Kinaxis https://www.kinaxis.com/en en Kinaxis fuels Technicolor's supply chain digital transformation https://www.kinaxis.com/en/node/3143 <h1>Kinaxis fuels Technicolor&#039;s supply chain digital transformation</h1> <span><a title="View user profile." href="/en/blog/author/dmcneiltaylor" lang="" about="/en/blog/author/dmcneiltaylor" typeof="schema:Person" property="schema:name" datatype="">dmcneiltaylor</a></span> <span>Wed, 02/10/2021 - 07:41</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field--item"><p>Technicolor Connected Home digitally transformed its manual supply chain operations with the Kinaxis supply chain platform, resulting in improved forecasting ability.</p> </div> Wed, 10 Feb 2021 12:41:24 +0000 dmcneiltaylor 3143 at https://www.kinaxis.com Philanthropy in Ottawa: Kinaxis supports struggling music industry with funding for virtual concert series https://www.kinaxis.com/en/node/3089 <h1>Philanthropy in Ottawa: Kinaxis supports struggling music industry with funding for virtual concert series</h1> <span><a title="View user profile." href="/en/blog/author/dmcneiltaylor" lang="" about="/en/blog/author/dmcneiltaylor" typeof="schema:Person" property="schema:name" datatype="">dmcneiltaylor</a></span> <span>Tue, 01/12/2021 - 09:47</span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field--item"><p>“People matter here. Music matters here. We needed to demonstrate our commitment to the music industry as a whole including the people behind the scenes and the artists themselves.” – John Sicard, CEO, Kinaxis</p> </div> Tue, 12 Jan 2021 14:47:42 +0000 dmcneiltaylor 3089 at https://www.kinaxis.com Consumer Products Industry Webinar https://www.kinaxis.com/en/consumer-products-industry-webinar <h1>Consumer Products Industry Webinar</h1> <span><span lang="" about="/en/user/701" typeof="schema:Person" property="schema:name" datatype="">bweigand@kinaxis.com</span></span> <span>Tue, 06/11/2019 - 08:48</span> Tue, 11 Jun 2019 12:48:19 +0000 bweigand@kinaxis.com 720 at https://www.kinaxis.com Ferrari Group April 2019 Research Report https://www.kinaxis.com/en/ferrari-group-april-2019-research-report <h1>Ferrari Group April 2019 Research Report</h1> <span><span lang="" about="/en/user/701" typeof="schema:Person" property="schema:name" datatype="">bweigand@kinaxis.com</span></span> <span>Tue, 04/23/2019 - 08:42</span> Tue, 23 Apr 2019 12:42:28 +0000 bweigand@kinaxis.com 703 at https://www.kinaxis.com Overcoming the barriers of ineffective tools to drive S&OP success https://www.kinaxis.com/en/blog/overcoming-barriers-ineffective-tools-drive-sop-success <h1>Overcoming the barriers of ineffective tools to drive S&amp;OP success</h1> <span><a title="View user profile." href="/en/blog/author/sharkins" lang="" about="/en/blog/author/sharkins" typeof="schema:Person" property="schema:name" datatype="">sharkins</a></span> <span>Tue, 05/04/2021 - 14:19</span> <span class="a2a_kit a2a_kit_size_32 addtoany_list" data-a2a-url="https://www.kinaxis.com/en/blog/overcoming-barriers-ineffective-tools-drive-sop-success" data-a2a-title="Overcoming the barriers of ineffective tools to drive S&amp;OP success"><a class="a2a_button_facebook"><img src="/themes/custom/kinaxis/images/social-icons/facebook.svg" alt="addtoany facebook"/></a><a class="a2a_button_twitter"><img src="/themes/custom/kinaxis/images/social-icons/twitter.svg" alt="addtoany twitter"/></a><a class="a2a_button_linkedin"><img src="/themes/custom/kinaxis/images/social-icons/linkedin.svg" alt="addtoany linkedin"/></a></span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field--item"><p>Sales and operations planning (S&amp;OP) can be painful. It is additive work on top of the day-to-day activities that use most, if not all, of the available human capacity. It causes anxiety because, in addition to the sunk costs of time and energy, the potential impact of any errors and revisions grows as the review process ascends the hierarchy.</p> <p>By the time of the executive meeting — if the meeting is even held and all of the stakeholders attend — everyone involved is eager for the cycle to end. Although, with the conclusion of one cycle, comes the beginning of the next one.</p> <p>One major driver of why this painful scene repeats every month is because “legacy enterprise resource planning (ERP) systems, disparate supply chain modules and Excel spreadsheets <a href="https://content.kinaxis.com/snop/powering-the-future-" target="_blank">just aren’t cutting it anymore</a>.”</p> <h3>S&amp;OP execution is limited by ineffective tools</h3> <p><a href="https://content.kinaxis.com/snop/report-navigating-pandemic" target="_blank">New research from Supply Chain Insights</a> finds that 60% of respondents to an October 2020 survey said that they were satisfied with their planning solution. More specifically, 29% of respondents were very satisfied and another 31% were somewhat satisfied.</p> <p>However, the research found that “companies tightly tethered to integrated solutions struggled to adapt. For example, companies using SAP ERP plus a planning tool like SAP APO or SAP IBP rated themselves significantly less agile.” As shown in the figure below, supply chain organizations using best of breed solutions fared better in the pandemic. Tight integration to ERP did not allow the flexibility in modeling that was required by teams in designing the COVID-19 response.