Three developing subway lines

In comparison to last year’s map, there are three subway lines which are in strong development:
1. Customs & Duty Management Systems
2. Shipment & Transport Execution Platforms
3. Supply Chain Visibility

Compliancy & visibility

Customs & Duty Management Systems become more import because of global trade regulations and compliancy matters.

Shipment & Transport Execution Platforms are further developed since internet has brought more possibilities to give overview of transport rates and the tracking and tracing of shipped goods.

Supply Chain Visibility hasn’t got a clear an accepted definition in the market. In the case of of the SCM IT Subway Map this software gives an overview of goods within the supply chain outside the four walls of an enterprise.

Sales & Operations Planning

A next of wave of supply chain software for the process of Sales & Operations Planning (S&OP) is in the development at the moment, but has been implemented hardly yet. S&OP software might be the strongest contender for an own subway line on the next map.

> Download the SCM IT Subway Map Europe 3.5 (2012) here (PDF)

10 questions to check the maturity of a software vendor

1. Are you invited to the office of the vendor where people are actually working?
2. Does the vendor have live customers in your country and industry?
3. Does the vendor give you a complete list of customers with contact details?
4. Does the vendor have an active user group in your country?
5. Is the vendor or the business unit profitable in your country?
6. Does the vendor have senior consultants with a lot of implementation experience?
7. Is the software plus documentation, support and helpdesk available in your language?
8. Does the vendor have an experienced helpdesk with several employees?
9. Do you get direct access to the developers of the software?
10. Does the vendor or reseller give the right to return when you are dissatisfied.

Related posts:

1. European supply chain software mapped out
2. IT Subway Map by Supply Chain Magazine
3. Supply Chain Movement Q1 2012 – S&OP Special

Contents

3 | Column: Holy Grail of ERP and S&OP

7 | News & Background: Recruit the ‘yes’ gene

‘Details count. So make yourself stand out’ said Innocent Drinks founder, Richard Reed. Jokes on packaging, grass covered promotion vans and eccentric advertising all help to ensure that people remember you.

9 | Gartner presents its S&OP maturity model

The step required to transition from anticipating to collaborating within Sales & Operations Planning is a large one. That was the conclusion drawn from a local session organised by analysts Gartner in Amsterdam, The Netherlands, on 15th November 2011, where Tim Payne, Research Director at Gartner, presented the various stages of maturity of an S&OP process. 

10 | Profile Marnix Tax at Sara Lee

In the twenty years that Marnix Tax has worked at Sara Lee, he has been a part of intensive corporate integration as well as witness to the enterprise´s latest plans for Douwe Egberts. “We have made such widespread and significant improvements over the years that we have established firm foundations for the supply chain on which to build an autonomous coffee and tea division.” There is no doubt in this European Director of Supply Chain Development & Value Stream’s mind that the hard work has paid off. 

16 | Roundtable S&OP and forecasting

Sales & Operations Planning (S&OP) is a multi-disciplinary process in which the various business disciplines work together in attempting to balance forecast demand levels and manufacturing volumes. In view of a shift in focus from unequivocal operational excellence to integral business optimisation, it is becoming increasingly difficult for the supply chain manager – who is traditionally responsible for S&OP – to align these two aspects. How are various companies approaching this in The Netherlands? And which factors are holding them back in the growth process? 

20 | SCM IT Subway Map 3.5 

22 | Management article S&OP: Mind the gaps

One-way transmission has the upper hand in many companies. The sales department fulfils its duty by issuing a forecast every month, and then it’s up to supply chain colleagues to see how they go about meeting the demand. There’s no sign of interaction, let alone integrated decision-making. Sales & Operations Planning (S&OP) is intended to change all that. The art is to identify – and close – the gaps between demand, supply and financial planning. Many companies claim they are working on S&OP, but to what extent? 

31 | Facts & Figures S&OP and IT 

32 | Supply Chain Mindmapping S&OP

As a result of increasing volatility in demand many companies are busy implementing Sales & Operations Planning. They try to get beyond balancing forecasted demand and manufacturing volumes and incorporate financial budgets and business scenario. What should companies consider to get to a next level in S&OP? Supply chain consultancy Involvation and Supply Chain Movement created a comprehensive mindmap to give a practical overview of all the aspects to consider for improving S&OP. 

35 | Tools & Technology: coping with unpredictability, in-house S&OP game 

36 | Case study: Handling volatile demand at Electrocomponents

The recent global economic crisis was the impetus for Electrocomponents, one of the world’s leading high service distributors of electronics and maintenance products, to transform its supply chain planning and honour its remarkable service promise.

