Happy Birthday Apple App Store

Hard to believe that the Apple App Store is 5 years old this week especially when you consider that it started with a mere 500 app when launched.  The numbers are staggering:

• 50 billion apps have been downloaded
• that's 800 apps/second
• more than 2 billion apps a month

and there is no end in sight. It's exciting to see how many apps are making it into the supply chain software world these days.  I did a simple google search for "supply chain apps" and an amazing 31,500,000 results were found. So I guess supply chain apps are here to stay for the foreseeable future.

If you have a particularly good supply chain app, let us know.  Just post a comment to this blog and share it with the rest of us.

Happy hunting out there in app world!

 

System Fit & The NFL Draft

It's time for the NFL Draft and just about every sportscaster in the world has a multitude of opinions and advice.  I'm sure the Fantasy Football fans are on the edge of their seats just waiting to see who they can draft this upcoming season as well.

Todd McShay, well known football analyst, had an intersting observation last night.  He talked about "system fit" and no matter how deeply NFL teams assess talent, skills, physical and mental preparedness, one of the most important elements of a successufl draft pick is "system fit" according to Todd.  Draftees have to buy in and fit into a particular team's "system" or they and the team risk ending up with a draft "bust".

It struck me that the supply chain is really no different, especially when it comes to people.  I've talked about people, process and technology all having to mesh well together in order to deliver optimal results, and Todd's comments really helped drive that home.  How often do companies really look at overall "system fit" when they are looking to implement software, install some material handling systems or hire employees?  It goes well beyond the internal perspective as well.  How will planned systems, software, people "fit" your overall "system".  Is everyone bought in, do they share the vision, is there cultural alignment among the stakeholders.  And what about external players in your "system" - I'm talking about vendors, customers and trading partners.  Are those external members really fitting into your "system"?

So like the NFL teams do, I encourage you to weigh all options when it comes to implementing systems, processes, people and make sure you carefully consider "system fit" in your decision matrix.  "System fit" could cause some options to move up or down on your draft board.  Good luck with your draft this season!

Big Business in the Cloud - Part 2

In my last blog I talked about how big the stakes are in the cloud computing marketplace.  I wanted to share this story with DC Velocity readers regarding a potential $600 million cloud computing contract - yes, that's right, $600 million contract.  As reported by Frank Konkel on http://www.businessinsider.com/cia-600-million-deal-for-amazons-cloud-2013-3#ixzz2OHMGbE00, the CIA is on the verge of signing a cloud computing contract with Amazon, worth up to $600 million over 10 years.

As the story goes on to say, this would have a huge competitive impact on other cloud providers such as VMware and Citrix.  The contract is reportedly for a private cloud vs. a public cloud. I'm sure we'll be seeing more in the near future as companies explore cloud options including the choice between private and public cloud offerings. No doubt, the cloud is here to stay...stay tuned.

Think Cloud Computing is not big business...think again

A very interesting story about the battle for cloud computing market dominance came out today. The battle is on, and Google, Microsoft and Amazon are really slugging it out.  Pretty astonishing numbers at play as well.  Research firm IDC was guoted in the story saying that estimates for ' "public cloud" services are among the fastest-growing areas of information technology, with a total market size of $40 billion last year.'  That's right 40, as in BILLION, 40 BILLION!

The battle is a nasty one involving pricing wars, poaching employees (leading to lawsuits) and more.  On the pricing front, Amazon has cut prices 25 times on it's AWS (Amazon Web Services)!  The story goes on to say that these companies "companies immediately began battling in pricing. Within roughly one week last fall, Google announced it was dropping prices on its computing-storage by about 20%, to a starting price of 9.5 cents a month for each gigabyte. Amazon quickly matched Google's lowered starting price, prompting Google to announce a further price cut to a starting monthly price of 8.5 cents per gigabyte. Microsoft followed a few days later by announcing it was slashing Azure costs to similar levels."

The battle for developers and customers in the cloud is on! The economics are certainly worth looking into.  The story goes on to present findings by McKinsey & Co. who "last fall calculated a small computer server would cost a company an average of $31.55 a month to buy and maintain, while a comparable amount of cloud service from AWS or others costs an average of $16.06 a month."

What is your experience with cloud computing and how do you see this battle helping your organization?  We'd love to hear from those of you that have ventured into the cloud.

