9:10am-10:00am
Retail Out-of-Stock Reduction in a Direct Store Delivery Environment
Arzum Akkas, MS, Senior Project Manager, Go-to-Market, Supply Chain Technology, Pepsi Bottling Group
Improving in-stock performance on the retail shelf is one of the most challenging problems in supply chain. According to research conducted by The Grocery Manufacturers Association, out-of-stock (OOS) levels for fast-moving consumer products are 8%. 75% of the cause of the OOS is due to retail store practices as opposed to up-stream supply issues. Retail shelf inventory management gets more complicated with promotions and competition. The solution has to support many different channels, retailers, and products. Data inaccuracies will also make the problem very difficult to solve and implement. Akkas will describe how Pepsi Bottling Group (PBG) copes with this challenge. In the industry, PBG has a unique solution addressing the OOS problem that involves using statistics and forecasting to support its go-to-market process.
10:30am-11:20am
Going Beyond Point-of-Sale Data: How to Collect and Use Demand Information to Improve Forecasts and Supply Chain Performance
Alexander Brown, PhD, Principal Engineer and Supply Chain Architect, Xilinx, Inc.
It’s old news in supply chain that demand information from downstream partners has less distortion and improved predictive value. However, with a few exceptions of companies that use point-of-sale data from distributors or resellers, few companies are collecting this downstream information and systematically using it to build their forecasts. This talk will focus on collecting and using forward-looking data (orders and forecasts, not just POS) from downstream partners to generate an improved forecast. We will use the case of Xilinx, a semiconductor manufacturer, within a four-tier supply chain. You will learn:
• The value of forward-looking demand signals,
• The approach used at Xilinx to collect data from end-customers and distributors,
• A methodology for systematically combining different demand signals to create an overall forecast,
• The top 16 principles for forecasting using forward-looking demand signals.
11:30am-12:20pm
Inventory Optimization at P&G: Achieving the Real Benefits through User Adoption
William Tarlton, BS, Supply Chain R&D Manager, Personal Beauty Care,
Procter & Gamble
Procter & Gamble, a leader in consumer goods and renowned for its supply chain management expertise, has deployed a service-driven global supply chain solution in the Beauty Care Division that has allowed the company to maintain service levels at nearly 100% while continuing to achieve significant inventory reduction. Tarlton will explore the P&G methodology with a look at the implementation of a multi-echelon inventory optimization technology and see how it links to current work processes and the benefits it is providing. He will describe the analytic and adaptive aspects of the tool, with emphasis on supply network models that identify the optimal inventory for each item and location, after analysis of demand characterization and the supply chain structure. In this session, you will learn how P&G aligned work processes to key users’ requirements and how they attained user adoption to ensure that benefits are realized.
2:00pm-2:50pm
Services Supply Chains: An Emerging Frontier for Operations Research
Terry P. Harrison, PhD, Professor of Supply Chain and Information Systems, and Thomas R. Robbins, Lecturer in Supply Chain and Information Systems, The Pennsylvania State University, Smeal College of Business
The service sector is a large and growing segment of the economies of many developed nations. However service supply chains, where the primary product is a service as opposed to a good, present new and different management challenges over traditional supply chains. In this talk, the speakers will:
• Discuss the fundamental issues for the use of OR in service supply chains;
• Present a case study that uses a novel approach to managing variability in a call center environment, with broader implications for service supply chains;
• Highlight areas where OR approaches can have a major impact in improving performance of service supply chains;
• Consider needs and trends for developing more effective approaches to service supply chains.
3:30pm-4:20pm
How Analytics and Collaborative Processes Improve Distributor Performance in IBM's Extended Supply Chain
Markus Ettl, PhD, Manager, Supply Chain Analytics and Architecture, IBM Research; and Blair Binney, Manager, Demand/Supply Planning Process Transformation, IBM Integrated Supply Chain
IBM is the world’s largest provider of computer hardware, software, and services. In the North American market, a significant percentage of IBM’s hardware sales in high-velocity servers are sold through major channel partners such as Arrow, Ingram, and Tech Data. Price protection has become a standard element of contracts between manufacturers and channel partners to achieve the right balance between inventory and customer service levels in supply chains with short product life-cycles and rapidly changing prices. While price protection was intended to provide distributors with an incentive to stock sufficient inventory, it often led to overstocking resulting in higher inventory-related costs for channel partners and increased price protection expenses and sales incentive costs for IBM. In this session, Ettl and Binney will describe a collaboration solution that enables optimized buy recommendations, improving operational efficiency in the IBM-channel supply relationship. This solution comprises of a web-based visibility dashboard that provides real-time visibility to business partner inventories, innovative forecasting and inventory analytics for optimized replenishment decisions, and proactive alerting of stock-out and excess inventory situations based on up-to-date inventory and sales information. The speakers will also describe some of the problems facing the modeling team during development, and the impact that the improved collaboration has had on IBM, on channel partners, and the broader supply chain performance.
4:30pm-5:20pm
Supply Chain Risk Management
Brian Tomlin, PhD, Assistant Professor of Operations, Technology and Innovation Management, University of North Carolina at Chapel Hill, Kenan-Flagler Business School
In a 2006 McKinsey survey, 23% of executives responded that “the amount of supply chain risk faced by [their] company had increased significantly in the past five years.” Furthermore, supply risk was very high on the executives’ list of priorities, with 33% reporting that supplier-reliability risk was a concern “during their companies’ most recent strategic/operational planning cycle.” In addition, other supply related risks such as quality, terrorism, natural disasters, and plant breakdowns were of significant concern. Supply chain risk management in general, and supply risk management in particular, is an important and growing area of academic research. In this talk Tomlin will provide an overview of three recent research projects that relate to the general theme of supply chain risks: (1) value of a threat advisory system for managing supply chain disruptions; (2) regulatory trade risk and supply chain strategy; and (3) quality risk in contract manufacturing: evidence from the U.S. drug industry.
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