Supply Chain Visibility and the Bottom-line

Visibility Matters. Rick Morris, a Certified Supply Chain Professional wrote in Supply House Times that while improving fill rates, improved forecast accuracy also lowers inventory levels measured in days of sales; and simultaneously, improved forecast accuracy improves fill rates and lowers inventory. He suggested this translates into increased profitability. When analysts have studied companies that were best-in-class in demand forecasting, they found these companies averaged (according to Advanced Market Research)

Creating Trust Throughout the Supply Chain Using Demand-Driven Methods

How reducing forecasting errors and disruption risks create better supplier relationships. Building trust in the supply chain is essential to driving flow; and when there are forecast errors, there is an inherent mistrust throughout the supply chain. Lack of collaboration is often the cornerstone of conflict, blame, and mistrust between a manufacturer and suppliers. Missed shipments tend to lead to finger-pointing, followed by over-buffering on both sides to guard against

Lean Manufacturing Driven by Rapid Return on eKanban Technology Investment

Lean Manufacturing relies heavily on trusted relationships with suppliers and pre-negotiated terms of engagement. Through the use of supplier quality certifications and blanket (long-term) purchase orders, a manufacturer can accurately and effectively calculate the optimal level of inventory needed to fulfill demand requirements through the duration of replenishment lead time. Ensuring supplier performance When a relationship is setup with a supplier, a service level agreement is defined. Items such as

Demand Driven Manufacturing in the Engineer-to-Order Space

Aligning Lean Manufacturing and Continuous Improvement Practices Demand-driven manufacturing (DDM) is an approach to manufacturing where production is based on actual demand rather than forecasts. DDM enables a synchronized, closed loop between customer orders, production scheduling and manufacturing execution – all while simultaneously coordinating the flow of materials and resources across the supply chain. The terms Pull-based manufacturing and Just-in-Time (JIT) manufacturing are also used within the context of DDM

Modern Metrics

How Technology Has Changed What We Measure The two areas of my working world are embracing technology like never before: Marketing and manufacturing. While digital content and automated technologies gave birth to the modern marketer, a more real-time, digitally connected enterprise is driving modern manufacturing strategies like the Factory of the Future, Smart Manufacturing and Industry 4.0 – all of which are grounded in Demand-Driven Manufacturing methods. This got me

Made for Manufacturers

By Sarah Balogh Made for Manufacturers A common statement I hear from customers is that they are working with technology and software that doesn’t provide the functionality they need as manufacturers. They are told that certain enterprise software packages “can do everything” they need to plan, schedule, and run their factories. But months after implementation they feel a sense of disenchantment. Why is this? Software Made for Manufacturing What these