Supply Chain Planning Blog

kameron hadavi

Recent Posts

News: Semiconductor Leader Switches to Adexa SCP Systems

Posted by kameron hadavi on Tue, Jan 26, 2010

Semiconductor Supply Chain PlanningPress Release

Tuesday Jan. 26, 2010 

Los Angeles, CA., Adexa, Inc., the global provider of Supply Chain Planning and Performance Management solutions, announced today that Integrated Device Technology (NASDAQ: IDTI), a world-leader in semiconductor manufacturing for digital media, has selected and implemented Adexa's complete Supply Chain Planning suite of solutions, including demand planning, Available-to-Promise, Multi-Echelon Inventory Optimization (MEIO), operational planning, and plant planning.

"This initiative touched every major process running in our supply chain," Said Adhir Mattu, Vice President of Global Information Technology at IDT. "Our team initially focused on Adexa because it ran much faster than our previous supply chain systems, and was easier to use. But the biggest advantage ended up being their industry expertise and ability to leverage best-practices at all stages of this critical project."

IDT is currently maintaining and running all sales, marketing, and planning forecasts on the newly implemented solutions. Moreover, attribute-based planning capabilities are targeted towards further increasing the planning velocity.

"By replacing competing systems with Adexa, IDT bestowed a great deal of trust in us," said Cyrus Hadavi, President and CEO of Adexa. "This is yet another confirmation of our leadership in providing the most comprehensive and fastest solutions for our customers in this industry."

For full version of this press release click: http://www.adexa.com/news_events/default.asp?id=513

Contact us if you have any questions, click: inquiries@to.adexa.com  

Topics: Supply Chain Planning, Demand Planning, Inventory Planning, Announcements, Adexa, Multi-Echelon Inventory Planning

Demand Planning Search in CPG-- A Success Story!

Posted by kameron hadavi on Wed, Nov 04, 2009

Food & Beverege PlanningPaulaner is the largest brewery in Bavaria, Germany, and one of the most well-known brands of beer in the world.  Their biggest challenge in their supply chain had to do with the complexity they faced when it came to demand planning, in particular developing accurate forecasts.   So the Company went through a very intense selection process to pick the right solution, and we thought it would make for a good article to discuss the details of what Paulaner was looking for and how they found it.  It's important to mention that the selection process was managed by Dr. Michael Bell, a former academician, who was the Deputy Head of Logistics for Paulaner at that time, and now working with Coca Cola Corporation.  His deep expertise in the art and science of Demand Planning played a critical role in how this comprehensive selection process was lead a successful project.  

The goal of the project at Paulaner was to be able to accurately forecast the sale of the 250+ different beer types and sizes. Forecast accuracy is critical since Paulaner manufactures their beer in the heart of Munich and there is very little warehouse space to store finished goods inventory prior to sale to their customers. There are many factors that affect the sale of beer in Europe including the weather and special events such as holidays (like Oktoberfest), making the forecast of beer sales a very interesting task.

Paulaner's selection process of a Demand Planning system started with research on the internet of 56 companies that sold such a systems. Of the 56 companies, 36 companies were sent questionnaires on forecasting and demand management capabilities to narrow the field of contenders to only 8 companies to take part in a forecast accuracy trial. When the selection process was completed it was Adexa's CDP system that was chosen for the task. The main reasons were the accuracy of the forecasting engine and the ease of use for the sales people that would need to manage the demand plan in the system. The implementation time was about 4 months with great results, especially in short and long term forecast accuracy.  For the official news release about the selection, please click: "Paulaner Brewery chooses Adexa's Collaborative Demand Planner to optimize forecasts, inventories, and capacity utilization".

To learn more about this project, you can download a post-implementation snapshot by visiting: http://web.adexa.com/demand-planning-for-paulaner-brewery-snapshot/ 

Or visit our Demand Planning page for more information about the products mentioned.

Kameron HadaviBy Kameron Hadavi, Vice President of Global Marketing and Alliances.  For more information about the author please click here.

 

Topics: Demand Planning, Beer, Food & Beverege, CPG, Adexa

Multi-Echelon Inventory Planning — Is it for you?

Posted by kameron hadavi on Tue, Oct 06, 2009

Inventory PlanningInventory is insurance against the unknowns in the supply chain. It protects you if surprises occur with demand or supply. Just like the insurance you buy for yourself, it is important to spend the right amount of money in the right points of your supply chain in the form of inventories (i.e. safety stocks).

If spent wisely, inventory dollars will have a beneficial impact on a company's ability to service its customers properly and help keep direct and indirect costs low. Too much inventory wastes capital, and increases the risk of obsolete goods.  With too little inventory, you are risking lost sales, stock outs, and increased direct costs from disruptions in operations.  There are many stakeholders that worry about inventory positions at many different levels of the supply chain, and their objectives are not always the same; in fact it may be contradictory.  For example, sales people love to cushion themselves with lots of inventories in order to make sure they will always have product to sell, while the CFO wants to cut inventories as much as possible in order to save capital and improve the Return-on-Asset ratio.  So optimized management of inventories can be become a very difficult issue and its complexity can skyrocket as the number of tiers in your supply chain increases.   