</p> <p class="text-align-center"><strong><em>Comparison of Use of Best of Breed Technology Usage to SAP Standardized Architectures During the Pandemic</em></strong></p> <img alt="Graph comparing the best-of-breed technology usage to SAP standardized architectures during the pandemic" data-entity-type="file" data-entity-uuid="d09819f6-145e-4d7d-a21c-96d44dacd04a" height="489" src="/sites/default/files/wysiwyg/SnOP%20blog%20cecere.png" width="916" class="align-center" /> <p>Notably, the respondents using software from ERP providers like SAP during the COVID-19 pandemic were less likely than those using other technologies to tightly align the S&amp;OP process with the operations plan and also less likely to execute the S&amp;OP process half of the time or better. Lastly, they were also more likely to fail to execute the S&amp;OP at least half of the time.</p> <h3>Putting people in charge of planning</h3> <p>Supply chain planning is hard enough without having to deal with outdated interfaces that mean planners spend more time clicking than actually accomplishing anything. The complexity and uncertainty that comes with constant disruption has compounded the problem, further exposing antiquated planning tools and techniques.</p> <p>The disconnected, cascaded processes generate second-rate results that keep supply chains from delivering on their promises. Ultimately, that has led some to shift to more manual collaboration efforts, as one supply chain leader told Supply Chain Insights, “We all laid-down our cards and worked together to fulfill orders. Our functional barriers disappeared as we became more human, trying to make the best out of a difficult situation.”</p> <p>By themselves, increased collaboration and alignment are great things for supply chain. However, in order for them to be scalable and impactful, people must be given the opportunity to focus on what matters most to their business. This means finding ways to reduce the volume of repetitive, low value-add, day-to-day activities that often come with clunky tools and processes.</p> <p>Within S&amp;OP, and throughout planning, in general, people must be the ones in charge of the process and technology, not the other way around. This shifts the conversation from debates about data sources to collaborative decision making. It starts by:</p> <ul> <li> <strong>Connecting to everywhere</strong> by bringing together all internal and external supply chain data sources and connected algorithms — even with multiple enterprise resources planning (ERP) instances and multiple heterogeneous ERP platforms .</li> <li> <strong>Transforming data</strong> into dashboards, scorecards, network visualizations, geo maps and more.</li> <li> <strong>Aligning end-to-end functions</strong> with concurrent planning to remove silos, maximize resources and rapidly understand the outcome of plans.</li> <li> <strong>Planning, monitoring and responding</strong> instantly to changes with what-next scenarios that help manage volatility without misalignment.</li> </ul> <p>Leading supply chains have already empowered everyone to apply judgment, democratize insights and streamline end-to-end functional collaboration. By putting people in charge of planning, supply chains can leverage scalable, real-world solutions to lead not with spreadsheets and slides, and certainly not empty promises, but with proof and tangible results.</p> <p>You can explore more insights from the survey in the full report from Supply Chain Insights, <a href="https://content.kinaxis.com/snop/report-navigating-pandemic" target="_blank">Navigating the supply chain through the pandemic</a>, or watch our <a href="https://content.kinaxis.com/managing-disruption/sci-navigating-pandemic" target="_blank">on-demand webinar</a> with Lora Cecere, founder and CEO of Supply Chain Insights, for a deep dive into the research on supply chains' disruption preparedness, including lessons for the future. </p> <p><a href="https://content.kinaxis.com/managing-disruption/sci-navigating-pandemic" target="_blank"><img alt="Watch our on-demand webinar, &quot;Deep dive: Navigating the supply chain through the pandemic&quot;" data-entity-type="file" data-entity-uuid="d159aa65-4e29-4c82-adab-5b8d0c10b93a" height="349" src="/sites/default/files/wysiwyg/Social_incl-LinkedIn-1200x628-OD%281%29.png" width="667" /></a></p> <p> </p> </div> <section class="comments" id="comments"> <h3 class="new-comment-form-title">Leave a Reply</h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=3261&amp;2=field_comments&amp;3=comment" token="JCX94ZGQgeFFZpVV7erDCwgl-zHC8MxksiVIrH8_4Tw"></drupal-render-placeholder> </section> Tue, 04 May 2021 18:19:33 +0000 sharkins 3261 at https://www.kinaxis.com https://www.kinaxis.com/en/blog/overcoming-barriers-ineffective-tools-drive-sop-success#comments Podcast | What's love got to do with it? https://www.kinaxis.com/en/blog/podcast-whats-love-got-do-it <h1>Podcast | What&#039;s love got to do with it?</h1> <span><a title="View user profile." href="/en/blog/author/sharkins" lang="" about="/en/blog/author/sharkins" typeof="schema:Person" property="schema:name" datatype="">sharkins</a></span> <span>Mon, 04/26/2021 - 09:08</span> <span class="a2a_kit a2a_kit_size_32 addtoany_list" data-a2a-url="https://www.kinaxis.com/en/blog/podcast-whats-love-got-do-it" data-a2a-title="Podcast | What&#039;s love got to do with it?"><a class="a2a_button_facebook"><img src="/themes/custom/kinaxis/images/social-icons/facebook.svg" alt="addtoany facebook"/></a><a class="a2a_button_twitter"><img src="/themes/custom/kinaxis/images/social-icons/twitter.svg" alt="addtoany twitter"/></a><a class="a2a_button_linkedin"><img src="/themes/custom/kinaxis/images/social-icons/linkedin.svg" alt="addtoany linkedin"/></a></span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field--item"><p>What qualities make a great partnership? Respect, understanding, communication and teamwork come to mind. However, one thing's for sure: Navigating the ups and downs of a great partnership requires a lot of work, in life and in business. <a href="https://www.linkedin.com/in/jennifer-jacques-982a1a42" target="_blank">Jennifer Jacques</a>, VP of Global Supply Chain Digital Transformation at <a href="https://www.se.com/" target="_blank">Schneider Electric</a>, shares some of the career lessons she's learned about how organizations can get the most out of partnerships between the business and IT to accelerate change and realize value, even through the inevitable ups and downs that come with any digital transformation journey.