Ultriva CEO Laksham Talks Demand Driven Supply Chain for Assembly Magazine
Cupertino, CA -- (SBWIRE) -- 07/24/2013 -- Narayan Laksham, Ultriva’s founder and CEO, authored an article in Assembly Magazine entitled, “Solve the Demand-Driven Supply Chain Problem.” Laksham explained how electronic kanban systems can help manufacturers avoid the bullwhip effect, “Today’s global marketplace requires manufacturers to profitably respond to the dynamics of market demand in a timely manner. Due to the convoluted and often far-reaching nature of today’s supply chain, this is frequently more difficult than it seems. Pressure to cut costs, decrease inventory and raise profit margins make the process even more challenging. The end result is often a misguided effort to implement ‘more effective’ demand-driven supply chain methods.”
Laksham described how this approach is unlikely to maximize savings. Demand-driven supply chain guidance is a broken system, and no amount of precision will create greater dividends. Laksham noted, “Manufacturers often operate on a forecast or plan for a ‘bucket’ of time. These forecasts lead to lot sizes or economic order quantities that amplify an outcome known as the ‘bullwhip effect’. When actual demand varies from the forecasted plan over the course of the allotted time, the bullwhip effect creates large swings in inventory. In other words, small changes at one end of the supply chain have multiplying effects further upstream.”
To read the article in its entirety link here: http://www.assemblymag.com/articles/90979-solve-the-demand-driven-supply-chain-problem.
Assembly is a monthly trade magazine read by 56,000 engineers and managers responsible for manufacturing and designing cars, computers, catheters, coffeemakers, and much more.
Ultriva (http://www.ultriva.com) empowers leading industrial, automotive, healthcare, aerospace and defense businesses to operate more effectively and collaboratively by providing real time visibility and targeted actionable intelligence into inventory and material flows. Ultriva’s cloud-based platform leverages and seamlessly integrates with leading ERP and MRP systems, to deliver an end to end pull based replenishment model for 21st century enterprises such as ATK, CareFusion, Emerson, Ingersoll Rand, McKesson, Magellan, Regal Beloit, Thermo Fisher and more. Ultriva is a privately held, growing software company based in Cupertino, California. Follow Ultriva on Twitter @Ultriva.
Cynthia Leonard, Marketing Executive