In the recent past, a whole new breed of supply chain planning solutions have been developed and dedicated to better management and optimization of inventories.  They are called Multi-Echelon Inventory Optimization (MEIO) systems and there are a handful of vendors that provide them.  Of course different systems use different algorithms and techniques to address this highly complex issue, so you definitely need to do your homework before jumping into purchasing one.   

Adexa includes multi-echelon inventory planning as an option in its Sales & Operations Planning (S&OP) platform. We like to think we have a distinct advantage in this area due to our holistic approach to planning the entire supply chain, not just parts of it.  Naturally, that is very important since inventory planning is not done in isolation.  It should heavily consider factors such as demand forecasts, manufacturing capacities, and supplier capabilities, within one integrated planning environment.  But Adexa actually throws in one more advantage.  We tie all of this planning data to key financial measures.  That basically means, you can review your supply chain planning decisions based on their financial impact, especially when it comes to revenue, profitability, and return-on-assets.  

Many supply chain managers are looking to learn more about MEIO and trying to understand if their company should be utilizing this type of inventory planning solution. The simple answer is if your enterprise has a multi-tier supply chain (e.g. more than one plant, DC feeding regional DC's or customer hubs, etc.), or if your products have key components that are used commonly across multiple end-items, then you should be considering MEIO as a way to cut costs and increase customer service levels. 

For more information you may want to check out one of our latest webcasts on this topic by visiting our Supply Chain Planning Webcast Library.

Topics: Supply Chain Planning, Demand Planning, Inventory Planning, Planning Data Integration, Sales & Operations Planning, S&OP, Multi-Echelon Inventory Planning

Is Your Profit-Driven S&OP Solution Market Ready?

Posted by kameron hadavi on Tue, Sep 29, 2009
S&OP Report Adexa Co-Sponsors Aberdeen's S&OP Benchmark Report--(read below for your complimentary copy)

Adexa, Inc. has co-sponsored Aberdeen Research's premier benchmark report, entitled "Sales and Operations Planning: Integrate with Finance and Improve Revenue," for a second consecutive year. The study highlights the result of 214 companies participating in a survey on Sales and Operations planning-related initiatives. The goal of this study is to compare and contrast the view points of supply chain and finance organizations relating to S&OP processes, and puts a special emphasis on implementing the ability to express the S&OP plan in terms of financial impact.  Adexa makes a complimentary copy of this report available by visiting: http://web.adexa.com/aberdeen-s-op-report09-front-page-banner/ 

Managing supply chains have become much more complex with further volatility in the markets, and the growing global expansion of manufacturing.  It's more difficult than ever for companies to plan what, when, and where to make and store their products, while meeting their financial objectives.  Most manufacturing companies utilize the S&OP process, which encompasses Demand Planning (for orders), Supply Planning (for production), and Inventory Planning, to manage a very tough worldwide balancing act between supply and demand--but the financial planning is done separately. 

"This Benchmark study confirms Adexa's direction for the past two years toward Profit-Driven S&OP© solutions, which facilitate for a tight integration between supply chain planning and financial visibility." stated Kameron Hadavi, VP of Global Marketing & Alliances, at Adexa.  "Now you will know the financial consequence of every move made, or more importantly about to be made, in your supply chain. This is the key in achieving high levels of customer service, as well as profitability," continued Hadavi. 

"Best-in-Class companies are focusing more towards a holistic consideration of supply, demand and financial plans whereas the vast majority of the market place is still grappling with the traditional supply chain issues such as managing demand forecasts within the S&OP plan," Said Nari Viswanathan, VP/Principal Analyst, SCM Practice, at Aberdeen Research.  "Without financial optimization, scenarios cannot be compared on an apples-to-apples basis.  Adexa's S&OP solutions have shown one of the highest levels of market readiness in this area."

 

 

About AberdeenGroup, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to AberdeenTM for insights that drive decisions. 

Topics: Supply Chain Planning, Demand Planning, Supply Chain Performance Management, Inventory Planning, S&OP, Benchmark Report

Why A Global Electronics Company Replaced i2 with Adexa's Supply Chain Solutions?

Posted by kameron hadavi on Wed, Jul 01, 2009
 

A top Supply Chain innovator has replaced their entire i2 Technologies' planning software, which had been in use since 1999, with Adexa's suite of Supply Chain Planning solutions.  This particular company is a globally-known multi-billion dollar manufacturer of Electronics.  In respect to the privacy of this client, Adexa is abstaining from the use of this clients name in a public forum (For more information Contact Adexa).  However, in this posting we will provide you with detailed information on what solutions were replaced, and for which critical supply chain processes.  We will also highlight the main client interests in the solution that was selected. 
 
