The global supply chain management industry is "in flux and changing", requiring a more sophisticated approach to managing the alignment of supply and demand, says Hamish Brewer, CEO of US-based supply chain management solutions group JDA Software.
Retail organizations are facing a seismic shift in the markets they serve - from multiple channels to international expansion. But are the systems in place to fulfill orders and manage returns across this altered and highly complex landscape?
According to a survey of 600 manufacturing and retail executives conducted by Deloitte, 71 percent of the executives surveyed view supply chain risk as "an important factor in their companies' strategic decision making, including 20 percent who view it as extremely important." Yet, 42 percent of the executives from large companies said their supply chain risk management programs are only somewhat or not effective.
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
Federal contractors are going to be hearing the words "supply chain" a lot over the next 18 months. Having a certifiably secure supply chain will eliminate a potential mark against your selection as a source, just as having the appropriate contract vehicles eliminates friction.
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
Jason Denmon, apparel industry executive with Fortna, offers advice on how companies can utilize a common distribution center for servicing multiple brands or channels - and why it's so tough to get it right.