Justify Supply Chain applications. Justifying expenditure on software for Supply Chains is a tough sell – there are other functions with equal demands for money. It requires a careful definition of requirements, commencing with answers to a few basic questions. What are the business reasons for needing the application(s)? What are the criteria for evaluating and buying the software? What methodologies … Read More
Implement the S&OP process for supply chain success
S&OP as the hub of your business. My previous post discussed Sales & Operations Planning (S&OP) becoming the ‘hub of your business’. After about six months, a successful implementation of the initial stage can result in the executive team working from one plan. That is an improvement over the more common situation, where the profit centre manager is lobbied by … Read More
Sales and Operations Planning, the hub of your business
Why are you not using S&OP? In business, we live (and die) by financial results. The Profit & Loss and Balance Sheet tell us the financial result of our actions for the past period(s). My question for clients is why financial budgets, with all their defects, is the only tool used for looking forward. For more than 30 years, Sales … Read More
Demand and supply risks at logistics service providers
Risks with commodity services. Many people work in or are affected by the volatility of markets for commodities and commoditised services. The challenge for Procurement professionals and Logisticians is to understand (and plan for) the state of a supply market at a point in time in the future, recognise the associated risks and attempt to mitigate them. Supply markets and … Read More
There are capacity constraints in your operations
Planning is critical. For the flows of materials and money into, through and out of your business to be effective, they must be planned. Planning is a core capability of a successful business; without it, staff become reactive to events. This looks good as a ‘can do’ attitude, running around to ‘put out fires’, but it is an ineffective and … Read More