</p> <p><iframe frameborder="no" height="200px" scrolling="no" seamless="" src="https://player.simplecast.com/070ce190-5da5-4537-b2c5-496cf9bdd4b7?dark=true" width="100%"></iframe></p> <p>Catch up on past episodes of the Big Ideas in Supply Chain podcast using the links below or subscribe to Big Ideas in Supply Chain on <a href="https://open.spotify.com/show/3lU5bslcvKzd9NdF5eZZL8" target="_blank">Spotify</a>, <a href="https://podcasts.apple.com/us/podcast/big-ideas-in-supply-chain/id1515528017" target="_blank">Apple Podcasts</a> or <a href="https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5zaW1wbGVjYXN0LmNvbS9SZm5tU0oxVw?ved=0CAYQrrcFahcKEwjo-cXx297qAhUAAAAAHQAAAAAQAQ" target="_blank">Google Podcasts</a>.</p> <ul> <li><a href="https://www.kinaxis.com/en/blog/challenge-digital-transformation-dont-repeat-past" tabindex="-1" target="_blank">Ep. 1: Creating a digital transformation blueprint with Anne Robinson, Chief Strategy Officer, Kinaxis and John La Bouff, Supply Chain Fellow, Spinnaker</a></li> <li><a href="https://www.kinaxis.com/en/blog/supply-chain-household-name" tabindex="-1" target="_blank">Ep. 2: Supply chain is a household name</a></li> <li><a href="https://www.kinaxis.com/en/blog/can-your-supply-chain-drop-ship-single-roll-toilet-paper" tabindex="-1" target="_blank">Ep. 3: Can your supply chain drop-ship a single roll of toilet paper?</a></li> <li><a href="https://www.kinaxis.com/en/blog/bob-ferrari-strategies-covid-19-war-room-and-beyond" tabindex="-1" target="_blank">Ep. 4: Bob Ferrari: Strategies for the COVID-19 war room and beyond</a></li> <li><a href="https://www.kinaxis.com/en/blog/podcast-black-swan-events-and-supply-chain-renaissance" target="_blank">Ep. 5: Black swan events and the supply chain renaissance with Rob Stevens, First Analytics</a></li> <li><a href="https://www.kinaxis.com/en/blog/podcast-circular-economy-industrial-system-thats-restorative-design" target="_blank">Ep. 6: The circular economy: A system that's restorative by design with Sandy Rodger</a></li> <li><a href="https://content.kinaxis.com/big-ideas-podcast/podcast-ep-7" target="_blank">Ep. 7: Building your team for successful digital transformation and beyond with Ronan Stephens, Ipsen</a></li> <li><a href="https://content.kinaxis.com/big-ideas-podcast/podcast-ep-8" target="_blank">Ep. 8: Are we still talking about toilet paper?</a></li> <li><a href="https://content.kinaxis.com/big-ideas-podcast/retails-perfect-storm" target="_blank">Ep. 9: Retail's perfect storm with Bryan Palma, Kinaxis</a></li> <li><a href="https://content.kinaxis.com/big-ideas-podcast/podcast-ep-10" target="_blank">Ep. 10: Death, taxes and change management with Hilary Horn, Deloitte</a></li> </ul> <p> </p> </div> <section class="comments" id="comments"> <h3 class="new-comment-form-title">Leave a Reply</h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=3266&amp;2=field_comments&amp;3=comment" token="9YPNww0UterSOLLo11SJoJVE8PlchPtqgqUZ48HeDSU"></drupal-render-placeholder> </section> Mon, 26 Apr 2021 13:08:15 +0000 sharkins 3266 at https://www.kinaxis.com https://www.kinaxis.com/en/blog/podcast-whats-love-got-do-it#comments How to orchestrate your S&OP: Move from cacophony to harmony https://www.kinaxis.com/en/blog/how-orchestrate-your-sop-move-cacophony-harmony <h1>How to orchestrate your S&amp;OP: Move from cacophony to harmony</h1> <span><a title="View user profile." href="/en/blog/author/sharkins" lang="" about="/en/blog/author/sharkins" typeof="schema:Person" property="schema:name" datatype="">sharkins</a></span> <span>Mon, 04/12/2021 - 11:04</span> <span class="a2a_kit a2a_kit_size_32 addtoany_list" data-a2a-url="https://www.kinaxis.com/en/blog/how-orchestrate-your-sop-move-cacophony-harmony" data-a2a-title="How to orchestrate your S&amp;OP: Move from cacophony to harmony"><a class="a2a_button_facebook"><img src="/themes/custom/kinaxis/images/social-icons/facebook.svg" alt="addtoany facebook"/></a><a class="a2a_button_twitter"><img src="/themes/custom/kinaxis/images/social-icons/twitter.svg" alt="addtoany twitter"/></a><a class="a2a_button_linkedin"><img src="/themes/custom/kinaxis/images/social-icons/linkedin.svg" alt="addtoany linkedin"/></a></span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field--item"><p><img alt="View of symphony orchestra performing from sheet music" data-entity-type="file" data-entity-uuid="bd0813c5-4f11-471c-a8f8-40c48140439f" height="409" src="/sites/default/files/wysiwyg/GettyImages-78464591.jpg" width="614" class="align-right" />There is much I have learned as a business professional from being a musician. I started playing the flute when I was ten, was performing with a professional orchestra as a teenager and completed a bachelor’s degree in Music. One of the most famous pieces of music is “Ode to Joy” from Ludwig van Beethoven’s Ninth symphony, a masterpiece where the entire orchestra performs with a choir for the finale. To prepare for a performance, each person practices their parts individually – the violins, the cellos, trumpets, percussion – but Beethoven’s Ninth does not reveal the overarching melodies and intermingling harmonies until each person and section comes together under the direction of a conductor.