#Rob Handfield | Explore Tumblr posts and blogs

businessliveme · 6 years ago

Text

Private-Jet Deliveries Surge Just as Global Economy Cools Off

(Bloomberg) –It’s all about that new plane smell.

Private jets that can fly faster and go longer distances are causing a surge in new corporate-jet deliveries from General Dynamic Corp.’s Gulfstream unit, Bombardier Inc. and Textron Inc.’s Cessna. Innovations that have spurred sales include better fuel-efficiency, roomier, quieter cabins and gadget-packed cockpits that can predict the weather and smooth out bumpy rides.

Business aircraft deliveries are expected to rise 9% this year to about 690, and will climb to about 740 planes next year, according to an annual report from Honeywell International Inc. released Sunday.

“Every time we have a wave of new products coming to the market, typically that’s positive for overall deliveries of business jets,” said Gaetan Handfield, senior manager of marketing analysis for Honeywell’s aerospace unit. “That’s what’s driving this.”

Read: The Oman Air Renaissance – Reinvention is Key

The rise in deliveries come as the U.S.-China trade war, the U.K.’s looming break from the European Union, and a shaky global economy threaten to cut the momentum short. Shipments of private jets will fall off slightly in 2021, according to Honeywell’s report, which is the broadest survey of private aircraft operators to gauge sale trends.

In the meantime, the current gains are a welcome boost for a $20 billion industry that has yet to return to the frothy heights preceding the 2008-2009 recession, when deliveries peaked at 1,300 aircraft. Corporate jets were a prominent casualty of the crash when companies focused on cutting costs and using their cash to buy back shares instead of renewing fleets.

The market got a lift in 2017 when the U.S. approved a new tax break that allowed the immediate write-off of a plane’s total cost, spurring buyers to scoop up used jets.

Used Market

Tight supplies of desirable pre-owned planes is limiting buyer options and propping up demand and prices in the used market, said Steve Varsano, founder of The Jet Business, a London-based plane brokerage whose offices are outfitted with a meeting room in an aircraft fuselage.

“I don’t see the slowdown in deal flow and I don’t see a drastic drop in prices on these airplanes,” he said.

The pre-owned scarcity, in turn, is helping underpin demand for new planes.

Bombardier is banking on the Global 7500, the largest purpose-built corporate jet that began deliveries in December, to bring in much needed cash. The Canadian company is also poised to start shipping its Global 5500 and 6500, which are basically older models refreshed with new engines and cockpit technology.

Read: ‘I Just Took The World’s First 20-Hour Flight. Here’s What It Did to Me’

Gulfstream signaled it will reveal a new aircraft design on Oct. 21 at a private-jet conference in Las Vegas. The new model follows two other new planes already in service, the G500 and G600.

Pilatus Aircraft, a Swiss planemaker famous for its single-engine turboprop planes, began deliveries last year of its first jet aircraft. And Cessna just began deliveries this month for the Longitude, its largest-ever business plane.

Global turmoil is already taking a toll, though. Owners in the U.S. and Europe are using their jets less, based on take-off and landing data kept by aviation regulators. And some brokers are beginning to see used-aircraft sales cooling from last year.

Softening Orders

The strong U.S. dollar damps international demand, while political tensions and economic weakness around the world are expected to soften new-aircraft orders, said Rolland Vincent, a consultant in Plano, Texas, who produces the JetNet IQ market intelligence report with researcher JetNet.

That will translate to slowing deliveries as soon as 2021, he said. The U.S. accounts for about 60% of the world’s business aviation market.

“The pipeline of orders, we think, is about to slow down,” Vincent said. “If we had some kind of global recession, that’s going to take the wind out of the sails.”

Demand over the next decade should support 7,600 new business jets worth $248 billion, according to Honeywell’s report. That’s down from last year’s forecast of 7,700 aircraft valued at $251 billion. The survey showed purchasing plans in the next five years fell in Europe, which is facing slower growth and uncertainty over Brexit, and in the Middle East, which has been rocked by conflicts and political tensions, according to the report.

Read: Etihad, Air Arabia to Launch Low-Cost Carrier in Abu Dhabi

Cessna’s strategy of continually rolling out new designs has helped drive sales despite the growing economic and political noise, said Rob Scholl, senior vice president of sales and marketing at parent Textron Aviation.

“We’ve done really well over the last few years compared to the market because we’ve been investing in new products,” Scholl said. “We almost always have something new to be talking to customers about, and that drives activity.”

The post Private-Jet Deliveries Surge Just as Global Economy Cools Off appeared first on Businessliveme.com.

from WordPress https://ift.tt/2P7qNM2 via IFTTT

#IFTTT #WordPress

0 notes

andrebooker7532 · 7 years ago

Text

10 Supply Chain Resolutions in 2019

As we turn to a new year, I am more excited than ever to be in supply chain. While customer expectations of “anytime, anywhere, my way” are putting enormous pressure on you, your suppliers and your partner ecosystems, it is also giving our profession the opportunity to step up and become stewards of our brands and ensure amazing experiences for our clients.

Stewardship will not be an easy task. It will require resolve. You will need to think differently about how you tackle key challenges – from talent acquisition and management, to capturing and analyzing mountains of disparate data to implementing new innovations with AI and blockchain technology.

With those challenges in mind, we asked ten supply chain experts and thought leaders to share their professional resolutions for 2019. Here’s what they had to say.

1. “Resolve to explore digital ‘multipliers’ to solve talent and labor needs.” – Ted Stank, Ph.D., UT Knoxville.

One suggestion is to find ways to utilize digital assistants to multiply productivity and enable activities to flex to scale without the need for adding excessive head count. Managers should begin now to assess the levels of routinized activities that their teams perform on a daily basis and seek to free them up using the assistance of digital tools.