Read this issue online HERE. Or download the PDF HERE.

PERSONS MENTIONED IN THIS ISSUE

COMPANIES MENTIONED IN THIS ISSUE

Related posts:

1. Supply Chain Movement Q2 – Sustainability Special (also on iPad)
2. Supply Chain Movement Q4 – Risk Special
3. Supply Chain Movement Q1 2011 – Visibility Special

Is your company an ostrich, a rabbit, a monkey or an elephant regarding risks? Find out through this sel-assessment quickly!

> Download the self assessment of Risk Behaviour here (PDF)

Related posts:

1. Natural risk behaviour
2. Global SCALE Risk Initiative
3. Supply Chain Movement Q4 – Risk Special

A couple of examples of various schools:

Pull is kanban and push is MRP?
Pull was quickly associated with it’s first manifestation, kanban. At the same time push became synonymous with MRP. Although kanban was just the means to an end, many believed that kanban / pull production and TPS were synonym.

Pull is make-to-order and push is make-to-stock?

The original words of Mr Ohno have later been translated more than once:
•    Pull in simplest terms means that no one upstream should produce a good or service until the customer downstream asks for it, … (Womack & Jones, 2007)
•    Pull production is the opposite of push. It means products are made only when the customer has requested or pulled it, and not before (The Boeing Company, 2002)

Logical that push and pull meanwhile are being used extensively as synonyms for make-to-stock and make-to-order. The order decoupling point is even known as the push/pull point. According to these definitions, a ‘make-to-order MRP-system’ would make an ideal pull system. Question is whether Mr Ohno meant it this way.

Pull is observe&respond and push is plan&execute
According to another school (Toshiki Naruse (2003) and De Toni, Caputo and Vinelli (1988)) the distinction between push and pull is based on what initiates the purchase of parts or the start of production. Push if it is initiated by planning (plan&execute); pull if it takes place in reaction to the actual situation (observe&respond).

Pull limits the amount of work in process; push not?
Hopp and Spearman (2003) define a pull production system as a system explicitly limiting the amount of wok in process (WIP); unlike a push production system. The good news is that according to their definition, pull can be implemented in different ways. Kanban is a  technique to limit WIP, but there are more possibilities, CONWIP, POLCA, but also MRP with a WIP-limit.

Battle undecided
Pull defined as ‘following customer demand’ is emotionally superior to push. I suspect the advocates of Lean to have smartly used this emotion by consequently posting it as ‘intelligent pull’ and ‘senseless push’. Smart, but questionable. That is, MRP can easily be described as pull, ‘following customer demand’. After all, the starting point of MRP is that you only produce if there is a calculated requirement based on independent demand. Moreover, you could challenge whether it is sensible to follow customer demand. With few exceptions customer demand is variable; sometimes more, sometimes less. Following this variability one-to-one can have a deteriorating effect on capacity, material availability and throughput time. Especially if your customer asks you to deliver fast. Calculate your profit.

Obviously, you don’t have to tell Mr Ohno that it’s better to level demand variability with inventory and/or lead time than to follow demand one-to-one. During busy times you can draw from capacity stock and during calm times you can replenish your capacity stock again. Sounds a lot like push, doesn’t it?

Finally, it is without any doubt that observe&respond is preferable to plan&schedule and that systems controlling WIP are more reliable and controllable than systems controlling output. But why would you need to call a system based on observe&respond or one that limits WIP a pull system? Puzzles me.

Stop the confusion
Are you still with me? According to me the terms push and pull are just creating confusion. Maybe deliberately caused by Mr Ohno who might has put us on the wrong track by sketching an apparently logical but half truth about the secret of his success.

I therefore propose not to use the terms push and pull in any other meaning but the ordinary ‘shoving’ and ‘towing’. Please, just say what you mean: kanban or MRP, inventory- or order controlled, observe&respond or plan&schedule, even forward or backward scheduling.

Finally, I would like to advise you to learn about the importance of WIP control. Because that, as Mr Ohno already knew, holds the true secret of controlling your supply chain. Whether you can do that better with kanban, CONWIP, POLCA or another variant depends on your situation. And there is no word push or pull in that.

Alex Tjalsma, partner/consultant Involvation

No related posts.

Conducted by CSC (NYSE: CSC), with the support of TCU’s Neeley School of Business and Supply Chain Management Review, the ninth annual Global Survey of Supply Chain Progress studied three factors believed to be critical to supply chains across visibility, analytics and flexibility. The survey results clearly show that supply chain leaders are building systems and developing partnerships that give them greater depth of visibility into a wider set of factors.

