Analyst Insight: Network design, network planning, network analysis, network optimization, or network studies - these terms have been used over the past 25 years to represent the work to determine how to set up logistics networks, how to analyze them for cost reductions, and how to re-plan them when something important changes. - Gene Tyndall, Executive Vice President, Tompkins International
Supply chain risk management is a major concern for many companies today. According to a Gartner IT Risk Management Survey, 70 percent of those canvassed said that risk management data would influence board-level decisions – up from just 46 percent a year earlier.
Analyst Insight: If supply chains are not planned, then they evolve and often become overly costly, risky and ineffective in serving customers. However, today's dynamic markets require much more than routine planning. Each mega-process in the end-to-end supply chain (Plan, Buy, Make, Move, Distribute and Sell) is undergoing change at an unprecedented rate. Leading solutions lie in advanced planning strategies and methods for both depth and breadth. While today's top companies understand this, the majority are not yet advanced in supply chain planning. – Gene Tyndall, Executive Vice President, Tompkins International
Analyst Insight: E-commerce continues to grow by double digits and many companies are striving to achieve omnichannel success. A successful omnichannel strategy means having the capability to meet customers' increasingly high expectations by enabling them to buy anywhere, take delivery where they want to take delivery, and make returns where they choose. While today's leading retailers understand the need for omnichannel success, the majority are falling short of meeting their objectives. – Kelly Reed, Executive Vice President, Tompkins International
Toby Brzoznowski, executive vice president of LLamasoft Inc., details the changes he's seen in supply-chain modeling and network design over the last 15 years. And he offers a picture of where the technology and supporting business processes are going.
The shift toward omnichannel distribution has both positive and negative unintended impacts. On the positive side are opportunities to blend and leverage channels; on the downside are organizational and operational gaps. Steven DeFazio, executive vice president at Fortna, offers insights on both.
The shift to online retailing over the last five years finally caught up to and overran U.S.-wide delivery capacity during last year's holiday season. According to Forrester Research, online retail sales will grow by an additional 60 percent over the next five years. This kind of sea change has stretched the ability of physical networks to keep up and the shortage of drivers had further exacerbated this situation. Instead, technology has become more important to meeting retailers' holiday delivery challenges by helping to improve the productivity of existing resources and offer a greater array of delivery services being demanded by consumers.
Greg Cronin, executive vice president of Intelligrated, and Nyle Morris, vice president of sales at Knighted, discuss the paradigm shift in fulfillment strategies being driven by omnichannel retailing and the type of integrated solutions that these strategies require.
Analyst Insight: Supply chain complexity and turmoil is on the rise due to growing global markets, increasing customer expectations, rising costs and more intense competitive pressures. Progressive companies understand that supply chain performance has a significant impact on the bottom line and shareholder value, and they must reinvent their supply chain networks on a regular basis in order to remain competitive. However, the traditional way of designing supply chain networks with a focus on cost optimization is giving way to more progressive thinking. - John Spain, Executive Vice President, Tompkins International