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In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. Error is error, but is it the most important metric? My answer is no.
At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) I never calculated and accounted for the inter-dependencies between metrics.
I work with a company that had 210 planners in 2005 and now has 1475 global planners. Form and socialize your own hierarchy of metrics. Here is the metrics framework that I am using at present in my outside-in classes. Here are some thoughts. Planners to Orchestrators. I agree with the assessment.
Finally, the top 10 list was rounded out safety and metrics. Over 40% of CFOs cited productivity as the top benefit of an effective workplace safety program.” – Chief Financial Officer survey, Liberty Mutual Insurance company , (2005). Secondly, technology, such as 3D Printing and Innovation, made it to this year’s list.
It ceased to exist in 2005 when it merged with 1Sync. Termed Metrics That Matter, it is based on our work on the Supply Chain Index, and the industry studies that we have completed in the Supply Chain Metrics That Matter series. In the dawn of e-commerce, conservative manufacturers, anteed up $240 million in four months.
Note to the reader: we selected these metrics for the balanced scorecard for the analysis after work with Arizona State University to understand which metrics, in combination, most closely correlated with market capitalization. Consider the role of functional metrics and the lack of alignment with the corporate scorecard.)
I wrote my first report on Sales and Operations Planning (S&OP) while sitting on the floor in the Atlanta airport in 2005 when I was an AMR Research analyst. Sales and Operations Maturity Model from 2005-2008. Organizations can align to drive value despite the allegiance to functional metrics. Let me explain. Mistake #5.
As a result, tor most companies, the goals are unclear and the financial metrics are not well-understood. This year-over-year comparison, enables visualization of performance on two metrics. In addition, they rank last in their ability to drive metrics improvement. Metric balance is difficult for supply chain teams.
The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. We find that companies can improve one, but not two of the metrics. Teams struggle to drive improvement in both metrics at the same time. A Look at History. Resiliency.
As I study research methods, and the market, I realize the lies I’ve spun for prior employers (Gartner and AMR Research) are untrue: The AMR Research Hierarchy of Supply Chain Metrics. This research, released in 2005, gives a compelling view of a metrics hierarchy. Bimodal Supply Chains Are a Viable Strategy.
The company has been on a supply chain transformation journey since 2005. Customization is provided for 5 different supply chains (for example, make-to-order, make-to-stock, etc.) across 17 different segments and customer personas. A Transformation Journey. Concurrent planning is kind of amazing.
We have found that supply chain metrics are gnarly and complicated.During Dave joined Campbell Soup Company in 2005 after a 24-year career in product supply at Procter & Gamble. In our program, cost avoidance, while desirable, does not count towards the metric. We named it the Supply Chain Index.
Then it is off to Dallas to speak on Supply Chain Metrics That Matter at the Dallas CSCMP roundtable and complete some more client work. Looking back at history, we made more progress in supply chain management in the period of 1995-2005; than we are today. Figure 2: Supply Chain Effective Frontier.
FedEx says that since 2005, aviation emissions intensity (the amount of emissions per unit of activity) has dropped 31% and the company is aiming for a 40% reduction by 2034. metric tons of CO2 equivalent per million USD in revenue, down 58% from FY09 levels, despite daily package volumes rising by an average of 121%.
Overall Results on the Supply Chain Metrics That Matter. Now, based on this analysis, I can clearly see that P&G made incredible gains over competitors until 2005; but this performance could not be sustained. Supply chain leaders make progress in three-to-five years. It is seldom a step change. How Have They Done?
When Hurricane Katrina hit the Gulf Coast of the United States in 2005, Cisco executives created a business continuity-planning dashboard to mitigate risks. This allows Zara to make products that meet consumer tastes and reduces the number of items they must sell at a discount. Case Study Resilience: CISCO.
In 2005, I engaged with Sonoco Products, a packaging products and services company, to initiate some work on Sales and Operations Planning (S&OP). Alignment on a Metrics Portfolio. The leadership team at Sonoco Products aligned a metrics portfolio against a business strategy in 2010. Consistency of Leadership.
In 2005, I engaged with Sonoco Products, a packaging products and services company, to initiate some work on Sales and Operations Planning (S&OP). Alignment on a Metrics Portfolio. The leadership team at Sonoco Products aligned a metrics portfolio against a business strategy in 2010. Consistency of Leadership.
Kinaxis , an early pioneer in the evolution of SaaS solutions committed to the model in 2005, and went public on the Toronto Stock Exchange in 2013. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters.
The new trend to be sustainable is part of the current category: Revenue Growth, so why add another category like CSR when we should be moving towards the core supply chain metrics of total delivered cost and customer service. This, my friends, is why we need to get back to CORE supply chain metrics when measuring the Top 25.
However, the majority of Lenovo''s supply chain case studies focus on the use of information system and the benefits of the acquisition of IBM’s PC business in 2005. These high-level metrics are monitored and controlled by a cross-functional team.
The Supply Chain Operating Network technology market evolved from the trading exchange market in 2000-2005. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is writing her third book, Leadership Matters. In 2014 OpenText acquired GXS. While, in 2012, SAP acquired Ariba. A Look at History.
