Tag Archives: demand management

5 Barriers To Achieving End-To-End Supply Chain Visibility

Is it possible to get real-time, end-to-end visibility across your supply chain? Absolutely. But only if you have the right tools.


Since the term “supply chain” was first coined, we’ve all been searching for the holy grail: end-to-end supply chain visibility.

Now, as we recover from the initial shocks of the pandemic and manage through ongoing challenges, we need it more than ever.  But is total visibility actually possible? 

That was our question for Takshay Aggarwal, Global Lead Digital Supply Chain Partner at IBM Global Business Services.

Takshay and Procurious Founder Tania Seary recently talked about building resiliency in a disruptive environment.

A flawed strategy

Prior to the pandemic, a “just in time” inventory management strategy worked wonderfully well for most supply chains, but “just in time is only able to respond to certain fluctuations,” Takshay said. 

When the pandemic drove large-scale disruption, the strategy unravelled. Retailers, for example, were left with empty shelves, late deliveries, and no warning about shipping delays.

And it wasn’t just retail. Industries across the board lacked critical products because companies didn’t have visibility into their tier 2 to tier 10 suppliers – where 40% of supply chain disruptions occur.

Suddenly, companies were scrambling to change supply strategies. 

“The companies who have started on transformation journeys before COVID have fared much better,” Takshay said.

In fact, IBM’s visibility of its own internal supply chain meant it could predict the supply chain impact from the pandemic much sooner than most. 

Path to resilience

So how do you get that same level of visibility and resiliency across your supply chain?

It starts by asking the right question.

“[People should be asking] ‘what kind of supply chain do I need to have?’” Takshay said. 

That’s why the smart companies are re-balancing their risk appetite. 

A real control tower

A resilient supply chain is a transparent supply chain. And the only way to get that crucial visibility is having a smart control tower.

The concept of a control tower isn’t new. It’s a place to pool data from across your supply chain, and use it to make informed decisions.

The right tower helps you see problems a long way off, so you can minimise disruption and maximise profitability. 

But Takshay noted a worrying trend in procurement where any sort of dashboard is called a “control tower”. 

That’s a problem, since most inventory control towers are seriously limited. And you can’t make excellent decisions without knowing the full picture.

Takshay pointed to the IBM Sterling Supply Chain Control Tower as a huge development that finally gives companies the end-to-end visibility they crave.

Here’s how the sophisticated tower can help you overcome the five biggest barriers to visibility.

Problem 1) Most inventory control towers don’t work across silos.

A huge frustration is most control towers can’t handle all the siloed systems of today’s complex enterprises.

It’s a bit like depending on an air traffic controller who can only see part of the runway.

Takshay noted IBM’s control tower works seamlessly with ERP systems, warehouse management, demand planning, order management, e-commerce platforms, and logistics. 

You get one version of the truth across your entire inventory.

Problem 2) Most control towers only show you an inside-out view. 

It’s a big task to monitor operations across the supply chain. But you’re severely limited if your systems won’t sync up with your suppliers’.

That’s why the IBM Sterling Inventory Control Tower makes it easy to work across business partner network.

The result? You can make decisions with confidence, knowing you have all the external information you need.

Problem 3) Most tower controls can’t get into the nitty-gritty detail.

A crucial flaw in most control towers is they lack granular detail. That’s a pretty big issue when your job hinges on knowing the right details.

So instead of depending on people to enter the right data in the right place at just the right time, there’s a smarter way.

IBM’s control tower gives you the microscopic detail you need to make confident decisions. 

Problem 4) Most tower controls are inflexible.

A major drawback for most inventory control towers is the rigid structure. 

There’s only one way to input data, and don’t even dream of changing the architecture. But the pandemic showed us how fast everything can change and how flexible and agile your supply chain needs to be to respond effectively.

You need a control tower that can keep up with the reality of supply chains today. That’s why the IBM Sterling Supply Chain Control Tower is ideal. It adapts to fit your business needs – no matter how quickly they change.

Problem 5) Most control towers predict the future based on past events. 

If you don’t have real-time visibility across your supply chain, you are making decisions based on past events, Takshay said.

At the very least, a control tower should give you current information. But IBM takes it a step further with predictive capabilities.

The control tower looks for patterns in your data – flagging possible issues before they happen. That way, you can quickly adapt and avoid disruption.

Don’t wait for perfection

Control towers go a long way toward visibility and resiliency, but they aren’t a silver bullet, Takshay said.

So instead of waiting for perfection, start bringing your systems together now. 

“The more visibility and the more integration, the more resilience,” Takshay said. “You’re able to bounce back much faster.”

