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Uh-Oh! Insights On How P&G Failed And What This Means For You

Supply Chain Shaman

At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) Understanding this relationship requires modeling. (A A Case Study.

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Getting Inventory Right: Hope with Hype and Recycled Software?

Supply Chain Shaman

I am speaking this morning at the Terra Technology conference and doing a book signing of my new book, Supply Chain Metrics That Matter. In parallel, I have been hard at work on a report on multi-tier inventory optimization for the last two weeks. It is morning in Orlando. The sun is rising. This inbound news adds to the story.

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How We Stubbed Our Toe in The Evolution of S&OP

Supply Chain Shaman

Sales and Operations Maturity Model from 2005-2008. Companies tightly coupling the budget to S&OP have significantly higher inventories and lower growth than their peer group. Deployment of deeper statistical engines for inventory management with a focus on safety stock will improve inventory levels. Let me explain.

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SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. The journey began with a one size fits all approach in 2008, and the policies evolved over the course of the last seven years. In fact, the teams ignore the forecast. Does it work?

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Measuring Up?

Supply Chain Shaman

The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. In our analysis, only one out of ten companies successfully improves operating margins and inventory turns at the same time. We find that companies can improve one, but not two of the metrics.

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Your supply chain is costing you money – Reason #10 Failure to adequately train your supply chain planning staff

Kinaxis

Reason #6 Not effectively managing inventory. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. A bad decision can result in missed orders, significant inventory, or scrapped materials. By doing this, they could potentially save the company millions of dollars in excess inventory.

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Top 15 Supply Chains to Admire from the Supply Chain Insights Conference

Kinaxis

While there was always passionate discussions on companies and metrics, the end goal was to raise awareness of supply chain as a practice. While other “lists” use ROA, Inventory Turns and Revenue Growth, I find Lora’s science very objective. They’ve ranked #1 in the AMR/Gartner list for 7 straight years, since 2008.