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. Supply Chain Design.

Optimal Sourcing 365

Optimal Sourcing Supply Chain Design Software Supply Chain Planning Software Manufacturing Procurement 365

Supply Chain Shaman

OCTOBER 29, 2020

Inventory, in this time of uncertainty, is the organization’s most important buffer to protect against variability. However, organizations are not good at managing inventory. Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle.

Optimal Sourcing 299

Optimal Sourcing Supply Chain Design Software Waste Reduction Inventory Reduction 299

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. Monthly design of the supply chain including form and function of inventory and inventory placement.

Supply Chain Planning Software 255

Supply Chain Planning Software Supply Chain Planning Supply and Demand Supply Chain Design Software 255

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. We used the period of 2006 to 2012 to build the model and we used the formula to attempt to predict 2013. And, recently, Procter & Gamble is more focused on improving inventory turns. I shake my head. What did we learn?

Gartner 258

Gartner Supply Chain Strategy Supply Chain Software Supply Chain 258

Supply Chain Shaman

AUGUST 11, 2014

We have found that supply chain metrics are gnarly and complicated.During During the period of 2006-2012, Campbell Soup Company outperformed its peer group on the Supply Chain Index. Resiliency is the tightness of the pattern, or the reliability of operating margin and inventory turns results. Our aim was to maintain a 3 to 3.5

Case Study 305

Case Study Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software 305

Supply Chain Shaman

OCTOBER 5, 2018

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. The orbit chart below illustrates L’Oréal’s performance at the intersection of two metrics.

Case Study 329

Case Study Inventory Reduction Agile and Lean Supply Chain Study 329

Supply Chain Insights

SEPTEMBER 2, 2014

Today, 90% of publicly-traded companies are stuck at the intersection of operating margin and inventory turns. 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. It is needed.

Supply Chain Design Software 253

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

Supply Chain Shaman

MARCH 28, 2016

To help, in this post, we provide you with some insights for the period of 2006-2015. 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. A Look at History. Resiliency.

Pharmaceutical 195

Pharmaceutical Metrics Manufacturing Procurement Supply Chain Planning Software 195

Supply Chain Shaman

OCTOBER 22, 2015

The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study. Inventory management is a hot issue. Companies invest in project after project, yet inventory levels remain the same. The Business Problem. The analogy is weight loss.

Inventory Reduction 150

Inventory Reduction Supply Chain Design Software Inventory Supply Chain Planning Software 150

Supply Chain Shaman

MARCH 18, 2018

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics.

Optimal Sourcing 191

Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software Supply Chain Optimization 191

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. They all sound alike and each company makes similar claims of how the implementation of supply chain planning improves costs, lowers inventory and improves the return on assets.

Supply Chain Planning Software 191

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Supply Chain Software 191

Supply Chain Shaman

SEPTEMBER 9, 2015

It is for this reason, that we analyze the patterns of the Metrics That Matter using orbit charts over the period of 2006-2014. The analysis is designed to analyze supply chain leader success on a portfolio of metrics. Nine out of ten are stuck unable to make improvements in these Supply Chain Metrics That Matter.

Supply Chain Design Software 150

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

Supply Chain Insights

SEPTEMBER 9, 2014

The companies were selected based on performance better than peer group for 2006-2013 and delivering better than average improvement within the peer group as determined by the Supply Chain Index. However, due to a variety of factors, companies are losing ground on driving progress on both inventory turns and operating margin.

Pharmaceutical 179

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 179

Supply Chain Shaman

DECEMBER 15, 2015

For the discrete industries we contrast the industry averages for growth, operating margins, inventory turns, cash-to-cash cycle, revenue per employee, and SG&A ratio for the periods of 2006-2014 and 2011-2014. For each metric we show the averages and the percent change from the beginning and end of the period. Cash-To-Cash.

Industry 150

Industry Industrial Inventory Reduction Metrics 150

Supply Chain Shaman

DECEMBER 15, 2015

For the discrete industries, we contrast the industry averages for growth, operating margins, inventory turns, cash-to-cash cycle, revenue per employee and SG&A ratio for the periods of 2006-2014 and 2011-2014. For each metric was show the averages and the percent change from the beginning and end of the period.

Industry 150

Industry Industrial Inventory Reduction Metrics 150

Supply Chain Shaman

JUNE 15, 2018

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. Figure 1: Supply Chain Metrics Are a Balancing Act. The metrics shown in Figure 1 are difficult to improve together. Consistent data is not available prior to 2006.)

Sourcing Strategies 150

Sourcing Strategies Supply Chain Planning Software Inventory Reduction Modeling Software 150

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

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). Ernest Nicolas joined Rockwell Automation in 2006. Meet Ernest.

Supply Chain Software 34

Supply Chain Software Supply Chain Planning Software Supply Chain Design Software Manufacturing Procurement 34

Supply Chain Shaman

SEPTEMBER 20, 2015

Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. Orbit Chart for SanDisk for 2006-2014. This included monthly reviews between business units and central operations teams and adaptive inventory segmentation policies.

