Analyst Insight: More companies are using some type of "big data" software and analysis to drive their entire supply chains. Almost all supply chain organizations recognize this to be a competitive necessity. Big data is being used along all supply chain levers, from buy, make, move and sell. Successful applications require coordinated decisions across organizations and along the entire supply chain. - Nada R. Sanders, Professor of Supply Chain Management & Iacocca Chair, Lehigh University
Analyst Insight: Food and beverage companies lag consumer packaged goods companies in corporate performance. With rising raw materials costs and volatility, coupled with increased compliance for food safety, they are facing greater change and increased risk. As they move into 2014, their supply chains are not as mature and their challenges are greater. - Lora Cecere, CEO and Founder, Supply Chain Insights
Challenge: In a highly competitive and dynamic environment, a leading manufacturer of home appliances set out to transform its global sourcing functions with the goals of sustaining quality, maintaining production, and most important of all, preserving profit margins.
Challenge: A global $4B Aerospace & Defense manufacturer was challenged by its executive leadership to reduce their product costs to protect profit margins and create greater flexibility in pricing. A cost reduction project was launched, targeting their machined parts, one of their largest direct materials costs.
Challenge: A $7B Tier 1 automotive manufacturer determined that its direct materials sourcing processes were inefficient to the point that they were losing potential revenue. Instead of performing strategic sourcing activities for new product introductions, the sourcing team was spending most of its time extracting information from other systems (PLM, ERP), manipulating spreadsheets, and analyzing vast amounts of quote information from their suppliers.
Challenge: An $8B Aerospace & Defense manufacturer identified that it was sourcing the same or similar specialized fasteners from many suppliers across every division, reducing its ability to attain volume-based discounts and increasing supplier risk and management burden.
Challenge: MD Logistics existing legacy Transportation Management System was used to manually optimize freight solutions for customers that elected for the value-added service. However, it lacked full integration to the Warehouse Management System and the ability to rate shop and optimize freight spend and routing automatically.
Analyst Insight: Facility location planning is a six-dimensional balancing act encompassing long-term facility commitments with need for agility, predictable demand patterns with seasonal and spiky demand surprises, material handling investments with facility flexibility, return on investment with immediate operations effectiveness, cutting-edge technology with common sense, and operational efficiency and cost reduction with technology investment. Consequently, the best FLP results are those that design in the most needed capabilities, leaving space to accommodate the flexibility that drives location success. - Robert Sabath, Principal Essentialist SCM, TRISSENTIAL
Analyst Insight: The supply chain has traditionally been managed from a holistic, top-down perspective. As such, events have historically been treated as occurring outside of the supply chain cycle. - Jorge Garcia, Senior Analyst, Technology Evaluation Centers