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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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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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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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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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Financial Benchmarking for Inventory Turns and Working Capital

Arkieva

Using so called orbit charts, we have benchmarked companies on EBIT% versus Inventory Turns. That benchmark helped to reveal the ‘best practice frontier’, which in turn helped in setting aggressive but aligned targets for EBIT% versus Inventory Turns. Benchmarking EBITDA% versus Inventory Turns. It proves to be more resilient.

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My Lessons in Interviewing Supply Chains to Admire Award Winners

Supply Chain Shaman

To help, we analyze business results each year to understand which companies outperform on the balanced scorecard of growth, inventory turns, operating margin, and Return on Invested Capital (ROIC) over the past ten years. They used the work built together in 2004-2009 to build a course with Georgia Tech for executive training.)

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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.