Supply Chain Shaman

OCTOBER 29, 2020

Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. The impact of the elongation of payables on receivables varies by industry, but on average across the industries increased eighteen days when comparing the past five years to the pre-recession years.

Optimal Sourcing 229

Optimal Sourcing Supply Chain Design Software Waste Reduction Inventory Reduction 229

Supply Chain Shaman

MARCH 18, 2018

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. This is number 15 in a series that looks critically, industry by industry, to understand relative improvement of peer groups on the Effective Frontier. Cash-to-cash is a compound metric. We see this in industry after industry.

Optimal Sourcing 169

Optimal Sourcing Supply Chain Planning Software Supply Chain Optimization Supply Chain Design Software 169

Supply Chain Shaman

JUNE 15, 2018

Figure 1: Supply Chain Metrics Are a Balancing Act. The metrics shown in Figure 1 are difficult to improve together. Most companies improve singular metrics but are not able to drive portfolio. Here I show orbit chart comparisons at the intersection of operating margin and inventory turns for the period of 2006-2017.

Sourcing Strategies 150

Sourcing Strategies Supply Chain Planning Software Inventory Reduction Modeling Software 150

Supply Chain Shaman

SEPTEMBER 9, 2014

We built peer groups based on like industries. The NAICS designation was developed by the US Federal Government to characterize groups of companies within an industry. If the company had multiple divisions crossing over many industries, where did you place them? Which companies were considered in the study?

Pharmaceutical 274

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 274

Supply Chain Shaman

JANUARY 28, 2015

In our work on the Supply Chains to Admire report , we tracked the progress of manufacturing, retailing and distribution companies for the period of 2006 to 2013 and 2009-2013. 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).

Supply Chain Design Software 150

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Cost Reduction Strategies 150

Supply Chain Shaman

SEPTEMBER 4, 2017

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 analysis was industry-specific. In the case of a company spanning multiple industries, we used our judgment to drive the assignment.

Supply Chain Planning Software 169

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Supply Chain Software 169

The Logistics & Supply Chain Management Society

NOVEMBER 15, 2021

With broad-based support packages, targeting hardest-hit industries like aviation, coupled with support of a strong logistics ecosystem, reinforced by global players such as DB Schenker. The digital twin allows for internal operations as well as customers to view the various processes, along with detailed metrices throughout the facility.

Singapore 246

Singapore Logistics Network Optimization Software Supply Chain Design Software Waste Reduction 246

Supply Chain Shaman

JUNE 7, 2021

AMR Research was an industry analyst firm in Boston. I argued for industry collaboration to define and drive process innovation. We don’t have a clear industry definition of supply chain excellence. When companies were growing, I also discovered that the cost and inventory metrics better aligned with peers.

Gartner 197

Gartner Supply Chain Design Software Supply Chain Planning Software Eliminating Excel in Purchasing 197

Supply Chain Shaman

MAY 29, 2014

I just don’t think the comparison of very different industries in a spreadsheet based on growth, inventory values, and Return on Assets (ROA) is meaningful. Take the chemical industry. As a result, the metrics have to be viewed together as a pattern over time. I find value in looking at these metrics together.

Gartner 301

Gartner Inventory Reduction Supply Chain Planning Software Pharmaceutical 301

Supply Chain Insights

SEPTEMBER 9, 2014

We built peer groups based on like industries. If the company had multiple divisions crossing over many industries, where did you place them? We placed them in the industry that they were the most like, e.g., the primary source of revenue. Which companies were considered in the study? We tried to use NAICS code designations.

Pharmaceutical 179

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 179

Supply Chain Insights

SEPTEMBER 2, 2014

While most companies have been able to make progress in one of these two critical metrics in the period of 2006-2013, they have not been able to make progress on both together. Will your UPS store or Third-party Logistics (3PL) provider, through printing on-demand, become the new provider of parts for industrial equipment?

Supply Chain Design Software 253

Supply Chain Design Software Supply Chain Software Agile and Lean Supply Chain Supply Chain Design 253

Supply Chain Shaman

OCTOBER 5, 2018

At the Supply Chain Global Summit 2018 , Francois discussed the impact of digitalization, Industry 4.0, The award, based on beating the industry peer group on rate of improvement on the key metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) while outperforming their peer group, is tough to achieve.

Case Study 254

Case Study Inventory Reduction Agile and Lean Supply Chain Study 254

Supply Chain Shaman

JANUARY 19, 2014

Despite multimillion dollar technology projects, and tomes of strategy documents, they are stuck in their ability to overcome market factors and rising complexity to drive continuous improvement on a portfolio of metrics. This chart is from a study of 46 leaders in the food industry. They quickly acknowledge that they are stuck.