In 2010, CSC pulsed supply chain near the bottom of the economic downturn and found that supply chain managers were key contributors to stabilizing the abrupt economic down draft by aggressively managing costs and crafting a flexible supply chain to retain market share through increasing customer service. In the 2011 study, the results show the continuing importance of supply chain managers as the economy rebounds.

Key survey highlights:

• Companies with more visibility and higher quality data are outperforming rivals.
• The combination of visibility and flexibility enables the greatest growth and profitability.
• Leaders possess the flexibility needed to respond to new needs and opportunities revealed by their analytical tools.
• Leaders tend to be early adopters of new technologies and planning systems.
• Leaders influence revenue gain at double the rate of laggards.

These key findings are among the most prominent from a global survey of supply chain professionals in manufacturing and services organizations representing every major geographical segment in the world including North America, Europe and Asia/Pacific. Respondents include both large and midsized companies, with sales in a range from $250 million to well over $1 billion. The number of employees varies from less than 250 to more than 30,000.

Respondents are classified as leaders, followers and laggards. Leaders are respondents who consider their overall supply chain competencies to be above average for their industry; followers represent the industry average; and laggards rate themselves below average. Not surprisingly, firms that demonstrated significant development in these categories over the past year are outperforming rivals. Other key survey findings include:

Supply chain enables revenue growth

• Cost management is a supply chain cornerstone in a competitive market position. This year cost reduction moved up from 6.0 percent to 6.9 percent in a rebounding economy.
• The three-year average attributing supply chain’s contribution to revenue increased from 4 percent last year to 8.5 percent this year.
• Leaders influence revenue gain twice that of laggards.
• Leaders produce cost reduction in comparison to laggards (8 percent for leaders on average, versus about 6 percent for followers and laggards).

Supply chain managers are being elevated

• Leaders are 1.5 times more likely to promote supply chain leadership to a “C” level.
• Leaders are twice as likely to position the leading supply chain manager as a direct report to a corporate officer (e.g., EVP, CSCO, COO).
• Leaders tend to have broader and more global views of supply chain management.
• Leaders are typically early adopters of new technologies and planning systems.

Leaders transform data into information

Three aspects of supply chain collaboration and intelligence were surveyed: the acquisition of data, the analysis of data and how the combination was employed to create a responsive supply chain.
• 70 percent of respondents have upstream (supplier) visibility.
• Less than 50 percent have quality downstream (customer) visibility.
• Integrated business models have both higher quality and more complete data acquisition.
• Leaders are twice as likely as laggards to be users of data analytics software.
• Respondents in top 20 percent of their industry in terms of growth reported above average levels of visibility and analytics.

Information and flexibility lead to profitable growth

• Respondents that consider themselves flexible grew faster and were more profitable than those in the opposite dimension.
• Respondents that employed both information and developed flexibility in their supply chain grew in both revenue and profitability.
• Growth continues to come largely in a shift in market share taking revenue growth from laggards.

Download the report by CSC HERE

Related posts:

1. The 2011 Global Supply Chain Agenda
2. Retail Supply Chain 2012: Globalisation and Cross-Channel
3. The Chief Supply Chain Officer Report 2011

Life Sciences & healthcare Supply Chain Summit
Date: 24-25 September 2012
Location: Radisson Hotel, Brussels
Organisation: Eyefortransport
http://events.eyefortransport.com/healthcareEU/index.php

Tackle the Future of Life Sciences Supply Chain with Strategies and Best Practices that Will Give you the Competitive Advantage
This year leading executives will join to discuss:

Prioritize Agility in the Supply Chain – See how postponement strategies can improve flexibility and improve your response to market demands
Overcoming Obstacles to Supply Chain Globalisation – Use your existing supply chain expertise in emerging markets as a key driver for growth and  ensure you outrival the competition
Best Practices to Audit your Relationship with your LSP – See how you can balance KPIs and SLAs with a personal relationship to create an efficient and flexible supply chain
PLUS there will be specific sessions dedicated to supply chain issues faced by pharmaceutical companies and medical device companies. 

