“We start our planning with the forecast.” This is what I’ve heard in the last three (3) organizations I’ve engaged with. These three (3) organizations often started their Sales & Operations Planning (S&OP) meetings with a comparison of forecast versus actual sales data. In most cases, the actual sales data didn’t come out close toContinue reading “The Real Value of Demand Forecasting”
Tag Archives: value
Value Chains, Supply Chains, & Our Wrong Mindsets
Michael Porter introduced the Value Chain model in his seminal book, Competitive Advantage,1 in 1985. The value chain broke down activities of the firm (the enterprise) and how they collectively contribute to the value of products & services. How well activities perform and interrelate would manifest in the margins, which are the difference between valueContinue reading “Value Chains, Supply Chains, & Our Wrong Mindsets”
What Our Customers Expect
What do our customers expect from us? The Total Quality movement from the 1980’s preached that the people we work with are either “suppliers” or “customers.” We played the role of either one. The idea of TQM was to do the right thing right the first time when we, as “suppliers,” serve our “customers.” WeContinue reading “What Our Customers Expect”
Quality is Free; Value is Not
Is quality free? Philip Crosby in his book, Quality is Free, believes it is when we adopt a Zero Defects policy. An enterprise can achieve quality in its products and services without having to pay more. Quality may be free but value is not. At least to consumers searching for the best products and services. Continue reading “Quality is Free; Value is Not”
Products & Services: What’s the Difference and How Do We Maximise Their Value?
What’s the difference between a product and a service? A product is an item of value that benefits a user. A service is an activity that leads to the benefits for those availing of it. Products are tangible, i.e., as in solid, liquid, gas, or energy, or as virtual (e.g. software, streaming videos, speeches,Continue reading “Products & Services: What’s the Difference and How Do We Maximise Their Value?”
How Important Productivity is to the Value Chain
The fast-food restaurant drive-thru I go to every Sunday morning hasn’t been serving the liquid creamers that accompany the coffee I order with my meals. At first, they said the creamers were out of stock. A week later, they said they can only serve one (1) creamer instead of the two (2) that should comeContinue reading “How Important Productivity is to the Value Chain”
Ellery's Essays 