MSCG’s expertise in SAP EWM, SAP YL, SAP TM, SAP APO, and SAP IBP is the best in its class. MSCG currently has over 30 Supply Chain Execution customers that are now successfully operating or in the process of implementing SAP EWM, SAP YL, and TM. The company has successfully deployed SAP APO solutions for supply chain planning and management. Since the release of SAP IBP, MSCG has worked on numerous IBP implementations and proof of concept projects; This includes diagnostics, process consulting, implementation, post-go-live Hyper care support, and Application Maintenance and Support (AMS) services. Other capabilities include process and solution implementation, integration with SAP and non-SAP ERP systems, SAP BW, and other legacy systems.

MSCG is built from the ground up with business and industry professionals whose sole focus is on delivering and operationalizing SAP Supply Chain modules. These professionals and their skill sets enable MSCG to build out and offer our customers industry-specific solutions and rapid deployment options, that we refer to as MSCG Jumpstart Programs and Solutions, for both SAP EWM and IBP. These Jumpstarts fill gray space in warehousing, distribution, manufacturing, and planning operations for SAP EWM and IBP to provide our customers with differentiated and best in class warehouse and planning processes.

These supply chain execution offerings include objects that make it easier to integrate into hardware dimensioning devices (i.e. Cubiscan), improvements to EWM cartonization (skip packing and pick directly to a shipping box), simplified task interleaving, improved real-time analytics and reports, as well as many other features and functionality. While, our supply chain planning offerings include Application (fast time to value IBP S&OP Demand, Response & Supply Control Tower and Inventory) and Integration (pre-built for integrating SAP IBP to non-SAP ERP) jumpstarts. MSCG has also invested in utilizing their expertise to provide industry specific solutions across SAP EWM, YL, & IBP for areas like CPG, Food & Beverage, Wholesale Distribution, Mill Products, Chemicals, and Pharmaceuticals.

One of the key differentiators of MSCG is our relationships and partnerships within the SAP and supply chain industry. MSCG is a trusted partner for SAP and is involved in solution acceptance testing for its key supply chain execution modules, like EWM and YL. We also have relationships and partnerships throughout the supply chain industry to ensure our customers make informed and correct decisions for their business. We continually lead our customers in areas of automation, robotics, and analytics by leveraging these relationships and partnerships to provide the latest technology and future roadmaps for warehousing, distribution, fulfillment, and manufacturing.

Whether it is SAP EWM, SAP YL, SAP TM, SAP APO, and SAP IBP, My Supply Chain Group uses thought leadership, industry relationships, and real-world experience to implement and support these areas successfully. Ultimately, it helps provide our customers with a quicker return on their investment and faster time to value their investment in the future.

Read Article at CIO review

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1. Enhanced System Performance: Regular application maintenance support play a critical role in ensuring optimal system performance with SAP EWM. As the warehouse management system is utilized intensively, occasional software glitches, data inconsistencies, or performance bottlenecks may occur. By conducting routine checks, monitoring system performance, and addressing any issues promptly, companies can mitigate any potential disruptions and maintain the desired level of efficiency.
2. Proactive Issue Identification: With proactive application maintenance support, companies can identify and resolve potential issues before they impact their warehouse management operations. Regular system analysis and monitoring enable businesses to anticipate system glitches, human errors, or integration challenges, reducing the risk of prolonged downtime or loss of critical business data. This proactive approach enables warehouse managers to maintain uninterrupted shipment processes, improving customer satisfaction and overall business productivity.
3. System Updates and Upgrades: SAP constantly releases updates and upgrades to address emerging challenges and add new functionalities to SAP EWM. By prioritizing application maintenance support Continuous Improvements, companies can stay up-to-date with the latest software versions, ensuring compatibility with other software systems and taking advantage of new features to enhance warehouse operations. Regular system updates also address any potential security vulnerabilities, minimizing the risk of data breaches or unauthorized access to company information.
4. Customization and Configuration: Different industries have unique warehouse management requirements, and SAP EWM offers a high level of customization and configuration options. However, it is crucial to have ongoing Continuous Improvement initiatives to ensure the continued alignment of the SAP EWM system with evolving business needs. Regular audits of system configurations, customizations, and integrations guarantee that the solution remains adaptable, providing an optimized warehouse management experience specific to the company’s requirements.
5. Vendor Support and Expertise: Application maintenance and support provide access to vendor assistance and expertise, regardless of the implementation stage. This collaboration ensures that any technical issues, bug fixes, or operational challenges are addressed promptly by SAP’s support team. Timely communication with the vendor enables valuable insights, best practices, and training opportunities that enhance the usage of SAP EWM, empowering the company’s warehouse management team to optimize their processes effectively.
6. End-user Adoption and Training: Ensuring end-user adoption of SAP EWM is vital to the success of any warehouse management operations. Regular application support enables ongoing training and education to keep the warehouse management team up-to-date with SAP EWM’s latest features and functionalities. By empowering the team with comprehensive knowledge and training, companies can maximize the benefits of SAP EWM and drive efficiency and productivity within their warehouse management operations.

