The 2013 Logistics and Supply Chain Management event in Las Vegas gave me a chance to present as well as connect with a number of outstanding people and organizations. Here are the major tips from the week which pertain to our business the most.
- Presentations regarding master data governance (including CIF – APO core interface) with or without APO were the most popular.
- Before launching sophisticated tools like APO, make sure you are already using standard SAP reporting tools to really understand your inventory strategy and execution. You can most likely make gains of at least 20% inventory reduction through proper user education.
- Data mining using standard SAP reports across the supply chain is the foundation for process optimization.
- With standard SAP inventory and procurement reporting, enable ABC analysis, correlation, dual classification and comparisons in 2D and 3D format. Use the historic inventory graphs to help all levels of planning and procurement to make better informed decisions.
- Master data should most likely be decentralized so that process owners align master data with process performance. Who really owns it and who is truly accountable? Establish data owners!
- Mater data isn’t about who can do it best, it’s about governance across the board, education and certification of key users.
- Kimberly Clark uses APO with multiple “what if” simulations well and this was an excellent networking connection.
- Heinz has had difficulty with PPDS whereas Kimberly Clark uses it well. Look for the best practises across a wide spectrum of industries.
- Sometimes forecasting isn’t about sophisticated models, it’s about whether it finally “looks right” to the user.
- When forecasting, use a relatively fixed forecasting method for your stable products and then other models for the remaining 50%.
- Removal of characteristics in APO demand planning is very difficult to do. Do it right the first time.
- Laprino foods re-implemented its demand planning solution in six weeks and removed unnecessary characteristics from its forecast.
- The APO optimizer is very difficult to teach users and also should be used as a decision tool as opposed to a cost tool.
- Align your Six Sigma inventory projects around your key inventory metric pain points. Specify which skus to address.
- Safety stock does not take into account bias or constraints but EIO (enterprise Inventory Optimization) does.
- My presentation was definitely one of the best ones of the week.
- See you in Florida next year!