5 Quick and Remarkable Tips to Improve Forecasting Accuracy

Many businesses do some kind of forecast, due to its importance to benefits it provides. However, most business also complains about accuracy of their forecasting process and want to how they can improve forecasting accuracy?   Supply Chain Management is a broad umbrella of complex functions which are aligned to meet one common goal – customer satisfaction. A customer may walk into your store or browse your website to purchase their products. What happens if your store understocks the item and it is not available? The customer may wait for backorders, but due to various reasons, they may instead search […]

Supply Chain Modelling

Supply Chain Modelling – Approaches and Characteristics to Consider

Supply Chain modelling is used in industry since last three or four decades. Considering the broad spectrum of supply chain, no model can capture all aspects of supply chain processes. To compromise the dilemma between model complexity and reality, a model builder should define the scope of the supply chain model in such a way that it is reflective of key real-world dimensions, yet too complicated to solve. In this blog I’ve briefly explained supply chain modelling approaches and characteristics (variables) which might be of interest to supply chain analysts. Supply Chain Modelling- Approaches   To incorporate the 4 major […]

Importance of Demand Forecasting

Importance of Demand Forecasting in Supply Chain- 9 Authentic Reasons

The importance of demand forecasting has been topic of discussion in economics and valuable books have been written on it over the years. However, within the supply chain context there are three types of forecasting, which are: Demand Forecasting: This is the investigation of the companies demand for an item or SKU, to include current and projected demand by industry and product end use. Supply Forecasting: Is a collection of data about the current producers and suppliers & technological and political trends that might affect supply. Price Forecast: This is based on information gathered and analyzed about demand and supply. […]

Benefits of ERP

Proven Benefits of ERP systems for effective Supply Chain Management

The main benefits of ERP systems are seen as the production of real-time data shared across integration and automation of business processes. This is particularly important in this new business environment where automation, effectiveness and efficiency in operations and real-time data are important factors for business success. Despite all these known benefits of ERP more than 50% of the suppliers who I worked with (mostly SMEs) do not deploy ERP and the ones who do, find the deployment very challenging in first go. To remain competitive, companies are forced to keep up to date with the new technologies. ERP systems […]

9 Critical Success Factors in ERP Implementation

This blog review of Enterprise Resource Planning or ERP Implementation procedures and critical success factors. Now the ERP use is generally common in big corporations and even SME’s are using various available ERP packages. But not every company gets the return from using the ERP system. I have been part of 3 different ERP systems and in my experience companies are failing to set up the ERP system because they cannot reach the predetermined goal. The ERP is not only a technology that support the management but also a way of the management. ERP provides many benefits but in nutshell […]

5 Critical Success Factors of Lean and Six Sigma in SMEs

In early July I wrote a blog on “7 reasons why Six Sigma will fail in Small & Medium Enterprises (SMEs)” which has gathered some interest and couple of readers have asked me what are the success factors of Lean and Six Sigma deployment in SMEs, if there is any? I thought it is valid questions and I should try to research some Critical Success Factors (CSFs) of Lean and Six Sigma deployment in SMEs. In this blog post I have tried to focus on research from Achanga et al. (2006) and Kumar (2007). Achanga et al. (2006) have successfully […]

7 reasons why Six Sigma will fail in Small & Medium Enterprises (SMEs)

There is a need for small & medium size companies to recognize the benefits of Six Sigma rather than being suspicious of a buyer’s motives, if they ask them to use Six Sigma tools! A buying firm also needs to ensure strong commitment to Six Sigma training programmes that develop the SME’s long-term capability rather than as a means of immediate results to strengthen the relationship between the SME and the large counterpart. Research suggests that key elements for successful deployment of Six Sigma tools in SMEs are: proactive customers and suppliers, commitment to long-term relationships, continuous improvement mentality, creating […]

Lean and Six Sigma

Lean and Six Sigma – Key Similarities and Differences?

Lean and Six Sigma are probably the most researched, published and utilized Continuous Improvement methodologies in Operations Management and Supply Chain. Lot of guys in my team are eager to learn both Lean and Six Sigma tools but they don’t always know which method and tools are applied in which problem scenario. I thought I should try  to answer this problem scenario…. One way to look at how lean management and six sigma can complement each other is comparing the strengths and weaknesses of both, as shown in Table below, to understand their correlation. This Table identify the strengths and weakness […]

Role of Supplier Development Programme in Supply Chain Management

Supplier Development Programme and its link with SCM Supplier Development Programme is one the key initiative in many large organisation and perceived as key driver to enable supply chain competitiveness. To understand this, lets briefly look into definition  Supply Chain Management (SCM). Supply Chain Management was introduced in the early 1980s (Oliver and Webber, 1982) but it has only been growing in importance since the early 1990s. SCM is defined as the “integration of trading partners” key business processes from initial raw material extraction to the final or end customer, including all intermediate processing, transportation and storage activities and final […]