory strategies. By doing so, they can quickly adapt inventory and stocking strategies to address changing market conditions, business objectives and supply chain constraints.

 

Transportation management

Finally, the tactical aspect of your end-to-end supply chain — transportation modeling — has become more important. The ability to procure, plan, execute and monitor freight across multiple modes, borders and enterprises is a huge challenge, but leading companies are finding new ways to quantify and optimize logistics plans to balance service and cost trade-offs.

These three vital areas of supply chain management — network design, inventory optimization and transportation modeling — create a formidable competitive advantage when integrated. For example, by helping integrate the strategic, operational and tactical aspects of an automotive company’s supply chain, JDA helped identify ways to reduce greenhouse gas emissions by an estimated 25 percent while also reducing costs by about 10 percent.

When it comes to integrating the strategic, operational and tactical elements of your supply chain, there’s never been a more important time to reexamine your strategies. Learn how JDA Supply Chain Strategist can help you accelerate your network design initiatives to tackle unprecedented industry volatility today.

 

 

 

 

 

 









 
           Circular Economy     Industry 4.0     Blockchain 

     Internet of Things     Omni Channel 


Join us on


News & Trends
 

Last update 5 Jun 2019
PMI drops to lowest since September 2009
   Source: Markit US Manufacturing PMI ô  -  IHS Markit
United States 


Retail

The retail sector is always on the move. Whether this involves shopping centres, shops in inner city locations or at airports – trends change very quickly and the goods change just as rapidly too. To keep up with these developments, highly complex and process driven supply chains are needed. With our...


Itís Time to Demand More from Your Supply Chain Control Tower

Supply chains are getting more and more complex, thanks to soaring customer expectations for service and responsiveness and endless purchasing options. In this environment, how can a company manage what it can’t...

   

Education
 

Local & Regional Agenda
 


Resources
 
MADEL: Roadmap to Industry 4.0: Planning & Scheduling in the personal & home care industry

Established in 1977 Madel Spa, is a leading Italian manufacturing company specialized in products for home & personal care. Madel’s mission is the capability to create high-quality and environmentally sustai...

2018 Top Ten Trends in Modern Demand-Driven Manufacturing

With all signals pointing toward a good year, manufacturers have a decision to make. They can enjoy the strong economy while it lasts or look to the future and invest in technologies that will help them build a strong...


International Agenda