Managing Automation - October 2007 - (Page 42)

[ TRANSFORMATION ] Transformation TechWatch Integration executing to plan, [but] they can’t plan their way out of the messes that Software tools provide users with insight based on past, present, or future events or changes that could occur.” Rapid Response interfaces impact their businesses. with the ERP system, sitting at what Sicard calls the “gap between planSOFTWARE SAMPLE VENDORS ORIENTATION ning and execution.” Contract manufacturing was the Supply network modeling and i2, Genova, Oracle, Lamasoft, Future (“What if this happens ?”) planning tools Kinaxis “birthplace” of response management software, according to Sicard. Supply chain event management Present (“What is happening in real Viewlocity, SAP, Manhattan “Volatile demand is a fact of life and visibility Associates time or near-real time?”) every minute of every day in that industry,” he says. Business intelligence/business anaCognos, SAS, Sybase, Microsoft Past (“What happened and how lytics/manufacturing intelligence can we leverage that knowledge?”) Solectron Corp., a $10.56 billion contract manufacturer, has been usSource: AMR Research mand management processes before it impleing Kinaxis Rapid Response for about three years mented the tool, analyzing the demand-supply and currently uses it at 17 sites worldwide. match, identifying the right levels of inventory for “Rapid Response helps us optimize the way we the supply chain, and maintaining flexible cacommit service levels back to our customers,” pacity. Although i2 has helped ON Semi hedge its says Chris Cookson, VP of global supply chain bets relating to demand, Vancheeswaran causolutions for Solectron. tions that does not mean the company will never Cookson views the tool as a way for Solectron again fall victim to the oversupply that plagued and its customers to protect against lost sales. the industry after the dot-com bust. “We will get “We have helped our customers respond to actual fooled again. Planning is not a science; it is an art. demand signals rather than being dependent on But by putting these processes in place, we unthe forecast,” he says. Solectron is rolling out derstand the true dynamics of demand,” he says. Rapid Response across all of its factories and will Supply chain visibility boils down to having train virtually all of its personnel to use it. Along the flexibility to react quickly to rectify issues so with its proprietary processes and methodolothat small problems don’t turn into huge disasgies, the tool is a competitive differentiator for ters, says Michael Levi, director of solution stratSolectron and its customers. egy for i2. “It’s a balancing of lean vs. reality. Meanwhile, back in the prune industry, UpTake the lean principle of keeping the waste ton recalls how Sunsweet rode out the “perfect thin, but if there are disruptions, [having visibility storm” of factors that devastated crop yields in lets] you do what needs to be done easily without 2004 and 2005. The cooperative is diversified in adding buffer and without sacrificing customer California to hedge its bets against occurrences service or quality,” he says. affecting the area. During 2004, the southernmost region was hit by a ruinous frost during managingautomation.com BEYOND PLANNING the budding season. Up north, there was so much Visibility is good, but knowing heat during blossoming time that the trees failed RELATED ARTICLES: how best to respond to demand to produce fruit. Meanwhile, in the middle zone, Mastering the Demand Tides www.managingautomation.com/progressive21 volatility is better, says John there was so much wind that the bees couldn’t fly Boeing’s Big Supply Chain Wager Sicard, vice president of develand were unable to pollinate the trees. “It was a www.managingautomation.com/Boeing opment for Kinaxis Inc. When perfect disaster for us. All three regions had the How Better S&OP Can Drive Supply demand suddenly far outstrips worst possible scenario,” Upton says. Network Management Improvements what was expected, for examThere was no way to have predicted that would www.managingautomation.com/SCM4 ple, executives need answers occur. But thanks to the Zemeter S&OP tool, HP Keeps Watchful Eye on Supply Chain to a series of questions, includ“we have ridden the perfect storm very well. Our Portfolio and Costs ing the following: Can we meet president just congratulated the company on www.managingautomation.com/HP5 the increased demand, who achieving the highest profit margin in 10 years. can help, and what other cusWe did that in a market that otherwise would COMPANIES MENTIONED: tomers will be affected if we have been a disaster,” Upton says. i2 Technologies Inc. www.managingautomation.com/i2 fill this order? Sunsweet was able to mitigate the risks in part Kinaxis Rapid Response helps by relying more heavily on its Chile-based growKinaxis Inc. www.managingautomation.com/Kinaxis companies determine the imers, where the harvest is in February rather than pact of unexpected events. It August. “We had the insight early on, thanks to Supply Chain Consultants www.managingautomation.com/SCC goes far beyond planning, this tool. We were able to run the different models Sicard says. “Most people are to find out the best way to address it,” he says. ■ TYPES OF SUPPLY CHAIN RISK MANAGEMENT SOFTWARE maonline ma 42 2007 October Industries http://www.managingautomation.com http://www.managingautomation.com/progressive21 http://www.managingautomation.com/Boeing http://www.managingautomation.com/SCM4 http://www.managingautomation.com/HP5 http://www.managingautomation.com/i2 http://www.managingautomation.com/Kinaxis http://www.managingautomation.com/SCC

Table of Contents Feed for the Digital Edition of Managing Automation - October 2007

Contents Take 1 Mailbox New Selling and Fulfillment Product Leads Plan to Transform Sterling Commerce Comtrol Closes Bizarre Chapter Involving Founder New Omron COO Outlines Four-Part Growth Agenda New Mfg. ‘Czar’ Will Have a Full Plate of Issues Lawson Embraces The Trend of Fewer Upgrades Notes Wanted: A Unified Infrastructure Needed: Greater Reliability Special Report: Innovation: Why Are So Many Coming Up Short? Transforamation: Beating the Odds in Global Supply Industries: Metals: Tracking Carbon Footprints Product Scan Advertiser Index Next

Managing Automation - October 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.