The art and science of supply chain planning

Talk to us! Start your supply chain evolution today with our online inquiry form.

Balance supply chain with strategic sales & operations goals

Contents:

    1. Introduction
    2. How to prioritise the customer
    3. Segmentation of the products
    4. Demand prioritisation
    5. Available to promise segmentation
    6. Product design
    7. Addressing the long supply chain tail
    8. Effective forecasting
    9. Right-sized inventory
    10. Fungible capacity modelling
    11. Organisational heroes
    12. Summary

Download the ChainSequence Masterclass E-book!

Introduction

Inefficiencies, unknown market conditions, suddenly changing customer needs – these are the obstacles that we are going to remove together in this Masterclass. (watch the video here)

How to prioritise the customer

It's a noble cause to be all things to all customers, but it can be very difficult to say no to a customer when it comes to supporting their requests. What are the considerations we need to take into account to better support your customers? This is really an exercise in profile building. Consider the following when identifying what makes the customer important to you. Is it volume, is it revenue, is it how much money you're making off of them, or is it your strategic relationship with them? (watch the video here)

Segmentation of the product

From a pure sales perspective, all products should be available for whenever they can sell it. But it's really not possible to support that kind of model, for obvious financial reasons. Not unlike customer segmentation, all products are not equal. (watch the video here)

Demand prioritisation

Now that we understand to whom we are selling and what we are selling, let's set an overall demand prioritisation schema. Let's look at a couple of examples. We've got a high-tech company that produces computer processors. They are always looking to be leading edge technology and release new processors periodically. They will put a much higher priority on the release of those new products, regardless of customers buying the old products, because they want to move the markets. (watch the video here)

Available to promise segmentation

One of the biggest challenges for all of us is that customer behaviours are ever-changing. We plan for customer orders based on a forecast, but we know those forecasts aren't always right. Available to promise, or ATP, is what we use to respond to those customer orders. It's a customer's prerogative to change, and it can be very unpredictable. Volatility varies by industry sector, and it depends on the relationship with your customer. (watch the video here)

Product design

What does good product design mean? Generally we think of shape, colour, user-friendliness, or branding features. But is that enough? Imagine a great product, highly approved by focus groups, that recognised your great innovation. (watch the video here)

Addressing the long supply chain tail

One more week. One more month. We are behind. We need to catch up. How many times have we suffered from delays in our supply chain? How many times have we felt that the control is not in our hands and we are only victims of these delays? Let's get control back. Let's start with the reasons for delays. (watch the video here)

Effective forecasting

Forecasting any organisation is always a challenge. Many say they are always wrong or, maybe better said, less than right. There are things we know and things we don't. We know that we've got committed customer orders out in time. We know that we've got contractual agreements with our customers that we need to support. We know sales events and promotions that are out in time. And we may have repeating seasonal events that occur year after year. (watch the video here)

Right-sized inventory

Inventory is a necessary evil. Finance is usually focused on the cost of holding it, but why do we have inventory? Inventory should only exist for anticipated sales. We can use it to offset the volatility of customer demand. We can also use it to offset that perceived long lead time of components in manufacturing cycle time. We can also use it to level-load manufacturing, where capacity may be constrained in one period of time, and we can spread those manufacturing out over time. But it's absolutely necessary to support customer service levels, and that's why we hold inventory. (watch the video here)

Fungible capacity modelling

Now it's time to bring everything that we have learned together. In the following two videos, we're going to explore how do we build a smart model so we get what we want because that's what we're interested in-- planning the best business that we can run and making sure that we can execute our plan without those unpleasant surprises. (watch the video here)

Organisational heroes

No changes ever happened without a champion, and no failures happen without human mistakes. We depend on those champions in our organisation to help drive change, but we have to talk about the organisational heroes who are appointed to score those goals for us. We also need to discuss what happens when they are given the wrong target. (watch the video here)

Summary

The first step to improvement-- accepting that there is a problem. We need to start with identifying what are the key issues-- is it low revenue or poor profits, poor customer service, operational inefficiencies in building the products? Do we have any inventory issues-- too much inventory, not enough inventory? Is our on-time delivery performance to our customers low? And do we have poor internal communication and collaboration across all the organisations within the company? (watch the video here)


Download the ChainSequence Masterclass E-book!

Bring a step change to your supply chain with ChainSequence.

Contact us:

+1 877 635 9245

info@chainsequence.com

www.facebook.com/chainsequence/

https://www.linkedin.com/company/chainsequence-inc./

https://plus.google.com/+Chainsequence