When Fujitsu noticed diminishing returns in its ongoing efforts to improve forecast accuracy, it adopted a new strategy of product segmentation, changing inventory policies for difficult to forecast items. Barry Chapman of Fujitsu explains how this strategy was implemented and the benefits that the company is reaping.
Tupperware's unique house-party business model presents interesting demand management challenges. Omar Campbell, director of marketing operations, talks about the importance of demand planning vs. forecasting and how Tupperware is working to improve its demand planning processes.
Data from sources like social media, along with powerful analytic software, are giving companies insights into customer buying habits that never before were possible, says Raj Devarajan of Symphony Analytics. He discusses this and other implications that big data holds for supply chain management.
Widespread market volatility since the economic crisis of 2008 means that traditional forecasting methods are insufficient, says Charles Chase of SAS. Fortunately, advanced technologies for collecting and analyzing vast amounts of real-time data are giving companies new ways to sense and even shape demand.
Supporting the many different channels through which today's consumers shop for, purchase and return products presents tremendous challenges and opportunities for retailers, says Annibal Sodero, assistant professor at the Sam Walton College of Business, University of Arkansas.
Data-based predictive analysis that helps companies anticipate global catastrophes and model potential supply chain disruptions is playing an increasing role in risk management, says Perry Rotella, supply chain group executive at Verisk Analytics.
Executives from supply chain partners Manhattan Associates and Papa John's Pizza discuss how they use modeling and optimization tools to safely test changes in Papa John's transportation policies, leading to continuous service improvements at the lowest possible cost.
Geographical information systems and advanced mapping tools will increasingly be used in the supply chain to map potential risks and mitigation strategies as well as to track people and assets inside the four walls, says Wolfgang Hall, global industry manager at Esri.
MIT's High-Viz Supply Chain Project is developing a way for companies to automatically map and analyze supply chain risk. Bruce Arntzen, executive director of the Supply Chain Management Program at MIT, explains the methodology underlying this project, progress to date and barriers that still exist.
Companies typically spread supply chain costs evenly across customers and products, but that results in some products and services subsidizing others, says Stan Aronow, director of supply chain research at Gartner. Aronow explains how cost-to-serve modeling can provide insights that lead to smarter and more profitable operating decisions.