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Why Lead Times Are Nearly Always Underappreciated

The lead time is the total amount of time, typically counted in days, associated with the inventory replenishment cycle. The amount of stocks that a supply chain needs to operate tends to be roughly proportional to its lead times. Accurately estimating future lead times is critical for accurately estimating the amount of inventory needed to fulfill future demand. However, it is a fundamental factor that is often overlooked by companies, with a far greater importance being placed on forecasting.

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Service Level vs. Fill Rate

In supply chain, the service level defines the probability of not hitting a stock-out during the next ordering cycle. However, the fill rate defines the fraction of the customer demand that will be properly served. Service levels and fill rates are distinct, and should not be confused.

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Oct 31, 2018

Transforming Complex Supply Chains with Hervé Hillion

Supply chains have to undergo profound changes to benefit from software innovations such as predictive optimization technologies. However, transforming complex, many-decade old organizations is difficult. We are joined by Hervé Hillion, one of the founding members of SAY Partners. Hervé explains how change can be effectively conducted across an entire supply chain.

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Oct 17, 2018

Inventory optimization for an aerospace MRO

An aerospace MRO needs to optimize its inventory in order to both minimize the number of AOG incidents and minimize the amount of stocks, typically held in the form of rotables. We are joined by Antony Nardozza, the Head of Inventory Solutions at OEM Services, who previously worked for both Airbus and Spairliners.

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Oct 10, 2018

Forecasting For Aerospace

Forecasting demand in aerospace is difficult because demand is both highly erratic and intermittent. Also, TAT (turnaround times) need to be forecasted as well. In practice, probabilistic forecasts are required to achieve any meaningful results in the aerospace industry.

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Sep 26, 2018

3PL in Global Supply Chains

3PL - or third-party logistics - represent a way for companies to externalize their warehousing, distribution and fullfillment. Often when ordering a product on Amazon or eBay for example, the merchant is not actually going to ship the product directly to you themselves and instead uses a specialized company called a 3PL who ships the product on their behalf.

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ABC Analysis does not work

The ABC analysis is a widespread inventory categorization method used in many supply chains. Its intent is to prioritize management's attention to where it matters most. Yet, this method has many flaws, and can no longer be considered as state-of-the-art.

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Modularisation in Supply Chain

While the physical infrastructure supporting most supply chains is highly modular, their software infrastructure counterpart, e.g. inventory control or demand forecasting systems, tends to be monolithic and brittle. As a result, large scale 'software' supply chain failures are still ongoing.

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Sales and Operations Planning (S&OP)

Sales and Operations Planning (S&OP) is a corporate practice intended to deliver superior supply chain execution by leveraging a deeper alignment with other divisions beyond supply chain - most notably sales, finance and production. Despite the claims from multiple vendors that the best-in-class businesses operate under S&OP, most implementations suffer from similar flaws, which are intrinsic to the very nature of S&OP.

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