Backward-looking KPIs, especially those on safety stock, are a necessity in successful S&OP processes, says Erik Hjerpe of TreeHouse Foods, a private-brand food manufacturer. He explains why this is so and how TreeHouse employs a variety of safety stock strategies.
New product forecasting is one of the toughest demand management challenges, especially for the 15 to 20 percent of product launches that are "revolutionary." Charlie Chase, advisory industry consultant at SAS, explains how advances in technology are improving this process.
Speed, Efficiency, Optimization. For many companies, actualizing this powerful trio can seem more like a dream than a concrete, achievable supply-chain goal. There are ways to realize all three, and the evolving excellence of supply chain technology is providing more and more opportunity to do so. Enter Big Calculations: the act of optimizing your business in real time, to create fast and efficient results.
Studies document that innovation in engineering and production works best when the two disciplines are contiguous. Pairing the two was problematic for one company until an online marketplace came to the rescue.
Segmenting customers and products to lower costs and improve profit margins also results in higher customer satisfaction, says Wade McDaniel, vice president of solutions development at Avnet Velocity.
The big North American distributor of industrial products was looking for a means to eliminate paper and curb the flood of e-mail exchanges generated by its supplier-management efforts. It also wanted to keep closer tabs on a growing supplier base. Time for an automated solution.