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The Problem Statement

Ever since the early 80’s we have worked with a traditional 4 tier planning and execution architecture incorporating all the major elements of a supply chain, namely demand, distribution, production and suppliers. The 4 tiers include strategic planning, tactical planning, operational scheduling and execution or also referred to as the transactional backbone.

Continue reading “Planning Architecture in a Omni-Channel World” »

The Problem Statement

It is time to change course. Indirect procurement has been treated as a stepchild for too many years. Whilst many companies invested in new procurement platforms, the indirect procurement area has always been kept separate from the mainstream core business and their processes. When company refer to procure to pay or now source to pay, then they meant the direct side. However, significant synergies can be achieved by cross using the approach, platforms for methods across the two areas of procurement.

Continue reading “New Frontier in Procurement” »

The Problem Statement

The effect on maintaining the same item in more than one location on the overall levels of inventory escapes many practitioners. The principal problem is that an item stocked in multiple location increases the overall inventory levels. The key to the problem is the term location. Whilst we all understand physical warehouses being a location where inventory is stored, location can also be virtual locations or contracts where inventory is ring-fenced. Let us explore what this all means; we start with the relationship of inventory levels and the number of locations described in the square root law.

Continue reading “Square Root Law” »

The Problem Statement

Lead time is not static. Lead time is dynamic and depends on various factors. One of those factors is load. Load is the amount of work loaded into a fixed and available capacity. As capacity is consumed, any new work has to wait for free capacity slots. Hence lead-time changes with the amount of work loaded into capacity and when free capacity is available. Many ERP systems and companies work with fixed lead times because they cannot easily determine the time changing aspect of capacity load and the resulting variation of lead-time.

Continue reading “Lead Time Variability caused by Load” »

What is an Operating Model?

Managing the complexity of an enterprise and the related supply chain and enterprise functions requires robust framework. Such as framework must enable the management of the four key dimensions of an enterprise. Those 4 dimensions are:

  • Processes, describing the business processes an enterprise is using to manage its business
  • Organization, describing the organizational structure including roles and responsibilities
  • Technology, describing the system landscape supporting the enterprise
  • Data, describing the master and operational data elements an enterprise requires in the digital world

Continue reading “Managing an Enterprise using the Operating Model Approach” »