The opportunities are there if you look for them and the ROI will surprise (maybe shock) you in a positive way!

See the full post: https://ibm.co/2EmJIx6

2. “Focus on the customer, not the costs.” – Sean Culey, author of Transition Point

Go beyond thinking of the supply chain as simply a necessary evil to be managed – a collector of costs and complexity – and instead realise that it is a strategic generator of business and customer value. […] For those with the courage to think and act differently, to talk of customer value, and not just myopically focus on cost, lies the potential to transform the performance of the whole business.

See the full post: https://ibm.co/2QR2e7w

3. “Innovate and collaborate!” – Shari Diaz, Innovation, Strategy & Operations, Watson Supply Chain

My resolution for supply chain professionals to keep in 2019: Innovate! …and collaborate! For those that know me, my video will be no surprise.

Watch the video: https://ibm.co/2UNXqi2

4. “Reach out to universities to explore new analytics solutions to common problems.” – Rob Handfield, Ph.D., NC State

Industry really needs to partner with universities […] Students can see the bigger picture, they can kick around solutions to problems, are out of the box thinkers. By partnering with university you’re also helping to develop your talent.

See the full post: https://ibm.co/2EnPuyC

5. “Lead with purpose. Buy with purpose. Design your supply chain for zero waste.” – Sheri Hinish, the Supply Chain Queen

[Understand] the handshake you’re making with trading partners in upstream sourcing and procurement of harvesting and acquisition of raw materials. And delivering the promise you made to customers that they’re buying safe, reliable, ethical products.

Watch the video: https://ibm.co/2zYgoKe

6. “Make time for learning – and teaching!” – Adrian Gonzalez, Adelante SCM and Talking Logistics

“When you stop learning, you stop leading.” This is especially true for supply chain management. New technologies, business models, competitors, legislation, economic issues and so on, are constantly emerging…

See the full post: https://ibm.co/2UMkAFz

7. “Capitalize on AI and blockchain to enable a frictionless supply chain — effectively.” – Watson Supply Chain

Take time to educate yourself on how to maximize your investments by applying new technologies. Attend an event like Think Exchange where you can network with peers, engage with product experts, and discover how purpose-built AI and blockchain can help you make smarter decisions and create better customer experiences.

8. “Energy, equality and ethics…with a sprinkling of AI.” – Tania Seary, Procurious

Energy, Equality & Ethics…with a sprinkling of AI…those are my 2019 Supply Chain Resolutions. Hear me talk about them in this video from Piccadilly Circus, London.

9. “Get your supply chain ready – it’s not going to get any easier.” – Chris Hayes, Watson Supply Chain

With growing customer expectations and more complex supply chains, companies should ensure they are exploring new technologies to give them the edge they need to succeed. The key to applying these new technologies: bite small, chew fast.

10. “Lead an engaged & inclusive organization that will drive innovation.” – Ron Castro, Chief Supply Chain Officer, IBM

My supply chain resolution for 2019 is to lead an engaged and inclusive organization that will drive innovation — and accelerate our bold transformation to the #1 Cognitive Supply Chain. Leverage new technologies (like AI & blockchain) to dramatically increase value.

The technology is available today to leap frog supply chain capabilities. 2019 is OUR time – as a supply chain community – to ensure new capabilities are embedded into all our processes and management systems driving higher value to our enterprise and clients. No better place than the supply chain to leverage the explosion of data. We can gather incredible insights and turn those into real-time ACTION… 2019 is the year to make it happen!

See original post: https://ibm.co/2Qw8fa1

As we close the book on 2018 and prepare to kick the new year into high gear, reinvent the way your business delivers on the brand promise. Start by joining your peers at Think Exchange 2019 and see how you can transform your operations and supply chain to deliver experiences that are personalized and flawless, from first touch to final delivery.

The post 10 Supply Chain Resolutions in 2019 appeared first on Watson Customer Engagement.

from personivt2c https://www.ibm.com/blogs/watson-customer-engagement/2018/12/20/10-supply-chain-resolutions-in-2019/ via http://www.rssmix.com/

0 notes

odesmauk-blog · 7 years ago

Text

Experts predict AI-powered procurement analytics will be indispensable

A procurement transformation specialist has suggested that nextgen procurement analytics will become indispensable to businesses to improve their supply chains within 5 years.

Rob Handfield, Professor of Supply Chain Management at North Carolina State University, agreed in an interview recently that procurement analytics was still at a “nascent” stage.

However, he was confident that artificial intelligence (AI) will play a key role in the very near future. Procurement analytics will shortly be able to incorporate and implement a host of next-generation supply chain technologies, including cognitive analytics, cloud, big data and mobile tech. But currently, the focus was on building the foundation for procurement analytics and data.

This involes creating trusted, heavily protected databases, similar to cloud-based “data lakes” protected by an arsenal of rules. Strict governance regulates who will be able to access and pull out data, and forms the bottom layer of the three-level procurement analytics pyramid currently under construction.

The top layer is the business intelligence tier, where AI enters the process to analyse huge streams of data entering the ‘data lake’. At the top is business analytics, using the output from the organisations intelligence layer to assess supply and demand trends and gain new insights into future supplier relationships and sourcing requirements.

Currently, procurement analytics is concentrated on five key areas: sourcing at the base, spend analytics, contract management and risk exposure (right down to raw materials on a country-by-country basis – e.g. how a natural disaster might impact the supply chain) and finally, corporate strategy.

Handfield predicts that within 5 years, leading businesses will have created centres of excellence to pilot AI-informed procurement analytics.

He finished by stating: “Once people start to get a sense of how much their supply chains can be helped with procurement analytics, they will demand more of it. Real-time data will be our new fingerprints in the supply chain.”

#AI Technology Supplychain ProcurementAnalytics

0 notes