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 all of their business to one supplier, they were also in a position to negotiate
Jessica Twentyman reported in the Financial Times, that for many manufacturers, supply chain collaboration is stuck in the dark ages. When it comes to ordering materials and components, managing inventory levels, or organizing the delivery of finished goods to customers, companies are forced continually to chase business partners – mostly suppliers, logistics companies, and retailers – via a messy stream of emails, phone calls, and even faxes. Worse still, much
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)
Leveraging Project “Constraints” and Maximizing Results As a project manager for demand-driven, lean manufacturing software, I have more than a nodding acquaintance with the theory of constraints (TOC). What I find quite remarkable is the ability to apply the theory of constraints to other mediums beyond the manufacturing of goods – even something like project work. When a client
In the second part of our three part series on successful implementation strategies, we discuss one of the most important project setup strategies – the RACI. Part Two- The RACI As I’ve mentioned before, implementation projects end up being mostly about the people involved. Project success hinges upon how effective the project team is in harnessing their own particular talents and in placing the right eyes over the right set
Logistics planning to enable project relationships – practical directives from an industry veteran. Part One: Love Your Logistics At the end of the day, implementation projects end up being about people—their skills, styles, and investment in the project and the project’s success. As you may well imagine, there are quite a few ways to set up effective relationships. For me, these fall into three categories: Project documentation; communication: and logistics.