Right Tool for the Right Job - ProMat 2013

Most of us have now returned home from ProMat 2013 with all sorts of new ideas for improving processes in your operations.  There were a lot of exciting new products at ProMat including some innovative high density storage solutions from from Dematic, as well as a new solution from Opex that seemed to garner a lot of attention.  Mobile and tablet-based software applications were quite prevalent as well and clearly seem to be a reality in the supply chain technology world for the foreseeable future.

All of these new tools and technology remind me of the old saying, use the right tool for the right job.  While many of these tools seem to offer great advantages to us, it's always important to make sure we properly assess the overall fit and application of the tool for the job.  I recently received a call from a friend of mine that needed some help hanging some new interior doors in his home as part of a remodeling project.  He purchased the doors and under the advice of the local 'big box' DIY store associate, tried to hand chisel the doors to fit the butt hinges. After nearly ruining one door, he called asking for some advice.  When he showed me the results of his chiseling "skills", I suggested that he use a router.  He only had a few doors to hang and did not want to invest in a router, so I suggested that he use my Dremel tool and buy an affordable, but effective router attachment. After a quick trip to the DYI, "voila"...doors with butt hinges that look like a pro did it.  So as you assess tools and technologies seen at ProMat, don't be afraid to reach out to industry consultants and friends to help make sure you are putting the right tool to work for the right job in your operations. There are a lot of great resources out there that can save you a lot of time and money when looking at new tools.

How important is supply chain? Just ask Apple and Citi

Supply chain topics continue to bubble to the top of the business world and here's even more proof:

The following is a quote from a story posted earlier today by John Melloy of CNBC on Yahoo - "How many analysts does it take to make a "buy" call on Apple (AAPL)? The answer, at least according to Citigroup (NYSE:C), is three. Three analysts will tag team the world's largest company with one covering the software side, another tackling the hardware side and yet another person evaluating its semiconductor supply chain, according to a note from the firm Monday."

The story continues to talk about the need to break Apple down because of the sheer magnitude of their operations.  The Citi spokesperson went on to say "This reflects Apple's broad impact to the technology supply chain and allows us to uniquely follow the company from several industry angles." Others view this announcement as a Citi marketing ploy.

Regardless of whether it is a marketing ploy or a necessity, it will be interesting to watch the analysis unfold across Apple's technology supply chain and the impact it may or may not have on suppliers, retailers and end users. A few years ago very few stories in the news would even address supply chain issues, but this is yet another example of how critical supply chain issues are to companies, and not just Apple.  We are certainly in the midst of an extremely exciting industry and the global awareness of supply chain continues to increase.  It appears as though more than just UPS "loves logistics".

Thank You!

What a wonderful time of year and I wish all of you a very Happy Thanksgiving!  Enjoy the time with your family and friends.  I would like to thank all those that serve and protect us, especially the men and women in the military, our police, fire and emergency workers.  Thank you all!

Play Ball! Spring Training in Full Swing

How is your team looking this year?

Hard to believe, but it's that time again for baseball fans - Spring Training is in full swing and baseball fans are flocking to Arizona and Florida to enjoy some sunshine and watch their favorite teams get ready for the regular season.  And so the cycle continues...

It seems as though the World Series was just a few weeks ago. Winter came and went and here we are again getting ready for the start of the MLB season.  Well, a lot has happened since the end of the 2011 season and the start of the 2012 season. Manager's were fired and hired; players were traded; GMs moved around and coaching staffs were rearranged accordingly. 

So what did you experience between your supply chain 'season' in 2011 and how have you reacted to improve for the 2012 supply chain season?  As we often talk about in this blog, so much of supply chain success hinges on processes, technology and, of course, people.  Like the owner or GM of a major league baseball team, did you take the time to really evaluate your team as you headed into 2012?  Were good players rewarded?  What changes did you make to your training regimen to help make your team a stronger and better prepared team for 2012?  Do your continuous improvement programs really factor in the people side of your supply chain operations?

Theo Epstein, the new GM for the Chicago Cubs vowed to build "a foundation of sustained success," which he said starts with a commitment to player development.  It sounds very simple, but as we all know, it's just not that easy.  Committment to sustained success takes hard work at all levels of an organization from senior management all the way to the "rookies" (new hires).  The processes and programs, including crystal clear communication, must be in place so that everyone is in alignment with the goals of the organization and so everyone is accountable for their part of the formula for success.

