Bob Berry’s Post

There are 2 main parts to establishing a top-notch Supply Chain (1) Strategy and (2) Execution. (1) Strategy is the selection of manufacturing, warehousing and distribution locations in your target region. For example, if you are selling pharma equipment to hospitals in the northeast your manufacturing, warehousing and distribution network should be in the northeast… not Mexico, China or even California. (2) Execution is how effective your people, processes and tech enable you to perform your key tasks. For example, who, how and with what system (ERP) your facility carries out SO’s, PO’s, WO’s, and Inventory Management. Both strategy and execution are indispensable for achieving growth in your business.

Have you upskilled yourself and your team members with the science of Inventory management? Inventory management is a crucial aspect of operations management, particularly in industries where maintaining optimal stock levels are essential for smooth operations and customer satisfaction. The science of inventory management involves various principles, methods, and techniques aimed at efficiently controlling the flow of goods or materials within an organization. Here are some Key Inventory Management aspects: Inventory Control Models: These are mathematical models used to determine the optimal inventory levels and reorder points. Common models include the Economic Order Quantity (EOQ), which helps in finding the optimal order quantity that minimizes total inventory costs, and the reorder point models, which determine when to place an order to replenish inventory. Forecasting Techniques: Accurate demand forecasting is essential for effective inventory management. Various statistical methods such as time series analysis, moving averages, and exponential smoothing are employed to predict future demand based on historical data, market trends, and other relevant factors. ABC Analysis: This technique categorizes inventory items into three groups based on their value and contribution to overall inventory costs: A items (high-value, low-quantity), B items (moderate-value, moderate-quantity), and C items (low-value, high-quantity). This classification helps in prioritizing inventory management efforts and resources. Just-In-Time (JIT) and Lean Inventory Management: JIT and lean principles aim to minimize inventory holding costs by synchronizing production with demand and reducing waste throughout the supply chain. These methodologies emphasize continuous improvement, waste reduction, and efficient use of resources. Inventory Management Software and Systems: Utilizing sophisticated software systems and technologies such as Enterprise Resource Planning (ERP), Material Requirements Planning (MRP), and Warehouse Management Systems (WMS) streamline inventory tracking, order processing, and inventory replenishment processes. Supply Chain Integration: Effective inventory management often requires close collaboration with suppliers and other partners in the supply chain. Integration of inventory systems and sharing of real-time data enable better visibility, coordination, and responsiveness to changes in demand and supply. Risk Management: Inventory managers need to identify and mitigate various risks associated with inventory management, including stockouts, overstocking, obsolescence, and supply chain disruptions. Contingency planning, safety stock, and risk assessment strategies are essential for managing these risks effectively. DM for more information on Expert training #inventoryscience #inventorytraining #experttraining #expertconsulting

Saving Liquidity and Increasing Service Levels Together Interesting case study about how to improve inventory management by leveraging MEIO (Multi-Echelon Inventory Optimization) across several levels of inventory within complex supply chains. How to make it work? _ thinking across several organizational levels and functional silos _ allowing for learning with a gradual approach to adjustments _ making sure to win cooperation with quick wins and change management _ optimizing on specific segments, not items only _ utilizing the software tools available today A critical ingredient for success in supply chain management remains the transparency in all dimensions: data, relationships, motives, incentives and strategy. That requires highly develped communication and collaboration skills. #inventoryoptimization #SCM #MEIO

There are different elements to consider when improving your supply chain management strategy. Jeffrey Porter shares steps you can take to overhaul the way you manage the supply chain in your business. ✔ Conduct a comprehensive audit of your existing supply chain Start by mapping out each component of your supply chain, from raw material suppliers to end consumers. Document each step of the supply chain process, including procurement, manufacturing, transportation, and distribution. This documentation can serve as a reference point for analysis and will help you identify areas that require improvement. ✔ Identify strengths and areas for improvement After your audit, assess where bottlenecks and inefficiencies are, and where improvements can be made. This can be done by analyzing the cost-effectiveness of your operations, evaluating transportation costs and inventory holding costs, and diving into overall operational expenses. Use feedback from stakeholders to understand how performance is and benchmark your business’ performance against other industry leaders. ✔ Improve and streamline processes Streamline and improve processes by identifying and categorizing different types of waste in your supply chains, such as overproduction, excess inventory, and holding costs, and detail processes that will correct areas where resources are being underutilized or misallocated. ✔ Invest in technology and innovation To step up your supply chain management strategy, invest in technologies and systems which give you more accurate data and demand forecasts, and which help improve visibility into your operations. Specifically, these systems can help you reduce stockouts, improve service levels, reduce planning cycle time, reduce inventory, and optimize operations overall. ✔ Provide employee training and skill development opportunities Since employees will be the ones executing your supply chain strategies, it’s important that they’re equipped with the necessary skills to execute their responsibilities, and that these skills are kept fresh. You can start by conducting a skill gap analysis, to identify any gaps in proficiency in both soft skills and hard skills. You can then deploy targeted training to fill those gaps, while also providing continuous learning opportunities, to ensure their skills stay sharp. Aside from specific skills, you should hone in on technology training. Given the rapid advancements in technology within the supply chain, provide training on the use of new tools and software. This includes training on ERP systems, data analytics platforms, and any other technology adopted to enhance efficiency. Also, consider training when new features are launched or systems are updated, to ensure your team members are always making the most of your technology investment. #supplychainmanagement #supplychainplanning

