Remove 2004 Remove Inventory Remove Metrics
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Collaboration? When It Comes to Cash-to-Cash, We Don’t Know How to Walk the Talk

Supply Chain Shaman

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 Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle.

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Why I No Longer Believe in the Gartner Supply Chain Top 25

Supply Chain Shaman

While the name has changed, the methodology has remained fairly constant, with a only a few changes, since 2004. The research tries to establish “ who did supply chain best ” by looking at a weighted formula of Year-over-Year Growth, Return on Assets (ROA), and Inventory Turns for the Fortune 500 companies. The intent was good.

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Transversing the Paradox River

Supply Chain Shaman

We speak about the need to move from a functional understanding to a global, holistic capabilities, but the traditional supply chain leader defines bonus incentives and process performance goals based on functional metrics. In 2004, my research showed a bell curve of innovators and laggards. Measurement. Innovation.

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How Do You Define a Mature Supply Chain Planning Organization? (Part 1)

Supply Chain Shaman

I have worked with this client since 2004. Integration of corporate social responsibility metrics in planning. There is a lack of clarity on what drives value and metrics are functional. Monthly design of the supply chain including form and function of inventory and inventory placement. Supply Chain Design.

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Mining Supply Chain Data for Insights

Supply Chain Shaman

We loaded 493 financial metrics from balance sheets and income statements for each company into the data lake for the period of 2004-2016 using YCharts data. They all sound alike and each company makes similar claims of how the implementation of supply chain planning improves costs, lowers inventory and improves the return on assets.

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Reduce Costs: Invest In Talent

Supply Chain Shaman

We analyzed the impact of 150 factors on 493 financial metrics for the period of 2004-2016. Across the industry, we find that companies think that they are managing costs and inventory better through technology investments like supply chain planning, but they have a false sense of accomplishment. This research was tough work.

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Throwing Down the Gauntlet

Supply Chain Shaman

Hau L Lee, Triple-A Supply Chains, Harvard Business Review, October 2004. I think about this discussion with Keith often as I work on the Supply Chain Index and edit the chapters of Metrics That Matter. However, no company in this chart is on a linear path towards improving both margin and inventory turns. What can we learn?