Conclusion: Application maintenance services are essential components for warehouse management operations utilizing SAP Extended Warehouse Management. By prioritizing regular system check-ups, proactive issue identification, system updates, and vendor support, companies can uphold the seamless performance of their warehouse management system. Furthermore, ongoing customization, training, and end-user support contribute to optimized warehouse operations, improved productivity, and enhanced customer satisfaction. Embracing the importance of application maintenance services ensures a competitive edge in today’s dynamic business environment.

My Supply Chain Group is an expert in these areas and is the best option to consider for your Application Maintenance Services and Continuous Improvements initiatives. Our team has extensive experience in providing top-notch support, customization, training, and end-user adoption for SAP EWM. We understand the importance of application maintenance and support and work tirelessly to ensure that our clients’ warehouse management systems operate seamlessly, driving productivity, efficiency, and customer satisfaction. Contact us today to learn how we can help your company optimize its warehouse management operations with SAP EWM.

Blog Post by:

Tanika Antonio

SAP AMS Practice Lead & Head of Internal Training

tantonio@mysupplychaingroup.com

The post The Vitality of Application Maintenance Support and Continuous Improvements in Warehouse Operations using SAP EWM appeared first on My Supply Chain Group.

After years of struggling to meet the increased demand for warehousing and distribution center employment, warehouse jobs have recently plummeted to the lowest level in almost a year. In April, the Wall Street Journal reported that U.S. employers slashed 11,800 warehouse and storage jobs from February to March, according to the seasonally adjusted Labor Department preliminary jobs report. Warehousing companies have shed nearly 50,000 jobs since June, when overstocked retailers began trimming inventories due to fluctuating consumer demand. Now, more than ever, tracking of labor utilization with a systematic labor management tool is crucial to ensure operational efficiencies.

How does your facility ensure it maintains proper staffing and equips itself to navigate the volatility in this current environment? Are you actively monitoring and measuring labor utilization to guarantee that you are adequately prepared to handle customer demand? If your answer is “I don’t know” or “No,” then you need to explore the Labor Management capabilities offered within SAP Extended Warehouse Management on S/4HANA Private Cloud Edition.

Labor management in SAP Extended Warehouse Management (EWM) revolves around efficiently coordinating and optimizing labor resources within a warehouse or distribution center. SAP EWM boasts a comprehensive suite of tools and functionalities for managing labor processes, including labor demand forecasting, task assignment, real-time performance monitoring, and labor cost analysis. It empowers organizations to accurately estimate labor requirements for various warehouse operations, allocate tasks based on skills and availability, track workforce productivity in real time, and analyze labor-related costs to enhance decision-making. By harnessing SAP EWM for labor management, businesses can streamline warehouse operations, boost workforce productivity, and ultimately enhance operational efficiency and cost-effectiveness.

