Improve the Agility of Demand-Driven Supply Networks - 8 Pages

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Improve the Agility of Demand-Driven Supply Networks

Catalog excerpts

Improve the Agility of Demand-Driven Supply Networks Leverage real-time production data to optimize the supply chain for a sustainable competitive advantage

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Improve the Agility of Demand-Driven Supply Networks Introduction With increasing global competition in consumer products manufacturing and shrinking profit margins, it has become imperative for manufacturers to increase productivity and lower costs. While some manufacturers have been able to reap financial savings by implementing demand-driven supply strategies, many have still not exploited the full potential of even greater cost reductions from within their supply chains, which may be attainable using the wealth of information that exists within their plants. The missed opportunity is...

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The following section discusses how to drive better production consistency and repeatability by focusing on the manufacturing operations side of the business. Manufacturing operations side: Baseline requirements To optimize the savings that can be achieved in the supply chain, all the different elements must work together in harmony; any disruptions will have a “domino” effect, as described in the earlier examples. Factoring in the manufacturing constraints is a key element in managing the whole supply chain circle, and there are two main options: develop standard manufacturing performance...

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Improve the Agility of Demand-Driven Supply Networks The decision to accurately control and measure repeatable production is key as this both maximizes the production capacity and efficiency of the plant while driving the repeatability and consistency required so as not to disrupt the supply network. Some consumer products companies have already implemented solutions such as Batch Execution, SCADA, and MES to pursue Operational Excellence, which helps drive production consistency and repeatability to maximize the cost savings from the supply chain. The other option, as mentioned earlier,...

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Improve the Agility of Demand-Driven Supply Networks Enterprise side: Materials, scheduling, and logistics There has been much effort invested in leaning out the supply chain, which has increased cost savings for companies undertaking this task. The three key performance metrics that companies tend to focus on are return on assets (ROA), inventory turns, and revenue growth, as reflected by AMR’s research (recently acquired by Gartner, Inc.), “The 2010 Retail Handbook for Becoming Demand Driven,” that says, “Having a better handle than their peers on three key supply chain performance...

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Companies need to understand the types of information available in the plant and how they can be used to increase ROA. Typically, corporate ERP systems such as SAP contain performance metrics for the theoretical run rate, production counts, and yields per product type (SKU); these are used by the stakeholders to form part of the inputs for their predictive planning processes. The real impact is going to be adjusting the action plan based on the differences between the historical performance metrics that most materials managers and schedulers have to use today and the real-world data from...

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Improve the Agility of Demand-Driven Supply Networks A picture of effective throughput over time and across sites can lead to better logistics planning—again allowing enterprise models to reflect true capability Scalability and going global The importance of impacting the supply chain goes beyond a single plant to multiple plants. For example, manufacturers that have Proficy software deployed across multiple plants have gained agility across their operations in global sites—fully realizing cost savings in the development and manufacturing of products, which can have an even more significant...

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