Inventory health can be deeply impacted as day-to-day manufacturing operations involve thousands of transactions being processed. When system updates from enterprise resource planning (ERP) system do not happen on a real time basis the results often lead to inventory discrepancies. Even daily reconciliation of all transactions may allow for merely adequate results. 

ERP (enterprise resource planning) systems provide built-in work flows to control different tasks within an organization. For years that was sufficient as many manufacturers operated a single plant within four walls with a finite number of suppliers. Confined to the factory floor is a constraint that renders many technology solutions impotent in a global supply chain.

Recently there has been a wave of newcomers to technology solutions providers claiming to know and understand demand driven supply chain solutions.  Some are renamed companies, as if putting a fresh coat of paint on the old technology addressed real issues.  Many of these new (or newly disguised) solutions have significant limitations, functioning predominantly within the four walls of a manufacturing plant or with scheduling as the primary foundation of their technology.

Chad Smith is the co-author of the third edition of Orlicky’s Material Requirements Planning 3/E (Ptak and Smith, McGraw-Hill, 2011) and the co-author of Demand Driven Performance – Using Smart Metrics (Smith and Smith, McGraw-Hill, 2013). He is a co-founder and Partner at the Demand Driven Institute, an organization dedicated to proliferating demand driven methods globally.  Smith serves as the Program Director of the International Supply Chain Education Alliance’s Certified Demand Driven Planner (CDDP) Program.  Clients, past and present, include Unilever, LeTourneau Technologies, Boeing, Intel, Erickson Air-Crane, Siemens, IBM, The Charles Machine Works (Ditch Witch) and Oregon Freeze Dry.  Chad is also a certified expert in all disciplines of the Theory of Constraints studying directly under the tutelage of the late Dr. Eli Goldratt. 

Living in a world of speed, immediate accessibility, and instant gratification, consumer packaged goods (CPG) manufacturers have to procure raw materials, build components, assemble finished goods and physically ship them across the world. Challenged with shorter lead times and exploding finished goods SKUs, selling goods and procuring materials globally increase pressure to do more with less.

Last Tuesday, August 5, 2014 Chad Smith, a Supply Chain expert and co-founder of the Demand Driven Institute presented a webinar about consumption-based replenishment.

Smith argued that forecast error is on the rise and that supply chain complexity and volatility are increasing; he also noted that legacy planning tactics and tools are breaking down.  Co-hosted with Narayan Laksham, founder of Ultriva, Smith noted during the webinar, “Worldwide there are more complex planning and supply scenarios than ever – the past is NOT a predictor for the future.”

Warehouse’s inventory at an all-time high, choosing a location for storage is tougher than ever. Demand for space is causing prices to go up, and manufacturers want to make sure they are still getting top notch service, especially when expenditures are higher than previous levels.  DC Velocity reported U.S. warehousing costs spiked in 2013 as retailers, incented by low interest rates and inventory carrying

Mid-May was a busy time for Ultriva. In addition to connecting with our users at our annual Customer Conference, we were an exhibitor at NetSuite’s SuiteWorld 2014. SuiteWorld is Netsuite’s annual user conference for customers, partners, media, and industry analysts in San Jose, California. 

Often overlooked in lean manufacturing initiatives is the supply chain; in particular supplier replenishment. Global multi-national manufacturers can use supplier replenishment as the ultimate tool in lean manufacturing best-practices. 

Multi-national management organizations usually turn to improved best-practice technology solutions when one of two circumstances occurs: rapid growth requiring improved throughput capacity or serious quality-control issues, often under the scrutiny of regulatory compliance or threat of litigation. Both these challenges produce lower customer satisfaction if the correct products are not received in a timely, safe, and accurate manner.