They key components and functionality that SAP EWM delivers for labor management include:

Workforce Planning

Labor management in SAP EWM enables you to plan and allocate the right amount of labor resources to various tasks and areas within your warehouse. This ensures that you have the appropriate number of workers available to meet your operational demands. The labor management capabilities in SAP EWM, combined with a labor analytics dashboard, offer powerful tools for workforce planning and capacity management.

MSCG Fiori Analytics

Task Assignment

Allocate tasks to individual workers or groups based on their skills, availability, and location. Utilize this functionality in SAP EWM with labor management to ensure that the right people engage in the right tasks at the perfect time.

Shift Management

Shift management in SAP Extended Warehouse Management (EWM) is a critical component that allows organizations to define and manage different shifts within their warehouse operations. This functionality assists in scheduling and tracking the work hours of warehouse employees, ensuring efficient task completion while adhering to labor laws and regulations.

Labor Standards

You can establish labor standards for different warehouse activities, such as picking, packing, and shipping. These standards serve as benchmarks for measuring worker productivity and efficiency. You can track task completion speed, identify bottlenecks, and resolve productivity-affecting issues. To perform this calculation, you can indeed use the Business Rule Framework Plus (BRFplus) tool in SAP to define and manage engineered labor standards. Engineered labor standards represent predefined labor time or performance metrics linked to specific tasks or processes within a warehouse or manufacturing environment. These standards serve purposes like performance measurement, labor cost calculation, resource planning, and more.

Labor Management Cost Calculation

By tracking labor hours and performance, you can better manage labor costs and allocate resources more efficiently, ultimately reducing operational expenses.

Indirect Labor Task

Indirect labor tasks refer to tasks that are not directly involved in the physical movement of goods within the warehouse but are essential for the smooth operation of the warehouse. These tasks are often associated with administrative, supervisory, or support functions. Managing indirect labor effectively is crucial for maintaining overall warehouse efficiency and productivity.

Time and Attendance

Time and attendance management in SAP Extended Warehouse Management (EWM) by labor management is crucial for accurately tracking the hours worked by warehouse employees, ensuring compliance with labor regulations, and optimizing workforce productivity.

Operability within Warehouse Processes

You can integrate this functionality throughout business process, such as inventory management, order processing, and transportation management, to establish a seamless and efficient warehouse operation.

Continuous Improvement

With the data and insights gathered through labor management, you can continuously improve your warehouse operations by making informed decisions and implementing process optimizations.

Conclusion

By leveraging labor management in SAP EWM on S/4HANA Private Cloud Edition, businesses will:

• Streamline warehouse operations
• Enhance workforce productivity
• Improve operational efficiency and cost-effectiveness.

Contact My Supply Chain Group for more information – info@mysupplychaingroup.com

Written By:

Wesley Marion Sr. – Sr. Director, Business Development & Innovations

Geeta Fulwani – Sr. EWM Functional

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Interested in what’s new with SAP EWM on S/4HANA 2020? My Supply Chain Group (MSCG) has you covered!

Every year MSCG participates in solution acceptance testing for SAP’s Extended Warehouse Management ( EWM ) and Yard Logistics ( YL ) software. Added hurdles from the Covid-19 Pandemic made SAP’s 2020 testing process different than years past but MSCG continued in 2020 testing as one of SAP’s trusted partners.

For the release of EWM on S/4HANA 2020, SAP continued its focus on core EWM improvements topics:

• Beautification
• Integration
• Simplification

In this blog, MSCG highlights a few of the many improvements around these topics the MSCG team tested during EWM 2020 solution acceptance testing for both Embedded EWM and Decentral EWM. MSCG also shares insight into how these improvements will impact a company’s distribution, fulfillment, and manufacturing processes.

The first topic is for Integration with manufacturing processes, specifically in the automotive industry, within SAP Extended Warehouse Management.

The newest release of SAP S/4 HANA 2020 comes chock full of new improvements.  Even in these unprecedented times, SAP has continued to focus on enhancing usability and user experience allowing companies to do more with less.

