According to the proverb “calamity is the touchstone of a brave mind,” in these tough times some supply chain management (SCM) vendors have been trying to take stock (no pun intended) of their offerings and how best to offer these to customers, to mutual benefit. In fact, I have recently seen some intriguing (if not bizarre) press releases (PRs), which read like some type of whitepapers or presentation transcripts.

They were certainly different (and therefore refreshing) from the customary dry and fluffy PRs that most communications folks use (especially during ordinary times). One such “educational” PR came this past summer from the spend management vendor Emptoris, and was analyzed in my blog post on five procurement commandments in a down economy.

A more recent similar PR came from JDA Software Group Inc., a provider of integrated merchandising and supply chain and revenue management planning, execution, and optimization solutions for the consumer-driven supply chain and services industries.  The PR came on the heels of the worldwide economy continuing to struggle and going into a tailspin, whereby new orders in the manufacturing sector are falling at record rates.

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For residents and tourists of Paris (France), using RER or Paris Metro is certainly a way to save on commuting costs (and parking frustrations) compared to owning and renting cars. This blog post is not about transportation, but rather about an inventory management method with a similar name.

Namely, this blog post is about RIR or Rapid Inventory Rightsizing, which is an innovative new program to help embattled companies relatively quickly free up cash and reduce the impact of the current global credit crunch on their supply chains. This pretty straightforward concept and message of improving a free cash flow (FCF) came recently from ToolsGroup, a global provider of demand-driven inventory optimization (IO) solutions. Regular readers of this blog site might remember my recent series on shortening long tails of supply chains, where ToolsGroup was also the protagonist. Read the rest of this entry »

Part II of this blog series explained ToolsGroup’s value proposition for achieving service level excellence in distribution environments. The point of the Service Optimizer 99+ (SO99+) suite’s name is that a “99+ percentage” represents the gold standard in customer service levels, and it takes a product purposely built to achieve service level excellence and to support such a high standard.

ToolsGroup’s latest version of software continues to build on the functionality needed to reach this goal.

Back to Mitigating Long Tails

Having put the necessary pieces in place, over the past year ToolsGroup has turned a particularly keen eye toward how to succeed in environments with a “long tail” demand. The long tail theory originally held that in an environment such as the Internet-based retailers (so called “e-tailers”), which is less affected by physical manufacturing, product and distribution constraints than so-called “brick-and-mortar” retailers, demand will spread across a huge array of items (a.k.a., stock-keeping units or SKUs). Read the rest of this entry »