Supply Chain Shaman
MARCH 21, 2023
Bloated inventories. Despite investments in planning, today, industries hold 28 more days of inventory than in 2004. The larger the number of days of inventory, the greater the cash drag.) Changes in Inventory Year-end inventory values by industry from Y Charts. The story continues. Rising inflation.
Supply Chain Shaman
JUNE 12, 2020
Downsizing inventories over the past decade crippled the response.” In Table 1, I share research collected for the Supply Chains to Admire analysis on the average days of inventory by industry across the period of 2004 to 2019 by increments to match economic shifts. Days of Inventory Peer Group Across Time Periods.
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Supply Chain Shaman
OCTOBER 29, 2020
Inventory, in this time of uncertainty, is the organization’s most important buffer to protect against variability. However, organizations are not good at managing inventory. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. Inventory. My takeaway?
Supply Chain Shaman
JANUARY 30, 2025
I first experienced the implementation of OMP and SAP at Eastman Chemical in 2004. Note the lack of resilience of Eastman through the pandemic and the negative shift in operating margin and inventory turns since 2018. The focus needs to be on outcomes. To make the point, let’s take a look at Eastman Chemical in Figure 1.
Supply Chain Shaman
OCTOBER 11, 2023
The larger the global corporation, the more that the use of functional goals sub-optimizes growth, margin and inventory levels. In 2004, my research showed a bell curve of innovators and laggards. Measurement. Organizations speak of the bullwhip, but don’t measure it or monitor the effects. Innovation.
Logistics Viewpoints
OCTOBER 1, 2022
since 2004, hit an all-time high of 4,586 points in late March. The CNBC article states, “ As delivery times and consumer demand rose this year, retailers responded by ordering inventory earlier than usual. When in-transit shipping time began to improve quickly, Nike CFO Matthew Friend said, it led to swelling inventories.”
Supply Chain Shaman
JANUARY 9, 2019
Stuck, the company struggled with customer service levels and high inventory write-offs. This case study from 2004 outlines a process to manage complexity and improve agility. The process helped World Kitchen manage inventories through bankruptcy filing in 2002. the organizational dynamics were tough. The result?
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