Supply Chain Shaman

APRIL 29, 2024

Let me start with why I selected a baby with ears for this post. I find that most companies’ understanding of supply chain planning is immature, and that next week, at the Gartner Supply Chain Summit in Orlando, that many will don their Mickey ears to discuss what I consider outdated supply chain planning models. The investment in these outdated concepts is an opportunity cost to improve outcomes.

Supply Chain Planning Software 401

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Supply Chain Shaman

APRIL 19, 2024

The supply network–shipments and production of trading partners–represents over 70% of the environmental impact of supply chain decisions. Despite the importance, the investment in networks to automate the information flow between trading partners remains low. Networks take three forms–demand, design, and supply. Here I share insights on the sharing of supply data.

Supply Chain Network Software 307

Supply Chain Network Software Resource Reduction Cost Reduction Strategies Manufacturing Procurement 307

Supply Chain Shaman

MARCH 21, 2024

During the 1980s, I was on a management team for a large manufacturer. My job was redesigning work to improve effectiveness. The plant was 24 acres under one roof. The concept was a factory with many factories in a common facility. The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team.

Inventory Reduction 414

Inventory Reduction Supply Chain Planning Software Cost Reduction Strategies Supply Chain Design Software 414

Supply Chain Shaman

FEBRUARY 26, 2024

On Friday, I presented an overview of outside-in planning to a consulting group. I love the questions when I present. The reason? The dialogue helps me to think more deeply to explain the concepts. Today, I am again teaching an open class on outside-in planning concept s. Over the next five weeks, seventy business/technology and consulting leaders will complete the course.

Modeling 210

Modeling Supply and Demand Optimal Sourcing Supply Chain Planning Software 210

Supply Chain Shaman

FEBRUARY 16, 2024

We are in the middle of a hype cycle. The acronym for artificial intelligence (AI) is seemingly everywhere, but the value proposition is nowhere. Like any hype cycle, the market will overheat being over-hyped, then fall. The question in my mind is, “Will we drive substantial improvement in outcomes? Or transform work?” What I see today, I find disappointing.

Supply Chain Planning Software 398

Supply Chain Planning Software Supply Chain Design Software Modeling Supply and Demand 398

Supply Chain Shaman

FEBRUARY 2, 2024

On February 2, in a small town in Punxsutawney, Pennsylvania on Gobbler’s Knob, an unsuspecting furry Groundhog is plucked from a burrow to predict the weather for the rest of the winter. When the groundhog sees his shadow, the belief is that North America will experience an additional six weeks of winter. In contrast, if the groundhog does not see his shadow, the forecasts is for an early spring.

Manufacturing Procurement 195

Manufacturing Procurement Supply Chain Network Software Supply Chain Planning Software Third Party Logistics 195

Supply Chain Shaman

FEBRUARY 1, 2024

I try to post weekly on this blog. As I do, there is a guy on LinkedIn– let’s call him John– that replies to most of my posts. His comments are the same–he feels that I identify problems but do not adequately define the solutions. He wants answers. Fair enough I say… I do as well. However, getting there is not easy. When I read his comments, I feel beat up, but I try to shake it off.

Supply Chain Planning Software 354

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Supply Chain Shaman

JANUARY 25, 2024

Another call. Same story. As my client explains that they are delaying their project to build network interoperability due to complications with their Enterprise Resource Planning (ERP) upgrade, I tap my foot and sigh. I hear this story a lot. The ERP upgrade cycle holds many of my clients hostage. While the desire to improve network interoperability is high, the organization’s mindset is focused on transactional efficiency.

Supply Chain Network Software 282

Supply Chain Network Software Manufacturing Procurement Inventory Reduction Purchasing Skills 282

Supply Chain Shaman

JANUARY 9, 2024

Today, we published The Supply Chains to Admire for 2023. Congratulations to the 34 winners. (For a more detailed analysis, check out the Power point summary.) The companies that outperformed industry sector performance while driving improvement and sustaining value are: Apple, Assa Abloy AB, BorgWarner, CCL Industries, Celanese, Cummins Engine, CF Industry, Decker Outdoors, Gilead Sciences, Intuitive Surgical, Hubble, Huntington Ingalls Industries, Leggett & Platt, Lockheed Martin Corporati

Supply Chain Planning Software 306

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Gartner 306

Supply Chain Shaman

JANUARY 8, 2024

This weekend, I edited the Supply Chains to Admire report. The report was scheduled to publish in the summer of 2023, but life got in the way. The full report publishes this week. I laugh that writing the report is like a root canal. An analysis of improvement, performance, and value of over 500 public companies in 28 industries over a decade. (I posted my working summary.

