turnswing.BLOG

I know we spend a lot of time discussing our work around JDA Supply Chain Training. Hey, we’re just trying to tell the world what we do!!However, the reason that we’re able to provide, what I believe to be a strong set of training templates is due to one reason — we know what it takes to make a solution work. We’ve worked with these solutions, we’ve implemented these solutions, we’ve had to “tune” these solutions in the field while they are in operation — talk about changing your underwear on a roller-coaster… Its not often that I find books on supply chain that really provide a level of insight into a specific area of supply chain practice.  I did just that a few years ago and I’d like to share the title of this book with you.This book is titled, “Modeling the Supply Chain” its author is Jeremy F. Shapiro (a link to the book is embedded in the book’s title). The ISBN is 0-534-37363-1. The ISBN is linked to the ISBN database which gives you a few more options for purchase (and insight). I spent a few great years working with some very smart supply chain “gurus” who lived and breathed supply chain management. One of them, Paul Bender, was notorious for being able to look at a problem and simplifying it in one shot.Reading this book about modeling the supply chain around a strategic or tactical optimizaiton problem finally gave me the insight I needed. What it did was help me “frame” the problem. It helped add to my knowledge and I know it’ll do the same for you.Before I go, here are a few of the things I’ve learned over the last few years about these solutions off the top of my head

• An optimization model has about a 250 item limit — I am not sure how this stretches with 64-bit architectures. All it means to you and me is that modeling all your SKUs is a non-option. Use your Reporting tool to aggregate your items, locations, customers, etc. to logical groupings that make sense
• Break apart your problem into parts, domains and solve them logically and sequentially (see my comment on “aggregation” above)
• Be ready for apples to oranges comparisons in sensitivity analyses. Its doing math, not lining up the spreadsheet. Make sure you know the data so you can understand the nuances of change.
• Understand your objective: Reduce Cost, Increase Margin, Increase Revenue, etc. 
• Know that 85% of the project will involve alignning the numbers. If you cannot produce a baseline that gets you close to your financials or actual results, good luck with the optimization runs!

 The reason I wrote this (and the title) is this. If you don’t accept these element as somethign close to fact, you and your consultant will be working together until you run out of budget. Make sure — at all times you know what you want to accomplish and if you have more than one thing…. prioritize them by importance, financial benefit and cost/benefit relative to level of effort.�

Filed under: Strategy, Supply Chain, training