The Seven Key Capabilities of Demand Sensing

Posted by Manoranjith Pathekkara on Aug 23, 2016 2:30:00 PM

 

Editors Note: A few weeks ago, we published a blog describing why most CPG companies have hit a demand forecasting ceiling. This week Manoranjith Pathekkara, managing director of ToolsGroup's partner in India LogicaMatrix, digs into an area where many companies are breaking through that ceiling.

Many consumer product companies are showing keen interest in Demand Sensing and it is much talked about today. So let’s take a closer look at what Demand Sensing is and what it can do for your supply chain.

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Topics: Forecasting Demand and Analytics

Why Forecast Accuracy Alone Can’t Solve Service Level Problems

Posted by Ricard Pascual on Aug 2, 2016 1:30:00 PM

Editor's Note: We hope you are enjoying your summer.We will be off the next two weeks, so the next blog post will be on August 23rd.

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Topics: Forecasting Demand and Analytics, Long Tail Demand

Why CPG Demand Forecasting Has Hit a Ceiling

Posted by Jeff Bodenstab on Jul 26, 2016 2:30:00 PM

Most CPG companies have hit a demand forecasting ceiling. The good ones are breaking through.

Consumer package goods (CPG) companies are looking for growth and scouring markets for opportunity. Their product portfolios grow with new product introductions, fresh takes on existing merchandise, and multiplying sales channels. Boston Consulting Group talks about how the “endless aisles” of the internet and omni-channel sales increase product assortment. Trade promotion spending aimed at pumping up sales continues at a dizzying pace.

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Topics: Forecasting Demand and Analytics

Why Individual Retail Stores Shouldn’t Order Their Own Inventory

Posted by Jeff Bodenstab on Jul 19, 2016 2:30:00 PM

In the old days, each store knew best what inventory it needed to keep shelves stocked and customers satisfied. But with today’s product proliferation and demand complexity—including now often the need to operate as a satellite fulfillment center for orders rung up online—it’s more difficult for individual retail sites to create accurate forecasts and optimize their inventory and replenishment process.

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Topics: Supply Chain Planning, Multichannel

A Different Solution to the Supply Chain Talent Shortage

Posted by Jeff Bodenstab on Jul 12, 2016 4:30:00 PM

 

“78% of respondents to Gartner’s most recent Chief Supply Chain Officer Survey
identify talent as the No. 1 long-term supply chain risk”

There is a lot of documented evidence of a shortage in supply chain talent. Why is it happening? Planning is becoming increasingly complex; not only due to the increasing demand and supply chain complexity, but also due to the wide range of new data sources such as channel data, retail data and even web data - nearly all of which wasn’t available years ago. John Kern, senior vice president of supply chain operations at Cisco Systems says that as companies look for the skills to build complex global supply chains, the industry “is undergoing one of the most massive talent shifts we have ever seen,” .

So with a shortage of people able to process this deluge of new data, here is what we may be doing wrong. Instead of thinking about how to find and train people to fit an increasingly complex and multifaceted job, maybe we need to consider how supply chain jobs and roles might be reconfigured to fit this new reality.

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Topics: Supply Chain Planning

Four Tips on Pitching Supply Chain Initiatives to the C-Suite

Posted by Jeff Bodenstab on Jul 6, 2016 1:00:00 PM

If you have to sell your ideas about how to strengthen the supply chain to executives that control the purse, here are four tips from experts on pitching supply chain initiatives to the C-Suite.

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Topics: Supply Chain Planning

There’s Blood in the Supply Chain

Posted by Jeff Bodenstab on Jun 28, 2016 4:30:00 PM

Editor's Note: An associate of mine just pointed out that some readers may be uncomfortable with the title of this blog in light of recent events in Turkey. Since email, social media and other alerts have already been distributed, it's difficult to change the message, so I will apologize for any discomfort and ask readers to consider the positive impact of a blood-based supply chain in saving lives in situations of all types. 

This week’s posting is actually a video rather than a written blog.

The National Health Service (NHS), the world’s largest health care organization, has implemented a new supply chain planning system for managing the United Kingdom’s blood supply.

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Topics: Supply Chain Planning

When SMBs Hit the Inventory Planning Complexity Wall

Posted by Jeff Bodenstab on Jun 21, 2016 4:30:00 PM

Inventory planning is especially important to small-to-midsize businesses (SMBs). Nobody wants to tie up more working capital in inventory than necessary, but SMBs typically have a higher cost of capital, so it’s more expensive to fund excess stock. And if a company is growing rapidly, capital may not only be costly but may even require selling valuable equity.

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Topics: Inventory Optimization

Gartner Asks: Are You (and your Supply Chain) Bimodal?

Posted by Jeff Bodenstab on Jun 14, 2016 4:30:00 PM

Taking a bimodal approach to supply chains was the pervasive theme at this year’s Gartner North American Supply Chain Executive Conference. Simply stated, bimodal means simultaneously keeping a dual focus. Or as in F. Scott Fitzgerald once said, “First-rate intelligence is the ability to hold two opposed ideas in your mind at the same time and still retain the ability to function.”

David Willis, head of Gartner's Senior Research Board, described it in his keynote address as “delivering in a lean and effective manner, while still being agile.”  Its stability on one hand, agility on the other.

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Topics: Forecasting Demand and Analytics, Supply Chain Planning

How Gartner Sees the Future of Supply Chain Planning

Posted by Jeff Bodenstab on Jun 7, 2016 5:00:00 PM

Source: Algorithmic Supply Chain Planning: The Future of SCP, Amber Salley, May 2016

Gartner has taken a look at the future and sees lots of algorithms. The analyst firm says algorithms “are now feasting on the wealth of data becoming available, leveraging the huge computing resources in the cloud and becoming a pivotal source of competitive differentiation.” They have now grown to the point where Gartner considers them a “significant disruptive trend.” 1

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Topics: Supply Chain Planning

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