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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.
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.
It’s not unusual for a company’s transportation management system (TMS) and warehouse management system (WMS) to not be fully integrated, or for a degree of manual processing or reprocessing to be necessary to process customer orders. So what’s happening to bring convergence one step closer to reality?
We are also more advanced on transportation and warehouse planning than supply chain planning. 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.)
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.
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.
Through VMI, Walmart empowers its suppliers to take on the responsibility of managing their inventory stored in Walmart’s warehouses. This program links all computers of P&G to Walmart’s stores and warehouses, allowing for efficient replenishment orders based on real-time inventory needs. References: Lee H.L.
Of course, demand sensing can also use customer data, such as point of sale, store inventory or warehouse withdrawals. As you have no doubt surmised, we are passionate about demand sensing at E2open – we invented it in 2004 and have been innovating ever since. Because most supply chain decisions are based on projected inventory (i.e.,
Supply chain optimization consultant, author, and podcaster Marcia Williams has been working in supply chain since 2004. In the end-to-end supply chain there’s procurement, logistics, operations, and warehousing. And, no surprises here, I attach metrics so I can measure the baseline. I use finance to show the value.
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.
According to the Bureau of Labor Statistics (BLS), employment in the warehousing and storage industry grew from 1,133,900 to 1,194,400 from May 2020 to June 2020. In fact, warehousing accounted for the largest portion of jobs added in the transportation and warehousing sector in June, about 61,000 of 99,000 total jobs.
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