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While the name has changed, the methodology has remained fairly constant, with a only a few changes, since 2004. The AMR Top 25 was the first methodology that tried to connect financial metrics with supply chain excellence. See how different the progress is on this metric by industry? It is now the Gartner Supply Chain Top 25.
Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. Note the elongation of the cash-to-cash cycle in the chemical industry of 38 additional days when comparing the 2014-2019 averages to the pre-recession period of 2004-2006.
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.
Finally, the top 10 list was rounded out safety and metrics. Like last year, reshoring and the idea of a US Manufacturing comeback, or revivial, or rennaisaince (whatever you want to call it) was of huge interest to our readers of the Cerasis blog. Secondly, technology, such as 3D Printing and Innovation, made it to this year’s list.
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. Inventory is often focused on as a singular metric, not as part of a complex supply chain system. Functional metric orientation.
We analyzed the impact of 150 factors on 493 financial metrics for the period of 2004-2016. By graphing the financial metrics through orbit charts, we find that 90% of companies are stuck at the intersection of operating margin and inventory turns. This research was tough work. It took us four months.
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. The better supply chain planning implementations produce tighter and more reliable patterns at this important metrics intersection. Focus on building the right stuff.
Space utilization, or vehicle fill, is a critical metric that can be measured in various ways: Pallet numbers and height: While common, this method can be misleading depending on cargo density. Research indicates that a significant portion of a truck’s time is spent idle or empty (McKinnon and Ge, 2004; IGD, 2003). Kearney, A.
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. It is one thing to write it, but it is a horse of another color to defend it. I believe that value is what you create.
With all companies sharing a common codebase, a common data-store, and having a consistent definition of fields and functions, everything from user behavior to company metrics can be readily analyzed. By having simplified access to end user behavior including click paths, search criteria, common actions, etc.,
As shown in Figure 3, while the adoption of SAAS was 5% in 2004 it is currently the deployment preference for the Line of Business Leader. 2004 data references the work that I completed while an analyst at AMR Research.) BPO adoption is slower with more hiccups. Adoption of Alternate Technology Deployments.
Since its founding in 2004, PINC has been a pioneer in providing real-time visibility and workflow orchestration to yard operations across distribution centers and manufacturing plants worldwide – achieving Gartner’s “best of breed” status in this category. . – Nov.
Expanded Visibility – fewer information driven disputes based on agreed metrics using the agreed data set. Evan has been with Kewill since 2004 in senior Marketing and Product Management roles, most recently as Chief Operating Officer for Kewill Asia Pacific.
The selection of metrics is based on prior work with Arizona State University to understand which metrics, in combination, correlate to market capitalization and price to book value. They used the work built together in 2004-2009 to build a course with Georgia Tech for executive training.) Why do we spend four months doing this?
The first definition of Demand-driven Supply Chains was pushed into the market by AMR Research (now part of the Gartner Group) in 2004. Over the last decade, the only metric that we have improved is revenue/employee (see below). Each time that they are published, the Shaman sighs and chuckles in her little apartment in Baltimore.
We then rated companies on their ability to manage and improve a portfolio of metrics: operating margin, inventory turns and Return on Invested Capital (ROIC). We were an early adopter of the E2Open technology and we experimented on building B2B networks early in 2004. It is a story of when the going gets tough, the tough get going.
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. To meet the criteria for The Supply Chains to Admire for 2016, companies needed to score better than their peer group average for performance metrics, while driving a higher level of improvement than 2/3 of their industry peer group.
Overall Results on the Supply Chain Metrics That Matter. The shift from 2004-to 2006 is impressive. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. Supply chain leaders make progress in three-to-five years. How Have They Done?
Triple-A Supply Chain In 2004, Professor Hau Lee of Stanford University published the article titled " The Triple-A Supply Chain " in Harvard Business Review. Leagility In 1999, Naylor et al. In short, you can be more responsive if you trim wastes from your current operations and become "Lean".
I remember speaking a few years ago with Art Mesher, Descartes’ CEO from November 2004 through November 2013, and he attributed the turnaround to Descartes’ shift from a “culture of selling” to a “culture of serving.” Where is Descartes today? The company is financially strong, with 14 years of record year-over-year growth.
