OPS Rules Blog: Insights into Supply Chain and Operations Strategy

Gartner three standout trends for supply chain leaders in 2015

Posted by Edith Simchi-Levi on Wed, May 20, 2015 @ 08:00 AM

Gartner's top 25 list provides insight into the behaviour and trends of successful companies. Below are the top companies by industry from the event. 


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Tags: Analytics, End-to-End Optimization, supply chain risk

Why you need to understand your Inventory drivers

Posted by Edith Simchi-Levi on Tue, May 05, 2015 @ 02:31 PM
By Edith Simchi-Levi and Jeff Keene. When companies are growing they typically do not spend too much time thinking about inventory or other efficiencies, but are busy making sure they have enough products to satisfy demand. When business is slower or in transition there is more focus on cost - starting from the most visible: excess inventory.  
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Tags: End-to-End Optimization, Inventory Optimization

3 steps to greater profits with Supply Chain Segmentation

Posted by Zhiheng Ivan Xu on Wed, Apr 29, 2015 @ 12:00 PM

By Zhiheng Ivan Xu and Tim Kachur. The Pareto Principle, known as the “80:20 Rule” states that 80% of the results come from 20% of the causes. It is therefore not surprising to find that in most companies 80% of the sales come from just 20% of the products which implies a long tail of low revenue products. How do they address this issue?

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Tags: Supply Chain Segmentation


Posted by Desmond Torkornoo on Mon, Apr 20, 2015 @ 08:00 AM

By Haresh Gopalan and Desmond Torkornoo. Suppose you were going on an expedition into the Amazon Rainforest and you were allowed to carry, among other essentials, only one type of knife. What type of knife would you carry knowing that you have to eat and avoid being eaten in the rainforest? 

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Tags: Analytics

Tesla’s Supercharger Network Expansion Strategy

Posted by Dinesh Natarajan on Mon, Apr 13, 2015 @ 10:57 AM

By Dinesh Natarajan and Sumeet Mahajan. What factors did you consider while choosing your car? Cost, mileage, speed or resale value? Did you consider how far the nearest gas station was before you bought the car? The most common answer would be an emphatic no, because gas stations, like convenience stores, are almost always around the corner.

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Tags: Network Design

Supply Chain Challenges in Westeros

Posted by Jeff Keene on Thu, Apr 09, 2015 @ 12:00 PM

 By Jeff Keene and Haresh Gopalan. With another season of Game of Thrones set to premier this week, it seemed interesting for us as supply chain specialists to think about what kinds of supply chain challenges the Iron Throne is facing at this point in the story and how it is similar to the real world. In our work, we see so many systemic problems that are created by the complexity of supply chain operations, and when it comes to the problems in Westeros, we see many similarities. 

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Tags: Supply Chain Strategy

Why do you need more than one end to end optimization tool?

Posted by Edith Simchi-Levi on Mon, Apr 06, 2015 @ 12:00 PM

We often talk about end to end optimization – the idea that decisions should be made across the supplychain and not in silos. This approach is proven to improve results and ability to leverage resources effectively across the supply chain. In fact, the whole idea of supply chain management is to oversee the entire process starting from raw materials and ending in customer delivery.

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Tags: Analytics, End-to-End Optimization, Supply Chain Risk Management

Kraft-Heinz merger and end to end optimization

Posted by Dinesh Natarajan on Mon, Mar 30, 2015 @ 12:00 PM

The $49 billion merger between Kraft Foods Group Inc. and H.J. Heinz co. on March 25th 2015 has created the fifth largest food company with combined revenue of $28 billion. The deal was engineered by Warren Buffet’s Berkshire Hathaway and 3G Capital Partners LP. As the WSJ noted the not-so-secret ingredient in 3G Capital Partners LP’s recipe for reshaping the U.S. food industry is a financial tool called zero-based budgeting.

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Tags: End-to-End Optimization, Supply Chain Strategy, Efficient Frontier

There is no Supply Chain Zen

Posted by Sumeet Mahajan on Thu, Mar 26, 2015 @ 08:00 AM

The things we fear most in organizations -- fluctuations, disturbances, imbalances”, part of a famous quote, which I promise to complete later, summarizes the very things that keep most supply chain and operations executives awake at night. The difficulty lies in better predicting these imbalances, and effectively planning to prepare for them. The challenge of optimal deployment of capacity and inventory – what, where, when and how much – will determine how well you deliver value to your shareholders.

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Tags: Supply Chain Segmentation, Push Pull Strategy, Supply Chain Flexibility, supply chain zen

Think differently about supply chain risk

Posted by Edith Simchi-Levi on Mon, Mar 23, 2015 @ 08:00 AM

A recent survey notes that Supply chain disruption tops manufacturer's concerns. A third (35 percent) of businesses in the manufacturing industry are extremely concerned about potential supply chain disruption according to BSI and the Business Continuity Institute (BCI). 

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Tags: Supply Chain Risk Management, Supply Chain Design, Inventory Optimization