SCM Strategies: Preparing For The Recovery

1,248 views

Published on

Kinaxis| The ferocity of the recession served to exacerbate and accelerate the underlying challenge of managing volatility. Traditional supply chain planning approaches were never designed to accommodate the degree of volatility manufacturers are facing today. This presentation highlights four steps companies should take to help them embrace the chaos and create supply chain operations performance strategies for the long-term.

Published in: Business, Technology
  • Be the first to comment

SCM Strategies: Preparing For The Recovery

  1. 1. Four Steps to Take Now to Prepare for the Recovery: Strategic Supply Chain Management Strategies to Maximize Operations Performance Over the Long-Term (a white paper summary) John Sicard executive vice president, development and service operations jsicard@kinaxis.com Copyright © Kinaxis 2009. All rights reserved.
  2. 2. Handling unpredictable cycles • Manufacturers have been hit with an unprecedented number of unavoidable and undeniable macro level trends. To name but a few existing stress points: • global and pervasive outsourcing • shrinking product life-cycles • stringent government regulations • increasing competition • The ferocity of the recession simply served to exacerbate and accelerate the underlying challenge of managing volatility 2 Copyright © Kinaxis 2009. All rights reserved.
  3. 3. Are traditional approaches and tools failing you? • Traditional supply chain planning approaches and tools were never designed to absorb the degree of volatility companies are facing today. • Running batch-based optimization analytics (based on assumptive parameters attached to complex and fixed supply chain models) does not provide for flexibility, nor do they purposely take into account the kind of human judgment required when decisions must be made between varying compromises. 3 Copyright © Kinaxis 2009. All rights reserved.
  4. 4. Embrace the chaos • Companies need to look for innovative ways to empower the people working on the front-line. This is where day- to-day decisions are made that can either bring a company closer to success or further away. • We are emerging from an age where software has played a leading role governing supply chain activity, to an age where teams of people are trusted to exercise their creativity and judgment in a collaborative fashion based on what is happening in real-time. • Software is still necessary, but is moving to a supporting role rather than a leading one. 4 Copyright © Kinaxis 2009. All rights reserved.
  5. 5. 4 essential steps 1) Get your Data • Regain control over demand and supply chain data — establish one version of the truth across the virtual multi- enterprise supply chain • What‟s needed: • A multi-enterprise structure that supports inter-site connectivity of heterogeneous data systems • Any-time refresh of any portion of data without interruption to users inspecting it • Time stamping of data records, with ability to view previous states • Data validation tools to capture erroneous data • Alert mechanisms to warn when data is either corrupt, or scheduled feeds are missing • Robust data security profiling • Flexible on-demand reporting and filtering mechanisms 5 Copyright © Kinaxis 2009. All rights reserved.
  6. 6. 4 essential steps 2) Establish Robust Supply Chain Surveillance System • Establish a sophisticated early warning system— knowing sooner of a critical event ensures adequate runway to course correct. • Individuals should be self-empowered to identify what they would like “watched” within their prescribed level of tolerance, and how/when they are to be notified. • Unexpected events are not all created equally. Individuals should be alerted on the impending impact of unexpected change, not just the change itself (e.g., material that fails inspection is only urgent if that same material is gating delivery of an order.) 6 Copyright © Kinaxis 2009. All rights reserved.
  7. 7. 4 essential steps 3) Empower People to Collaborate • The great flaw in optimization-based approaches to today‟s business challenges is that they distinctively take humans out of the equation. • There is dramatic value in managing the relationships between the people involved in the supply chain, and managing their individual responsibilities as players in the process. 7 Copyright © Kinaxis 2009. All rights reserved.
  8. 8. 4 essential steps 4) Merge Supply Chain Planning and Execution • At the heart of that is a complete re-think of Sales & Operations Planning (S&OP) processes. • A „continuous S&OP‟ needs to be established, automating the involvement of sub-teams to review and repair portions of the S&OP at precisely the time they go out-of-kilter. 8 Copyright © Kinaxis 2009. All rights reserved.
  9. 9. The recession can be your catalyst • Recessionary times often work as a catalyst to conceiving breakthrough innovations • The market is ready for new methods and tools for: • integrating and synchronizing the extended supply chain data • implementing a robust sense-and-respond surveillance system • empowering collaborative analysis and decision making • merging supply chain planning and execution • With these fundamental building blocks in place, a new and compelling best-practice bar will be established for S&OP, supplier collaboration, perfect order promising, inventory management, and many more key supply chain processes. 9 Copyright © Kinaxis 2009. All rights reserved.
  10. 10. Download the white paper: Four Steps to Take Now to Prepare for the Recovery www.kinaxis.com company /resource center /white papers Copyright © Kinaxis 2009. All rights reserved
  11. 11. Share your comments & ideas on the Kinaxis Blog http://blog.kinaxis.com Copyright © Kinaxis 2009. All rights reserved.

×