</p> <p>Perfect harmony is how a <a href="https://content.kinaxis.com/c/s-op-solution-guide-?x=g02Oad" target="_blank">well-executed S&amp;OP process</a> could work for organizations but rarely does. In my career in supply chain consulting, I observe the challenges faced by functional leaders in bringing planners together with marketing and finance to make effective decisions for their supply chains. During a typical monthly S&amp;OP cycle, a demand review occurs, is passed off to supply for a review, an integrated reconciliation is attempted in the third week of the month and is finally evaluated by senior business management. While the intent is for each function to work collaboratively to make decisions, the orchestra often fails to perform as one. Business processes remain misaligned and siloes stay entrenched due to lack of cohesive metrics. Harmonized handoffs between processes and end-to-end supply chain visibility do not exist.</p> <h3>Highly functional silos</h3> <p>Organizations often operate in highly functional silos. Like a violin section in an orchestra, each function (demand planning, manufacturing, logistics) is optimized but rarely effectively evaluated across the network. In most monthly S&amp;OP cycles I have observed, each function evaluates its own plans, which it simply passes down the line to the next link in the chain. Too often teams don’t do the hard work to evaluate conflicting plans or negotiate tough decisions on to how to respond to changes in demand and supply. Integrated reconciliation meetings are often poorly attended or simply ineffective when decisions are unable to be made due to misaligned KPIs, insufficient visibility to data and siloed mentalities. Imagine the chorus for “Ode to Joy” coming in at the beginning of the final movement of Beethoven’s Ninth, rather than at the end.</p> <p>Technology and data developments over the last decade are enabling companies to increase visibility across these silos, but visibility alone rarely breaks down the barriers to truly perform as an orchestra. The individual sections remain. S&amp;OP leaders to try to promote cross-silo decision making during the monthly cycles but often fail because each silo is determined to look after their own metrics. A high-tech manufacturer I work with is excellent at demand planning, but the process falls flat when punted to supply planning for execution. KPIs are misaligned, with no understanding of constraints on either side, and the monthly S&amp;OP cycle is essentially stopped. In a situation like this, the orchestra is not performing cohesively.</p> <p><em>[Read more: <a href="https://www.kinaxis.com/en/blog/sop-soe-key-driving-supply-chain-agility" target="_blank">S&amp;OP + S&amp;OE: The key to driving supply chain agility</a>]</em></p> <h3>Orchestrating in slow motion</h3> <p>Supply chains work in similar ways to an orchestra. No part is complete without its whole. Raw materials must be sourced and manufactured into the end product. Deliveries must be arranged and prioritized, and customer trends understood and incorporated into long-range planning. This concept is often lost on functional leadership, which is focused on delivering on their own objectives.</p> <p>However, successful orchestration does exist. I worked with an aerospace manufacturer that carefully defined its S&amp;OP process and how each function’s processes and metrics aligned to one another, and then developed a plan to make trade-off decisions. But it took time, and the process to gather the data was manual. Visibility across functions was limited, the ability to evaluate scenarios to make trade-off decisions took time, and by the time the analysis was complete, it was almost always too late for its customers. The orchestra was playing cohesively but the piece was taking too long to perform. The audience was asleep.</p> <h3>Learning to listen and respond together</h3> <p>For decades, the foundation of supply chain transformation has been people, processes and technology, and more recently data has been added as a key factor. These elements are the levers organizations can use to varying degrees to perform better as an orchestra. Leadership is also important. The conductor of a supply chain orchestra can enable people across silos to listen and create a constructive decision-making environment enabled by data and technology.</p> <p>Having a mature S&amp;OP process, like the aerospace manufacturer playing in slow motion, will only go so far. Ultimately, this organization implemented concurrent planning technology to harmonize the data across their supply chain and provide transparency across silos. This transparency went beyond having simple visibility to the flow materials in their supply chain and emphasized how their data was used, by whom and when. Not only did this more than quadruple the speed of their S&amp;OP cycles, it enabled real-time scenario planning where planners and executives could make better decisions ahead of their customers. With these changes the orchestra was perfectly in sync and the audience wide awake! Learning to <a href="https://content.kinaxis.com/c/s-op-solution-guide-?x=g02Oad" target="_blank">orchestrate an effective S&amp;OP process</a> takes an organizational commitment to listen to each function, align processes and metrics, and if needed, implement technology to gain transparency across the organization. With these elements a supply chain can make beautiful, harmonized music becoming the “Ode to Joy” for organizations.