Analyst Insight: Based on a survey of 160 supply chain leaders in a recent webinar conducted by Steelwedge, we found that companies captured a whopping 70 percent more data (product, supply, demand and finance) to manage their organizations in 2012. Yet, 77 percent of these businesses are not actually leveraging this data in their S&OP processes, thereby leaving "blind spots" in their decision making processes around critical supply/demand trade-offs.
- Nari Viswanathan, Vice President of Product Management, Steelwedge
Analyst Insight: For the past 30 years, sales and operations planning (S&OP) has been espoused by the Oliver Wight organization based on its founder's concepts. It has manifested itself to include inventory (SIOP) and has morphed into integrated business planning (IBP). However, only within the last five years, has it been heralded and crossed the chasm to mainstream business practice. We think it may only be the tip of the iceberg though, not the core solution to step-change improved performance. - Rich Sherman, Supply Chain Discipline Expert at Trissential
There are several overarching themes driving the push for more automation inside the four walls. Some relate to changing demographics in the labor force, others to how consumers are shopping today, and let's not overlook the constant striving for more efficiency, productivity and cost reduction.
China Federation of Logistics and Purchasing (CFLP) made a preliminary estimation that China's social logistics value, the collective value of all logistics operations in the country, and the industry's added value, will be growing at a rate of 10 percent in 2013, and that there's little chance that the percentage logistics costs take up in the gross domestic product will drop.
Analyst Insight: Sales and operations planning (S&OP) still remains a challenge for many organizations. In Aberdeen Group's recent report, S&OP: A Critical Process for Superior Performance, we identified that more than half of the companies (56 percent) that are not best-in-class do not yet have a formalized S&OP process in place. The question becomes "Why and what are the differences between best-in-class and all others?" The answer can be found by examining differences between them for process and organizational capabilities. - Bryan Ball, Vice President and Principal Analyst, Aberdeen Supply Chain practice
Analyst Insight: While much has been written about demand driven, daily demand variability drives operations crazy. Most current inventory planning and optimization applications are disconnected from daily reality resulting in operations relying on custom spreadsheets and tribal knowledge to reconcile the gaps between plan and actual. In addition, the inventory planning applications are often disconnected from the optimization applications (if implemented at all), further exacerbating the operations conundrum. - Rich Sherman, Supply Chain Discipline Expert at Trissential
Analyst Insight: During 2012, high-tech industry executives recognized that optimizing supply chain operations is directly related to profitable growth, higher operating margins and capital efficiency - each of which helps create value. While new products matter, factors such as selection, price, availability and service also enhance the buying experience. - Gene Tyndall, Executive Vice President, Tompkins International
Analyst Insight: "Big data" software and analysis will be the most important supply chain technology for forecasting and demand planning in the years to come. Through analysis of huge quantities of data it provides a competitive advantage by providing unparalleled insights. The challenge for companies will be staying ahead of the technology in a cost-effective manner, and developing organizational processes to effectively utilize the huge amounts of data and absorb the information into their organizational decision making processes.
- Nada R. Sanders, Professor of Supply Chain Management and Iacocca Chair, Lehigh University
TAKE Solutions, a vendor of software for supply-chain management and the life sciences sector, has made enhancements to its OneSCM supply-chain collaboration suite.