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Q: supply chain strategies ( No Answer,   1 Comment )
Question  
Subject: supply chain strategies
Category: Computers
Asked by: dman2260-ga
List Price: $200.00
Posted: 07 Oct 2003 18:29 PDT
Expires: 06 Nov 2003 17:29 PST
Question ID: 264066
I have a question regarding best practices in end to end supply chain
best practices(forecast to delivery).  I have read the available
google search documents from many sources.  I am looking for more.

What I want is your opinion on how to solve the problem of optimizing
the reality of dynamic forecasting error (volatility) vs. material
positioning strategies.

Request for Question Clarification by omnivorous-ga on 08 Oct 2003 09:55 PDT
Dman --

You've priced the question attractively and there are several
researchers familiar with supply chain best practices.  The short
answer to your question relates to getting closer to consumer
purchases, ala Procter & Gamble's supply chain automation efforts:
CIO Magazine
"It All Began with Drayer"
http://www.cio.com/archive/080102/drayer.html

But the danger here is that researchers will take the question in a
direction that you don't intend, so you may wish to clarify which
particular aspects of the forecasting vs. supply problem you're
interested in seeing addressed.

Best regards,

Omnivorous-GA

Clarification of Question by dman2260-ga on 08 Oct 2003 19:31 PDT
I purposely kept the question a bit open ended, in order to gather as
many best practices as possible.  I've read the P&G story in CIO among
many other articles.  What I was looking for was someone who was not
published who could potentially get different/better insights.

However, if I would have to narrow it down, I would ask that as the
general trend towards outsourcing becomes more prevalent, how should
'previous' manufacturers handle the forecasting and material
positioning strategies, understanding that the product development
schedules are typically dynamic (i.e. hedging on old product,
potential obsolescense, dynamic pricing, etc.)

And yes, I've read the WS JC Penney article.

Don't think this is a real easy one - unless you commit to paying
someone $2-5M to set up an enterprise system that you're not sure will
work.  I'd rather talk to you guys first before Oracle, etc.

hence the fee... 


Give me more....   please...

thanks in advance,

Request for Question Clarification by omnivorous-ga on 09 Oct 2003 07:29 PDT
> how should 'previous' manufacturers handle the forecasting 
> and material positioning strategies, understanding that the 
> product development schedules are typically dynamic <

Dman --

Microsoft, which has the most dynamic (or constantly changing)
product development schedules I've ever seen in its OS development
does it by pre-selling.  Sony, which has taught its engineers to
add new features on a semi-annual basis, does it with continual 
'small' innovations.  Of course the former is producing a product
with virtually no work-in-process or inventory, while the latter
has to worry about those things.

I was prepared to go through some fee-based online services such
as Infotrac, Expanded Academic ASAP, and Proquest to search for 
articles that might have escaped your purview.  However, this
really changes the question from supply chain management's impact
on forecasting to strategies for product introduction.  That's
a much more difficult area to summarize.

Best regards,

Omnivorous-GA
Answer  
There is no answer at this time.

Comments  
Subject: Re: supply chain strategies
From: stevenpace-ga on 12 Oct 2003 02:16 PDT
 
I worked at a "warehouse in transition".  A serious error that I
observed was that broke the old system before they understood the
practical function of the new system.  Also, they did not communicate
well with the suppliers and work out a more reliable delivery
schedule.  There response to the problem was even worse, in my
opinion.  They then lied to the customers.  They would say, sorry, we
did not deliver.  It will be here in 2 days when they had no idea when
it would arrive.   My inclination was to work out contigency plans
with the customers, but that approach was rejected.  Of course the
systems themselves had problems, but I tend to look at that sort of
thing as being inevitable, I attribute them to “the software and
hardware gods”, but the communication problems were completely our
fault (in my opinion).
 As for the system, you only get out of it what you put into it.  A
computer system should allow you put in the costs and benefits of
events, probability distributions, and other inputs that would allow
the system to make better predictions.  And the costs of each event
have to be accurately calculated with sufficient precision to make the
predictions useful.  The computer systems I have seen make mindless
predictions that are based on history.   Systems also fail by being
“to flexible”, you should never assume something is going to happen
unless it is automatic, and if left to give a guess unaided, most
people will resort to raw guesses, at least part of the time.

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