I recently attended the Sales & Operations Planning Innovation Summit organized by the IE Group. One of the first speakers and moderator for the first day’s sessions was Rich Sherman, Director North America of the Supply Chain Council. Rich’s presentation made me realize that it’s been a long time since I last wrote about the Supply Chain Council and that I was not up to date on some of the… Continue reading
Process manufacturing plants have distributed control systems (DCSs) that are connected to plant floor sensors that monitor pressure, heat, temperature, etc. These sensors are used to regulate processes. For example, flow measurements can be transmitted to the DCS; when the measurement reaches a certain point, the controller instructs a valve to open or close. These sensors can also generate alerts if measurements fall outside desired parameters. These alerts are a… Continue reading
The Perfect Order is often recognized as the highest level of customer service. It can be defined in different ways, but the traditional definition includes four elements: order completeness, timeliness, condition, and documentation. In other words, to be considered perfect, an order must be delivered to the customer’s distribution center (DC) complete, on time, free of damage, and accompanied by the correct invoice and other documentation.
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“Focus on executing to Key Performance Indicators (KPIs).” This is the key piece of advice for navigating the recession from a top supply chain executive at one of the world’s largest consumer electronics firms (due to confidentiality, I can’t disclose the name of the company). The top-level supply chain KPIs at this company include cost, delivery performance, cash, and quality. These KPIs can be decomposed into lower-level supporting metrics. For… Continue reading
The most entertaining, and perhaps most acute, business book that I’ve read in several years is “The Management Myth: Why the ‘Experts’ Keep Getting It Wrong” by Matthew Stewart (you can read a short book review by Andrew O’Connell at HBR online). Matthew is a cynical ex-consultant who reports on the methods consultants use to win business, debunks management theory, and provides a strong cautionary tale for anyone contemplating… Continue reading
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