Steelwedge Software

Steelwedge Software

Guest Perspective: Peter Bolstorff Answers Your Questions

Posted: 13 Sep 2012 06:00 AM PDT

A recent Agility Series webinar with Supply Chain author, Peter Bolstorff on the 7 Principles of Highly Effective Planning drove more questions than there was time to answer. The highly attended, interactive webinar highlighted that successful supply chain planning is not just a function of "doing more" leading practices. The best supply chain planning organizations have picked appropriate leading practices as dictated by the markets they serve – integrating those practices with their chosen technology platform to achieve competitive advantage. Actionable research from Peter’s project experience suggests that, in addition to S&OP, the best supply chain planning organizations have adopted seven principles: Systematic management of "master data" Synchronized S&OP, tactical planning, and execution processes and horizons Mature collaborative processes for  key customers and suppliers alike – reconciling forecast, orders, and yearly volume Data-oriented understanding of the inputs to the forecast Intense focus on "point-of-sale" or "sell through" data (versus sales orders and "sell in") Disciplined product lifecycle management process A continuous improvement approach to understanding consumer or user behavior. Following are a few  follow-up questions from the webinar with perspective our webiner host and this week’s guest blogger, Peter Bolstorff: 1)      What is the net impact of forecast error that drives the importance of accuracy?  In one of my recent projects, the business improved its forecast error (MAPE) measured at a 90 day offset from 49% to 19% over nine months.  Service improved seven points from 92% to 99%, excess inventory decreased by 25%, factory costs decreased by 10%, lead-time decreased by 15%, revenue grew by 10%, and cuts to retailer orders virtually went to zero.… Read the rest

Posted by computer at 9:01 AM  

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