Moreover, they help them track their performance against key metrics and identify areas where they can improve. By focusing on these areas – collaboration, efficient practices, and optimized packaging – the freight industry can achieve substantial improvements in terms of cost, time, and environmental impact. Saunders, C.,
Where EBIT or EBITDA per inventory $ or per working capital $ helps in getting meaningful benchmarks and aligned targets, they are not common financial metrics. We will close this blog by discussing the Return On Capital Employed (ROCE) which is close to the EBIT% vs CCC, and which is a more common financial metric.
In 2004 Compuware purchased Covisint. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. The Procter & Gamble Company, Sara Lee Corporation, and Unilever, NV contributed more than $250 million to fund Transora. The solution failed.
Supplier Incentive Programs: Introducing incentive programs that reward suppliers for meeting certain performance metrics, such as on-time delivery or cost reduction, can motivate suppliers to actively collaborate and improve their supply chain capabilities. 2004): The triple A supply chain. References: Lee H.L. Nguyen T.T.H.
In the wake of COVID disruptions and the financial advantage earned by companies focusing on ESG despite major market uncertainty, investors are rapidly recognizing the strategic importance of these metrics as well. This was the largest difference in performance recorded since 2004. Corporate ESG Reporting Today .
In the wake of COVID disruptions and the financial advantage earned by companies focusing on ESG despite major market uncertainty, investors are rapidly recognizing the strategic importance of these metrics as well. This was the largest difference in performance recorded since 2004. In many ways, he was eerily prescient.
More importantly, it turns out the lag question is a red herring for a fundamental reason – the correct metric when making a quality supply chain decision is to measure the actual error over the lead time instead of lagged error. Because most supply chain decisions are based on projected inventory (i.e., Aerospace & Defense.
Supply chain optimization consultant, author, and podcaster Marcia Williams has been working in supply chain since 2004. And, no surprises here, I attach metrics so I can measure the baseline. I often look at the different cycles, like cash to cash, and analyze that. It’s also very important to be responsive in replying to emails.
” So, I started work with Arizona State University to take balance sheet data from 2003-2007 to analyze which combination of metrics drove the highest market capitalization. The best example of a clear strategy I experienced was Annette Clayton’s transformation of Schneider Electric in 2004. Analytics Deployment.
For example, if you can add product to your catalog you can sell without having to inventory you end up with a nearly infinite profit that boosts overall inventory turns metrics. Siemens IT had a mandate of only using SAP technology and essentially got a commitment from SAP to deliver a similar S&OP functionality in 2004.
In 2004, with the evolution of demand sensing applications, the tactical and operational forecasts were both modeled using optimization, but the lack of synchronization of the two forecasts limited the technology adoption. The root issue is functional metrics. D on’t Assume That Functions Within A Companies Want to Share Data.
Passage of the American Jobs Creation Act of 2004 allowed U.S. Where in the past they might have focused primarily on days payable outstanding (DPO) as a financial metric, they’re now giving equal attention to days sales outstanding (DSO) and inventory levels. But the results from previous tax holidays have not been encouraging.
In 2004, three business founders attempted to build an online snowboarding equipment store, but they ended up being dissatisfied with the platforms available on the market. Make sure you have Google Analytics set up so you can track website traffic and other online store metrics. So they built one on their own.
Founded in 2002 under the name of Agilisys, Infor rebranded in 2004. Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. Despite numerous acquisitions and product development efforts, SAP and Oracle are much larger industry giants.
We did this by tying metrics to their workload and included those metrics in our weekly all-hands meetings. They are just basic metrics like total shipments per week, shipments per day and item receipts per day, and we compare those numbers vs. previous periods.
The period of 2004-2014 had a.4 percent for the period of 1994-2004. Despite a focus on projects, continuous improvement programs and functional process design, supply chain leaders are unable to drive improvement in both of these two important metrics. The third industrial revolution was much shorter and smaller in impact.
The federal share, which topped 70% throughout the 1960s and 70s, stood at 61% as recently as 2004 before falling below 50% in 2013.[2] Rather, it will be felt over the span of decades and defined in metrics like intellectual talent lost.”[5] 2] The percentage continues to fall.
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