Getting Down to Brass Tacks: Can We Really Collaborate?

By Lora Cecere
data sharing2 Getting Down to Brass Tacks: Can We Really Collaborate?

Definition: Brass tacks are a type of pin or nail. The phrase to come (or get) down to brass tacks is sometimes used idiomatically to consider the basic facts of a situation. Source Wikipedia

In the 1990s suppliers had channel power. The formula for success seemed foolproof. A new product was launched, the ads ran on national TVs, and “poof” a new brand was created. This all changed with the disintermediation of national media.

During the next decade, the power shifted to the retailer.… READ MORE

FAA Facility Fire and Supplier Risk Management

By Edith Simchi-Levi
d6dfd789 d1d9 44f6 b935 41d249b6f77f FAA Facility Fire and Supplier Risk Management

Last Friday, two of the busiest airports in the US, O’Hare and Midway, were closed down due to a fire at an FAA facility in Aurora IL. Delays and cancellations rippled through the air-travel network from coast to coast after the fire. By late afternoon, about 1,950 flights in and out of Chicago were canceled.

This news raised questions about whether FAA backup and recovery plans are able to keep planes moving when a facility shuts down. According to the FAA spokeperson “When the center was evacuated, management of the region’s airspace was transferred to other facilities”.… READ MORE

How to tackle Facility and Supplier Risk Management

By Edith Simchi-Levi
d6dfd789 d1d9 44f6 b935 41d249b6f77f How to tackle Facility and Supplier Risk Management

Last Friday, two of the busiest airports in the US, O’Hare and Midway, were closed down due to a fire at an FAA facility in Aurora IL. Delays and cancellations rippled through the air-travel network from coast to coast after the fire. By late afternoon, about 1,950 flights in and out of Chicago were canceled.

This news raised questions about whether FAA backup and recovery plans are able to keep planes moving when a facility shuts down. According to the FAA spokeperson “When the center was evacuated, management of the region’s airspace was transferred to other facilities”.… READ MORE

Bull-whipping or driving the Demand?

By Dr. Chockalingam

Bullwhip effect is a phenomenon of demand being overestimated or underestimated as it passes through various stages of supply chain resulting in exaggerated supply fluctuations. The increased variability in demand at successive stages of supply chain trigger increases in inventory carried in different stocking points in the supply chain.

Myth: The Forecast is the primary reason of the bull-whip

Reality: The absence of a demand plan that captures more down-stream customer intelligence is the real culprit.

So contrary to the oft-expressed cliche on the Forecast being the problem, in reality when demand shocks occur, players in the supply chain react to the shock in different ways causing the bull-whip.… READ MORE

Bossy

Warning: This blog is written for a rational audience that likes to have fun wrestling with unique or controversial points of view. It is written in a style that can easily be confused as advocacy for one sort of unpleasantness or another. It is not intended to change anyone's beliefs or actions. If you quote from this post or link to it, which you are welcome to do, please take responsibility for whatever happens if you mismatch the audience and the content.… READ MORE

Useful training on Demand Planning – Chicago October 2014

By Dr. Chockalingam

We just completed our two day workshop on Sales and Operations Planning in Boston – Some planners new to the field and some others who are already working on the process and want to take it to the next level – IBP or the Integrated Business Planning.

Our next stop is Chicago for our popular Demand Planning Workshop on way to the India seminar to happen in Mumbai in early November. The workshop will be held at the Four-Point Sheraton at Chicago Airport on October 15-16, 2014

Just to quote some comments from our attendees in May of this year:

“Excellent material given to us during the workshop.… READ MORE

Third Party is the Perfect Place for Logistics Professionals

By scn
25a733e Third Party is the Perfect Place for Logistics Professionals

There has been much discussion on what Logistics is and the emerging role and recognition of the importance of Logistics professionals within organizations. In fact a recent post of mine even asserted that ‘Logistics is the New Black!’

Highlighting this point, the Logistics profession continues to grow rapidly and is projected to grow 22% by 2022 (27,600 jobs) a rate much faster than the average of all occupations according to the Bureau of Labor Statistics.

My premise here is that the most desirable future role for these individuals is not working within actual retail and manufacturing organizations proper, but as key players in Third Party Logistics (3PL) provider companies where their interest and expertise are perfectly aligned with the core business of their employer.… READ MORE

Starting to Write a Dilbert Movie

I know from past blog posts that many of you are interested in the creative process. So I thought I would take you on a journey as I prepare to write a Dilbert movie script. Today is the first installment of this story. I expect it to take 6-12 months. I'll update you periodically.

Everyone approaches this sort of thing differently, so this is just my process.

Allow me to first give you some background.

I have tried several times in the past to get a Dilbert movie made.… READ MORE

More ISIS Strategies

I have two new strategies for fighting ISIS. As you know, all strategies for fighting ISIS are impractical, expensive, and terrible. I'm just adding two more bad ideas to the mix.

The only strategies on the table at the moment are these:

1. Seal the borders of the Caliphate and kill every living creature within.

2. Surrender and convert to Islam.

3. Kill some but not all ISIS fighters and guarantee permanent war plus an eventual strike on the homeland. (Current plan.)

4.… READ MORE

Let the Qs Begin

By Lora Cecere
qs 300x134 Let the Qs Begin

Last week was the Supply Chain Insights Global Summit. It was great to see old faces at the kick-off. 110 supply chain leaders attended.  I smiled on the week following the conference as the accolades piled up in my inbox.

In preparation for the summit, we readied the final report of the work on translating balance sheet results into a methodology to judge Supply Chain Excellence. This report, The Supply Chains to Admire, compares the progress of 200 companies within their respective peer groups on both performance and improvement.… READ MORE

Wizard Wars

I have dubbed the coming decades the Age of Magic because our smartphones and other technology will soon allow us to navigate our environment as if we are wizards. Doors will identify us as we approach and unlock for the right wizards only. Lamps will respond to wizard hand signals from across the room. Cars will drive themselves. You get the picture. In about ten years you won't need to physically touch anything you want to control. Your location and identity will be continuously broadcast from your smartphone, and because of that your environment will respond to your preferences as if by magic.… READ MORE

Seven Benefits to Flat Supply Chain Costs around the Optimum

By Edith Simchi-Levi
d7875dd9 54ae 4e85 9902 e81840012e35 Seven Benefits to Flat Supply Chain Costs around the Optimum

End to end optimization provides a way to take into account tradeoffs in the supply chain. These are typically between cost and service taking into account many factors that influence the design and flow of the supply chain. The advantage of taking an optimization approach is that provides a “what’s best” solution that can help reach the efficient frontier thereby reducing costs while maintaining service levels.

The most common applications are network design and inventory optimization. Supply chain risk, revenue management, asset utilization and other goals can be pursued in a similar fashion.… READ MORE