Integration is not advised The tight integration of systems and data is promoted as enabling a more effective organisation. However, as an organisation becomes more tightly linked, there is an increased risk that systems become fragile and something will break when events in supply chains generate Uncertainty (derived from complexity, variability and constraints). Too much structure and integration can result … Read More
Finance and Supply Chains data could be ‘integrated’
Finance and Supply Chains compatibility Over the years, there have been articles written that promote the ‘leading role of Finance in the Sales & Operations Planning (S&OP) process and more generally, the integration of Supply Chains and Finance data in real-time, to provide ‘instant’ visibility for a business. This is supposed to “accelerate the decision-making process and enhance the organisation’s … Read More
Customer Forecasts help Supply Chains group operations
Demand Plan contents Stability through global supply chains is unlikely in the foreseeable future, so structuring a Demand Plan appears to be difficult. However, the Plan is an important input to Sales & Operations Planning (S&OP) that provides a forecast of market demand, sales income, unit sales and gross profitability for the products on offer. The Demand Plan is provided … Read More
Map your supply chains to understand their complexity
Define your supply chains Your organisation’s Supply Chains Network will not become an ‘integrated’ system, as it comprises independent organisations with their own business objectives and policies. Instead, the requirement is to build knowledge about the Network and supply markets on which your organisation relies. The recommended approach is to Map your organisation’s supply chains. Supply Chains are defined by … Read More
One Plan and SNAP identify Supply Chains data flows
Uncertainty or scenarios Uncertainty in supply chains has become a term without meaning, as few events of consequence are certain. Supply chains have become less reliable and goods and services could have availability issues, due to geopolitical disruptions and climate change events that are converging. But there is unlikely to be a technology or technique that knows with certainty what … Read More