Tag: Innovation

One of the biggest challenges in the healthcare industry is reducing operating costs, and one area of opportunity for cost savings is through the supply chain. Jean-Claude Saghbini, Chief Technology Officer at Wolters Kluwer Health (and formerly of Cardinal Health), spoke with The Boeing Center for Supply Chain Innovation about some of the recent advancements in healthcare technology that have recently been driving efficiency and reducing waste.

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Jean-Claude Saghbini

Saghbini claims that high value medical devices, or physician preference items, are responsible for quite a bit of waste (up to 30%, or $5 billion) on an annual basis. One method of streamlining and increasing visibility of inventory for high value items such as these is through the use of RFID, or radio frequency identification. An application of RFID that has been particularly successful at driving efficiency is the development of “smart shelves” that know exactly what’s inside a medical device cabinet, and can automatically trigger a reorder at a set inventory level.

Another technology that has increased supply chain efficiency is the access to networks that can aggregate data for various purposes (e.g., sharing information with suppliers, running analytics, etc.). The analysis of data, according to Saghbini, has been very helpful in providing better insight into utilization of medical equipment within hospitals and throughout healthcare networks.


For more supply chain digital content and cutting-edge research, check us out on the socials [@theboeingcenter] and our website [olin.wustl.edu/bcsci]

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A Boeing Center digital production

The Boeing Center

Supply Chain  //  Operational Excellence  //  Risk Management

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An article in the San Francisco Chronicle, “HP Labs seeks to regain its former glory,” cites research from Olin professor of strategy Anne Marie Knott on corporate ROI from R&D spending.

“R&D has not been as productive as it was four decades ago,” Knott told the Chronicle. In her research, Knott “found that corporate returns on R&D spending actually declined 65 percent,” since 1972.

According to the Chronicle, the Internet age has taken a toll on innovative companies like HP that were known for their R&D prowess:

Hewlett-Packard launched HP Labs in 1966, which promptly created the HP2116A minicomputer. In the years that followed, HP Labs rolled out LED lighting, scientific calculators, lasers to make microchips, and ultrasound technology to capture live images of the human heart.

However, the emergence of the Internet in the 1990s posed problems for big companies. The pace of innovation accelerated and once-dominant industries seem to crumble overnight. Corporations were too slow and bulky to catch up.

If HP wants to improve innovative output and profits from its once fabled Silicon Valley labs, the company should study Knott’s recent book, How Innovation Really Works. She explains how companies can use her RQ (Research Quotient) tool. It measures a company’s R&D capability―its ability to convert investment in R&D into products and services people want to buy or to reduce the cost of production.

RQ not only tells companies how “smart” they are, explains Knott. “It provides a guide for how much they should invest in R&D to ensure that investment will increase revenues, profits, and market value.”

Related blog post.

Photo: HP Labs celebrates 50 years: Barney Oliver (left), director of research and development at HP for three decades, checks out a new scope in 1966 at HP Labs along with Peter Lacy (center) and George Mathers.

 


Dan Hazlett and Matt Gordon of Anheuser-Busch InBev are constantly trying to incorporate new technology into their supply chain to ensure fresher, better-tasting beer to the consumer. In this highlight, they describe the complexity of the beer supply chain, from breweries to distributors to retailers. They mention some of the challenges associated with shipping and inventory management, as well as some of the innovative technologies they are employing to improve the visibility of their payloads, from the breweries all the way to the retailers. This would allow them to take into account weather and traffic, and schedule more accurate loading and unloading times.

Some of the new initiatives at AB InBev are focusing on three main areas: scaling out the visibility capabilities to import/export operations, integrating tracking and planning applications across the whole supply chain, and developing smarter algorithms and predictive analytics. All of these efforts will enable AB to improve the efficiency of their already outstanding supply chain, and shorten the time between the brewery and your stomach.


For more supply chain digital content and cutting-edge research, check us out on the socials [@theboeingcenter] and our website [olin.wustl.edu/bcsci]

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A Boeing Center digital production

The Boeing Center

Supply Chain  //  Operational Excellence  //  Risk Management

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Automation, or the use of robots and other artificial intelligence to perform tasks, has increased dramatically over the past couple decades. And while a Skynet scenario in the near future is unlikely, we are undoubtedly on the brink of an automation revolution.

John Stroup, President & CEO of Belden Inc., recently paid a visit to The Boeing Center to discuss some of the economic drivers for a revolution in automation. He believes that the United States is well-positioned for increased automation in manufacturing due to recent technological advances. In fact, the majority of manufacturing jobs lost in the last 10-15 years are a result of increased automation, not offshoring (as is commonly thought).

One of the economic factors Stroup credits for the automation revolution is the rise in minimum wages. As labor costs increase, companies look for ways to decrease spending, often turning to machines to replace their human counterparts. But despite the downward trend in manufacturing jobs, there has been a massive uptick in productivity due to robotics and other technology. He predicts that by 2025, the global average of tasks performed by robots will be around 25%, more than double what it is today. Stroup then went on to describe his experience at a “lights-out factory,” or a factory that doesn’t turn on the lights because it utilizes only robots and artificial intelligence.

Stroup went on to mention that Europe is often ahead of the curve in terms of automation due to relatively expensive labor. Regardless of one’s opinions about automation, we are likely to see its increased adoption as global labor costs rise and the cost of implementing AI falls.