Supply Chain Design Software 243

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Supply Chain Shaman

NOVEMBER 21, 2023

When I was a teenager, I spent afternoons after school with my dad. As he lost his vision to macular degeneration, he taught me to play chess. He loved chess, and I was a reluctant participant. I played because I loved my dad, but I never was good at the game. The continual lesson to me was never underestimate the power of the pawn. Pawn Definition: “A chess piece of the smallest size and value.

Supply Chain Planning Software 351

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Supply Chain Shaman

NOVEMBER 9, 2023

In my writing, I try to get clear on definitions. The supply chain space is heavily laden with acronyms, gobbledygook, false narratives, and over-hyped, fast-talking technology sales teams. Let’s take an example. This is a post from LinkedIn today. “At the Digital Supply Chain event at SAP. First great insight from John McNiff: digital mature companies have lower DIO, IBP supports them!

Optimal Sourcing 362

Optimal Sourcing Supply Chain Planning Software Manufacturing Procurement Modeling 362

Supply Chain Shaman

OCTOBER 17, 2023

Rodanthe is one of my favorite beaches. During the summers when I lived in Atlanta, I would pack my bikes on top of the car and head to this wonderful, and what was then a remote beach on the Outer Banks of North Carolina. In the mornings, I would bike to a wonderful bakery, eat an Apple Ugly (an amazing pastry) and sit and drink coffee while staring at the ocean.

Supply Chain Planning Software 384

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Supply Chain Shaman

OCTOBER 16, 2023

The journey for S&OP is a road with many ruts and potholes. In my opinion, the road is tougher today because it is paved with good intentions but creating ruts. I am also amazed. In my twenty years of following the progression of S&OP as an analyst, I am amazed at the number of “experts” with so little expertise. Let me start by saying that t he process is not a panacea to solve all supply chain ills.

S&OP 346

S&OP Supply and Demand Forecasting Supply Chain Design Software 346

Supply Chain Shaman

OCTOBER 11, 2023

Paradox: A statement or proposition that, despite sound (or apparently sound) reasoning from acceptable premises, leads to a conclusion that seems senseless, logically unacceptable, or self-contradictory. Definition Anomaly: something that deviates from what is standard, normal, or expected. Definition As I follow the evolution of supply chain technology, I am struck by what I see as a stream of paradox and anomaly, and the tendency of supply chain leaders to cling to convention.

Supply Chain Planning Software 401

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Supply Chain Shaman

OCTOBER 5, 2023

Seven pieces of advice for technologists making the current pivot for today’s technology.

Supply Chain Planning Software 1065

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Supply Chain Shaman

JULY 23, 2023

In 2012, I published an article on Sales and Operations Technology (S&OP) Maturity. (I never republished the report, because not enough has changed to warrant it.) The report centers on the concept of moving from inside-out to outside-in technologies. At the time, one of the people (let’s call him Noel) that I great respect for in the industry called me to say, “Lora, I don’t get it.

Supply Chain Planning Software 347

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Supply Chain Shaman

JUNE 21, 2023

Surgery is over. I am safely recuperating at home. Due to travel restrictions, I cannot attend many industry events, so I observe from home, watching webinars and remote broadcasts. As I process the content, I struggle. My mind questions, “How did we get here? ” I believe that the industry is stuck. My question is, “How do we break the conventional norms to drive breakthrough thinking?

Gartner 374

Gartner Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning 374

Supply Chain Shaman

JUNE 9, 2023

This is a ChatGPT image rendered when asked, “Show me how Lora Cecere would look riding an Octopus.” Funny? Yes, quite. As I approach my 69th birthday and pending surgery, I thank ChatGPT for removing my facial lines and giving me a good hair day. But, you might ask, “Why an octopus?” Shouldn’t this gal be retiring? This leads me to a long story.

