Struggling with Multi-Echelon Inventory Adoption


2006-2009 I did a PhD on Multi-Echelon Inventory Optimization. Though benefits are clear, multi-echelon inventory adoption has been very slow. Pilots within and across company boundaries have been convincing, but we have not seen a widespread multi-echelon inventory adoption. Also read the blog post from my colleague on whether your business needs Multi-Echelon Inventory Optimization. Why is multi-echelon inventory adoption limited?

Vendor Managed Inventory? Think twice and consider the risks!

Supply Chain View from the Field

Historically, businesses have used one of two extremes for inventory management: push-based or pull-based. Push-based inventory management uses demand forecast to manage inventory and replenish from the supply base. Pull-based inventory management, on the other hand, uses consumption to replenish from the supply base and manage inventory. Inventory levels actually increased at downstream (buyer) facilities. 1, 2006. 1, 2006. 7, 2006.

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Measuring Up?

Supply Chain Shaman

In our analysis, only one out of ten companies successfully improves operating margins and inventory turns at the same time. When this happens, we find that the organization is more aligned and perform(s) better on the Supply Chain Metrics That Matter –growth, inventory turns, operating margin, Return on Invested Capital (ROIC). (We In Figure 2, we share the average results by industry peer group for each metric and contrast the average value of 2006 to 2015.


Supply Chain Shaman

It was called multi-enterprise inventory optimization. In the beginning, the inventory management solutions of LogicTools , Optiant and SmartOps pushed to take operations research to a new level through supply chain optimization. As the leaders in the Advanced Planning Solutions (APS) market consolidated, and innovation slowed, the new inventory management startups brought energy into a market that was losing its luster. Inventory is now the primary supply chain buffer.

Lean Thinking Revisited

Operations and Supply Chain Management

One landmark in the lean revolution for retailers was Walmart ’s decision in 2006 to thin out inventory by $6.5 The supply chains for consumer goods in the U.S. remain under strain months after pandemic lockdowns triggered a range of sudden and surprising shortages.

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A Brief History of WMS in the Supply Chain


As the world moved forward, the basic concept of managing warehouse inventory did not change much. The 1900s to Late 1930s: World War I Witnesses the Introduction of Hand Trucks for Moving Materials and Managing Inventory. Products would be stacked up to 12-feet high, but this left little room for the varying product in each stack, and exact inventory counts were difficult to track. In the 1980s, the use of AS/RS declined as excess inventory drove storage costs higher.

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I Want My CSCP!


Earning the Certified in Production and Inventory Management (CPIM) in 1992 opened up a world of opportunity for me and super-charged my career, eventually bringing me to work for APICS as the Sr. Director of Professional Development in late 2006. I earned my CFPIM (“Certified Fellow”), was Certified in Integrated Resource Management (CIRM) in 1998 and earned my Certified in Supply Chain Professional (CSCP) during the first exam in early 2006.

I Want My CSCP!


Earning the Certified in Production and Inventory Management (CPIM) in 1992 opened up a world of opportunity for me and super-charged my career, eventually bringing me to work for APICS as the Sr. Director of Professional Development in late 2006. I earned my CFPIM (“Certified Fellow”), was Certified in Integrated Resource Management (CIRM) in 1998 and earned my Certified in Supply Chain Professional (CSCP) during the first exam in early 2006.

RFID in the Supply Chain: Fizzling Technology or the Future of Effective SCM?


In 2003, Walmart announced that all of its suppliers would need to have Radio frequency identification (RFID) tags on all pallets and cases by 2006. More recently, with the rise of interconnected systems, the analytics to derive value from those systems seems, and decreased costs, RFID is resurrecting as a solution for increasing supply chain management (SCM), visibility into processes, and reducing inventory tracking costs.

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Balanced Supply Chain Careers for a Balanced Supply Chain


Service aspects include the number of SKU’s in the portfolio, the lead times you offer, the flexibility to offer, … More service typically drives more cost and more inventory. Manufacturing and procurement are focused on cost, which may result in long production runs or large minimum order quantities driving inventory up. The CFO may be left frustrated with large inventory swings resulting from the unbalance in the triangle. January/February 2006.).

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The Fight of the Titans

Supply Chain Shaman

My caution is not so fast… 95% of companies are not making progress at the intersection of growth, operating margin, inventory turns and asset strategies. Here I show orbit chart comparisons at the intersection of operating margin and inventory turns for the period of 2006-2017. Consistent data is not available prior to 2006.) Pepsico has ceded profitability for inventory turns while Coca-Cola is at the same position in 2017 that the company was in 2006.

S&OP – 13 Years On, What Have We Learned and What Has Changed?


In December 2006, I published an article titled “ S&OP or just good supply chain planning ?” Excess inventories, expediting, poor order fulfillment, overtime and poor resource utilization are a fact of life. . Lower inventory levels . The article looked at what Sales and Operations Planning is, what it isn’t, and whether companies were on the right path to implementing it. I wondered: is S& OP just too hard to implement ?

