IBM Decision Optimization
Gartner RAS Core Research Note G00172071, Andrew White, 17 November 2009
"This research updates users on IBM’s overall supply chain management (SCM) product strategy, which has matured in terms of positioning and product management/strategy since its most recent Ilog acquisition in 2008. We highlight the finalized IBM SCM product portfolio, and highlight how this rationalized portfolio aligns with the SCM trends IBM exposed in its most recent Executive Survey, which also aligns closely with Gartner’s research."
To read the note visit: http://imagesrv.gartner.com/media-products/pdf/reprints/ibm/external/volume4/article31.pdf
If you’ve paid much
attention lately, the topic of “smart supply chains” is currently in vogue. But what is a smart
supply chain, exactly? And are you trying to build one at your
company? The idea of smart or
intelligent supply chains has been around for some time – more on that in just a
bit. However, part (but by no means all) of the recent reanimated discussion
about smart supply chains has come from the efforts of IBM, which has made
“smarter” supply chains one of its key marketing messages.
In a report IBM released last year summarizing surveys and interviews with hundreds of senior supply chain executives (promoted in many venues since then, including SCDigest), IBM said that “To deal effectively with risk and meet your business objectives, we believe supply chains must become a lot smarter,” and called on Chief Supply Chain Officers to start building to that new vision right now. Read the full story online at SCDigest.com.
Andrew Reese 270002Q78Q Tags:  design chain and network inventory regional smarter conference management planning – chains supply atlanta 4,348 Views
At Smarter Supply Chains – Atlanta Regional Conference, David Simchi-Levi talked about Combating Volatility through Flexibility. I talked about this in greater detail here.
One point that David raised at the outset was the increased level of volatility surrounding the supply chain. His point was that companies need to be careful in thinking about the "best practices" that they apply to managing their supply chains. In such a dynamic environment, the best practices that applied before the recession - or before oil prices spiked, or before they crashed again - are not necessarily applicable today. It's a call to action for all supply chain executives to step back and reassess their processes to see if they are still "best in class," or whether there might be benefit to adjusting to the "New Normal."
aeortiz 2700024WMF Tags:  in commerce virtal supply chain linked scm optimization linkedin ilog group user ibm management 4,310 Views
Join our monthly IBM ILOG Supply Chain Management Virtual User Group (VUG) sessions. These 1-hour meetings are a quick way to brush up on your IBM ILOG supply chain modeling skills, meet other people using the products, ask questions to the community, and learn about what's new. These sessions will be led by our experts and have plenty of time for discussions and Q&A.
May 4th 2001:
Topic: "Applying Supply Chain Analytics: Benefits of a Central Group"
This talk addresses the value firms can achieve by deploying advanced supply chain analytics and how a group should be structured. We will use case studies and recent events to highlight the value from business analytics such as network and inventory optimization. We will discuss how 3M Corporation is organized to deploy this capability.
Join our LinkedIn Community to receive updates, more detailed information, and Dial-up/Web Meeting access.
May 4th - Wednesday
June 1st - Wednesday
August 2nd - Tuesday
September 1st - Thursday
October 7th - Friday
November 2nd - Wednesday
December 2nd - Friday
aeortiz 2700024WMF Tags:  products commerce consumer ilog scm inventory chain analytics supply business smarter optimization cp stockouts cpg ibm 4,163 Views
How Smarter Inventory Analytics Solve the "Out-of-Stock" Scenario for CPG Supply Chains
Date: Tuesday, May 17, 2011
Time: 11:30 ET, 10:30 CT, 9:30 MT and 8:30 PT
Place: Your PC
Fulfilling the Three A's: Adaptability, Agility and Alignment
In the recent years, we have seen a transformation in consumer behavior. The use of social media allows consumers to exchange thoughts; the migration from controlled media and monitored media. Easy information access combined with more educated consumers is making promotion planning more important. Finally, the chase for "value" is not only changing the timing of purchases but also location and brand. All these changes on the demand side are forcing consumer products companies to think about supply side in terms of: Demand Driven Supply Networks.
The supply chains are being transformed into complex supply networks with the introduction of co-packers, co-manufacturers and service providers. Commodity price increases and fluctuations are adding to volatility and margin pressures. Overall, changing consumer behavior, and increases in complexity, globalization and cost reduction pressures all force consumer products supply chains to fulfill the three A's: Adaptability, Agility and Alignment.
The crux of these strategies relies upon the application of Business Analytics to help close the gap between planning and execution. In this case, Closed-Loop Dynamic Inventory Optimization is leveraged to set appropriate inventory targets throughout the global supply chain and ensure that the right products are positioned in front of the right customers at the right time.
