A 5 Step Guide to Optimizing Total Logistics Costs

Posted by Brian Hoey on Dec 6, 2018 9:00:00 AM

Buying health insurance in the U.S. is an odd business. Essentially, you have to balance your monthly premium (i.e. the amount that you pay your insurance provider each month for continued coverage) with your deductible (the amount that you have to pay out of your own funds before the insurance company will contribute to your care, broadly speaking). In general, if one of those two costs is particularly high, the other is likely to be lower, and vice versa. If you’re thinking about your choice in terms of total cost, a high deductible is risky, but has the potential to be cheaper if you can avoid getting sick over the course of the year. A high premium, on the other hand, might put you in a position where you’re essentially paying for medical care that you’re not receiving. The question, then, is how much risk are you willing to take on?

 

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Topics: Supply Chain Logistics, Advanced Analytics

How Real-time Decision-making Will Change Your Whole Supply Chain

Posted by Brian Hoey on Nov 22, 2018 9:00:00 AM

Let us consider the smart fridge. This modern convenience, part of the much-vaunted Internet of Things and a key component of many smart homes, give you the ability to track its contents and see them displayed via smart phone or tablet when you’re away from home. To some, this might seem like somewhat of a frivolous piece of technology, but imagine the following scenario: you’re at the grocery store, doing your weekly stocking up; you have a whole shopping list full of items that you expect to be depleted within the next few days, from eggs and butter to fresh produce. What you’re not planning on buying is milk, because when you left the house you still had most of a gallon left. Then, all of a sudden, you receive an alert from your phone letting you know that you’re out of milk. Unbeknownst to you, your partner has accidentally taken the existing gallon out of the fridge and spilled it. Luckily, she instructed the fridge to send you a real-time update and you were able to add it to your shopping list before you left, saving yourself an extra trip to the store or a week without any milk.

 

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Topics: Industry 4.0, Advanced Analytics

5 Keys to Optimizing Furniture Logistics

Posted by Brian Hoey on Nov 20, 2018 9:00:00 AM

Lots of businesses across disparate corners of the supply chain like to talk about their efforts to go lean, i.e. to drastically reduce their inventory usage by reducing lead times between production and shipping. This is often a logistical high wire act, requiring businesses to improve their production control, their demand forecasting, and their transport logistics. It’s also something that many furniture manufacturers have been doing since long before there was a trendy name for it. In fact, many modern furniture manufacturers rely on workflows that skip the inventory stage altogether, with products going straight from their respective production lines to the delivery vehicles that will bring them to their ultimate destinations.

 

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Topics: transport logistics, Advanced Analytics

Forecast Accuracy: Demand Sensing in the Supply Chain

Posted by Brian Hoey on Nov 15, 2018 9:00:00 AM

Let’s say, hypothetically, that you’re a big fan of baking, and every so often your officemates are happy to act as guinea pigs by trying out whatever inventive confections you dream up. The one problem here is that your business involves a lot of travel and a lot of semi-remote workers, so it can be difficult to estimate how many people are going to be in the office on a given day—i.e. it's tough to know how large a batch of cookies to bring in when you decide to bake for your coworkers. You might simply base your batch sizes on past demand levels, assuming that because the last time you baked there were X number of people in the office, similar numbers are likely to hold true again, but this strategy has the potential to miss the mark drastically.

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Topics: Advanced Analytics, Big Data

5 Key Benefits of Supply Chain Analytics

Posted by Brian Hoey on Nov 6, 2018 9:00:00 AM

For many decades, baseball statistics barely changed. People counted hits, batting average (the number of hits per at bats), and runs batted in and measured the value of their players based on those statistics. In the late twentieth century that all changed. With the advent of Sabermetrics and what would eventually be known as Moneyball, statisticians, baseball executives, scouts, and even casual fans entered a period of statistical renaissance. Old-fashioned stats took a backseat to complex new creations like OPS (on-base percentage plus slugging percentage) and Wins Above Replacement (a complex, GDP-like formula meant to distill value into a single statistic).

 

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Topics: Advanced Analytics, Sales & Operations Execution (S&OE)

How-to: Optimizing Your Planning Flow

Posted by Brian Hoey on Sep 25, 2018 9:00:00 AM

Let's say you're an OEM, with a sleek manufacturing space and a sophisticated, technologically cutting edge process for creating a particular automotive part. But you have a problem: At this point, your incredibly sophisticated production techniques aren't not being complemented by an equally sophisticated, multi-level approach to production planning and resource scheduling. This results in a disconnect between the high quality of your products and your ability to maximize capacity and meet customer delivery requirements. How can you build towards a production planning workflow that complements your product and fulfills your business goals? 

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Topics: Intelligent Planning, Automotive Industry, Advanced Analytics

The Impact of Cognitive Analytics on the Automotive Supply Chain

Posted by Brian Hoey on Sep 11, 2018 9:00:00 AM

IT pioneer and philosopher Ted Nelson, who coined the term hypertext, once famously said, "The good news about computers is that they do what you tell them to do. The bad news is that they do what you tell them to do." Historically, in the automotive supply chain, this couldn’t be more true. New technological developments like early computerized workflows and simple process automation were hampered by information silos and integration issues not because the technology lacked sophistication, but because they still had to be told what to do in very specific ways.

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Topics: Advanced Analytics, Automotive Industry, Intelligent Planning

The Marriage of Industry 4.0 and Job Shop Scheduling

Posted by Brian Hoey on Aug 28, 2018 9:00:00 AM

For decades, production planners in non-clocked production environments have been trying to optimize their job shop scheduling processes, and for decades the problem has continued to elude them, owing in large part to the tremendous complexity of uncovering the most efficient route for each product to take through a non-linear production environment. Luckily, new advancements in supply chain technology are constantly presenting planners with new tools and tactics they can use for gaining the maximum possible value from their production workflows. In many ways, the most significant of these advancements come in the form of the new technologies that make up the Industry 4.0 revolution. But what, exactly, is it that makes Industry 4.0 and job shop scheduling a match made in heaven? 

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Topics: Job Shop Scheduling, Industry 4.0, Advanced Analytics, Digitization

5 Uses for Machine Learning in Supply Chain Management

Posted by Brian Hoey on Aug 16, 2018 9:00:00 AM

New technologies—from steam power to modern computers—have been the driving forces in supply chain management since the beginnings of industrialized society. Today, supply chain technology is changing at an exponential rate, providing supply chain planners with possibilities that would have seemed like science fiction even a few decades ago. If you follow the news and trends in SCM, you’ve no doubt noticed that machine learning (ML) is often touted as the next major innovation in this long line of technological evolutions—but what, exactly, is it, and how can supply chain managers put it to use?

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Topics: Advanced Analytics, Supply Chain Planning, Intelligent Planning

5 Ways In-Memory Technology Adds Business Value

Posted by Brian Hoey on Aug 9, 2018 9:00:00 AM

Let’s say you and a coworker are attempting to find areas of waste in your supply chain. You have a large conference table on which you’ve laid a file that contains all of the transport plans utilized by the company for the past few years. When your coworker hypothesizes that a different grouping of goods would improve fuel efficiency, you need new documents with additional information, meaning that you have to leave the conference room and descend to the basement level where the files are kept. By the time you’ve returned, a new idea has occurred to your coworker, and you have to make a new trip to wherever your files are stored in order to retrieve the necessary information. The result of all this walking to and from the files? Some good cardio, but no plan to speak of.

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Topics: Supply Chain Planning, Sales & Operations Execution (S&OE), Advanced Analytics