</p> </div> <section class="comments" id="comments"> <h3 class="new-comment-form-title">Leave a Reply</h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=3254&amp;2=field_comments&amp;3=comment" token="xoUuyyY9oN_u_NySechfU4fU_CuMDDSAB2NWnbNJ1FE"></drupal-render-placeholder> </section> Mon, 12 Apr 2021 15:04:24 +0000 sharkins 3254 at https://www.kinaxis.com https://www.kinaxis.com/en/blog/how-orchestrate-your-sop-move-cacophony-harmony#comments Digital investments correlate to financial success https://www.kinaxis.com/en/blog/digital-investments-correlate-financial-success <h1>Digital investments correlate to financial success</h1> <span><a title="View user profile." href="/en/blog/author/sharkins" lang="" about="/en/blog/author/sharkins" typeof="schema:Person" property="schema:name" datatype="">sharkins</a></span> <span>Tue, 04/06/2021 - 12:56</span> <span class="a2a_kit a2a_kit_size_32 addtoany_list" data-a2a-url="https://www.kinaxis.com/en/blog/digital-investments-correlate-financial-success" data-a2a-title="Digital investments correlate to financial success"><a class="a2a_button_facebook"><img src="/themes/custom/kinaxis/images/social-icons/facebook.svg" alt="addtoany facebook"/></a><a class="a2a_button_twitter"><img src="/themes/custom/kinaxis/images/social-icons/twitter.svg" alt="addtoany twitter"/></a><a class="a2a_button_linkedin"><img src="/themes/custom/kinaxis/images/social-icons/linkedin.svg" alt="addtoany linkedin"/></a></span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field--item"><p>Executives live daily with a daunting dual challenge. One part is the need to manage the business through steady-state operations and times of disruption. The other is to create value for shareholders through financial excellence and growth.</p> <p>At the intersection of these two parts lies the digitalization of supply chain. Through digital transformation, supply chain leaders can begin to develop the capabilities that are already needed to manage disruption, as well as those that will help overcome known obstacles, such as data availability and quality. Layering on top of data is information and insight, which are critical to ensuring that those in supply chain are making the decisions that matter most to the business.</p> <p>The operational opportunities are evident, so the rationale behind the investment is clear. However, that only solves one part of the executive’s dual challenge. Quantifying the value created through financial excellence has been more difficult, but recent research from <a href="https://neeley.tcu.edu/DirectoryProfile/Our-Team/277e4bec-3e80-4850-8df4-914539072223?pageAlias=Swink-Morgan" target="_blank">Professor Morgan Swink</a> of <a href="https://neeley.tcu.edu/Page/Center-for-Supply-Chain-Innovation/2a7e8828-6488-4f6c-bf89-e3abd4a6412d" target="_blank">Texas Christian University</a> now shows the correlation between investing in digital transformation and delivering financial success.</p> <h3>Kinaxis customers outperformed during the pandemic</h3> <p>Using quarterly financial statements for 48 publicly held, North American companies that use Kinaxis for their supply chain planning, Professor Swink conducted what is known as a difference in differences analysis for all of 2019 and the first three quarters of 2020. In that analysis, the 48 companies represented those who have already begun their digital transformation against industry averages for each respective vertical over the corresponding period. Furthermore, the analysis was performed as a pre/post event comparison based upon the declaration of COVID-19 as a global pandemic in Q1 2020.</p> <figure role="group" class="align-center"> <img alt="Histogram displaying the impact of the pandemic on profitability metrics for Kinaxis compared to the industry average." data-entity-type="file" data-entity-uuid="84350c50-ec77-4fce-acf7-bc4c27b1d4f2" height="431" src="/sites/default/files/wysiwyg/CFO%20slide%201_0.png" width="834" /> <figcaption><em>While industry averages showed declines after the pandemic declaration in return on assets (ROA), return on sales (ROS) and return on invested capital (ROIC), the Kinaxis users all delivered improvements when compared to the pre-pandemic performance.</em></figcaption> </figure> <p>“These data are very strong. I was quite surprised at the level of positivity in these findings,” Professor Swink said upon sharing his findings. The results were so impressive that among the initial six financial metrics compared, the group of 48 Kinaxis customers, representing the digitally transformed, outperformed their industry averages across the board.</p> <p>The academically rigorous, statistically significant data shows that while industry averages showed declines after the pandemic declaration in return on assets (ROA), return on sales (ROS) and return on invested capital (ROIC), the Kinaxis users all delivered improvements when compared to the pre-pandemic performance. The largest gap occurred for return on sales, which acts as a measure of operational efficiency, where the Kinaxis group improved by more than 1.5%, while the industry declined by more than 0.5%, leading to an overall performance gap of more than 2%. Costs, as a percentage of revenue, also were an advantage for the group of 48 Kinaxis users as both costs of goods sold and sales, general and administrative costs decreased while industry averages either declined slightly or grew.</p> <h3>Translate supply chain success into the CFO’s main metrics</h3> <p>With an impressive array of data, like the research findings, it becomes critical that supply chain leaders be able to convey the right information to the right people. In the case of what matters most to CFO’s, Professor Swink says, “The two things that every CFO cares about are profit and growth. And from the CFOs perspective, they're looking at ways to invest money to drive profit and growth.”  </p> <p>Therein lies a significant opportunity for supply chains because they have historically struggled with translating operational capabilities into financial success. This carries over to digital transformation, as well. In both cases, the benefits are typically stated in the terms of those desiring the investment, as opposed to the metrics of whomever is making the decision. As Professor Swink stated, “You need to learn what those metrics are and be able to position your proposal in that language just like the other people who are competing for those funds.”</p> <figure role="group" class="align-center"> <img alt="Flow chart connecting digital capabilities to financial outcomes" data-entity-type="file" data-entity-uuid="9e3e026f-d03c-4d06-9f1d-f2b11c0a915d" height="455" src="/sites/default/files/wysiwyg/CFO%20slide%202.png" width="874" /> <figcaption><em>Translate digital transformation outcomes into meaningful impacts for decision makers, for example, aligning supply chain capabilities to financial outcomes.</em></figcaption> </figure> <p>Once the metrics are identified, begin to understand how operational capabilities work as input drivers for them. For example, increased visibility is highly desirable so that supply chains can sense disruptions as it is happening and respond immediately. That alone is a tremendous benefit and it can be tied to financial outcomes such as reduced inventory and cash buffers, improved capacity utilization and lower cost resolution of demand-supply mismatches.</p> <p>Taking it a step further, the improvements in return on invested capital, and even return on assets, can then be tracked as digitally enabled capabilities are now linked to these financial performance measures. By doing so, the “why an investment is needed” aligns with what it means to the decision maker.</p> <p>This creates a pivot point for supply chains as Professor Swink suggests that practitioners must be able “to relate structural choices, policies, technology investments, and training and labor investments to the kinds of KPIs that show up on income statements and balance sheets.” This is crucial because “if we really want to speak the language of the CFO we must think beyond those kind of specific operational metrics to think about how our choices affect these larger outcomes.”</p> <p>To hear more about Professor Swink’s research, watch his on-demand webinar, <a href="https://content.kinaxis.com/cfo/speak-CFO-language?utm_source=blog&amp;utm_medium=blog&amp;utm_campaign=7015Y000003L40C" target="_blank">Speak your CFO's language - Managing risk and opportunity in supply chains</a>.</p> <p><a href="https://content.kinaxis.com/cfo/speak-CFO-language?utm_source=blog&amp;utm_medium=blog&amp;utm_campaign=7015Y000003L40C" target="_blank"><img alt="Watch the on-demand webinar, &quot;Speak your CFO's language - Managing risk and opportunity in supply chains&quot;" data-entity-type="file" data-entity-uuid="924fdeb8-bdf0-49a9-a2aa-c26a5e591746" src="/sites/default/files/wysiwyg/blog-CTA-OD-speak-cfos-language-webinar-kinaxis_1.png" class="align-left" /></a></p> <p> </p> <p> </p> </div> <section class="comments" id="comments"> <h3 class="new-comment-form-title">Leave a Reply</h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=3244&amp;2=field_comments&amp;3=comment" token="CzEIltEaeXH7mL0udunfwDodKklCxEkb1aRU3XLnOXg"></drupal-render-placeholder> </section> Tue, 06 Apr 2021 16:56:29 +0000 sharkins 3244 at https://www.kinaxis.com https://www.kinaxis.com/en/blog/digital-investments-correlate-financial-success#comments We stand in solidarity with the Asian community https://www.kinaxis.com/en/blog/we-stand-solidarity-asian-community <h1>We stand in solidarity with the Asian community</h1> <span><a title="View user profile." href="/en/blog/author/sharkins" lang="" about="/en/blog/author/sharkins" typeof="schema:Person" property="schema:name" datatype="">sharkins</a></span> <span>Thu, 04/01/2021 - 16:34</span> <span class="a2a_kit a2a_kit_size_32 addtoany_list" data-a2a-url="https://www.kinaxis.com/en/blog/we-stand-solidarity-asian-community" data-a2a-title="We stand in solidarity with the Asian community"><a class="a2a_button_facebook"><img src="/themes/custom/kinaxis/images/social-icons/facebook.svg" alt="addtoany facebook"/></a><a class="a2a_button_twitter"><img src="/themes/custom/kinaxis/images/social-icons/twitter.svg" alt="addtoany twitter"/></a><a class="a2a_button_linkedin"><img src="/themes/custom/kinaxis/images/social-icons/linkedin.svg" alt="addtoany linkedin"/></a></span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field--item"><p><img alt="Person holding a &quot;Stop Asian Hate&quot; sign" data-entity-type="file" data-entity-uuid="1a5b6d11-c28e-4334-9712-bdefd3315f43" height="283px" src="/sites/default/files/wysiwyg/GettyImages-1307873903_0.jpg" width="435px" class="align-right" />In light of recent ongoing events, we felt it important to speak up about the alarming escalation of violence against the Asian community. It is heartbreaking and infuriating that we still have to make these statements, but it is incomparable to the fear and uncertainty our Asian community members are facing.</p> <p>At all times, we condemn any forms of racism, inequality, intolerance, and hate towards any group. We cannot stand complicit in the face of racism or ignore what is happening: there is an urgent need for change that we can all contribute to.</p> <p>At Kinaxis, we are committed to an active and deliberate process of listening, education and programs that nurture our culture of diversity and inclusion. It is a journey that we invite our employees, customers and partners to join by protecting and celebrating each and every person that contributes to our diverse communities. Educate yourselves and those around you about what’s happening right now; speak up against racist rhetoric and exclusionary policies; be aware of your own unconscious biases.</p> <p>To the entire Asian community: we hear you, we see you, and we stand with you.