Supply Chain Digest

The US Military Supply System is Broken

2006-07-28T15:56:00.000+08:00

The U.S. military's supply system has been broken for a decade and a half, and experts warn it may stay that way for years to come says an article in United Press International. This is interesting given that logistics as a science has its roots in the military. The first Iraq War triggered by the invasion of Kuwait in the last decade was one of the largest logistics excercise ever conducted by

There is real growth in the use of RFID in Supply Chain Management

2006-07-27T17:47:00.000+08:00

Over the last couple of years, there was more hype about RFID rather than any real successful implementation in the real world, exception being the US Army. Even the mandate by Wal Mart was proving to be difficult as suppliers all over the world struggle to comply with their requirements.Things are changing however, as this article about RFID printer and encoder sales shows. It would seem that

Accenture the best in SCM services

2006-07-26T17:42:00.000+08:00

This is an interesting short article, Accenture beats its competitors in delivering SCM services. Almost 84% of its customers say that they will recommend Accenture to others in the market. Can you beat that ?

On-demand Solutions

2006-07-26T11:31:00.000+08:00

On demand supply chain management solutions are more effective at reducing procurement costs than traditional licence solutions, according to research by the Aberdeen Group. Aberdeen conducts a lot of research into the global supply chain, much of these are published as free downloads on its website.The analytical firm found that on demand solutions increase cost reduction capabilities by an

Value Chain Management Excellence

2006-07-18T16:56:00.000+08:00

The application of advanced technologies in all the three value chain management time horizons (Strategic Planning, Tactical Planning, and Operational Execution) will be the difference between adequate and great value chain performance. Enterprises fail to master great value chain management because they often approach these projects in the same manner as they do enterprise resource planning (

Yet another acquisition in the SCM world - now its RedPrairie

2006-07-17T16:42:00.000+08:00

RedPrairie has been quite active at both customer acquisition as well as business acquisition. RedPrairie will acquire BlueCube Software. The combined companies, operating under the name RedPrairie Corporation. Just earlier this year, it acquired Marc Global in an acquisition that integrates two companies which are quite alike in many ways. This move is seen to be more of a customer base

IBM believes that business growth is dependant on competitive supply chains

2006-07-10T16:40:00.000+08:00

If you have been following this blog, you would have known by now that the enterprises around the world understand that their growth is very much dependant on their supply chains. With manufacturing centres relocating to lower cost countries, and sales extending globally, enterprises have no choice but to invest heavily into supply chain technologies as well as revolutionise their out-dated

Value Chain Definition

2006-07-06T08:58:00.000+08:00

The successful competitors are those that can best manage, or even control, the entire virtual demand-supply or value chain to deliver the highest value to customers. They do this by closely evaluating costs, quality, and payback at every step along the way. They know the cost of shipping, marketing, and customer support at very detailed levels. They can enter risk analysis into the equation and

Back from my June holidays and business trip to Osaka Japan

2006-07-04T17:27:00.000+08:00

Hi everyone,You might be wondering why I have not posted any thing since 17 June, well its because I was on holiday in Sarawak with my family, and then it was off to a business trip to Osaka Japan. Well, I am back once again. The photo you see above was taken at the Marriot in Miri, Sarawak, Borneo Island. The sunsets there were really beautiful.Well, its onwards to more blog posts on the

Web Services and Value Chains in the Adaptive and Dynamic Supply Networks

2006-06-16T07:34:00.000+08:00

The Internet has enhanced the ability of organizations within the adaptive and dynamic supply networks to integrate their processes through collaborative information sharing and planning, and to improve internal operations through flexible workflow management. Clusters of these organisations within each supply network begin to form to create what is traditionally known as Value Chains. An

Supply Chain Execution (SCE) Solutions Driving Growth for SCM

2006-06-15T12:41:00.000+08:00

Around 5 to 7 years ago, the buzz was all around how supply chain planning (SCP) will revolutionise supply chian efficiencies around the world. At that time we saw the rise of companies such as i2, Manugistics and AspenTech (can anyone remember this company?). Even SAP and Oracle got into the act.Yet, all along without much buzz or fanfare, the growth of supply chain execution (SCE) applications

Technology in SCM

2006-06-14T03:14:00.000+08:00

Many SCM vendors are beginning to push the envelope of their solutions by injecting the latest technology into their applications. In the next few years, expect these technologies to become mainstream in SCM.Web Services. This software framework and standards is designed to be used by other software via Internet protocols and formats. It will strengthen the weakest links in

Technology Trends in SCM

2006-06-13T07:20:00.000+08:00

At the heart of today’s dynamic supply chains is a continuous, technology-enabled adoption cycle that will help manufacturing partners proactively detect emerging risks and opportunities, expedite exception resolution and capture opportunities, and continually improve their operational processes, all these across enterprise and international boundaries. The transformation of today's linear

