Agility for Successful Supply Chains

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Operations Management November 2014

Agility for Successful Supply Chains

Transformation to an Agile Production System to Meet the Challenges of Tomorrow

Most manufacturing companies are facing volatile and unpredictable demand due to trends such as increased global competition, shorter business cycles and broader product ranges. To survive in this competitive and fast-changing environment, it is necessary to improve flexibility and become truly agile. The required flexibility levels have to consider volume fluctuations, product mix fluctuations and customer lead time requirements. Tools and strategies that enable the supply chain to meet these requirements, without compromising on the unit cost, must be implemented. [...]

Operations Management November 2014

Big Data in Procurement

Unlocking Big Value in better sourcing, process efficiency, and agility of procurement

The terms "Big Data" and "Advanced Analytics" have become buzzwords in many business fields. For procurement organizations, Big Data can deliver significant business value by uncovering previously unknown interrelations among supplier and economic data. This paper discusses potential benefits from applying Advanced Analytics methods to procurement and offers a practical prototyping and implementation approach. [...]

Hitting the Bulls-Eye: Value Sourcing

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Operations Management June 2013

Hitting the Bulls-Eye: Value Sourcing

Transforming Procurement from Old School to New Age

The traditional procurement model does not help organizations achieve additional and sustainable financial targets. The CFO is asked to use the procurement department as an internal value partner to address and discuss new ways of spending the budget; often called value sourcing. [...]

Inbound Supply Chain Development: being in charge beyond the first supplier interface

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Operations Management December 2012

Inbound Supply Chain Development: being in charge beyond the first supplier interface

How to develop lean and agile supply chains

As manufacturing companies shift towards buying on a system level rather than component level, driven by outsourcing and low cost sourcing strategy, the inbound supply chain becomes somewhat of a “black box” with little transparency beyond the first tier supplier interface. [...]

Performance Excellence Networks

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Operations Management July 2012

Performance Excellence Networks

Solving the Global and Local Operations Footprint Puzzle

Global operations networks are challenged by three global trends: the maturing of emerging markets which changes consumers’ attitudes in these countries, the current and ongoing global and regional macroeconomic instability and the inherent inability of many companies to overcome these challenges with their current operations footprint. [...]

Networked Procurement

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Operations Management May 2012

Networked Procurement

Networking as future strategy delivers measurable higher and sustainable value for your company

Due to the increase in economic tension companies have optimized the organization, processes and systems in procurement over the last years and achieved related savings. Nevertheless companies are realizing that they have not yet reached the full value-added potential in procurement. [...]

Worldclass Purchasing

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Operations Management, Consumer Goods January 2010

Worldclass Purchasing

Central results from the "Purchasing Value Excellence" (PVE) study

The global financial and economic crisis appears to have pulled out of its low point. An economic turnaround is expected in 2010. Now is when the decision is made as to who will capitalise on the opportunities of the coming recovery phase and who can lay the foundation for the years of future success. What purchasing departments can learn from the very successful purchasing organisations, including which best practices they can purposefully adopt and how they can benefit from the implementation and regular utilisation of these best practices, was identified in detail by Arthur D. Little in cooperation with the University of St. Gallen and the German Federal Association of Materials Management, Purchasing and Logistics (BME) with the 2009 PVE study. [...]

No Stone Unturned?

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Operations Management January 2010

No Stone Unturned?

Purchasing alliances between portfolio companies in private equity context

The recession means that Private Equity Associations must face the challenge of supporting their investments. For many, a ruthless reconstruction of redundancies is necessary, which regularly leads to friction. [...]

Supply Chain Performance Excellence

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Operations Management, Consumer Goods January 2010

Supply Chain Performance Excellence

Realising potential within the supply chain to drive down costs and optimise service

A research study by Arthur D. Little shows that many companies are not currently taking advantage of supply chain excellence practices or are not doing so fully. Excellence practices can help companies to identify the precise service levels below which any further decrease causes changes in the consumer’s decision to purchase. The study also identified the pull principle, which can help to reduce cycle times and inventory. Arthur D. Little’s experience shows that the use of the pull principle can raise the rate of complete, qualitatively flawless and punctual deliveries to 98 per cent and also makes it possible to reduce supply chain costs by 20-30 per cent. [...]

Procurement Performance Measurement

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Operations Management, Consumer Goods November 2009

Procurement Performance Measurement

What CFOs expect from measuring Procurement Success

Procurement excellence is increasingly becoming an important factor in delivering efficient operations within successful companies. On the surface, effectively measuring procurement performance is not rocket science. However looking deeper, adequate measurement of procurement success is a big issue, as bottom-up reported savings can significantly deviate from the key financial figures a CFO looks at. Arthur D. Little’s latest study on procurement performance identifies the key challenges that companies currently face in developing a CFO-friendly procurement performance measurement. This report suggests a best practice approach to overcoming these challenges and consistently measuring purchasing success in the future. [...]

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