Mike Landry, president of Barkawi Management Consultants, North America, explains the "control tower" approach to supply chain management and why he believes this approach can enable companies to go beyond incremental improvements to real transformational change.
Tokyo-based retailer BEAMS Co. Ltd. has incorporated radio frequency identification technology at five B:MING Life Stores that it recently opened in Japan. The stores are employing RFID technology for both tracking inventory and improving efficiency at the point of sale.
Of course mobile is important"”really important. There is a huge platform war under way among the Android, iOS, and Microsoft operating systems that intersect with an array of hardware players that intersect with social and search giants. And for the aggressive and innovative players, the stakes are high as they move in the battle for market share.
Even in today's data-hungry analytics environment, collecting and keeping every tiny granule of retail data - down to the level of each individual transaction and web click - might seem like overkill. But Sears Holdings has discovered that data storage costs have gotten low enough, and analytical tools have grown powerful enough, that this approach to Big Data has shortened the time needed for analytics projects by 60 percent to 70 percent, while also improving promotion conversions, lowering inventory levels and boosting sales.
Multi-tier supply chain visibility is no longer just a pipe dream -- market leaders in every industry segment have visibility not just into their important tier 1 suppliers, but at least a limited cross-section of their tier 2 and tier 3 suppliers as well.
When integrating its two major business units, First Solar partnered with Kinaxis to provide supply and demand planning capabilities, says Shellie Molina, vice president-global supply chain.
In one of the biggest flops of the dot-com era, Webvan went bust less than two years after its $375m initial public offering in 1999. That's because it built a warehouse and distribution system for products that are already available within three miles of most consumers, says Rich Tarrant, CEO of MyWebGrocer.
At the same time that supply chains are becoming increasingly global and complex, customers are expecting faster than ever service, says Vijay Subramanian, president of Prana Consulting.
Putting Albertsons back together again won't be as easy as it looks. The grocery chain was split in 2006 between Supervalu and private equity firm Cerberus Capital Management, with both chains using the same logo in different geographic regions. But on January 10, the two owners decided to reunite what will now be a 650-store chain in a complicated deal that leaves only one thing very clear: These money managers aren't thinking about IT when it comes to reassembling the chain.
Breaking down functional silos to create transparent and responsive end-to-end supply chains has long been an intractable supply chain challenge, but many companies are finding success using a control tower concept that gets everyone working off the same plan and focused on the same outcome.
To learn more about this approach, SupplyChainBrain convened a Power Lunch"”a roundtable discussion"”with four experts in the field: Paul Bittinger, former supply chain transformation manager, Procter & Gamble (now retired); Lora Cecere, founder and CEO, Supply Chain Insights; Don Gaspari, director, global materials and inventory, NCR Corp.; and Kirk Munroe, vice president of marketing, Kinaxis.