Supply Chain Planning Software 278

Supply Chain Planning Software Supply Chain Design Software Price Mitigation Strategies Inventory Reduction 278

Supply Chain Shaman

OCTOBER 25, 2013

It is a quest and the subject of my next book, Metrics That Matter , that will publish in September, 2014. I am searching for something that can be meaningful across industries and across company sizes. We used the period of 2006 to 2012 to build the model and we used the formula to attempt to predict 2013. I shake my head.

Gartner 257

Gartner Supply Chain Strategy Supply Chain Software Supply Chain 257

Supply Chain Shaman

JULY 3, 2015

Opinion makes up 50% of the rating; and in the ranking system, company comparisons are against each other with little consideration of industry drivers. Supply chain leaders manage a complex system of non-linear, but very inter-connected metrics. Leaders need to balance a portfolio of metrics. Why Do I Think This? .

Gartner 150

Gartner Supply Chain Software Demand Planning Software Modeling Software 150

Supply Chain Shaman

AUGUST 5, 2015

The report analyzes supply chain performance and improvement by the Consumer Products Leaders in the period of 2006-2014. In the selection of time frames to analyze, we look at the long-term view including the recessionary period of 2006-2009, the post recessionary period of 2009-2014 and the more recent time period of 2011-2014.

Agile and Lean Supply Chain 150

Agile and Lean Supply Chain Supply Chain Strategy Global Supply Chain 150

Supply Chain Shaman

MAY 19, 2016

When full-year public data becomes available in April, we take each industry and analyze results over the period of 2006-2015. We analyze data for all public companies in thirty-two industries. For each industry, we publish an industry-specific report. It is one of the reasons that I left Gartner in 2010.

Gartner 158

Gartner Pharmaceutical Predictive Analytics Modeling Software 158

Supply Chain Shaman

JUNE 5, 2013

In 2006, they made a decision to implement a supply chain planning solution. 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.

Supply Chain Planning Software 216

Supply Chain Planning Software Supply Chain Planning Supply and Demand Supply Chain Design Software 216

Supply Chain Shaman

SEPTEMBER 17, 2014

While the performance rankings were based on comparisons of inventory turns, operating margin and Return on Invested Capital (ROIC) for the periods of 2006-2013 and 2009-2013, the concept is that to be a supply chain leader you must outperform and drive improvement. Aligned Metrics. We find that this is true of too few companies.

Optimal Sourcing 301

Optimal Sourcing Supply Chain Design Software Supply Chain Planning Software Manufacturing Procurement 301

Supply Chain Shaman

AUGUST 11, 2014

We have found that supply chain metrics are gnarly and complicated.During Supply Chain Excellence as defined by a methodology whereall companies are put into a spreadsheet and compared across industries is meaningless. During the period of 2006-2012, Campbell Soup Company outperformed its peer group on the Supply Chain Index.

Case Study 286

Case Study Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software 286

Kinaxis

SEPTEMBER 9, 2014

The “Top 15 Supply Chains to Admire” is the culmination of a two-year effort to evaluate supply chain performance and improvement for the years of 2006-2013 by industry by vertical for publicly-held companies. Kinaxis is pleased to be a Silver Sponsor of the 15th Annual Automotive Logistics Global Conference. Learn More.

Conference 150

Conference Gartner Supply Chain Planning Software Supply Chain Design Software 150

Supply Chain Shaman

FEBRUARY 12, 2017

Each year at Supply Chain Insights we study performance and improvement of companies in each industry. The patterns of BMS and Merck are typical in the pharmaceutical industry. The level of performance in 2015 is the same as 2006. Performance and Improvement within the Pharmaceutical Industry for 2009-2015.

Pharmaceutical 150

Pharmaceutical Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Design 150

Supply Chain Opz

JANUARY 29, 2020

In the publishing industry, Nielsen BookScan is the most widely used database for a book ranking method. Therefore, the challenge to establish the ranking method is to find a more economical data source and the unbiased metrics. Anyway, the access to this database costs an arm and a leg. References - Moed, H. & Tang, C.

Agile and Lean Supply Chain 100

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Planning Software Supply Chain Strategy 100

Kinaxis

JUNE 1, 2016

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. Amazon has reshaped the Retail experience, and is in the process of reshaping the distribution industry.

Gartner 100

Gartner Supply Chain Strategy Supply Chain Predictive Analytics Software 100

Supply Chain Shaman

JANUARY 18, 2016

As shown in Table 1, the growth of traditional retail industries is declining. When we do these types of analysis, we look back at the data as far as we can reach (Y chart data is available only back to 2006 in a reliable form) and then we look at the period of 2006-2014 and the more recent period of 2011-2014. The difference?

