Five Reasons Why We Have Not Made Progress on Inventory Management
•Download as PPTX, PDF•
1 like•772 views
Presentation made at the Gains Systems event on October 2, 2018 on the current state of inventory management
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Five Reasons Why We Have Not Made Progress on Inventory Management
Similar to Five Reasons Why We Have Not Made Progress on Inventory Management (20)
More from Lora Cecere
More from Lora Cecere (20)
Recently uploaded
Recently uploaded (20)
Five Reasons Why We Have Not Made Progress on Inventory Management
- 1. Cracking the Code: Inventory Management September 2018 For the Supply Chain Leader Who Wants to Rise Above
- 2. Supply Chain Insights LLC Copyright © 2018, p. 2 I Am A Social Scientist
- 3. Supply Chain Insights LLC Copyright © 2018, p. 3 I Write for the Supply Chain Leader
- 4. Supply Chain Insights LLC Copyright © 2018, p. 4
- 5. Supply Chain Insights LLC Copyright © 2018, p. 5 What I Believed
- 6. Supply Chain Insights LLC Copyright © 2018, p. 6 What I Learned: A Balanced Metrics Portfolio Drives Value
- 7. Supply Chain Insights LLC Copyright © 2018, p. 7 Today’s Reality
- 8. Supply Chain Insights LLC Copyright © 2018, p. 8 Growing Inventory Levels
- 9. Supply Chain Insights LLC Copyright © 2018, p. 9 Voice of IT
- 10. Supply Chain Insights LLC Copyright © 2018, p. 10 Voice of Business Leaders
- 11. Supply Chain Insights LLC Copyright © 2018, p. 11 WHY? 5 Reasons
- 13. Supply Chain Insights LLC Copyright © 2018, p. 13 Planning System Effectiveness
- 14. Supply Chain Insights LLC Copyright © 2018, p. 14 Data Inputs Engines Plan Outputs Align Engines with Outcomes Planning Master Data
- 15. Supply Chain Insights LLC Copyright © 2018, p. 15 • Engines: Modeling/Math • Scalability • User Interface • Collaboration/What-if Analysis • Partner Requirements • Culture • System of Record • Integration Selection Criteria for Planning
- 16. Supply Chain Insights LLC Copyright © 2018, p. 16 • Engines: Modeling/Math • Scalability • User Interface • Collaboration/What-if Analysis • Partner Requirements • Culture • System of Record • Integration Selection Criteria for Planning
- 17. Supply Chain Insights LLC Copyright © 2018, p. 17 • Engines: Modeling/Math • Scalability • User Interface • Collaboration/What-if Analysis • Partner Requirements • Culture • System of Record • Integration Selection Criteria for Planning
- 18. Use of Excel Spreadsheets
- 19. Supply Chain Insights LLC Copyright © 2018, p. 19 The Building of Excel Ghettos Isolated, Disconnected Decision-making
- 20. Supply Chain Insights LLC Copyright © 2018, p. 20 Advanced Inventory Software Makes a Difference
- 22. Supply Chain Insights LLC Copyright © 2018, p. 22 Embrace the Form & Function of Inventory
- 23. Supply Chain Insights LLC Copyright © 2018, p. 23 Form & Function of Inventory
- 24. Supply Chain Insights LLC Copyright © 2018, p. 24 Need for Holistic Thinking
- 25. Alignment
- 26. Supply Chain Insights LLC Copyright © 2018, p. 26 Inventory: Business Pain
- 27. Supply Chain Insights LLC Copyright © 2018, p. 27 Gaps
- 29. Supply Chain Insights LLC Copyright © 2018, p. 29 Normal Distribution SKU/L SalesVolume Anything But Normal Consistent and Forecastable: 874 items representing 77% of the volume and 74% net sales. 64% of the volume is forecastable with a 55% error. Inconsistent demand: 1723 items representing 23% of the volume and 26% net sales. Traditional Optimization Techniques Need for Machine Learning/Pattern Recognition: Inventory Strategy Not Forecastable by Conventional Means Client Case Study
- 30. Supply Chain Insights LLC Copyright © 2018, p. 30 • A pattern caused by order frequency, order quantity or batch size. • A type of demand: price/promotion, new product launch, seasonal consumption, special orders. • A product build to execute a supply chain strategy. Life for a supply chain planner is not as easy as it used to be. Demand Flows require aligned Inventory Strategies. What Is a Demand Flow?
- 31. Supply Chain Insights LLC Copyright © 2018, p. 31 Example: Navigating Demand As A River
- 32. Supply Chain Insights LLC Copyright © 2018, p. 32 Correct Diagnose Assess Supplier Quality Supplier On-Time Purchase Costs Dir Mtl Costs RM Inv Cost Detail Production Schedule Variance Plant Utilization WIP + FG Inventory Order Cycle Time Perfect Order Detail AP AR Inventory Total Cash-to-Cash Demand Forecast SCM Cost Perfect Order Lack of Understanding of Demand Source: AMR Research 2004
- 34. Supply Chain Insights LLC Copyright © 2018, p. 34 Today’s Supply Chain
- 35. Supply Chain Insights LLC Copyright © 2018, p. 35 Tomorrow’s Supply Chain Requirements
- 36. Supply Chain Insights LLC Copyright © 2018, p. 36 A Need for Balance
- 37. Supply Chain Insights LLC Copyright © 2018, p. 37 A Balanced Metrics Portfolio Drives Value
- 38. Supply Chain Insights LLC Copyright © 2018, p. 38 Wrap-up Inventory Strategy Matters
- 40. Supply Chain Insights LLC Copyright © 2018, p. 40 About Lora Cecere • Founder of Supply Chain Insights • “LinkedIn Influencer” • Guest blog for Forbes • Author of 5 books: Bricks Matter (2012), Shaman’s Journal (2014), Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015), Shaman’s Journal (2016), Shaman’s Journal (2017) • Partner at Altimeter Group (leader in open research) • 7 years of Management Experience leading Analyst Teams at Gartner and AMR Research • 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA) • 15 Years Leading teams in Manufacturing and Distribution operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble. Contact Information: • Email: lora.cecere@supplychaininsights.com • Blog: www.supplychainshaman.com (18,000 pageviews/month) • Forbes: www.forbes.com/sites/loracecere • Twitter: twitter.com/lcecere (9,300 followers) • LinkedIn: www.linkedin.com/in/loracecere (283,000 followers) • LinkedIn Influencer: www.linkedin.com/today/author/446631
Editor's Notes
- Why the long tail is getting bigger