</p> <p> </p> </div> <section class="comments" id="comments"> <h3 class="new-comment-form-title">Leave a Reply</h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=3236&amp;2=field_comments&amp;3=comment" token="cZGC0cEfRVujCGfm8G5yxcBq1-Vy6kBsfXUmTJiaMMU"></drupal-render-placeholder> </section> Thu, 01 Apr 2021 20:34:05 +0000 sharkins 3236 at https://www.kinaxis.com https://www.kinaxis.com/en/blog/we-stand-solidarity-asian-community#comments Why change is essential during a supply chain digital transformation https://www.kinaxis.com/en/blog/why-change-essential-during-supply-chain-digital-transformation <h1>Why change is essential during a supply chain digital transformation</h1> <span><a title="View user profile." href="/en/blog/author/sharkins" lang="" about="/en/blog/author/sharkins" typeof="schema:Person" property="schema:name" datatype="">sharkins</a></span> <span>Wed, 03/31/2021 - 14:25</span> <span class="a2a_kit a2a_kit_size_32 addtoany_list" data-a2a-url="https://www.kinaxis.com/en/blog/why-change-essential-during-supply-chain-digital-transformation" data-a2a-title="Why change is essential during a supply chain digital transformation"><a class="a2a_button_facebook"><img src="/themes/custom/kinaxis/images/social-icons/facebook.svg" alt="addtoany facebook"/></a><a class="a2a_button_twitter"><img src="/themes/custom/kinaxis/images/social-icons/twitter.svg" alt="addtoany twitter"/></a><a class="a2a_button_linkedin"><img src="/themes/custom/kinaxis/images/social-icons/linkedin.svg" alt="addtoany linkedin"/></a></span> <div class="field field--name-body field--type-text-with-summary field--label-hidden field--item"><p>Global change, business evolution, technology disruption, digital transformation – all terms with which we have become very familiar. We thought we fully understood the implications of these terms prior to Covid-19. However, now we understand them at entirely new levels as most of what we know and have come to expect in business and in our lives has been altered to some extent – and fast.</p> <p>While studies will tell you most humans are not generally disposed to radical departures from their daily routines, during the pandemic we have learned that we are more agile, flexible and resilient than anyone ever expected. We didn’t have to undergo rigorous change management processes in order to adapt to our new environments. We just did what was right, embraced what was in front of us and moved quickly to acclimate to our own “next normal.”</p> <p>Of course, we aren’t out of the woods just yet, and more change is inevitable. But over the past year we have been able to see, in many areas, that crisis moments can also present opportunities: more sophisticated use of technology, the creation of innovative business models in support of working from home, and new delivery and entertainment services that cater to people staying inside, to name but a few examples.</p> <h3>Rethinking the approach to change adoption</h3> <p>The pandemic has forced most businesses to rethink their operating models to ensure they can survive and thrive in a new economy. Global supply chain operations are no exception.</p> <p>In the supply chain world, change has already been coming fast and furiously as work processes, customer demand, new regulations and economic shifts disrupt planning and operations. Now, with more uncertainty than ever about which demand patterns may skyrocket or tumble without warning, operational and organizational planning are critical to ensure agility and resiliency to meet what’s next, which means working to unify forecasting, planning and execution. But, without buy-in from your key constituents, those terms become merely buzzwords with little meaning. A new approach to change management that takes into account speed of adoption is a necessity.</p> <p>Historically, change management models indicated that effectively implementing changes within an organization would take anywhere from 12 to 18 months. And the majority of employees would need at least this long to embrace new working models.</p> <p>Today, we don’t have the luxury of this investment in time. Instead, we are truly building the car’s engine while driving it down the road. This means we need a braver and more thoughtful approach to change management in the supply chain to keep it in pristine condition to drive sustained success. For example, we need to remove bottlenecks, improve end-to-end transparency and synchronize disparate business siloes.</p> <h3>Building a change-ready culture</h3> <p>Change plans should start with ensuring a pervasive understanding of the strategic need for the shift. Why is it crucial for your business? What are the expected outcomes? How will it impact your employees, partners and customers? What are the possible barriers to adoption? Do you have the right tools in place to ensure proper execution? And, how quickly will it need to be implemented to be successful?</p> <p>Once you’re in agreement on the need for the change, it should be closely followed with an executable, measurable, timed project plan that goes through all of the steps that will take place and all of the ingredients needed to make it work. Because, just like baking a souffle, one missed ingredient can mean failure.</p> <p>Apart from the planning itself, working to ensure you have strong management, leadership and direction, coupled with a workforce that is well informed, trained and agile during the change, can lead to better chances of meeting your goals.</p> <h3>Rely on your workforce to lead the change</h3> <p><a href="https://www.gartner.com/en/human-resources/trends/changing-change-management#:~:text=Currently%2C%20over%2080%25%20of%20organizations,change%20from%20the%20top%20down.