Beautification for EWM on S/4HANA 2020

New and Improved Transactions for SAP EWM on S/4HANA 2020

SAP’s first improvement area is Beautification of SAP EWM on S/4HANA 2020. Among the topics for Beautification are improvements targeted at the user experience with enhanced features, simplified UIs and flexibility. Here are some of the highlights:

Attachment Services For EWM Objects: Inbound & Outbound Delivery, Transportation Unit

A regular practice on the receiving dock of many facilities is taking pictures of unbalanced loads or damaged pallets as they arrive at the DC for the purposes of refusals or vendor compliance reporting.  Often the pictures are stored in a local desktop folder or perhaps on a shared drive with no ability to link them directly to the actual WMS document.

Add attachments in SAP Fiori Apps for EWM on S/4HANA 2020

Fiori App: Change Inbound Deliveries

Now in S/4 HANA 2020 you have the ability to attach files directly to the documents in the system for easy correlation and traceability.  Enhancements have been added to the Warehouse Monitor and Fiori Apps for Inbound and Outbound Deliveries to manage and display attachments. This functionality also applies to the Fiori App for Change Outbound Deliveries.  

Now that you have stored your images directly to a delivery, you can easily search for and display that image in the SAP Warehouse Management Monitor. This immediately reduces user time to pull the necessary information directly from EWM in a customer claims situation or audit process:

Warehouse Management Monitor

Attachments for Deliveries in Warehouse Management Monitor for SAP EWM on S/4HANA 2020

Beyond retrieving specific attachments for a delivery, the Warehouse Monitor also now has an additional column to show the number of attachments for each delivery document and provides a detailed view of the files including the date and time of each upload and the person responsible.

Modernized RFUIs in Portrait Mode: RF Picking Screens

RF Portrait Mode for EWM on S/4HANA 2020

A common area of development for SAP EWM implementations is enhancing the RFUI screens to increase usability for the end user. Teams spend time and effort reformatting and resizing standard RF screens to make them less busy, easier to use and to fit onto modern RF devices.

In S/4 HANA 2020, SAP has now updated all 329 standard RF screens with a new modernized portrait mode template.  The function keys are presented in a larger and highlighted format to work better with modern touch screen devices and the field spacing is far more comfortable on the eyes. Key benefits of this new RF layout include reduction in the total cost of implementation, faster training, and greater user acceptance.

Integration for EWM on S/4HANA 2020

Enhanced Production Processes for SAP EWM on S/4HANA 2020

The second improvement area for SAP is Integration for EWM on S/4HANA 2020.

Production Process

SAP made a number of improvements in EWM focused on enhanced integration in the production process as part of the SAP S/4HANA 2020 release. Aimed at optimizing both the system and physical processes in production, these improvements include:

• Synchronous Goods Movements From Manufacturing to EWM (Embedded EWM)

• Enhanced JIT Supply to Production (Embedded EWM)

• Stock Transfer Kanban Improvements (Embedded EWM)

• Enhancements to Quality Management

• Improved Serial number management

There are multiple smaller improvements inside of each of these topics. With all of this new functionality, it is important to understand what this means for your unique manufacturing operations by analyzing each enhancement with relation to your current SAP warehouse processes.

Joerg Michaelis, Chief Product Owner for SAP Extended Warehouse Management, goes into more details on a few of these topics in his post here. Even with these enhanced integration topics focused on the automotive industry, they also provide more streamlined business processes and greater system performance across all manufacturing industries.

Simplification for EWM on S/4HANA 2020

Process Simplification for SAP EWM on S/4HANA 2020

The final of SAP’s area for improvement covered in this blog is Simplification for EWM on S/4HANA 2020.

Missing Parts Handling / Preallocated Stock: Preallocate stock to cover urgent demands

Many operations deal with backorders and usually need a more flexible way of ensuring opportunistic cross-docking can be achieved. In S/4 HANA 2020 a new preallocated stock functionality has been added along with UI enhancements in the warehouse monitor to manage preallocated stock.

This functionality is beneficial for customer orders or production scenarios. In addition, this functionality integrates with Handling Unit moves and deconsolidation through new configuration options.