Closed-Loop Dynamic Inventory Optimization is a core process that regularly tunes policies across the supply chain to keep inventory closely aligned with changing conditions. But, the organizational value of such an approach goes beyond the more obvious metrics of improving service levels, order lead times, and inventory positioning. For example:
The application of Business Analytics on top of traditional supply chain planning and execution solutions gives CP Manufacturers the unprecedented ability to continuously improve operational efficiency, reduce costs, and enhance the customer experience.
Michael S. Watson, Ph.D., WW Optimization & Supply Chain Lead at IBM,
Remzi Ural, Global Supply Chain Management Solutions Lead, Consumer Products Industry at IBM
SCDigest Editor Dan Gilmore.
At this point in the holiday season, most supply chain professionals in the retail space are probably doing a lot more reacting than planning. Keeping the shelves stocked is likely priority #1,2, and 3, while things like cost and efficiency are farther down the list (if even on the list). With that said, I apologize for not writing this post 6 months ago when you may have been able to act, but perhaps this can be helpful for next year.
The holiday season provides many interesting optimization problems for those working in the retail supply chain. For many retailers, SKUs have short lifecycles and high variability. With these characteristics, it makes sense to try to centrally manage inventory in a small number of distribution centers. This allows them to risk pool the demand variability, keeping inventory and working capital as low as possible. During the non-peak season with lower sales volumes, regular (say weekly) replenishment can be planned in order to achieve transportation efficiency. Unfortunately, when the peak holiday season arrives, this strategy may not be ideal. Stores have limited ability to store product and sales velocity is high. With the goal of keeping the shelves full, they need frequent replenishment during the holiday season. If the retailer manages only a few DCs, there will be stores who are quite far away from the DCs, making it impossible (or very expensive through use of air freight) to replenish the store as frequently as necessary to prevent stockouts. Therefore, its quite possible a different distribution strategy may be called for during the holiday season. It may make sense to add seasonal distribution facilities to the network to get more product nearer to the stores. This type of strategy involves many decisions which all can be helped by using optimization:
A good strategy ahead of the holiday season is likely to result in less headaches and less costs when the season actually arrives.
aeortiz 2700024WMF Tags:  optimization scm ibm ilog working smart chain event supply capital smarter 3,756 Views
The IBM Smarter Supply Chain Management briefing is coming to Toronto on March 4th, 2010! Save the date!
Join us on March 4 at the Intercontinental Toronto Centre's Caledon Room, to learn how your business can take advantage of these proven supply chain strategies and tactics to help improve bottom line profits:
1) Optimizing S&OP Processes
- Generate real value to the business
- Create significant improvement in KPIs
2) Leveraging Network Design to Create Lean Supply Chains
- Help reduce costs and better manage risks
- Develop efficient production and scheduling systems as more products are moved to the same plant
3) Improving Operational Efficiency
- Optimize the production process to improve manufacturing efficiency and reduce inventory
- Use a dynamic safety stock approach to improve supply chain flexibility
This one-day event for business executives and supply chain practitioners will focus on both the strategic and tactical decisions that are impacted by the current business environment. Thought leaders from industry and academia will discuss the challenges and circumstances that are driving the need for business solutions that optimize overall supply chain costs, free up working capital, and improve service levels.
Date & Location:
Thursday, March 4th
Intercontinental Toronto Centre
255 Front Street West
Toronto, Ontario M5V 2X3 Canada
Webcast: Building A Smarter Supply Chain - Positioning Your Business for Economic Recovery and Growth
Register today: http://www.sctvchannel.com/Videocast_Building_Smarter_Supply_Chain.php
Join IBM Optimization and Supply Chain experts on March 30, 2010 for the webcast: Building a Smarter Supply Chain: Learn how to position your business for recovery and growth with better supply chain decision-making using next generation supply chain optimization.
Is your business positioned for recovery? Are your supply chain strategies flexible enough to manage a rapidly changing and volatile economic landscape? Join IBM ILOG Optimization & Supply Chain experts to learn how optimization technology supports flexible business strategies that enable companies to reduce costs today and prepare for growth tomorrow.
Andrew Reese 270002Q78Q Tags:  chains conference regional chain supply visibility smarter – atlanta 3,516 Views
The first presentation of the day came from Karen Butner, Global Supply Chain Management Leader for the IBM Institute for Business Value, on IBM's Global Chief Supply Chain Officer Study, based on interviews with 400 some supply chain executives worldwide. Karen Butner has more than 25 years of experience in supply chain management business practices and strategies. Her concentration has been to assist clients in the high technology, retail and consumer products, electronics, and transportation logistics industries develop strategies and improvement agendas to bring significant value in transforming their global supply chain performance.
