Last week Industry analyst firm Gartner released its 2014 Magic Quadrant for Supply Chain Planning System of Record technology. Readers should be cautious of these types of research reports that rank technology vendors since there tends to be a lot of subjective criteria that goes on behind the scenes to curry favor with a traditional industry analyst firm. Gartner’s MQ has often viewed as a beauty contest. We can, however compliment Gartner for somewhat more rigorous ranking criteria in the latest iteration. That stated, from our Supply Chain Matters point-of-view, there is an important takeaway concerning this year’s rankings of vendors. Four of the total five vendors ranked in the upper right-hand quadrant, those that Gartner ranked as leading on completeness of vision and ability to execute, are all termed best-of-breed vendors in supply chain planning. If one adds the three other vendors ranked high in completeness of vision (lower […]
The Wall Street Journal is reporting (paid subscription or free metered view) that Boeing and a key supplier, Mitsubishi Heavy Industries, are inspecting the wing assemblies of 43 yet to be delivered 787 Dreamliner aircraft after discovering hairline cracks caused by a manufacturing process. According to the report, the supplier informed Boeing that a change in its manufacturing process may have caused the cracks. Inspections are being carried out at Boeing assembly facilities near Seattle and Charleston South Carolina. Boeing indicated to the WSJ that none of the 123 Dreamliners delivered to-date are affected by this wing issue. The WSJ quotes sources as indicating that the latest problem stems from fasteners use to connect shear ties to the carbon composite wing panel. Boeing indicates that it will take 1-2 weeks to inspect and correct this situation on the impacted production aircraft. Boeing further indicated to the WSJ that it fully expects […]
This author penned a guest commentary on the Chainalytics blog in late January indicating that the implications of Omni-channel commerce are more profound for supply chain leaders. In that commentary, I amplified that the implications of Omni-channel commerce are becoming much more profound for B2C focused supply chain leaders. The commentary was purposely blunt because the trends and implications of consumers who have become much more accustomed to online buying will reverberate across supply chain organizations with strategies anchored in former brick-and-mortar store-based distribution and customer fulfillment strategies. It was meant to be a wake-up call. Our takeaway from the posting was that consumer-facing industry supply chain leaders need to quickly internalize the reality that permanent changes in shopping behavior are underway and that education for the broader business and internal supply chain team needs to proactively begin as to the implications of these fast-moving trends. The “Amazon effect” is […]
Four weeks ago, Supply Chain Matters called attention to the good news – bad news world of today’s aerospace focused supply chains. We cited a Bloomberg Businessweek report that posed a fundamental question- with over 10,600 firm orders for new commercial aircraft among Airbus and Boeing, when is order backlog too big? Many of these new and technology laden fuel efficient aircraft orders are destined to support expected explosive Asia focused air travel growth. But, what happens when the CEO of Asia’s fastest-growing discount airline and other airline executives begin to communicate an air of caution. A more recent Bloomberg published report now indicates that Asian aviation guru Tony Fernandes, CEO of AirAsia has cautioned that the jet buying frenzy among Asian based carriers may give way to a more sober approach that reflects the current airline challenges of intense competition, pilot shortages and inadequate infrastructure. That is significant since […]
The Effects of Asset Management Strategies- Who Really Owns Accountability for Overall Risk Management?
Industry supply chains have constantly had to respond to business needs for overall cost reduction. This author can recall numerous supply chain executive surveys dating back to the early part of this decade, all pointing to supply chain cost reduction as one of any top three organizational challenges. While the severity of such pressures tended to vary, the extreme being the global of recession that began in 2008-2009, they have since established numerous structural supply chain changes. These changes included transferring more cost risk into lower tiers of the supply or value-chain as well as the shedding of assets. The consul of CFO’s was to avoid, as much as possible, the ownership of hard assets. A clear byproduct of the implications of shedding assets or outsourcing asset management was who owns overall accountability for risk management. This relentless pressure to improve return-on-assets has, as this community well knows, led to far […]
General Hospital Has Been Cancelled! – A Need for Renewed Emphasis on Healthcare Supply Chain Management
A Supply Chain Matters Guest Contribution from Rich Sherman So you think that Obamacare is changing the healthcare industry in the United States? Think again. It’s just the tip of the iceberg. The healthcare industry is undergoing a fundamental transformation from delivering patient treatments to delivering patient outcomes. And, it’s turning the industry upside down. The television series General Hospital may have celebrated its 50th anniversary last year; but, in real life General Hospital is about to be cancelled. With the transformation to patient outcomes, healthcare providers simply can’t afford to treat anything generally. Specialty patient outcome centers (SPOC) are emerging throughout the healthcare industry. With nurse practitioners having expanded diagnostic and treatment licensing, general health clinics are appearing in every corner drugstore, 24/7. Emergency treatment and diagnostic centers are emerging in every strip mall. SPOCs, such as oncological, cardiac, ophthalmic, orthopedic, cosmetic, etc. for every ailment are emerging in […]