Example missing parts for production:

Overview of preallocated stock process in S/4HANA 2020

Upon completion of unloading, the system identifies the product and quantity production based on the preallocated stock entries. The system then redirected the preallocated quantity from the putaway area to the production supply area. Finally, the system updates the demanded preallocated stock quantities to fulfilled.

SAP EWM’s new configuration options for Preallocated Stock (PAS) configuration include Warehouse Process Type (WPT) settings. The WPT settings combine with Handling Unit (HU) management or Process Oriented Storage Control (POSC) settings to leverage standard rules or activate customized logic written in SAP Business Add-Ins (BAdI). The new configuration options for PAS provide flexibility to handle many situations.

Below are examples of how a business can leverage the PAS process with SAP EWM on S.4HANA 2020.

Example various process options:

Process 1 & 2 – A quantity of 10 is broken up into two putaway warehouse task operations right away where 8 are directed to the normal putaway storage rack and 2 are directed to another designated zone for preallocated stock.

Process 3 – The quantity of 10 is directed to a staging area or work center. Then, a quantity of 2 is pulled for preallocated stock and the quantity of 8 remains there.

Process 4 – The quantity of 10 is directed to a staging area or work center. Then, a quantity of 2 is pulled for preallocated stock. Finally, the remaining quantity of 8 is put away as normal.

In addition to the configuration, SAP included nodes and sub nodes for Preallocated Stock in Warehouse Management Monitor:

Preallocated Stock functionality in the EWM Warehouse Management Monitor for S/4HANA

Fiori EWM Warehouse KPIs for S/4HANA 2020

Enhancements of Warehouse KPIs Fiori App: Smart business drill-down page for KPI navigation

The Warehouse KPIs App is a great dashboard to monitor the progress of activities in your warehouse or distribution center. In this Fiori App, key metrics display on tiles in a customizable view with variations of graphical formats. Within S/4HANA 2020 the Warehouse KPIs app is delivered with additional drill down capabilities. These drill down capabilities provide users the capability to view pertinent warehouse data directly from the app.

Contact Us 

Hopefully this blog provided additional insight into the new improvements for Warehousing in SAP EWM on S/4HANA 2020.  Dozens of additional improvements are available with EWM S/4HANA 2020, including some through OSS notes to lower releases. Whether it’s time to upgrade your existing EWM system, you’re ready to start a new EWM implementation, or simply want to learn more about the new features of EWM on S/4 HANA 2020, contact My Supply Chain Group to get the answers you need.

Written by: Damian Khan and Wesley Marion Sr.

The post What’s new with Warehousing for SAP EWM on S/4HANA 2020 appeared first on My Supply Chain Group.

Watch on-demand to learn more about how utilizing SAP Yard Logistics can help address the business challenges your company is facing within its warehouse yard.

Neil Patel, Managing Partner at MSCG kicks things off with an introduction on MSCG & our relationship with SAP. After a review of SAP’s Yard Logistics Solution by Wesley Marion Sr., hear from Christian Reinhardt, Product Owner of SAP Yard Logistics to discover insight on SAP’s road map for Yard Logistics (YL).

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Is your company or customer implementing SAP Extended Warehouse Management (EWM) embedded in S/4 HANA? If so, My Supply Chain Group can help you see a quicker return on your investment by utilizing our Jumpstart Warehouse Solution for Manufacturing & Distribution! MSCG’s Jumpstart Solution utilizes SAP and MSCG best practices along with additional MSCG Jumpstart functionality to quickly set up and configure warehousing best practices for embedded EWM with S/4 HANA.

Watch on-demand to learn more about the rapid deployment and robust processes included with MSCG’s Jumpstart Warehouse Solution for Manufacturing & Distribution! Neil Patel, Managing Partner at MSCG kicks things off with an introduction on MSCG & our relationship with SAP. After a review of MSCG’s Jumpstart Solution by Wesley Marion Sr., hear from Jörg Michaelis, Chief Product Owner of SAP Extended Warehouse Management to discover insight on SAP’s road map for EWM.