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Shaking Things Up in Supply Chain Management

Demand Solutions

Early in my career, I was head of inventory control for a large retail operation that ran as a co-op. If you’d just butt out and let us run purchasing the way we’re supposed to, we’d have all the inventory we need and we wouldn’t have to keep buying Christmas trees in February!” He also has served as COO of Atrion/ClearCross, and held leadership positions at Manugistics and American Software before joining DMI in 2006.

Where Do We Go From Here? Taking a Look at the 2016 State of Logistics Report


GDP has changed since 2006. Changes in transportation and storage of inventory costs made up significant portion of the 2016 SOL. Inventories are a major issue analyzed by the 2016 SOL as well. While inventories had steadily grown since 2005 at 5-percent annually, growth of inventories in 2015 flattened out. Yet, the inventory cost increased in 2015 by 5.1 In terms of physical requirements, inventory levels remained the same as 2015.

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7 Best Supply Chain Books of All Time

Supply Chain Opz

Only highly relevant books about fundamentals of supply chain management will be listed (books discuss algorithms for supply chain network design extensively are not included here, books about information system, customer service, project management, inventory management, purchasing, lean manufacturing, six sigma are not included here either.) - In case of newer books, we use Amazon Sales Rank to determine the books' performance. 2006).

How Can We Heal the Global Supply Chain?

Supply Chain Shaman

Inventory Turns. Better performance in inventory turns than the peer group average for the period of 2006-2015. Corporate report data is not readily available before 2006. If you trace the year-over-year pattern, you can see that P&G made progress on inventory turns and operating margin 2006-2007, 2009-2010. In the other years, P&G improves inventory turns but regresses on operating margin performance.) Today, I unpacked my bags.

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Stories of Supply Chain Leadership: An Interview with Joan Motsinger of Seagate

Supply Chain Shaman

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). We are also working on Sales and Inventory Operations Planning (S&IOP). Securing our inventory are emerging as risks and opportunities.

What About the Supply Chain Index?

Supply Chain Shaman

We used the period of 2006 to 2012 to build the model and we used the formula to attempt to predict 2013. We have found that nine out of ten organizations are stuck on their ability to make improvements on both operating margin and inventory turns in the same year. And, recently, Procter & Gamble is more focused on improving inventory turns. 3) Resiliency: A tight, positive pattern at the intersection of inventory turns and operating margin.

Talent Trap

Supply Chain Shaman

In short, they have been able to drive improvements in one or two metrics; but, they are struggling to improve a portfolio of metrics that includes customer service, cost, inventory turns, and growth. In 2006, I met a man by the name of Dick Clark that traveled the world working on role definition of planners for Procter & Gamble. In 2006, I asked Dick why it was taking him so long to define the roles of planning within P&G.

The State of Supply Chain Trends Part IV: Data Analysis, Wearables, and the Cloud


For example, wearables measuring the number of steps, heart rate and calorie consumption can virtually eliminate on-the-job cardiac events, reports the Inventory & Supply Chain Optimization Blog. Consequently, the focus on data analysis also grew significantly in 2016, and the use of beacons and connected devices, including POS systems, on-truck sensors and inventory management applications, will continue to shape how consumers obtain products from manufacturers and vendors.

How Do You Define a Mature Supply Chain Planning Organization? (Part 1)

Supply Chain Shaman

In 2006, they made a decision to implement a supply chain planning solution. Monthly design of the supply chain including form and function of inventory and inventory placement. Inventory. Focus on the level of inventory. Inventory is often focused on as a singular metric, not as part of a complex supply chain system. Focus on the form and function of inventory based on demand and supply variability and business plans.

Don Ralph of Staples Awarded Salzberg Medallion for SCM

Supply Chain Network

His key accomplishments include the development of new industry-leading infrastructures, spearheading impeccable inventory management, an intricate fulfillment and delivery network, perfect order execution and a highly efficient cost structure. Staples has focused on many fuel efficiency initiatives within its delivery fleet since 2006. A speed reduction program has saved over five million gallons of fuel and 35,000 tons of CO2 since 2006.

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And I thought last year’s Top 25 Supply Chain was a surprise


I am bolder on Samsung, simply because they had the highest 2016 Inventory Turns aside from McDonalds. by CJ Wehlage On the bus ride back to the McDowell Marriott after the 2016 Gartner Top 25 Supply Chain event, I plugged my ear phones into my cell and listened to some Pearl Jam. Their classic hit, Last Kiss, the song summed up my thoughts about the 2016 rankings. So, the supply chain version of Last Kiss would go something like this…. “Oh Oh where, oh where, can my supply chain be?