Sales and Operations Planning

  • Revenue and Margin optimization.
  • Collaborative, role based capability to drive consensus.
  • Provides subcontractor sourcing allocations based on optimal margin.
  • Through the use of what-if scenario's can facilitate decisions on when/where additional subcontractor capacity would be required to meet forecasted demand profile.
  • Models the complex supply chain considering each alternative routing to determine optimal sourcing ratio's and supply routing.
  • Considers available starting inventory, WIP, in-transit supply and open PO balances in determining production starts.
  • Respects defined subcontractor quota arrangements.
  • Generates optimal product mix considering expected demand, supply and real-time constraints.
  • Determine best levels to hold intermediate inventory.

Demand Planning

  • Generates a statistical forecast that can form the baseline for further review
  • Viewing and analyzing multiple data measures from multiple vantage points
  • High ease of use leveraging configurable, role-based graphical user interface

Supply Chain Planning

  • Provide Just In Time (JIT) solution / postponement
  • Constrained and Unconstrained planning modes
  • Provides supply plan considering expected binning (WIP Flush)
  • Respects supplier contracts
  • Soft and hard constraint modeling
  • Considers tier allocations as well as customer within tier allocation

Plant Planning

  • Considers demand priorities
  • Considers current WIP and inventory allowing the model to be reactive, so planners can be proactive

Available-to-Promise / Order Fulfillment

  • Attribute-based Available-to-Promise capability
  • User defined business rules
  •  "What-if" analysis allows planners to consider reallocation of supply and demand with multiple scenarios including full product re-pegging.
  • Secure multi-user allocation management with views, alerts, and reports.  

Multi-Echelon Inventory Optimization

  • Allows end-users to set time phased inventory targets for each end item or intermediate item.
  • Allows various methods to set inventory targets (days of coverage, statistical safety stock, service level targets, hierarchical analysis)
  • Enables view in units, or dollars with aggregated analytics.
  • Considers MRP when calculating forecast distributions for intermediate supplies.
     
    For more information about the details of this replacement and how Adexa can serve your Supply Chain Management needs contact us or visit http://www.adexa.com/.

Topics: Supply Chain, Supply Chain Planning, Demand Planning, Inventory Planning, Electronics Supply Planning, Announcements, Electronics Supply Chain, S&OP

Attribute-Based Supply Chain Planning-- Is It For You?

Posted by kameron hadavi on Thu, Jan 29, 2009

Attribute Based PlanningAttributes have traditionally been used as a way to manage the supply chains of products that are sold in order to meet some kind of manufacturing or engineering specifications. Examples of these are types, speeds and grades on CPU processors, electrical properties on high tech components, and chemical properties on specialty chemicals. These products command higher margins and premium prices because they meet the specific needs of customers and resist the profit-eroding effects of commoditization.  To make the pint, imagine if Diamonds were sold all under one specification, e.g. size, rather than size, color, clarity, cut, etc.

Adexa customers are using Attributes more and more to manage their supply chains for Demand Planning and Supply Planning at both the S&OP level and the order level. For S&OP, planning-attributes can be used to translate market demand into demand for a sub-segment of the products that a company sells. At the order level, it can control which products are used to satisfy different demands, or select which resource or routing is appropriate for processing different SKU's. Furthermore, Adexa customers are using attributes to describe the engineering product specification, code-date of manufacture, lot id, color, etc. to target specific customer needs. Other special services that can be sold to a customer include how or where a product is manufactured. The location of manufacture using a qualification matrix, defining the process used to build a product; even naming the resource used to manufacture a product for a customer could be used to sell products at a premium price. Environmental concerns, safety concerns, and quality concerns can drive customers to prefer specific suppliers for a product. Attributes have helped some of our customers to sell their products for higher prices, while better managing their supply chains.  

Is Attribute-based planning important to you and how it may help your profit-margins?  We like to hear from you.  If you want to learn more about this topic, download the Attribute-Based Planning Whitepaper, or view the Webinar: Using Attribute-based Planning to Make Your Business more profitable, or visit http://www.adexa.com/

Topics: Supply Chain Planning, Demand Planning, Attribute Based Planning

The Key To Handling Your Supply Chain Planning Data

Posted by kameron hadavi on Tue, Sep 23, 2008

There are always new enhancements being added to the Adexa's Supply Chain Planning suite. Some of the new things that are going on are worth taking a special look at so that you can keep up on the latest key changes. In this posting we are highlighting what has been going on with Master Data Management.

This is a big area of new development at Adexa. One of the toughest challenges that a company faces is managing the data that is required for supply chain planning. The data may come from many different sources and lack the completeness that is required for a quality supply chain planning process. The data may need to be supplemented since it does not exist at any other source in the company. When various sources of data are brought together there may be inconsistency or data elements missing from the source location. Many times people are required to manage the data, and no systems exist that enables a person to view and manage exceptions in the data. All these considerations are addressed with Adexa’s Master Data Management Module. 

Visit us at http://www.adexa.com/ for more information, or click on: contact us if you have any questions.

Topics: Supply Chain, Supply Chain Planning, Supply Chain Data, Adexa

Adexa vs. i2

Posted by kameron hadavi on Fri, Jul 20, 2007
Interesting thread on IT Toolbox:  Supply Chain Knowledge Base