Please enter the following information to be sent the webinar recording details:

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SAP is now delivering EWM with the power of S/4HANA through an embedded version of EWM, replacing the dated WM module for S/4HANA. With multiple licensing, deployment and hosting options, there is flavor of SAP EWM for all businesses.

The questions is no longer:

“Is SAP EWM right for my business?” but,

“What SAP EWM solution is right for my business?”

SAP EWM Licensing

With this new direction, SAP offers EWM with two different licensing structures for embedded EWM on S/4HANA, Basic or Advanced.

EWM Basic is geared towards businesses who are running S/4HANA ERP and want to leverage the warehouse management functionality included with their current licensing. EWM Basic has additional and enhanced functionality over the old WM module, including more granular bin levels and a robust user-friendly RF framework. On top of that, the users will have access to standard EWM processes, from Physical Inventory to Outbound processing.

Nevertheless, if your warehouse processes are in need of a more robust warehouse management solution, EWM Advanced is your answer. The Advanced licensing for EWM provides operators with access to all the capabilities included with the Basic licensing, plus additional and optimized functionalities. With EWM Advanced, users have enhanced processes like optimized Inventory Management that includes slotting and rearrangement and improved Outbound processing with Wave Management. EWM advanced also includes additional functionalities such as Yard Management with access to the Shipping Cockpit and Dock Appointment Scheduling or Labor Management with Engineered Labor Standards and Travel Distance Calculations.

SAP EWM Deployment Options

Along with the choice of different licensing options, is the decision of how to deploy SAP EWM.

There are multiple options to meet every business’ needs, from large 24/7 365-day operations to small 9-5 business operations. For larger businesses with a high volume of transactions, they will want to investigate a few options for EWM deployment; Business Suite Decentral EWM 9.5, EWM Embedded in S/4HANA or the soon to be available Stand Alone EWM on S/4HANA, of which MSCG is currently involved in partner testing. For these deployments, businesses will decide how to host their environment, whether owning this internally or having a third party do so.  For smaller scale operations, SAP offers EWM S/4HANA Cloud with Single Tenant and Multiple Tenant options and is soon to offer Stand Alone EWM S/4HANA Cloud. It’s important to weigh all options because the factors that go into making a correct decision for your business will drastically vary, each affecting this decision differently.

Upgrading from SAP WM

The era of SAP WM is drawing to a close.

According to the current SAP road map, the outdated WM module will no longer receive new development work and it’s support cycle is slated to end in 2025. With that, now is the time for your business to start planning the upgrade and migration to S/4HANA Embedded EWM. During your migration to S/4HANA EWM, decisions will be made as to what new functionality should be leveraged or how current WM master data can be utilized with EWM. My Supply Chain Group provides the expertise your company needs to ensure the right decision is being made. With over 75 EWM experts, My Supply Chain Group is the right implementation partner for any business.

Converting from EWM to EWM on S/4HANA

Is your business already ahead of the curve and operating its warehouses with SAP EWM? Continue to stay ahead and begin planning your conversion from decentral SAP EWM 7.0-9.5 to stand alone EWM on S/4HANA. The first version of stand alone EWM on S/4HANA is scheduled to be released next month, May 2019. Even if the rest of the business is not ready to convert from ECC to S/4HANA ERP, this doesn’t have to stop the warehouse from blazing the trail. Multiple paths are laid out from SAP to enable a smooth conversion for the entire business. Along with these different options, SAP is enabling customers to intelligently make these decisions through empowering My Supply Chain Group with the knowledge required to guide them along the way. My Supply Chain Group is actively part of SAP EWM pre-release product testing and will advise your business on the new functionalities of SAP S/4HANA Extended Warehouse Management and if the time is right for your business to convert!

What are you waiting for? Contact My Supply Chain Group today for more information.

By: Wesley Marion, Sr.

The post SAP EWM, the Future for SAP appeared first on My Supply Chain Group.