Supply Chain Planning Software 150

Supply Chain Planning Software Modeling Software Supply Chain Software Manufacturing Procurement 150

Supply Chain Shaman

FEBRUARY 22, 2015

The more that I work on supply chain metrics, the more that I believe that both the SCOR model and the Gartner Hierarchy of Supply Chain Metrics (which I worked on for the period of 2006-2010) reward functional, not end-to-end supply chain behavior. I see this as a problem. Lora Cecere is the Supply Chain Shaman.

Supply Chain Design Software 150

Supply Chain Design Software Supply Chain Planning Software Optimal Sourcing Modeling Software 150

Supply Chain Shaman

MARCH 29, 2015

In studies from the periods of 2006-2008, there was slow adoption of 15-20%, and today, the supply chain leader prefers a cloud-based solution. With new capital and a new CEO–Pervinder Johar from HP– their goal is to become the “Salesforce.com” of the supply chain industry. In 2002, there was no interest.

Supply Chain Planning Software 150

Supply Chain Planning Software Modeling Software Supply Chain Network Software Supply Chain Software 150

Supply Chain Shaman

APRIL 27, 2022

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.) Shown in Figure 2, we track the results for the period from 2006-to 2021.

Procurement Analytics 332

Procurement Analytics Manufacturing Procurement Supply Chain Planning Software Supply Chain Design Software 332

Supply Chain Shaman

DECEMBER 4, 2018

For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). Diversified Industry Performance For the Period of 2010-2017. Meet Ernest.

Supply Chain Software 33

Supply Chain Software Supply Chain Planning Software Supply Chain Design Software Manufacturing Procurement 33

Supply Chain Shaman

DECEMBER 4, 2018

For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). Diversified Industry Performance For the Period of 2010-2017. Meet Ernest.

Supply Chain Software 30

Supply Chain Software Case Study Supply Chain Planning Software Supply Chain Design Software 30

Supply Chain Shaman

JUNE 14, 2014

I think about this discussion with Keith often as I work on the Supply Chain Index and edit the chapters of Metrics That Matter. In Figure 1, I share a composite orbit chart of progress of Cisco Systems, Intel, Samsung and Flextronics on the Effective Frontier at the intersection of inventory turns and operating margin for 2006-2012.

Optimal Sourcing 283

Optimal Sourcing Manufacturing Procurement Procurement Analytics Modeling 283

Supply Chain Shaman

NOVEMBER 15, 2012

His company made parts for the mining industry, and he was leading an S&OP process. Based on the work I was doing on financial metrics, and studying the Supply Chain Effective Frontier, I was convinced that companies cannot effectively model the required trade-offs of good supply chain decision-making in S&OP using spreadsheets.

Supply Chain Planning Software 265

Supply Chain Planning Software Modeling Software Forecasting Software Demand Planning Software 265

Supply Chain Shaman

MARCH 6, 2015

In the process of compiling the Supply Chains to Admire report for last year’s Supply Chain Insights Global Summit , the research team at Supply Chain Insights calculated the rate of supply chain improvement of companies by industry for the period of 2006-2013 and 2009-2013. However it is tougher for an industry leader like L’Oreal.

Supply Chain Design Software 150

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Supply Chain Design 150

Supply Chain Game Changer

AUGUST 13, 2020

All the while, McDonald’s retained its global approach, brand, image, operations & supply chain ( Guardian 2006 ). But, is it even possible in 2020 to localize supply chain operations, and remain competitive in industry verticals where cheap foreign labor, production & raw material sources are so prevalent?

Agile and Lean Supply Chain 121

Agile and Lean Supply Chain Supply Chain Strategy Global Supply Chain Design 121

ThroughPut

DECEMBER 3, 2019

Are industrial bottlenecks preventing your business from growing? If companies can’t dynamically analyze and create executable insights from the existing data systems and teams they already have in house, then they simply aren’t ready for any sort of so-called Digital Transformation or Industry 4.0 billion to $9 billion.

Cost Reduction Strategies 52

Cost Reduction Strategies Supply Chain Planning Software San Francisco Supply Chain Network Software 52

Supply Chain Shaman

AUGUST 26, 2015

As we traced the process that could exist using channel data, the conversation changed… DuPont served two primary markets–automotive and the building industry. She is trying to redefine the industry analyst model to make it friendlier and more useful for supply chain leaders. We hope to see you there! _.

Supply and Demand 150

Supply and Demand Forecasting Modeling Forecasting Software 150

Supply Chain Shaman

SEPTEMBER 20, 2015

Orbit Chart for SanDisk for 2006-2014. She is trying to redefine the industry analyst model to make it friendlier and more useful for supply chain leaders. Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters.

Inventory Reduction 150

Inventory Reduction Cost Reduction Strategies Sourcing Strategies Supply Chain Strategy 150