Remove 2006 Remove Inventory Remove Metrics Remove Transportation
article thumbnail

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

Supply Chain Shaman

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.

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. There are many forms of decision support—price optimization, revenue management, transportation planning, spend management, network design. of revenue on IT are we improving inventories.

Insiders

Sign Up for our Newsletter

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

article thumbnail

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. Integration of corporate social responsibility metrics in planning. Most often the focus is on transportation or logistics, but does not take into consideration the trade-offs between make, source and deliver. Focus on the level of inventory.

article thumbnail

Let the Qs Begin

Supply Chain Shaman

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. Can you help us with what you see in the data?”

article thumbnail

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

Supply Chain Shaman

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.

article thumbnail

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

article thumbnail

Gaining Clarity on Inventory Effectiveness

Supply Chain Shaman

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.