Analyst Insight: Innovative and strategic supply chain segmentation is a key strategy for effective supply chain analysis, enabling greater responsiveness and the ability to focus resources. Competition requires a better identification of key supply chain segments, considering that 80 percent of results come from 20 percent of items. An additional factor adding complexity is that increasingly manufacturers are adding services as part of their offerings - termed "servitization." Effective segmentation is the key to managing these complexities. - Nada R. Sanders, Professor of Supply Chain Management and Iacocca Chair, Lehigh University
How do you go from good to great when pursuing a career in supply-chain management? James Masotti, continuous replenishment analyst with Campbell Soup, has some answers.
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: Neither a lack of cogent definitions re: what these services and technologies are nor confusion in pricing models is slowing down interest in cloud, SaaS and on-demand solutions. Our research shows a consistent increase in buyer adoption of enterprise and consumer applications - cloud-accessible - from desk top, smartphones and tablets of all size companies in all industries.
- Ann Grackin, CEO, ChainLink Research
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
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: Software has become extremely effective in tracking and tracing the smallest detail. In actuality, enterprise software vendors have incorporated recall management and best practices into their software. Organizations often lack the necessary policies and procedures to facilitate reverse logistics processes, but software is not one of the deficiencies. -- Keean Persaud, Managing Director, Eval-Source
Analyst Insight: Retail has reached a number of crucial tipping points. The economy, online shopping, technology, store relevance and other factors are driving companies to the crossroads where business strategy meets the supply chain. Traditional thinking around customer satisfaction, distribution networks and operations is obsolete given the huge impact of these tipping points on all supply chains. Going beyond the crossroads means having the right business strategy and having the right supply chains. - Jim Tompkins, CEO & President, Tompkins International
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.
Analyst Insight: As traditional retailers feel the sting of Amazon's long tail whip, e-commerce and retail are merging into omni-channel strategies. In the Connected Age everyone is always connected to everything, always on, and location based. Just as the power shifted from manufacturer to retailer, the power in the retail channel has now shifted to the consumer who can buy anything from anyone, anytime, from anywhere. You better know your customer and your market to succeed. - Rich Sherman, Supply Chain Discipline Expert at Trissential