Reverse Logistics

2006-06-12T01:03:00.000+08:00

Reverse Logistics is also a new and growing section of logistics, as customers seek the option of returning goods for repair or exchange. Wikipedia gives a good definition of Reverse Logistics. The e-commerce ways of doing business online will only accelerate this trend. Since so much merchandise is sourced from Asia in the first place, reverse logistics activity is likely to be very substantial

eCommerce logistics outsourcing

2006-06-11T00:03:00.000+08:00

A derivative of logistics BPO, this is a specific service offering, where service providers leverage their existing expertise in the warehousing operations area to offer order e-fulfilment-related services including pick-and-pack, gift wrapping, kitting services and express delivery. An example of this is the recent collaboration between Toy’R’us and Amazon.com, for the former to utilize

Emergence of eLogistics

2006-06-09T11:09:00.000+08:00

The Internet is changing the traditional channel through which buyers and sellers communicate. It has substantially changed manufacturing flow and distribution patterns, profoundly impacting the logistics service marketplace. Increasingly systems and services will be positioned as Internet-centric in order to optimise the availability and “distribution” of the highly complex “information” that

Motorola builds a supply chain control "tower"

2006-06-07T22:21:00.000+08:00

In order to reduce its supply chain costs and achieve full supply chain visibility, thereby giving it an edge over its competitors, Motorola is pioneering the concept akin to the airport control tower, it is called a supply chain control tower. Just like an airport control tower, Motorola's control tower will enable it to marshall its resources to enable efficient order landings and delivery

Logistics Trends - Outsourcing of Logistics / Supply Chain Functions.

2006-06-06T22:37:00.000+08:00

Today, it is an accepted fact that the majority of Original Equipment Manufacturers (OEMs) are enlisting the help of outside companies, usually to a third-party logistics provider (3PL) to manage their supply chain, returns, repairs, and other logistics functions. These companies want to focus on their core competencies and many lack, or choose not to put up, the resources or capital necessary

Lawson and Intentia have merged

2006-06-06T04:48:00.000+08:00

In April 2006, Lawson Software and Intentia merged to form the new Lawson. This merged entity now delivers enterprise applications in 20 languages to more than 4,000 customers in more than 40 countries. Lawson applications support global processes, from order to cash, demand to distribution, or forecasting to financials.With this merger, the new Lawson now specialize sin service industries,

Bridging the Chinese Supply Gap

2006-06-05T11:52:00.000+08:00

This article is interesting as it highlights the fact that many indegenious Chinese companies are today trying their very best to improve their supply chain capabilities in order to extend their marketing into the value chain of the international manufacturers.And by all accounts, I think their initiatives are paying off. Many of these Chinese enterprises are serious about improving their

Adaptive Supply Networks

2006-06-03T15:48:00.000+08:00

Over the last decade, increased outsourcing and alliance building have made it harder

Oracle to Acquire Demantra

2006-06-03T08:02:00.000+08:00

Oracle did it again. Lately it has gone into an acquisition frenzy and its latest score is Demantra (remember, not dementia). Demantra provides Demand-Driven Planning solutions that enable marketing, sales, and supply chain departments to create and execute to a one–number plan. The Demantra Spectrum Suite includes solutions for Trade Promotion Management & Optimization, Real-Time Sales

Bridging SCP and SCE

2006-06-02T01:51:00.000+08:00

Companies have made enormous investments in supply chain systems, yet the ultimate goal remains elusive. Most businesses today do not operate high velocity supply chains and are not able to respond to supply chain changes as quickly and efficiently as should be possible. And speed is only part of the challenge. Many businesses outsource some production and fulfilment activities, adding complexity

Acceleration in SCE Market

2006-06-01T05:56:00.000+08:00

Another segment of the SCM market, supply chain execution (SCE), has shown remarkable stability in an overall weak software market. Supply chain execution is a broad term referring to the framework for managing the flow of materials. Most commonly, it brings to mind the management of outbound distribution of finished goods – so-called outbound logistics. It is important to note, however, that

Downsizing in the Supply Chain Planning (SCP) Market

2006-05-31T00:33:00.000+08:00

Vendors in the supply chain-planning (SCP) segment are looking at a dreary sales environment through 2006. And even as this market starts to rebound, vendors are facing a drastically different sales environment, one with fewer overall prospects, considerably smaller deal sizes, and very conservative technology buyers. The SCP vendors, namely i2 Technologies and Manugistics, have been forced to

Sterling Acquires Nistevo

2006-05-26T16:38:00.000+08:00

Why Sterling? Think Nistevo AND Yantra. Here is another acquisition that indicates that consolidation in the SCM market is gathering pace. Sterling intends to blend Nistevo with Yantra, a provider of software for distributed order management and warehouse management. Some of you will remember that Sterling acquired Yantra last year for $170M. Yantra’s core strength was in the retail space,