Accountability has been a very popular word in many of my conversations with customers lately.  I have had discussions with senior managers that claim significant supply chain-related programs have faltered due to lack of accountability - despite the fact that they believe the technology is fully in place to support the program. I had a recent discussion with another group of senior managers that decided 2012 was going to be the year of superior performance and a key underpinning of the program will be...you guessed it...ACCOUNTABILITY.  Their belief is that less than 50% of us are actually held accountable for the things we say we will do. This particular senior management team believes that by improving their focus on accountability, they will realize greater results and returns from their efforts as an organization rather than accept mediocre accountability across the organization.

Let us know how you have helped your team, your coaches, your players and even your customers (fans) become more aligned and more accountable so that your 2012 Supply Chain season is even better than your 2011 season.  What programs have you put in place to ensure alignment and accountability so that your company can enjoy a "foundation of sustained success"?  I'm sure the DC Velocity readers would like to hear about any ideas you would willing to share.  Tell us about your player development programs, what is working and what did not work for you and your team?

Play ball!

Do you buy software or transform your operations?

It's been a very interesting 2011 and I've been fortunate to engage in some really good conversations with clients and prospects about technology and supply chain operations.  These conversations covered a range of topics that you would typically expect:  facility layout, material handling equipment/systems, software, etc.  However, the most thought provoking discussions occurred with senior management teams that really centered on how they wanted to use technology to 'transform' their operations in support of the business.  I did a quick look-up of the word transform and found the following definitions:

1. transitive verb - change something dramatically: to change somebody or something completely, especially improving their appearance or usefulness

2. intransitive verb - undergo total change: to change completely for the better

 

In particular many of these conversations focused on software and how these supply chain leaders wanted to acquire and implement software to really help "transform" the operation supported by improved processes, training for associates and continuous improvement programs that will help reduce supply chain costs as a percent of sales.  These conversations very clearly did NOT focus on "the cloud" or mobile computing or other elements of technology - the focus was how to leverage the technology to drive costs out of the equation. Sure we talked about the cloud, etc. but the real discussions centered on how their teams would actually use the technology to truly improve their operations - i.e. reduce process cycle time, improve productivity & utilization, reduce errors, waste and more. 

 

Many, many of the customers I spoke with were experiencing signficant growth in their business and are forced to continue 'to do more with less' in order to minimize costs.  Scott Trainor from Dell was recently quoted in an article where he discussed how Dell is transforming it's supply chain. Trainor spoke about how Dell is segmenting its supply chain:

• for optimization and for executing lean approaches to reduce waste
• to reduce operational complexity and increase Dell's cost leadership

Powerfull stuff!  This mirrors many of the discussions I was involved in with customers this year.  As 2011 winds down and we all catch our breath for a while, it looks like 2012 could well be the year of even more transformation for supply chain operations as it relates to technology.  We see signs of the economy recovering in many sectors and the resulting growth and impact on supply chain operations is clearly being felt.  Many of these customers have already implemented tremendously successful transformational solutions that leverage technology, but are now looking for the next 'big win' in 2012.

So here's to a roller-coaster 2011 and cheers and best wishes to all of you in 2012.  Continued success to you and your teams as you look to transform your operations in support of your 2012 business goals!

If you experienced a particularly significant transformation in your supply chain operations this year, let us know by leaving a few comments here. I'm sure the DC Velocity readers would love to hear about your success and lessons learned.

HAPPY HOLIDAYS!

 

 

 

 

 

 

 

 

 

Blogging from 30,000 feet & Thanksgiving

Happy Thanksgiving to all DCVelocity readers!  I'm thankful for the technology that allows WiFi to be available to me on my flight home for the long Thanksgiving weekend.  Blogging from 30,000 feet is not exactly something I thought I would be doing when I started writing this blog for DCVelocity.

Speaking of technology and Thanksgiving, I think this is a great time to reach out and thank your business partners for helping you and your business. So let me be the first to say "Thank You!" to all of my customers, prospects, business partners and associates. 2011 has been a blur. So as we pause for a few days of giving thanks before the mad rush toward the end of the year, I would encourage supply chain technology providers to reach out and thank their customers and for customers to offer some thanks to their technology vendors as well.  We're embracing all kinds of technology as we look for ways to optimize our supply chain operations but it's the people on our project teams working together that really enable us to enjoy the benefits to our businesses that technology brings.

I would also like to say a special "Thank You!" to the team at DCVelocity that does such a great job of bringing supply chain practioners, suppliers, consultants, educators, students and more together in our pursuit of supply chain excellence.

Take a moment, send someone you work with a nice note of thanks.  Growing up, we've all heard that saying thank you is simple, it's fast, it's free, it's not done often enough and it's greatly appreciated. A quick call, a short email is all it takes. Thank you!