Optimal Sourcing 319

Optimal Sourcing Supply Chain Planning Software Supply and Demand Manufacturing Procurement 319

Supply Chain Shaman

MAY 26, 2023

The market literature, currently dripping with Artificial Intelligence, primarily focuses on discussions to build better engines to drive insights. This leads me to the question, “If the car’s frame is broken, can a better engine help?” I don’t think so. The basic frame of supply chain planning–functional taxonomies for optimization on a relational database–must be redesigned before supply chain leaders can reap the benefit of deep learning, neural networks, a

Optimal Sourcing 352

Optimal Sourcing Modeling Supply and Demand Manufacturing Procurement 352

Supply Chain Shaman

MAY 22, 2023

Sales and Operations Planning (S&OP) is a business process. When the design is a supply chain-centric design, problems arise. I have tracked maturity levels in S&OP for the past two decades and note that most companies are stuck unable to drive progress. I would like to help. This is the goal of this post. S&OP Challenges In a recent research study of business executives, the top three challenges were: not having technologies that support the S&OP process, issues with the role of

S&OP 268

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Supply Chain Shaman

MAY 15, 2023

Typing away on a beautiful May morning, with the flowers blooming and the birds nesting in the garden, engages my mind. Mondays are my day to post my Shaman blog and compose a podcast. The Shaman blog is now over eleven years old. I remember my first post like it was yesterday. New then to WordPress, it took me a week to finish the post. (It was a struggle!

Manufacturing Procurement 456

Manufacturing Procurement Optimal Sourcing Agile and Lean Supply Chain Supply Chain Planning 456

Supply Chain Shaman

MAY 9, 2023

Organizations use S&OP as a hammer in search of a nail. The process is not a panacea for the lack of organizational alignment or clarity on strategy. Currently, LinkedIn is flooded with smiling pictures of supply chain business leaders attending conferences. The good news is that we can attend conferences again. The bad news is that most discussions are based on opinions, not facts.

S&OP 357

S&OP Supply and Demand Supply Chain Planning Software Sourcing Strategies 357

Supply Chain Shaman

MAY 1, 2023

“An idiot with a plan can beat a genius without a plan.” Warren Buffet, Investor This week, I finished a report. It will publish next week. The research focuses on lessons to be learned from the past thirty-seven months of disruption. My primary insight is that many of the technology initiatives that were underway at the start of the disruption did not serve us well.

Inventory Reduction 255

Inventory Reduction Cost Reduction Strategies Waste Reduction Resource Reduction 255

Supply Chain Shaman

APRIL 18, 2023

Over four-hundred days of war in Ukraine. Growing tensions between China and trading partners. Unrest in Sudan. The global supply chain is built on three assumptions: rational government policy, availability of reasonably priced logistics, and low variability. In March 2023, the Global Supply Chain Pressure Index fell to the lowest level since November 2008.

Supply Chain Planning Software 398

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Supply Chain Shaman

MARCH 27, 2023

I need to clear the air. My goal is to engage the supply chain community in a no smoke and mirrors discussion. Here I am attempting to write a no holds barred post: one absent of hype with a focus on authenticity. My observation is that the supply chain community perpetuates a number of myths about planning. As discussions full of oxymorons, acronyms, and juxtapositions fill the air, I think that it is time to step back, and rethink planning based on the opportunities that new forms of analytics

Supply Chain Planning Software 327

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Supply Chain Shaman

MARCH 21, 2023

The story continues. Bloated inventories. Rising inflation. Tightening of organizational belt-cutting to improve cash. Despite investments in planning, today, industries hold 28 more days of inventory than in 2004. Note that in Figure 1, retail home improvements days of inventory increased 68 days, contract manufacturing days increased 48 days, retail apparel by 28 days, and containers and packaging manufacturing companies by 14 days.

Inventory Reduction 404

Inventory Reduction Inventory Price Reduction Cost Reduction Strategies 404

Supply Chain Shaman

JANUARY 2, 2023

This blog post started a series of telephone calls. A large consumer products manufacturer with nine Enterprise Resource Planning (ERP) instances and several divisions wanted to discuss forecasting. The Center of Excellence at the company wanted to improve base-level capabilities but struggled to move forward due to the traditional views of the planning team, which they felt were self-serving.