Clorox Successfully Implements a Program for Value Chain Segmentation

Supply Chain Shaman

It was a strategy day in 2006. In 2006, Clorox was adding businesses through acquisition, expanding globally in both existing and new markets, moving into new distribution channels, and adding customers who required different route-to-market models. In this period, Clorox was acquiring products with significantly higher margins and lower inventory turns. While retail companies improved inventory, they lost ground on growth and operating margin.

New Bookends: The Tale of Supply Chain Global Leaders in Consumer Products

Supply Chain Shaman

These giants drove slight improvements in operating margin, inventory turns and Return on Invested Capital (ROIC) despite a slowing economy. The shift from 2004-to 2006 is impressive. Over the past two years, P&G made impressive gains in operating margin and inventory turns, but the company failed to equal the ROIC test for asset utilization. Definition. Bookends: To be positioned at the end or on either side of (something). Colgate. Procter & Gamble. Kimberly-Clark.

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Intelleflex Announces Cellular, GPS-equipped RFID Reader & Cloud-based ZEST™ Data Services Platform

Supply Chain Network

To achieve full efficiency, the supply chain needs secure, accurate and timely data on the inventory status and condition of its products. This model improves operational efficiency, reduces friction and waste in the supply chain, and improves inventory management, asset tracking and personnel monitoring. 1 “Shelf Life,” Forbes, Suzanne Hoppough, May 12, 2006.

Novo Nordisk: A Story of a Supply Chain Leader

Supply Chain Shaman

Note that neither company is making progress at the intersection of operating margin and inventory turns. The level of performance in 2015 is the same as 2006. Performance of BMS and Merck at the Intersection of Inventory Turns and Operating Margin. Orbit Chart for Novo Nordisk at the Intersection of Operating Margin and Inventory Turns for the period of 2006-2015. Local resources, in the countries of final distribution, manage demand and inventory planning.

Transforming Consumer Value Chains: Navigating The Power Shift to the Shopper

Supply Chain Shaman

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. Table 1: Contract of Growth, Operating Margin, Inventory Turns and Cash-To-Cash for Consumer-Facing Industries. In parallel, take a closer look at inventory turns where only pharmaceutical companies made slight progress.

Best B2B Marketplaces in China


Tradekey is a global company established in 2006 and have presence in many countries. Founded in 2006, China Suppliers have revolutionized a lot. It was launched with the name in 1999 and renamed to in May 2006. The post Best B2B Marketplaces in China appeared first on Best Inventory Management Software for Small Businesses - EMERGE App.

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Taking Risks that Pay Off

JDA software

In 2006, I worked for Circuit City and I installed JDA Category Knowledge Base there. I trained everyone on all the software, including some elements related to inventory and how it was planned for each store. Jen Colley is a senior solution architect at JDA and has been on both sides of the fence – working at a retailer and now at JDA, working closely with customers to get their category management deployments up and running.

Coronavirus Increases Supply Chain Risk Management Priority

Enterra Insights

… Perhaps more important than inventory and planning is the lack of experience: Experts refer back to the 1918 Spanish Flu outbreak for guidance, yet no public health experts have personal experience with this type of global pandemic.” Van Hull notes, “Shortly after Dr. Osterholm’s article, in May 2006, AMR Research (acquired by Gartner in 2009) published Supply Chain Saves the World with a chapter dedicated entirely to preparing for pandemics.

JDA’s Project with SanDisk, a Western Digital Brand, Recognized for Its Impressive Supply Chain Transformation

Supply Chain Nation

Here’s a behind-the-scenes look at the project: Project goal: SanDisk’s goal was to operate a responsive, best-in-class supply chain for flash memory products that would achieve optimal balance between service level and inventory turns across scenarios to create a better experience for its commercial and retail partners and customers. SanDisk began leveraging JDA’s advanced planning solutions in 2006 to create a more responsive supply chain.

Ecommerce Venture Capital Trends: Which VCs & Seed Investors are Investing in Ecommerce?


Founded in 2006, this firm is slightly newer in comparison to others. You must be able to manage inventory turnover seamlessly and prevent stockouts. Tools that help with demand forecasting can help ensure you stay a step ahead with reordering inventory.

This Week in Logistics News (September 29 – October 3, 2014)

Talking Logistics

One of the early pioneers of software-as-a-service (SaaS) transportation management systems (TMS) was Nistevo, which was acquired by Sterling Commerce in May 2006 (Sterling Commerce had become an AT&T company in late 2005). Moving on to omnichannel fulfillment, Manhattan Associates introduced Available to Commerce™ , which gives retailers “the power to offer specific units of inventory available for sale in the most appropriate channel (online, store, same-day delivery, etc.)

How do we Drive Invention to Innovation in Planning?

Supply Chain Shaman

One of my favorite speeches, over this fifteen year tenure, was listening to Alan Greenspan at the AMR Research IT conference in November 2006. Inventory piles up and revenues gaps are closed by pushing product into the market. This week, I spoke at the Chicago CSCMP round table event. I love to hear the thoughts from different speakers.