The Hierarchy of Supply Chain Metrics Model to Analyze Supply Chain Management performance: The best approach to measure and suggest corrective measurs is to use a three-tiered hierarchy model which allows managers to quickly assess overall supply chain health at the top level, diagnose problems at the mid-tier, and identify corrective actions at the ground level. At the top level, there are three core metrics that allow a manager to quickly gauge the overall health of the supply chain: • Demand Forecast Accuracy • Perfect Order • SCM Cost Basically, a highly accurate forecasting model (Demand Forecast) coupled with a healthy balance of customer service (Perfect Order) and cost control (SCM Cost) assess the health of supply chain operation. At the middle level, there is a composite cash-flow cycle metric which provides a diagnostic tool that allows a manager to zero in on the components that are likely the cause of any inefficiencies. The metric allows managers to determine whether there’s a balance between the time it takes suppliers and the time it takes customers to pay, whether the inventory metric which can contribute to high costs needs further analysis, and whether cash flow is being appropriately managed. The metric consists of: * Accounts Payable Turnaround Time * Accounts Receivable Turnaround Time * Inventory Turnover Time At the bottom level are the day-to-day metrics that measure performance across the different supply chain management activities and allow root-cause analyses when one of the higher-level metrics indicates a potential problem with efficiency or cost management. These metrics measure supplier effectiveness, operational effectiveness, and cost management effectiveness and include: • Supplier Quality • On-Time Delivery • Purchasing Costs • Direct Material Costs • Production Schedule Variance • Plant Utilization • Work-in-Process Inventory • Order Cycle Time By utilizing the Hierarchy of Supply Chain Metrics Model properly can lead to great success to achieve the Supply Chain Management objectives. (Collected).

#WEBINAR 📢 In today's fast-paced supply chains, manufacturers' success relies on integrating advanced #supplychain management (SCM) tools with key business systems. Progressive #manufacturers view an effective #SCM solution as a strategic asset, enabling them to navigate material shortages, production delays, and excess inventory efficiently. This isn't just about running a smooth operation; it's about gaining a competitive edge in today's manufacturing world. Join this 30-minute #webcast to learn how #EpicorKinetic can help you optimize production and give answers to challenges that you might be facing: ✅ Overstocked inventory taking up valuable space? ✅ Overspending on materials? ✅ Inaccurate MRP suggestions? ✅ Underestimating true costs?

Myers Industries shares how the Atlas Planning Platform provides “a uniform supply chain view” to help the company achieve an integrated business plan. Watch the interview conducted by SupplyChainBrain to learn more about this industry leader’s journey to integrate its planning function across six business groups, serving multiple markets and product types: https://lnkd.in/ezvpU_t9 Matt Hoffman Robert Bowman #supplychain #customersuccess #supplychainplanning #SCM #supplychainmanagement #johngaltsolutions

Elevating Supply Chain Resilience: Enhancing MRP Capabilities within IBP In my previous article, we explored how Material Requirements Planning (MRP) serves as the linchpin within the Integrated Business Planning (IBP) framework, ensuring the smooth flow of materials and efficient production scheduling. Let’s take this discussion further by examining how businesses can optimize MRP to enhance supply chain resilience and responsiveness. --- 1. Bridging Gaps with Real-Time Data In the fast-paced world of supply chain management, decisions based on outdated data can lead to costly errors. Advanced IBP platforms now integrate real-time data streams, providing MRP systems with accurate demand forecasts, supplier lead times, and inventory levels. Why it matters: - Dynamic Adjustments: MRP can instantly adapt to shifts in demand or disruptions in supply. - Enhanced Visibility: Stakeholders gain a clear view of material flow and production schedules. --- 2. Fostering Supplier Collaboration Suppliers are critical partners in the MRP process. By leveraging IBP, businesses can establish a collaborative ecosystem where suppliers have visibility into production schedules and material requirements. Benefits: - Reduced Lead Times: Suppliers can prepare in advance for material requests. - Stronger Relationships: Improved communication builds trust and mutual efficiency. --- 3. Scenario Planning and Simulation The unpredictability of global markets requires businesses to be prepared for various contingencies. IBP-enabled MRP allows organizations to simulate different scenarios—such as sudden demand surges or supply chain disruptions—and evaluate their impact. Key outcomes: - Risk Mitigation: Proactive responses to potential disruptions. - Optimized Planning: Better alignment of production and material requirements under different scenarios. --- 4. Continuous Improvement through KPIs To ensure MRP processes remain efficient, organizations must regularly review key performance indicators (KPIs) such as: - Material Shortages - Inventory Turnover Rates - On-Time Delivery Performance Integrating these KPIs into IBP dashboards provides actionable insights, driving continuous improvement. --- Final Thoughts: Building a Future-Ready Supply Chain In today’s volatile market, MRP within IBP is a game-changer for companies aiming to stay competitive. By leveraging real-time data, enhancing collaboration, and continuously refining processes, businesses can build a resilient supply chain capable of adapting to any challenge. How is your organization optimizing MRP within its IBP framework? Let’s collaborate and share insights on driving supply chain excellence!