Blog
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It’s Time to Revisit Vendor Managed Inventory
A few decades ago, Vendor Managed Inventory (VMI) was a hot topic. Many manufacturers saw it as a way to reduce inventory levels and costs. If they could get their suppliers to maintain ownership of raw materials or subcontracted components until consumed, inventory levels would naturally drop—on paper anyway. Because they were giving most, or…
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Distinctions Between Discrete and Process Manufacturing
Process manufacturing is different, distinct, and distinguishable from discrete manufacturing. Process manufacturing uses formulations versus discrete manufacturers use Bills of Materials (BOMs) and assembles along a routing. Process manufacturers blend a batch – often a literal recipe found in food and beverage manufacturing. Discrete manufacturers are typically ETO (engineer-to-order), which includes make-to-stock (MTS), make-to-order…
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Lean Manufacturing and Continuous Improvement
Building Muscle for Waste Awareness It almost seemed hackneyed: Lean manufacturing and continuous process improvement. The phrase is tossed about with a certain familiarity and forgone conclusion. Yet this intentional, ongoing process of improving services, and procedures to improve flow, customer satisfaction, quality, safety, and profit means nothing without metrics. A systematic process which identifies…
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Podcast: Part 4 of the 5 Key Elements that Drive Flow – Extend to the Supply Chain
Podcast: Part 4 of the 5 Key Elements that Drive Flow – Extend to the Supply Chain This episode of Demand-Driven Matters is the fourth in the series focusing on the 5 key elements that drive demand-driven manufacturing production flow. In this episode, the focus is on how to engage and synchronize the external supply…
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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…
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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…