Tag Archive: tools

IT/ Tech

May 13th, 2020

Does Technology Have a Seat at the Table?

Do you consider your technology leader an integral member of your executive team? If not, why not? Prior to the coronavirus pandemic, technology was starting to take over the world. With the acceleration of e-commerce, the expanded use of ERP systems, artificial intelligence applications to create predictable demand and automate repetitive tasks (and of course Amazon Alexa), the internet of things to connect objects and applications such as those used in autonomous trucks, blockchain to trace the chain of custody from farm to table across the globe and robotics to automate manufacturing and warehousing processes, IT was critical.

Now that the pandemic has hit, technology is playing an even more pivotal role. The world has gone remote. Users are gaining comfort with technology at a record pace. Additionally, because there are many complications in navigating coronavirus with employees (rules, regulations, social distancing protocols, and many more), executives are starting to see a greater advantage in proceeding more quickly with their technology roadmaps. By taking advantage of the opportunities to grow the business and improve the customer experience, employers can reallocate employees from repetitive tasks (which also can require close proximity to one another) to ones that will add value to the business.

Read our eBook, Future-Proofing Manufacturing & Supply Chain Post COVID-19 to dig into these concepts further as well as to debate whether to move forward with ERP upgrades or hold off to preserve cash and to be reminded of the critical importance of cyber security and protecting against cyber criminals. Also, one of our favorite topics is addressed, the MacGyver approach to moving forward with your systems infrastructure while navigating the slow ramp up following the pandemic. It is NEVER all or nothing. Invest smartly. Utilize already-existing talent and tools. You’ll speed on by your competition.

Join our Navigating Through Volatility webinar series to learn about how ESRI is using cutting edge technology and location intelligence to drive supply chain resilience and recovery. It certainly will stretch your mind when it comes to using IT/ technology to drive business value, and more importantly, value to the community. Perhaps it will inspire you to think about technology differently.

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Is Demand Planning/ Sales Forecasting Hype or Valuable?

September 9th, 2019

According to Gartner statistics,significant bottom line results can occur with just a 1% improvement in forecast accuracy. In fact, there are staggering improvements in lead time, inventory reduction and margins, so why not at least explore the idea? There are lots of worries expressed by clients and contacts:

  • We cannot predict what our customers will order!
  • Customers don’t even know what they will order! (And, in seeing these ordering patterns, I concur that this is often-times an accurate statement.)
  • Since we are using lean, our lean consultant told us we no longer need forecasts.
  • We are a small company and don’t have resources to focus on forecasting
  • And my favorite, “Why in the world would our significant sales team listen to you?”

I just have one question, if depending on the industry and study, a 1% improvement can lead to a 2.7% to 7% improvement in cash flow and minimally a few percentage points cost improvement in key categories such as freight, wouldn’t you be remiss if you didn’t consider your forecasting process? Of course you would be!

We have yet to run across a client that couldn’t improve the forecast, no matter how daunting the task seemed. Since the outcomes are substantial, it was worth the effort.  And, the effort was typically minimal compared to aligning the people on the forecast.

A few tricks of the trade in driving results with forecasting:

  1. Let your tool (whether Excel or a sophisticated system) do the work for you – From an 80/20 standpoint, there is no doubt that a simple tool will perform far better than even your best person. Develop your base.
  2. Focus on exceptions – On the other hand, your team is best equipped to provide insights and feedback on exceptions. Use their strengths.
  3. Drive results, not blame – Remember, the definition of a forecast is that it will be inaccurate. I’ve yet to run into a client with a perfect forecast. With that said, the three most impressive were across the board – a $100 million dollar facility of a multi-billion dollar aerospace organization with a manually generated forecast, a close to billion dollar consumer products company with a home grown system and smart people, and a rapidly growing <$10 million dollar manufacturer with an Excel-based system with smart, agile and process-oriented people. None of these folks ran around blaming anyone with forecast inaccuracy yet they all outperformed their competitors.

Perhaps it’s time to take a second look at your sales forecasting process. Who is responsible? How does it work? You never know what you’ll discover as you shine a flashlight on the process. If you’d like to discuss forecasting and demand planning further, contact us.

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