Part 1
The Future of Warehousing & Distribution is here with SAP EWM

Part 2
Streamline Order Fulfillment and Increase Customer Satisfaction with SAP EWM

Part 3
Upgraded Warehouse Reporting and Dashboards with SAP EWM

Part 4
How Customers have Utilized SAP EWM to Overhaul Business Processes and SAP’s Road Map for EWM

Please enter the following information to be sent the webinar recording details:

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In Part III, we looked at the ongoing disruptive technological innovation. In this article, let’s take a brief look at the implications of disruptive innovation on the supply chain enablement for any business.

Most important thing to realize about technological innovation is that, by itself, it does not have a significant impact until it is translated into a business innovation that is a game changer for your competitive environment. History is replete with many examples of this.

First patent for the original sewing machine concept was granted in 1846. There was a lot of technological innovation in the next few years – each was a key to the eventual success of the sewing machine that is used today. However, the early years were spent in fighting patent battles with each other until someone came up with the first business innovation of converting the “patent thicket” in to a “patent pool”. Four stake holders agreed to: (1) merge their business interests in 9 patents, (2) charge a single, reduced licensing fee – down from $25 (about half the cost of the machine then) to $5 a decade later – and (3) divide the licensing revenue in the proportion of their contribution to the final design. This allowed (1) more manufacturers to enter the business, (2) increase the supply of machines and licensing revenues and (3) reduce the cost of sewing machines due to competition.

Yet, not all four stake holders made it big in the long run. Why?

The 2nd and even more important business innovation came when the original & later incarnations of Singer Manufacturing Company created a “hire-purchase plan” i.e., the first installment-payment plan in the United States for customers who could not afford the up-front payment for the machine’s high price and a “door-to-door sales” model to demonstrate the machine’s value. Singer encouraged customers to buy newer models by buying back their older models. It also expanded rapidly in international markets and opened factories globally to reduce import duties and transportation cost. Centralized decision making / planning and decentralized execution was quite a business innovation for those times.

The point here is that while a company may not be the innovator of the disruptive technology, it can translate the technological innovation into a business innovation unique to its competitive ecology and ride the disruption as the leader instead of being forced to follow others in that evolution.

There are several other takeaways from the evolving disruptive technological innovation for your competitive supply chain environment:

1. Supply chains of customer-centric organizations must evolve to meet the demands of “mass customization” to ensure user-specific online or offline experience. Similarly, “pricing models” will have to evolve to profitably serve the lot size of ONE !
2. Managing the “anytime, anywhere, value pricing, high service” expectations of customers is forcing companies to quickly identify & eliminate redundancies in their “lean + agile” supply chain networks to ensure complete, accurate and on-time deliveries.
3. Key to long-term success of a company lies in (a) incorporating innovation in to repetitive orchestration of its integrated business planning process and (b) ensuring sound solution architecture plus high maturity levels of its resources and processes to execute those plans.
4. There are serious implications – both for companies and individuals – for the number and types of jobs that will be around a decade down the road and the skill-sets required to keep up with these changes.
5. Positive effects of disruptive innovations will have to be balanced with risk-mitigation against their exploitation for anti-social or evil purposes. Eliminating security risks to avoid their catastrophic consequences will be an on-going challenge but cannot be an excuse for disengagement.
6. Change management and process re-engineering challenges posed by these innovations are enormous, unavoidable and can be underestimated only at a corporation’s own peril. Riding the change requires creation of a company culture that harmonizes perpetual, smart risk taking with realistic risk mitigation.
7. Implications of recent and on-the-horizon innovations for your supply chain will act like a two-way sword. Not internalizing these innovations will create a strategic advantage for competitors and can prove to be the death knell for any business. On the other hand, internalizing these innovations to re-invent the DNA of your company into a lean and agile business model will also have its own set of challenges on all fronts (people, processes, platforms, policies and performance). Smart executives will realize that this is a false dilemma (illusion of choice) since failure to embrace innovation and the associated change is never really a sustainable option !

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