The USA says it intends to reduce emissions by 26-28 percent below its 2005 level by 2025 , trying hard for the upper limit. In 2010, Walmart announced its goal to eliminate 20 million metric tons of GHG emissions from its global supply chain by the end of 2015.
We are systemically evaluating each industry in the Supply Chain Insights Metrics That Matter series of reports. The market for multi-tier inventory management was overhyped and largely underdelivered in the period of 2005-2007. At Supply Chain Insights , this is our passion.
An IATA workgroup for XML messaging dates back to September 2005 but has yet to finish the job of converting all the old EDI message standards to XML. Amazon, the kings of automation built a $780 billion dollar empire on automated customer service…and their customer satisfaction metrics consistently outperform every other industry.
The product naming convention changed to Demand Sensing (DS) in 2005. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. Its first customers were Campbell’s Soup and Procter & Gamble.
The Journey from the initial acquisition of IBM PC business in 2005 to our recent acquisitions of IBM X86 business and Motorola X business has driven our culture, our style and our structure. “. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters.
It was an appropriate theme for Descartes, a company that has grown and evolved its solution footprint significantly over the past decade, with 28 acquisitions since 2005, including 7 acquisitions since the last user conference in 2013. Sears has a “fanatical focus” on customer satisfaction and Net Promoter Scores.
According to the press release : The proposed standards are expected to lower CO2 emissions by approximately 1 billion metric tons, cut fuel costs by about $170 billion, and reduce oil consumption by up to 1.8 billion barrels over the lifetime of the vehicles sold under the program.
Moreover, they help them track their performance against key metrics and identify areas where they can improve. Department for the Environment, Food and Rural Affairs (2005). Logistics KPI Dashboard is an essential tool for Logistics & Supply Chain Managers. Clements, M. The impact of e-commerce on logistics and transport.
This was not true in 2000-2005 where eCommerce capabilities by a manufacturer were seen as too competitive to retailers. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. It is now accepted that manufacturers will have retail capabilities.).
Orbit Chart Comparing Syngenta and Monsanto Progress on the Effective Frontier – Balancing Inventory Turns and Operating Margin for the Period of 2005-2014. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters.
In the period of 2000-2005 the trading exchange model was overhyped, and the software largely under-delivered against the business goals. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. There are many reasons.
Having a set of standardized metrics that are accurate and in real-time can deliver tangible benefits across entire organizations in terms of inventory reduction, service level improvement and agility. But when we’re talking about digital transformation in your supply chain, it’s actually just the beginning.
According to a published report by S&P Global Market Intelligence , more than one in five listed S&P 500 Companies increased their earnings-per-share metric by a least 4 percent by the third quarter of last year. This was noted as the highest level since 2019, a pre-pandemic measure. Net income declined also missing expectations.
1] It also means minimizing damage and the time taken to return to a normal state of operations (Sheffi and Rice, 2005). [2] Such a structure must be able to clearly articulate the communication, command and control for response, and deliver a transparent site picture through metrics to execute precision targeted relief and recovery.
If you follow the previous IMO holdings the first reduction came in 2005 by set a limit of 4.5% million metric tons annually. Actually, this is not at all recent. m/m of Sulphur cap. Later in the year 2012, it was further reduced to 3.5% The decision to make it 0.5% Surcharges passed on to shippers.
And, no surprises here, I attach metrics so I can measure the baseline. I write a lot about metrics, and change management and the soft aspects that you need to consider, and I provide tools and recommendations that I think will be helpful. I often look at the different cycles, like cash to cash, and analyze that.
With the government having stopped collecting relevant data back in 2005, the task has fallen to private think tanks like McKinsey Global Institute and the Brookings Institution , and freelancing platforms like Upwork Global Inc.
He also emphasized on analytics and mentioned that IBM has done more than 16 BUSD acquisitions since 2005 in this area. Some of those are Cognos, iLog, SPSS, Core Metrics, Emptoris, Vivisimo and many others, as world is moving from reactive to proactive.
To understand the pervasive nature of this change, consider Amazon’s 2012 announcement: “We now have more than 15 million items in Amazon Prime, this is up 15x since we launched in 2005. The traditional metrics within each silo are a barrier. For example, one retailer spoke on the management of returns. Make the Store a Destination.
US President Joe Biden recently announced a goal of cutting greenhouse gas emissions in the country by up to 52% by 2030, compared to 2005 baseline levels. At the same time, these decisions improve financial metrics and profit margins by optimizing the productivity of physical assets and reducing the company’s fuel and energy costs.
build alignment (driving goal congruence), building reward systems (defining a cross-functional set of metrics to align to the strategy) and defining the right reporting relationships (the S&OP process needs to report to the profit center manager). In the period of 1998-2005, there was an infatuation with the CPFR process.
Improvement on the key metrics of growth, inventory turns, operating margin and Return on Invested Capital (ROIC) is elusive. Then as a software executive (1991-2001 and then 2003-2005) and finally as an analyst (2001-2003 and 2005-present). Here I want to share a perspective of “Why.” Yes, I am an old gal.).
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