&amp;text=In%20our%20survey%20of%20more,not%20executives%2C%20to%20lead%20change." target="_blank">According to a study by Gartner</a>, currently, over 80 percent of organizations manage change from the top down. However, this strategy is fundamentally disconnected from today’s workflow and is actually slowing organizations down. That same study found that the best organizations rely on their workforce, not executives, to be the change agents leading the shift.</p> <p>These findings are extremely important as you develop your change management plans, work to achieve stakeholder buy-in and streamline implementation. Communication and inclusivity are critical in this equation.</p> <p>Vetting your plans with a core set of employees and other stakeholders before beginning implementation will go a long way toward ensuring your approach will resonate with their peers as well. Then making sure you have clear, concise and informative communications throughout the process will help to bring employees along and ease any anxiety they may be feeling about the change. Providing proof points along the way that show them that the changes are working will also instill greater confidence and trust. Offering training and reference guides and any other enablement tools they may need will help them adapt more quickly.</p> <p>Once you have buy-in from staff — because they know how they stand to benefit from your supply chain enhancements — it will be much easier to implement and encourage widespread adoption.</p> <h3>Set realistic expectations</h3> <p>Despite the fact we need to move at a much faster pace today than in the past, significant changes to supply chain operations don’t happen overnight. Many of these projects are more complex with a number of moving parts, so being realistic about your timeline is key.<br /> Celebrate milestones along the way to make the transition more exciting and tangible. Continually seek feedback from those impacted by the change to ensure they’re still on the journey with you. And, work to remain excited about the work you’re doing to innovate and continually transform your business.</p> <p>Constant change across the supply chain is a given and an ongoing phenomenon. These changes are driving the need for digital transformation, but it’s how we manage that change and bring people along the transformation path that will make the difference in your organization reaching new heights and capture the value from the investments.<br /> <br /> To learn more about the practice of change management — and why it is table stakes for any digital transformation — join <a href="https://www2.deloitte.com/us/en.html" target="_blank">Deloitte</a> leader and one of my personal change management sherpas, <a href="https://www2.deloitte.com/us/en/profiles/hhorn.html" target="_blank">Hilary Horn</a> and myself in our new podcast episode, “<a href="https://big-ideas-in-supply-chain.simplecast.com/episodes/death-taxes-and-change-management" target="_blank">Death, taxes and change management</a>.” Hilary and I discuss how the approach and science of change management have shifted.</p> <p><iframe frameborder="no" height="200px" scrolling="no" seamless="" src="https://player.simplecast.com/966a162e-cee7-4f75-b8da-17e7c5b4f3d0?dark=true" width="100%"></iframe></p> <p>You can subscribe to our podcast and listen to past episodes on <a href="https://podcasts.apple.com/us/podcast/big-ideas-in-supply-chain/id1515528017" target="_blank">Apple Podcasts</a>, <a href="https://open.spotify.com/show/3lU5bslcvKzd9NdF5eZZL8" target="_blank">Spotify</a> or your preferred podcast provider. Catch up on some past change management and digital transformation episodes of the Big Ideas in Supply Chain podcast using the links below:</p> <ul> <li><a href="https://www.kinaxis.com/en/blog/challenge-digital-transformation-dont-repeat-past" tabindex="-1" target="_blank">Ep. 1: Creating a digital transformation blueprint with Anne Robinson, Chief Strategy Officer, Kinaxis and John La Bouff, Supply Chain Fellow, Spinnaker</a></li> <li><a href="https://www.kinaxis.com/en/blog/podcast-black-swan-events-and-supply-chain-renaissance" target="_blank">Ep. 5: Black swan events and the supply chain renaissance</a></li> <li><a href="https://content.kinaxis.com/big-ideas-podcast/podcast-ep-7" target="_blank">Ep. 7: Building your team for successful digital transformation and beyond</a></li> </ul> </div> <section class="comments" id="comments"> <h2 class="blog-comment-title">Discussions</h2> <article data-comment-user-id="0" id="comment-4565" class="js-comment comment"> <div> <div class="comment-header"> <div class="field field--name-field-comment-name field--type-string field--label-hidden field--item">Digital transformation services</div> - April 08, 2021 at 4:59am </div> <div> <div class="field field--name-field-comment field--type-string-long field--label-hidden field--item">.Growing customer demands and expectations always add more pressure on logistics companies as their staffs have to ensure the warehouse and inventory are properly stocked and managed. With fewer tools and technology, their staffs have to strain a lot to live up to the customer expectations. However, it is very possible today with the help of partnering with reputed digital transformation services.</div> </div> </div> </article> <h3 class="new-comment-form-title">Leave a Reply</h3> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=3235&amp;2=field_comments&amp;3=comment" token="Akfc7JwVwXrBSuUwNUTubgXUZPg_QDMZPB_9g2N_Wrc"></drupal-render-placeholder> </section> Wed, 31 Mar 2021 18:25:57 +0000 sharkins 3235 at https://www.kinaxis.com https://www.kinaxis.com/en/blog/why-change-essential-during-supply-chain-digital-transformation#comments