{"id":9929,"date":"2021-07-15T09:27:43","date_gmt":"2021-07-15T07:27:43","guid":{"rendered":"https:\/\/ca.syspro.com\/blog\/?p=9929"},"modified":"2021-07-27T11:58:40","modified_gmt":"2021-07-27T09:58:40","slug":"tuning-your-supply-chain-with-it","status":"publish","type":"post","link":"https:\/\/ca.syspro.com\/blog\/supply-chain-management-and-erp\/tuning-your-supply-chain-with-it\/","title":{"rendered":"\u201cTuning your Supply Chain with IT\u201d"},"content":{"rendered":"<p>\u201cI paid for the weights &#8211; so where are the muscles?\u201d. Applying IT doesn\u2019t guarantee results either without waves of effort. Let\u2019s exercise more \u2026<\/p>\n<p>You\u2019ve done the basics \u2013 gym membership, cool outfit, matching wrist and headband doing circuits twice a week. That\u2019s like stable implementation of your \u201cbackend system\u201d typically <strong>ERP<\/strong> you feel comfortable with.<\/p>\n<p>Everyone\u2019s doing it but some seem fitter, what are they be doing? Probably more than gym visits. Maybe training for a marathon target-time. Or cycling with an Argus podium in mind. Or both. They joined a club, run\/cycle with others \u2013 competition to realize their technique is no longer sufficient. Time for some new tricks.<\/p>\n<p>Again it\u2019s the same for supply chains. Supply chain is a Team-Sport reliant on collaborative plans and end-to-end execution in harmony, where targets and focus are needed to win.<\/p>\n<p>Sharing data <u>inside<\/u> your company is fine \u2013 departments talk to each other \u2013 but Customer-First companies help their customer\u2019s customers. The company next down the line (your customer) plus the end-customer\/consumer without whom there would be no demand or supply chain either.<\/p>\n<p><strong>Customer First and Service <\/strong><\/p>\n<p>Mature organizations know <strong>Integration<\/strong> exists at both ends, procurement to supplier and selling to customer. Sure rely on a forecast, but what if your customer\u2019s forecast missed the real market signals and hence lost you sales? Work together creating the most accurate forecast you can, linkup end-consumer demand and don\u2019t just repeat last year\u2019s sales with 5% on top.<\/p>\n<p>Service-levels require best information and forecasts \u2013 uncertainty in supply and demand means more stock is kept buffering this and reduces uncertainty:<\/p>\n<ul>\n<li>Share plans with key customers<\/li>\n<li>Give them access to your ERP system to see what stock you have and when you plan replenishment<\/li>\n<li>Make customers stock products specific only to them, you keep buffers of products you sell to many customers<\/li>\n<li>Help optimize the supply chain stock-mix and location with collaborative <strong>Forecasting<\/strong> and <strong>Inventory Optimization<\/strong><\/li>\n<\/ul>\n<p>Beware the last guy in the chain doesn\u2019t price-up to forsake all your cost savings \u2013 markets lead consumer pricing, not naive suppliers<\/p>\n<p><strong>Procurement<\/strong><\/p>\n<p>Procurement IT advances include collaborative planning throughout the supply chain, including the customer end. To win your race here you should be looking at some of the following<\/p>\n<ul>\n<li>Differentiate between <strong>Strategic Sourcing<\/strong> and <strong>Operation Procurement<\/strong><\/li>\n<li>Strategic Sourcing involves analyzing where\/who you spend with, identify the percent of spend they command. Check supplier group-companies and your group structure as spend can be a broad network of group companies selling to yours. Rank them, contract them, price and deliver better with them.<\/li>\n<li>Sourcing uses <strong>Request form Quotation<\/strong> (RFQ) to keep suppliers alert. Do your suppliers do quality checking rather than you? Try trust but support with stats. Sourcing is about selecting, negotiation price and conditions.<\/li>\n<li>Operational Procurement is about plans, order quantities, meeting pack-sizes (less damage), collaborating on changes to plan and near-horizon deliveries so both are effective avoiding waste. Think catalogues and shopping-cart IT here to make it easy for purchasing officers to order the right (and approved) items.<\/li>\n<\/ul>\n<p><strong>Manufacturing<\/strong><\/p>\n<p>Let\u2019s not forget manufacturing. Industry 4.0 pushes us to utilize advanced technology to increase operational efficiency\/visibility, shorten production lead-times while reducing costs AND delivering greatly improved customer-service. But Covid-19 lockdowns and our changed buying habits have affected the economy pushing leading companies from the Industry 4.0 Train to the 5.0 Express. Where man and machine are connected, collaboration between real people and smart machines. Companies are digitizing the factory by collecting data from machines and other devices automatically, fast-tracking the journey towards the <strong>Smart Factory<\/strong><\/p>\n<p>At the same time<strong> ERP<\/strong> has been reinforced as a must for manufacturers. It is the basis on which they streamline processes through automation, using and providing accurate real-time information, and reducing costs. As a result, smart-apps\/modules like <strong>SYSPRO<\/strong> <strong>Manufacturing Operation Management <\/strong>(MOM) enhance factory scheduling, directly capture visibility of progress to enable faster reaction (agility) while feeding operational and labour efficiencies.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>IoT,<\/strong> still in the front carriage, also gathers real-time data from a range of smart devices across supply chains covering production counts, quality, safety, product and process innovation and more. With monitoring technology IoT can track machines\/equipment\/devices performance in situ before failure &#8211; all while in synch with SYSPRO ERP and Predictive Maintenance.<\/p>\n<p><strong>Final Caveat<\/strong><\/p>\n<p>5.0 spikes interest in <strong>Human-Centred AI<\/strong> which will grow as Covid continues and remote work and social distancing remains. <strong>Artificial intelligence<\/strong> will be the standard for addressing these challenges, but it will fail if companies don\u2019t consider how <strong>humans interact<\/strong> with and leverage these new technologies<\/p>\n<p>Plus, to make take advantage of these technologies it is essential that companies upgrade to the latest ERP version, in our case <strong>SYSPRO 8<\/strong>.<\/p>\n<p>So, are you running a company sports-day or a marathon?<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\u201cI paid for the weights &#8211; so where are the muscles?\u201d. Applying IT doesn\u2019t guarantee results either without waves of effort. Let\u2019s exercise more \u2026 You\u2019ve done the basics \u2013 gym membership, cool outfit, matching wrist and headband doing circuits twice a week. That\u2019s like stable implementation of your \u201cbackend system\u201d typically ERP you feel &#8230; <a title=\"\u201cTuning your Supply Chain with IT\u201d\" class=\"read-more\" href=\"https:\/\/ca.syspro.com\/blog\/supply-chain-management-and-erp\/tuning-your-supply-chain-with-it\/\" aria-label=\"Read more about \u201cTuning your Supply Chain with IT\u201d\">Read more<\/a><\/p>\n","protected":false},"author":160,"featured_media":9930,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[29],"tags":[30],"class_list":["post-9929","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supply-chain-management-and-erp","tag-erp-systems"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - 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