Pharmaceutical supply chain executives can look forward to learning about:

Securing End to End Supply Chain Visibility – Avoid product expiration and counterfeiting problems by putting an effective track and trace facility in place
Direct to Patient Delivery: New Channel Strategies to Put Your Company at the Forefront of the Pharmaceutical Industry – Discover how to transform your ‘push-model’ supply chain into a demand-driven, patient centric design to cut lead times and meet your patients’ needs
Adding Value to your Supply Chain with Contract Manufacturing – Learn step by step assessment criteria to  aid you in choosing the right contract manufacturers and ensure your product quality is not compromised•Mitigate the Risks of your Disposal Operations and Ensure Visibility of your Product Returns – Avoid the perils of potential counterfeit products and protect the integrity of your brand by leveraging the latest technologies to combat these threats

Medical devices supply chain executives can expect to focus on::

Enhance Your Supply Chain Visibility to Improve Patient Safety and Effectively Trace Your Products – Formulate a step by step plan to effortlessly implement UDI – don’t be delayed by complex processes and poor internal communication
Perfect  Your Repairs and Returns Supply Chain to Keep Costs to a Minimum and Boost Customer Satisfaction by Implementing a Real-Time Communication Network – Put aftermarket logistics at the forefront of your supply chain strategy to save your company money and protect the integrity of your brand

  
Maximise the Advantages of Contract Manufacturing to Obtain Superior Supply Chain Flexibility and Reduce Time to Market – Know how to unlock the power of contract manufacturers to improve the flexibility of your supply chain at a low cost

Related posts:

1. Healthcare & Life Sciences Supply Chain Summit EU
2. The Contract Scorecard
3. Retail & FMCG Supply Chain Summit

The 14th Annual European Supply Chain and Logistics Summit 2012 is the only multi streamed supply chain management event of its size which enables you to take 3 days out of the office to aid learning through:
 

4 Stream sessions with in-depth presentations providing you with the most choice possible across all supply chain and logistics disciplines.
Case studies from experts detailing practical advice and best practice for all supply chain and logistics practitioners.
Pre-scheduled one-to-one meetings, maximising your networking opportunities with all supply chain and logistics solution providers.
Workshops, with interactive participation, specialist advice and Q&A sessions.
Exhibition where you can identify the latest technologies to support your supply chain operations.
Supply Chain Distinction Awards, unveiling the winners across eight different categories, including Green Supply Chain and Best Collaborative Practice.

Related posts:

1. Capgemini Consulting European Supply Chain Summit
2. 13th European Supply Chain and Logistics Summit
3. European 3PL Summit 2011

TOC Container Supply Chain: Europe is the port-centric event for Terminal Operators, Shipping Lines, Ports, 3PL’s and BCO’s where you can meet the people who own, move & handle large volumes of containers.

Key reasons to attend TOC CSC: Europe:
Network with 1000+ fellow professionals representing all sectors of the container supply chain
Attend 25 unique sessions and 3 conference streams over 3 days
Discuss the latest issues with the industry leaders and analysts
Understand the key container shipping mega-trends affecting your business
See first-hand the technology from international exhibitors

www.tocevents-europe.com

Related posts:

1. CSCMP Europe 2012 Conference
2. Supply Chain World Europe 2011
3. The ECR Europe Conference & Marketplace

Conference topics
• Improve procurement processes and become more cost-effective and time efficient
• Maximize opportunities in the global arena to improve efficiency of your supply chain process
• Increase the transparency of all procurement processes
• Evaluate the latest EU procurement legislation for Utilities
• Learn how to effectively manage contractor relationship for strategic advantage
• Benchmark best practices from the latest procurement and supply chain case studies
• Network with key players in the industry and share best practices
• Gain valuable insight into key supplier relationship management
• Benefit from quality assurance through new means of measuring performance

Conference focus
This forum brings together key industry experts from leading utility companies to develop innovative procurement and supply chain functions that contribute to bottom line that is a crucial challenge for today’s energy PSCM professionals and to give a clear insight into the main challenges for energy and utilities procurement and offers the most successful solutions that have been found to date

Experts from Utility Operating Companies will present case studies focusing on successful projects; effective ways to manage increases in capital works programs, scarcity of supply, escalating commodity prices, achieving sustainability and corporate responsibility. For Procurement Managers these represent a significant challenge if they are to meet their future operating requirements and manage the risks to their businesses associated with their supply chains

Who should attend the conference
Chiefs,VPs,Directors,Heads,Managers,Coordinators  of

Procurement
Supply Chain
PSCM
Purchasing
Contracts
Category Management
e-procurement
Legal Counsel/General Counsel
Projects
Acquisition
Investment

From:
Energy and Utility  Operating Companies
EPC Contractor Companies
Service and Solution Providers

Related posts:

1. 3rd Annual Supply Chain Risk Management Seminar Barcelona 2011
2. Logistics CIO & Supply Chain Technology Forum

Related posts:

1. The ECR Europe Conference & Marketplace
2. CSCMP Europe 2012 Conference
3. CSCMP Europe 2011 Conference