The study took about six months to get through, with conversations (hour-and-a-half interviews) with 400 supply chain leaders in about 30 different industries across 25 counties, and they spoke with a variety of different supply chain executives within the enterprise. They focused on supply chain strategy; how companies are collaborating; how agile companies are; how they manage risk; how they use technology and leverage opportunities around real-time data management. One key focus was on how effective different supply chain initiatives are.
The top challenge cited by Chief Supply Chain Officers was supply chain visibility, and where they are focusing is on real-time information transparency inside and outside the enterprise, as well as on event management and alert notification. Interestingly, the top barriers to greater visibility were "organizational silos" and people are "too busy to assist others" in collecting the data and information necessary to provide visibility.
DC Velocity Videocast: IBM Cloud Computing Optimization and Analytics in the Transportation Industry
aeortiz 2700024WMF Tags:  chain ilog smarter logistics optimization transportation ibm commerce distribution supply scm 3,438 Views
Question: What is IBM Cloud Computing Optimization and Analytics?
IBM Watson Answer: Learn how companies are dealing with transformative events in their logistics network and managing uncertainty in a turbulent market.
Despite the turmoil of the transportation market there are advanced technologies to help steward firms through rate hikes, oil prices, driver shortage, congestion, and capacity constraints while managing today's network complexities.
The imperative for companies who want to outpace competitors is to reconsider how they apply optimization to take advantage of limited resources. Executives are looking to technology solutions to provide the tools they need for daily execution and long term strategic transportation decisions.
Executives Walter Heil and Dan Vanden Brink will discuss how the application of business analytics in conjunction with "as a Service" (SaaS) Transportation Management Systems helps optimize distribution and logistics decisions capabilities to:
This webcast was recorded on the show floor at ProMat 2011.
Registration is not required for this free event.
aeortiz 2700024WMF Tags:  chain optimization ilog business scm ibm advanced supply analytics 3,361 Views
Date: Tuesday, March 29, 2011
Time: 11:30 EST, 10:30 CST, 9:30 MST, and 8:30 PST
Optimization in and of itself is nothing new but it is
often overlooked by Line of Business and Information Technology
professionals since many instances of it are embedded inside "classic
supply chain management applications". Optimization allows companies to
make sense of the massive amounts of data across the extended
enterprise. By applying this data in unique and innovative ways, firms
can optimize business outcomes by anticipating, controlling and adapting
to a dynamically changing and chaotic environment, using the insights
from visibility, analytics and trading partner collaboration to direct
and control operations more intelligently.
With the advent of "Optimization 3.0", firms now have the ability to layer or integrate key advanced analytics technology on top of existing supply chain planning and execution systems to support both long-term (strategic) and short-term (tactical) planning goals as well as detailed scheduling while continuously improving operational efficiency, reducing costs and ultimately enhancing the overall customer fulfillment experience. This new combination of State-of-the-Art advanced analytics and B2B integration gives businesses the unprecedented ability to quickly model and solve across the most complex systems and implement solutions in near real-time, creating truly adaptive supply chains.
Andrew Reese 270002Q78Q Tags:  chain chains supply regional – smarter conference atlanta global 3,342 Views
At Smarter Supply Chains – Atlanta Regional Conference, Karen Butner addressed chief supply chain officers' feedback on globalization, as part of the Global Chief Supply Chain Officer Study.
Asia continues to be the leading region for sourcing direct materials and is expected to continue to grow, with Eastern Europe also expected to be a fast-growing region. The anticipated three-year growth in sourcing from Asia was 61 percent, and for Eastern Europe, 43 percent. No surprise that North America and Western Europe are looking at declines. Central and South America and Africa also are looking to see some growth.
The costs issues with regard to globalization continue to be around delivery issues and reliability of commitments; lead times often are greater than expected; quality issues remain a problem; and regulation is an issue. Chief supply chain officers are concerned about the increased complexity that comes with the global supply chain.
The bottom line: costs are significant for global sourcing, and the complexity is non-trivial, but companies are still committed to manage through those costs and the complexity because they still perceive advantages in global sourcing in regions like Asia and Eastern Europe. And organizations viewed as having "leading supply chains" (based on AMR's Top 25 Supply Chains) are doing better at managing both the costs and complexity associated with their global supply chains.
aeortiz 2700024WMF Tags:  supply events impact informs ibm optimization scm ilog chain 3,148 Views
Don't miss ILOG Optimization and Supply Chain at these must attend IBM and INFORMS events: http://www.kingfishmedia.net/emails/IBM/2.24b.html