Worldwide Supply Chain Planning Market to Grow

2006-05-25T22:06:00.000+08:00

Over the last few years, the Supply Chain Planning (SCP) market was moderately shrinking. Companies such as SAP, Oracle, Manugistics and i2 did not see much growth in SCP in the last two years. However, the SCP market is still around USD$1.8B in 2005, and that is no small sum. What is interesting is that the SCP market is once again beginning to grow, albeit at a slower pace. Click the link to

Defining Supply Chain Management (SCM)

2006-05-25T12:04:00.000+08:00

The supply chain management (SCM) market is a catchall term for an array of software solutions aimed at extending information and cooperation among different supply chain constituents. The market includes many sub-segments, each with different outlook and growth prospects. There are three core segments in the SCM market: 1) the traditional supply planning (SCP) segment, which is most commonly

Is there such a thing as a "smart supply chain"?

2006-05-24T11:11:00.000+08:00

Supply Chain Management (SCM) is one subject that has given rise to so many buzz phrases. One of these is called the "Smart Supply Chain". First, what does the word "smart" refer to here? Does have complete visibility into a supply chain makes it "smart"? Does have the ability to see events that happen throughout the chain make it "smart"? Follow the link in the title of this posting to see what

Trends to Watch

2006-05-23T13:50:00.000+08:00

The years of 2001 and 2002, and the first half of 2003 has seen one of the worse economic recessions that the world has ever seen for over 50 years. With the US and EU economic slow down, coupled with the more than decade long recession in Japan, the war in Iraq, and SARS, it would seem that the only bright light today comes from China. China is fast becoming the shop floor of the world, with

JDA Software to Acquire Manugistics

2006-05-20T12:02:00.000+08:00

More interesting news for the supply chain management software industry. The once high-flying supply chain management software provider Manugistics has succumbed to consolidation. JDA software has bought the company for a song. With SSA going to Infor, I wonder who is next.

Infor to acquire SSA Global for $1.35bn

2006-05-20T01:11:00.000+08:00

This is another interesting piece of news for the SCM software industry. SSA Global, which went on an acquisition spree over the last few years (acquiring companies such as EXE Technologies) has themselves been acquired by Infor. It sure looks like the SCM Software Industry is consolidating at a rapid rate given that JDA recently acquired Manugistics. Who's next I wonder ...... Manhattan

Supply Chain Council

2006-05-20T00:48:00.000+08:00

The Supply-Chain Council was organized in 1996 by Pittiglio Rabin Todd & McGrath (PRTM) and AMR Research, and initially included 69 voluntary member companies.The Supply-Chain Council now has closer to 1,000 corporate members world-wide and has established international chapters in North America, Europe, Greater China, Japan, Australia/New Zealand, South East Asia, Brazil and Southern Africa.

Impact of Supply Chain Costs on the Bottom Line

2006-05-19T14:41:00.000+08:00

How much does it costs to move goods through your supply chain ? Has there been research on what percentage of sales goes into the supply chain? Well, this table shows that companies that manage their supply chains carefully tend to keep logistics costs to around 9.5% of their sales. Without any substantiated data, I would put forth a guess that many companies which do their manufacturing in

Constant Change

2006-05-17T09:26:00.000+08:00

With the Internet, competitive information is easily accessible globally. As a result, companies

The Rules are Changing

2006-05-16T09:21:00.000+08:00

The age-old goal of business has always been: “To provide superior products and services with outstanding customer service whilst achieving profitability”. While this goal has remained relatively unchanged, what have changed dramatically are the benchmarks by which quality, service, speed, and delivery performance are measured. With the advent of the Internet and advanced supply chain

What does supply chain management address?

2006-05-14T23:13:00.000+08:00

Supply chain management must address the following problems: * Distribution Network Configuration: number and location of suppliers, production facilities, distribution centers, warehouses, and customers * Distribution Strategy: centralized versus descentralized, direct shipment, cross docking, pull or push strategies, third party logistics * Information: integrate systems and processes through

Wikipedia: Supply Chain Definition

2006-05-14T05:34:00.000+08:00

Wikipedia (follow the link in the title) definies a supply chain, logistics network, or supply network as a coordinated system of entities, activities, information and resources involved in moving a product or service from supplier to customer.A definition that I have been personally using for several years now is: a supply chain is a series of links that connect sources of supply of an item to

What is Supply Chain Management?

2006-05-13T12:29:00.000+08:00

Supply chain management (SCM) is the process of planning, implementating, and controling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption. Some experts distinguish supply

Welcome to Supply Chain Digest

2006-05-13T08:19:00.000+08:00

Everything that you buy from the shops get to you after the items have been manufactured and transported to your favourite shop. Did you ever wonder how things that you buy at your favourite shops get there? How did they arrive at the shops from the various factories? How does one know how much to make and transport in order to ensure that retailers do not run low on your favourite items? Supply