Remove 2006 Remove Inventory Remove Metrics Remove System
article thumbnail

Make Room for Leadership to Drive S&OP

Supply Chain Shaman

How aligned do you believe your organization is to drive these metrics? This research, completed in 2006, was during the transformation of multi-national to global supply chains. P&G did not appreciate the work Gilette accomplished on form and function of inventory and using market signals. Is your plan feasible?

S&OP 330
article thumbnail

Measuring Up?

Supply Chain Shaman

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.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

When we study 600 public companies by peer group, at the intersection of inventory turns and operating margin, only 5% drive improvement. In today’s supply chain, these traditional assumptions are usually false; yet, we try to use old-fashioned tools to drive better decisions without testing the output of the systems. Moving Forward.

article thumbnail

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. Figure 1: Supply Chain Metrics Are a Balancing Act. Figure 1: Supply Chain Metrics Are a Balancing Act. The supply chain is a complex non-linear system.

article thumbnail

Collaboration? When It Comes to Cash-to-Cash, We Don’t Know How to Walk the Talk

Supply Chain Shaman

True collaboration is systemic. 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. In times of growth, when companies are funding inventory builds, cash is needed.

article thumbnail

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

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.

article thumbnail

Mining Supply Chain Data for Insights

Supply Chain Shaman

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.