Analyst Insight: Call it Sales & Operations Planning (S&OP), Integrated Business Planning (IBP), Sales, Inventory & Operations Planning (SIOP) or Demand Driven - it doesn't matter. Arduous to implement, these processes continue to under-perform considering the political, operating and capital investment made. Why? In most organizations the daily working capital decisions are made by planners and schedulers using custom spreadsheets and tribal knowledge. It's time to transform the process, and let's call it S&OP 3.0. – Rich Sherman, author and founder at Gold & Domas Research
Analyst Insight: The double-digit growth of the ecommerce channel is indisputable; yet, it's still only 6 percent of total U.S. retail spend. Amazon may seem like it's the 600-lb. gorilla, but it may just be Humpty Dumpty sitting on a wall. Omnichannel is certainly getting its share of hype. We believe connected consumer commerce will be a competitive mandate for bricks and mortar retailers. Are you ready for the disruptive changes to the rules of the game? – Rich Sherman, author and founder at Gold & Domas Research
Analyst Insight: Supply chain problems result from the uncertainty, time delay and amplification of variability based on demand changes from one function to another and from one organization to another. The parts of the chain don't work together! They often work against one another. The supply chain is a dysfunctional system that increases the cost of all participants in the system. Today's optimization and network technology provides the capability transform to a Smart Supply Network 3.0. – Rich Sherman, author and founder at Gold & Domas Research
Analyst Insight: While e-commerce is buzzing, it's still only 6 percent of total U.S. retail spend. For CPG companies, the Online Search to Offline Purchase (O2O) market (30 percent to 40 percent of retail spend) growth is driven by mobile commerce. Some 74 percent of smartphone owners use their device while shopping with 79 percent ultimately making a purchase as a result, according to Retailigence. As the "moment of truth" shifts to the "point of demand", more information is available to support supply chain decisions. – Rich Sherman, author and founder at Gold & Domas Research
Analyst Insight: Customers of 3PLs face fundamental market transformation impacting their supply chain operations and initiatives. Connected commerce drives basic changes to fulfillment operations. Change is occurring at internet speed. 3PLs haven't traditionally been known for "anticipating" customer requirements changes. They have, however, been exceptional in responding to customers' requirements when the changes become apparent. In today's fast-paced markets, responding to change may not be enough. Vested relationships based on innovation are the new 3PL imperative. – Rich Sherman, author and founder at Gold & Domas Research
Rich Sherman says the Internet of Things will combine with Web 3.0 technology to create what he calls "Smart Supply Network 3.0." Sherman shares his vision of how this evolution will change the supply chain for the better.
Analyst Insight: The industry finds itself in the eye of a perfect storm. Profits are falling from the patent cliff, pressuring companies to adopt new supply chain value propositions. Regulatory compliance and the Affordable Healthcare Act create process and cost pressure. The cold chain manages the Cs: challenges from complexity, connectivity, compliance and continuum of care. And, above all is the shift from fee-based services to outcome-based care and payment. - Rich Sherman, Principal Essentialist, Trissential
Analyst Insight: When asked why he robbed banks, Slick Willy answered, "Because that's where the money is!" Where's the money in your company? Capital for new projects is a real challenge, with an appropriation process that is complex, political and arduous, commanding the attention and scrutiny of the executive committee. Yet, planners and schedulers armed with custom spreadsheets routinely make million-dollar working capital decisions every day! - Rich Sherman, Principal Essentialist, Trissential
Analyst Insight: Sherman's Law of Forecast Accuracy states that forecast accuracy improves in direct correlation to its distance from usefulness. It's time to stop being driven crazy by demand variability. Don't be driven by demand; sense, shape and respond to demand. Your company can better predict and respond to demand variability through integrating forecasting techniques with demand planning techniques; in a word, collaboration! - Rich Sherman, Principal Essentialist, Trissential
Analyst Insight: In the world today, there are 6.8 billion people; 4 billion have mobile phones. Only 3.5 billion use a tooth brush! There are more U.S. mobile subscriptions than people; 70 percent use their smartphones during their in-store experience! Why should we care in CPG? One fifth of searches are for CPG products. Online-to-offline (O2O) commerce is expected to grow 50 percent over 5 years, outpacing offline commerce and exceeding online ecommerce by over 400 percent (!), according to Forrester Research. - Rich Sherman, Principal Essentialist, Trissential