Supply and Demand 386

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Supply Chain Shaman

DECEMBER 27, 2022

In a recent research project, we found that 2/3 of companies had a digital supply chain transformation strategy; however, those that were evolving their strategy performed better during the early months of the pandemic than those that were “clear” on the project plan for a digital transformation. I know, a head-scratcher. My conclusion? Sometimes organizations are too sure and chase shiny objects, push a fad, or fall prey under the spell of a Supply Chain Conquistador.

Supply Chain Software 411

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Supply Chain Shaman

DECEMBER 15, 2022

When reviewing strategy decks for supply chain teams, I often see statements like “move from a functional-silo’d focus to a drive a more holistic response.” Or “push a shift from a focus on cost to drive value?” Sound familiar? As an analyst, I am always searching for answers and clear definitions. To help, I will ask, “How do you define value?

Manufacturing Procurement 395

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Supply Chain Shaman

DECEMBER 7, 2022

I am lucky to be an analyst. Many might say, “Aren’t you a consultant?” And my reply is that “An analyst is trying to understand where the market is going, whereas a consultant has the answers.” I don’t have the answers, but I am actively studying the market to help business leaders figure out the questions they should ask to drive performance improvements.

Inventory Reduction 57

Inventory Reduction Material Savings Supply Chain Strategy Price Mitigation Strategies 57

Supply Chain Shaman

NOVEMBER 21, 2022

Definition of Confirmation Bias. A Story. On Friday night, I had dinner with a LinkedIn contact. (As I travel, I post where I am going, and if someone reaches out for dinner or lunch, I say, “Why not?”) So, I sat across from a stranger on a cold winter night, the only thing that we had in common was our experience in supply chain planning. .

Supply Chain Planning Software 310

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Supply Chain Shaman

NOVEMBER 13, 2022

This November is a layoff season. As pink slips ripple through Silicon Valley to over 120,000 workers following a time of overexuberant hiring, it is a time for both sadness and reflection. The end of this chapter in Big Tech occurs, it is time for a reality check. As supply chain leaders face heightened demand uncertainty and extreme supply chain disruption, the answer is not going to come from Silcon Valley.

Supply Chain Planning Software 346

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Supply Chain Shaman

OCTOBER 19, 2022

Today, data moves fast, but supply chain decisions move slowly. I know a bit of a generalization, but ironic, right? The reasons are many, including data latency (the time to clean, load, and use data), process latency (the time for an organization to decide on action after getting the data), demand latency (the time from channel consumption to order visibility), market latency (the time from a market shift to the translation to customer order) or transparent governance (a defined process on how

Supply Chain Planning Software 195

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Supply Chain Shaman

OCTOBER 13, 2022

Another night staring out the window from a dark airport terminal. I squint to look at the terminal monitor hoping that the two-hour flight delay changes. I brace myself for a late flight for a 2:00 AM arrival as the clock ticks-an echo of time lost. Today, I ended a 45-day speaking tour. As COVID restrictions lift, I am back on the road, albeit not as wild and crazy as pre-Covid days.

Supply Chain Planning Software 221

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Supply Chain Shaman

SEPTEMBER 30, 2022

Supply chain leaders are in the middle of implementing digital transformation programs. For many organizations, digital transformation is untethered hype. There is a veiled promise for improvement. Here I ask, “Whether we can change course to drive more value in supply chain management?” “ Vieled: not openly or directly revealed or expressed. “ Free Dictionary.

Manufacturing Procurement 221

Manufacturing Procurement Supply Chain Software Buyer Training Analytics Software 221

Supply Chain Shaman

SEPTEMBER 28, 2022

Definition: “Someone’s efforts, resolve, or viability are tested; things are meaningfully challenging. “ Wikipedia. The supply chain team’s past thirty-two months of disruption were a long, winding road full of surprises. Navigating through the turmoil is unprecedented: there are no easy reference models to guide behavior. As a result, companies are writing new case studies through their actions or inaction.

Manufacturing Procurement 195

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