¡Hola! Each day, LeanDNA sets out to delight customers and transform supply chains around the world through collaborative analytics. To support our global users, we’re always making improvements and additions to the tool. Today, we are pleased to announce that LeanDNA now offers Spanish language support!
As part of a company-wide initiative to reduce working capital and inventory costs, your leadership has just asked you to analyze your supply base and determine the top 10 suppliers requiring improvement. You need an action plan and KPIs to measure performance improvements for those suppliers – and fast. Your supplier development team is struggling to come up with streamlined ways to track supplier performance, understand the root cause of performance issues, and actually drive improvements. Now it’s time to scramble as a team to develop and implement an improvement strategy. But where do you start?!
Supply chain executives are always on the hunt for improvements to efficiency that lead to cost savings. Improving processes is often low-hanging fruit that can be done quickly with the right tools in-hand. In this post, I’d like to show you how our customers have saved millions through inventory optimization and cost reductions by leveraging technology like AI and cloud computing. I’ll also touch on Deloitte’s 2018 MHI Annual Industry Report, which discusses trends of next-generation supply chains, and the tools most leaders believe will disrupt the industry. Automation is right at the top of the list.
By some estimates, procurement costs make up 60-80% of production costs for many manufacturers. Suppliers not only contribute to product innovation, they also help manufacturers achieve more effective production processes. Given the high dollar value associated with procurement, it comes as no surprise that better supplier performance management is an improvement opportunity that could deliver millions in savings for many supply chains.
Most manufacturers use supplier performance management to measure and analyze a supplier’s work. Cost-cutting, continuous improvement, and better customer on-time delivery performance are all goals of improved supplier performance. When buying teams have a clear view of their suppliers’ performance, they can identify the best performing partners, make smarter, more profitable decisions, and develop more strategic partnerships.
But many manufacturers miss these opportunities as they continue to rely on outdated processes and improvement measures that are complex and cumbersome to implement. This blog post will explore a fictional manufacturing company, Acme Aerospace, and six strategies they used to improve their supplier performance across the organization.
LeanDNA Launches Item Change Analytics Within Flagship Solution
July 11, 2018, Austin, Texas
Supply chain managers now have unprecedented capabilities to analyze supply, demand, and order policy changes for every single part using LeanDNA’s Factory Analytics software. Snapshots of complex part-level data are taken on a daily basis and maintained for fifteen months, providing a unique capability to customers to determine the root causes behind inventory excesses and shortages that can impact delivery performance.
“Our customers were often puzzled by sudden changes in supply or demand, which resulted in unexpected shortages one day and excess inventory the next,” said Richard Lebovitz, Founder and CEO of LeanDNA. “It was a natural extension of our analytics engine to capture this inventory information on a daily basis. Supply chain leaders will now be able to quickly identify inventory issues, drill down for details, and track back to the underlying reason for how they got there. You can look at this data for on every part on a daily basis and maintain it for future root-cause analysis.”
When are parts not just parts? Recently, LeanDNA was featured as a best-of-breed solution to consider for augmenting direct material processes as part of a call for improvement in supply chains by Lora Cecere, Lead Analyst at Supply Chain insights. Below are highlights from the article, or you can read the full article here.
Of the thousands of moving parts and hundreds of different roles across the supply chain, few are more directly impactful to the bottom line than that of the buyer. If buyers are successful, on-time delivery improves and inventory capital is reduced. If they fail, the company can experience enormous financial losses due to shortages, work stoppage, and days of “firefighting.” And like many critical business roles, buyers’ days are so full that work often bleeds into evenings and weekends.
The long hours and overwhelming workload can easily lead to human bias and error, which can potentially cost the company millions. Often far too much is expected of buyers, but many people many not fully understand just how challenging their work is. Let’s take a look at the morning of a typical buyer in a global supply chain. Remember, this is just a morning – we’re not even getting past lunch!