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.

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.

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. In Figure 2, we share the average results by industry peer group for each metric and contrast the average value of 2006 to 2015. Inventory Turns.

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.


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.

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.

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 .

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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. The CFO may be left frustrated with large inventory swings resulting from the unbalance in the triangle.

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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.

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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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. In the other years, P&G improves inventory turns but regresses on operating margin performance.)

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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. Yet, the inventory cost increased in 2015 by 5.1

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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 are also working on Sales and Inventory Operations Planning (S&IOP).

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.

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.

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.

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. Definition. Bookends: To be positioned at the end or on either side of (something). Colgate.

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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. 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.

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.

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.

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

Supply Chain Nation

SanDisk began leveraging JDA’s advanced planning solutions in 2006 to create a more responsive supply chain. billion in annual revenues in 2006 to USD $5.56

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.

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.

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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[INFOGRAPHIC] The Evolution and History of Supply Chain Management


The computerization of this data opened the door to a huge opportunity for innovations in logistics planning, from randomized storage in warehouses to optimization of inventory and truck routing. History of Supply Chain Management.

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.

Combat Rising Transportation Costs and Driver Shortage With Supply Chain Analytics


To put this in perspective, 2018 is the first year since 2006 in which driver shortage is the primary concern of the industry. With recent increases in consumer spending and business investments, rising inventories across a multitude of industries are a must.

3 Tips for Placing the Customer at the Center of Your Hospitality Supply Chain


Inventory Management. Problems with inventory management. Inventory management, when done right, helps you keep the right diversity and number of products on hand in your hospitality supply chain.

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.

The History of Supply Chain Management! (Infographic)

Supply Chain Game Changer

The computerization of this data opened the door to a huge opportunity for innovations in logistics planning, from randomized storage in warehouses to optimization of inventory and truck routing. Subscribe Here! Email Address.

S&OP, a vision for the future. The expert interview series #1

Supply Chain Trend

S&OP concepts should and could be adopted in both inventory intensive, manufacturing businesses, and pure service related businesses, and where resources are constrained and / or strategic choices need to be made. Introduction.

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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).

Rockwell Automation: Supply Chains to Admire Winner

Supply Chain Shaman

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).

Who said supply chains are boring?: An Online Class Everyone.

Supply Chains Rock

As the Supply Chains Rock blog points out in an October 2006 post, conducting business in emerging global markets requires a knowledge of supply chains and the ways in which they function in other regions. “In this way, the distributor never has to worry about running out of a product and disappointing customers and the supplier doesnt have to worry about maintaining a large inventory in expectation of demand,” supply chain technology company Epiq says on its website.

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