If you want greater supply chain resiliency, you need greater visibility.

And you’ll get that level of visibility if you choose a control tower that actually gives you control. 

Watch the full webinar – Building Resiliency in a Disruptive Environment: How Control Towers Make a Difference – for free >

Mastering the True Art of Saving

Why addressing demand management, and bringing down your demand can realise more of a procurement saving than simply cutting costs.

This article was written by Jon Milton, Director at Comensura.

Most of us know too well the need to tighten the purse strings occasionally in our daily lives. When doing so it’s a natural response to search for cheaper alternatives to the services and products that you’re already buying.

Think about your home energy expenditure for example. Let’s say that you shop around and find a supplier that charges 5 per cent less than you already pay. That’s a good reduction, but it’s a saving within the scale of pricing which, aside from some major shift in energy production trends, is only going to vary to a certain degree. This kind of cost-saving approach will typically only be incremental and rarely save you a dramatic amount.

However, there is an alternative way to save – by managing down your demand. Rather than the pain of switching provider, you could install a smart energy meter and manage down the demand for energy throughout your home, eliminating excessive energy used, and pinpointing when and where you need the heating on. A smarter approach like this could save you much more than 5 per cent.

Smart Saving

It’s for that reason that a cost cutting approach that goes beyond incremental savings should be applied to the corporate world too – especially in complex spend categories such as temporary labour. It’s difficult to know for sure how many workers you need, as it requires you to have an overall view of your organisation’s demand.

And once you establish a number, the sample of workers that are on offer to you vary by qualifications, experience, skills, availability, geography and more – all of which affect how much the candidate costs – making temporary recruitment a complex service category.

Think about how much money organisations could be wasting by hiring the wrong number of temporary workers, the wrong kind, or by not utilising their skills properly. Our evidence as a labour supply management specialist shows that by accurately sourcing the right skills against the organisation’s demand, you can take your cost saving on temporary staff from less than 20 per cent, to over 50 per cent.

Addressing Demand Management

Here are some steps you can take to address temporary labour demand management issues:-

1. Understand your expenditure

Temporary labour is typically ordered directly by line managers as it is under their supervision and control that workers are engaged. There’s usually a business rationale, but is it justifiable?

Additionally, the original rationale for engaging temporary labour will normally be linked to a set time period, such as three months. Any expenditure beyond this initial period should therefore be questioned as to why it is required. 

2. Challenge usage

Once you’ve established an understanding of what’s being spent on temporary labour, ask your managers to justify any anomalies. If they cannot provide sound business rationale, ask them to create an exit plan for the worker and an agreed date. When you review usage the following month, make sure that the worker has been exited.

3. Start planning your workforce

If your use of contingent labour is reactive, ‘fire fighting’ to meet business demand, it is unlikely that you will be in control of your expenditure. Try and review your ordering patterns to identify trends, as this will enable you to plan the workers’ tasks and/or help you to plan your permanent headcount’s activities better.

For example, if historically your usage of contingent workers has a spike in August when staff go on holiday, you may want to review the way that you co-ordinate leave requests, and then plan ahead where cover is required.

4. Properly evaluate needs

Feeling the pressure to hire contingent staff and then recruiting staff that are over qualified (and paid more than the work requires) is one way to rack up an unnecessarily hefty bill. By understanding your requirements fully, you can better establish the experience and type of individual required.

5. Provide a detailed specification

Once you’ve established and understood your requirements, make sure that you, or managers across your organisation communicate these requirements properly. If you want someone with certain skills and experience, be specific about what you need. It sounds simple but it is one of the most common pitfalls that we come across and can cause significant issues.

Often the role is specified (which in an applicant’s mind they could do), but the experience, demonstrable evidence of skills and attributes are not. The more detailed you are, the closer your applicants should be to the requirement. You may get fewer applications, but the quality of hire should be much better.

Saving on Category Procurement

Many organisations are already taking a sound approach to complex category procurement, and with the financial benefits they’ve seen, it’s safe to say that they don’t regret the decision. One of our customers regularly uses temporary staff, and chose us as a single platform to place orders, assign candidates, and manage its temporary staff time sheets.

Having saved £900,000 on temporary staff in 17 months, and delivered a 10 per cent cost saving overall, the customers’ smarter approach to managing temporary staff means that it can invest more funds into vital areas of the organisation.

Just as its name suggests, complex category procurement is a tricky process, particularly when looking for ways to make procurement cost-effective. But provided you look at the wider picture of your organisation, you can restructure processes and gain the benefits.

It starts with making a distinction between your complex and simple procurement, and approaching processes like temporary recruitment in a smarter way that means not just finding cheaper providers.