For more supply chain digital content and cutting-edge research, check us out on the socials [@theboeingcenter] and our website [olin.wustl.edu/bcsci]

• • •

A Boeing Center digital production

The Boeing Center

Supply Chain  //  Operational Excellence  //  Risk Management

Website  • LinkedIn  • Subscribe  • Facebook  • Instagram  • Twitter  • YouTube




Twenty years ago, through the exceptional generosity of the McDonnell Douglas Foundation, The Boeing Center for Technology, Information, and Manufacturing was endowed in the Olin Business School. Since then, we have served as a powerful catalyst for technology-driven innovation, process optimization, risk management, and global supply chain excellence.

In honor of our 20th anniversary, and to more accurately reflect our focus, we adopted a new look and changed our name to The Boeing Center for Supply Chain Innovation. And with a renewed vigor, we completed the most successful year in our history. Not only did we work on a record number of corporate projects, but we also hosted several events featuring exceptional speakers and supported research on a number of cutting-edge topics.

This spring, we welcomed Mike Pinedo, the Julius Schlesinger Professor of Operations Management at New York University, to talk about operational risk management in the service industry at our 13th annual Meir Rosenblatt memorial lecture. And we welcomed John Stroup, President and CEO of Belden Inc., to share his perspectives on Industry 4.0 and the emerging technologies that will impact the manufacturing industry and beyond. Both presentations were intellectually stimulating and thought provoking.

We also held our inaugural project competition and awards ceremony, the Project of the Year Symposium, which highlighted our top five corporate projects from the 2016-2017 academic year. The Symposium featured presentations from our student teams that worked on projects for Anheuser-Busch InBev, Belden, Boeing, Emerson, and Monsanto. The teams competed for awards in “Project of the Year,” “Greatest Immediate Business Impact,” and “Presentation Excellence,” and split a $10,500 prize pool. A summary of all our spring projects can be found below.

Our 3rd annual Supply Chain Finance & Risk Management Conference took place on May 14-15. The aim of the conference, which was attended by prominent academic researchers from top business schools from around the world, was to stimulate interactions and knowledge sharing at the interface of operations and finance, and supply chain risk management. The conference featured presentations based on current research trends, including real operations and risk management, crowd funding, finance, trade credit, and hedging. There was also a panel discussion on emerging themes and directions of the field.  One of the initiatives resulting from the conference will be an edited book, comprised of short papers submitted by attendees, to be published this fall as an issue in the Foundations and Trends in Technology, Information and Operations Management book series.

We would also like to share with you some of the corporate projects The Boeing Center and student teams have led for our corporate clients this year.

Lastly, we would like to thank all of our corporate member companies for providing us with the opportunity to offer valuable experiential learning to our students, who dedicated long hours to ensure delivery of insightful and impactful supply chain solutions. We hope you all had an awesome summer, and we look forward to working with you again soon!


Learn more about sponsored projects and membership through The Boeing Center.

Anheuser-Busch InBev

This project revolved around optimizing the inventory mix at distribution centers for some of ABI’s craft beer products, particularly Stella Artois. The team utilized mathematical models with the potential to reduce accessorial costs and increase product freshness. Student team:  Miles Bolinger, Sam Huo, Huyen Nguyen, Roberto Ortiz, and Jon Slack.

 

Belden

The team working on this project used the QR inventory modeling approach to identify opportunities and costs for improving service levels at PPC, a Belden subsidiary in Syracuse, NY.  Student team:  Bonnie Bao, Michael Stein, Yuying Wang, and Yuyao Zhu.

 

Boeing

The goal of this project was to determine the most influential order and part characteristics affecting on-time delivery statistics of Boeing’s transactional spare parts business.  Student team:  Vineet Chauhan, Phil Goetz, Brian Liu, Sontaya Sherrell, and Fan Zhang.

 

Edward Jones

The team’s objective was to analyze the technology deployment process at Edward Jones. They did this by conducting interviews and collecting survey data to run a capacity analysis and generate a personnel network diagram.  Student team:  Huang Deng, Wyatt Gutierrez, Cynthia Huang, Drew Ruchte, and Jamie Yue.

 

Emerson

The Emerson project team worked with ProTeam’s Richmond Hill facility to determine the optimal product mix, optimize inventory management of stock, and develop a data analysis model to facilitate future upkeep of the system.  Student team:  Kushal Chawla, Serena Chen, Kai Ji, Jeffrey Lantz, and Zoe Zhao.

 

Express Scripts

The purpose of this project was to optimize Express Scripts’ distribution network by considering logistics costs, formulary configuration, and inventory vs. service levels.  Student team:  Himanshu Aggarwal, Jinsoo Chang, and Janet Qian.

 

MilliporeSigma

In this project, the team worked with MilliporeSigma’s facility in Temecula, CA to develop a model to help determine the economic production quantity for each SKU based on customer demand, production cost, inventory value, and shelf life.  Student team:  Perri Goldberg, Youngho Kim, Ayshwarya Rangarajan, Prateek Sureka, and Flora Teng.

 

Monsanto

The objective of this project was to understand, define, and map out the credit processes within Monsanto.  Student team:  Hai Cao, Yanyan Li, Ashwin Kumar, Jonathan Neff, Tom Siepman, and Xukun Zan.

 

West Pharmaceutical Services

This project sought to accurately compute the approximate safety stock levels, reorder points, and replenishment quantities at West Pharma’s Kinston plant using a continuous review model.  Student team:  Matthew Drory, Rohan Kamalia, Mrigank Kanoi, Ray Tang, and Jiani Zhai.

 


For more supply chain digital content and cutting-edge research, check us out on the socials [@theboeingcenter] and our website [olin.wustl.edu/bcsci]

• • •

A Boeing Center digital production

The Boeing Center

Supply Chain  //  Operational Excellence  //  Risk Management

Website  • LinkedIn  • Subscribe  • Facebook  • Instagram  • Twitter  • YouTube


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