Inventory Reduction 150

Inventory Reduction Cost Reduction Strategies Sourcing Strategies Supply Chain Strategy 150

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.

Manufacturing Procurement 345

Manufacturing Procurement Optimal Sourcing Procurement Analytics Modeling 345

Supply Chain Shaman

FEBRUARY 23, 2017

Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The The Supply Chain Metrics That Matter are a portfolio of metrics which correlate to higher market capitalization. Inventory Turns. We eliminate the lower 1/3 of companies for the period from consideration.

Agile and Lean Supply Chain 186

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Design Supply Chain Planning Software 186

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). Ernest Nicolas joined Rockwell Automation in 2006. Meet Ernest.

Supply Chain Software 30

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

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 believe that supply chain excellence is driving improvement while averaging a higher level of performance in the Supply Chain Metrics That Matter. This is problematic for the supply chain leader.

Gartner 210

Gartner Pharmaceutical Predictive Analytics Modeling Software 210

Supply Chain Shaman

JUNE 7, 2021

Companies entered the pandemic with twenty more days of inventory than at the beginning of the great recession. A balance sheet analysis shows that 95% of publicly traded manufacturers are stuck (when compared to peer group) at the intersection of growth and margin, margin and inventory turns, and Return on Invested Capital (ROIC) and growth.

Gartner 221

Gartner Supply Chain Design Software Supply Chain Planning Software Eliminating Excel in Purchasing 221

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. What CEO does not like the concept of reducing inventory? It is cash.

Supply Chain Design Software 150

Supply Chain Design Software Supply Chain Planning Software Optimal Sourcing Inventory Management 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

JULY 3, 2015

Inventory Turns (15%) (based on 2014 results). Supply chain leaders manage a complex system of non-linear, but very inter-connected metrics. Leaders need to balance a portfolio of metrics. Year-over-year Improvement at the Intersections of the Metrics. A Three-year Weighted Return on Assets (ROA) Number (25%).

Gartner 150

Gartner Supply Chain Software Demand Planning Software Modeling Software 150

Supply Chain Shaman

NOVEMBER 14, 2016

I followed his journey during the period of 2006-2011, and wanted to check in with him to gain his insights on the selection of VTech as a finalist in the Supply Chains to Admire research. Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. Inventory Turns. About VTech.

Supply Chain Planning Software 150

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Supply and Demand 150

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.

Conference 154

Conference Gartner Supply Chain Planning Software Supply Chain Design Software 154

Supply Chain Shaman

NOVEMBER 28, 2016

Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As As a group, these metrics have the highest correlation to market capitalization. They include growth, inventory turns, operating margin and Return on Invested Capital (ROIC)). Inventory Turns. Improvement.

Supply Chain Design Software 195

Supply Chain Design Software Supply Chain Planning Software Agile and Lean Supply Chain Supply Chain Software 195

Supply Chain Digest

JUNE 19, 2025

Jassy called generative AI a “once-in-a-lifetime” technology that will change the way the company operates, and said Amazon is already using it in “virtually every corner of the company,” calling out the supply chain areas of inventory and demand planning as examples. Q Feedback No Feedback on this article yet.

Supply Chain Planning Software 41

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Vendor Strategies 41

Supply Chain Shaman

FEBRUARY 12, 2017

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. The patterns are circular.

Pharmaceutical 150

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

SCMDOJO

JANUARY 23, 2023

List of Top 10 Supply Chain Analytics Books 1) Supply Chain Metrics that Matter (Wiley Corporate F&A) 1st Edition This book offers an in-depth guide to understanding the link between corporate financials and supply chain maturity, evaluating the progress of over a hundred companies from 2006-2013.

Prescriptive Analytics Software 132

Prescriptive Analytics Software Analytics Software Supply Chain Planning Software Predictive Analytics 132

Supply Chain Shaman

JANUARY 18, 2016

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. (This is an analysis of traditional retail minus eCommerce pure plays.) The difference?

Supply Chain Planning Software 150

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

SCMDOJO

AUGUST 10, 2024

Postponement: Strategies like Just-in-Time and postponement can reduce inventory and transportation costs. Moreover, they help them track their performance against key metrics and identify areas where they can improve. Logistics KPI Dashboard is an essential tool for Logistics & Supply Chain Managers. McKinnon, A. McKinnon, A.

Sourcing Strategies 98

Sourcing Strategies Cost Reduction Strategies Resource Reduction Inventory Reduction 98

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. We studied this pre and post-recession.

Supply Chain Design Software 150

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

Kinaxis

JUNE 1, 2016

I am bolder on Samsung, simply because they had the highest 2016 Inventory Turns aside from McDonalds. 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.

Gartner 100

Gartner Supply Chain Strategy Supply Chain Predictive Analytics Software 100