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 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. What can we learn?

Industrial 150

Industrial Industry Inventory Reduction Metrics 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. The Effective Frontier.

Optimal Sourcing 169

Optimal Sourcing Supply Chain Planning Software Supply Chain Optimization Supply Chain Design Software 169

Supply Chain Shaman

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. We find that companies will establish metric targets in isolation and throw the supply chain out of balance.

Pharmaceutical 274

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 274

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. Note the difference in patterns of the orbit chart of Bristol-Meyers Squibb and Merck for the period of 2006-2015. Correlations Between Survey Factors and Financial Metrics.

Supply Chain Planning Software 169

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Supply Chain Software 169

The Logistics & Supply Chain Management Society

NOVEMBER 15, 2021

The digital twin allows for internal operations as well as customers to view the various processes, along with detailed metrices throughout the facility. DB Group has set ambitious targets to reduce specific CO2 emission by 50% by 2030 compared to 2006. Another notable project launch is the DB Schenker’s digital twin.

Singapore 246

Singapore Logistics Network Optimization Software Supply Chain Design Software Waste Reduction 246

Supply Chain Shaman

OCTOBER 29, 2020

Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. Note the elongation of the cash-to-cash cycle in the chemical industry of 38 additional days when comparing the 2014-2019 averages to the pre-recession period of 2004-2006.

Optimal Sourcing 229

Optimal Sourcing Supply Chain Design Software Waste Reduction Inventory Reduction 229

Supply Chain Shaman

JANUARY 19, 2014

Despite multimillion dollar technology projects, and tomes of strategy documents, they are stuck in their ability to overcome market factors and rising complexity to drive continuous improvement on a portfolio of metrics. In 2006, I asked Dick why it was taking him so long to define the roles of planning within P&G.

Supply Chain Planning Software 278

Supply Chain Planning Software Supply Chain Design Software Price Mitigation Strategies Inventory Reduction 278

Supply Chain Shaman

MAY 29, 2014

As a result, the metrics have to be viewed together as a pattern over time. In the journey, the supply chain leader needs to improve the potential of a portfolio of metrics. The metrics of growth, Return on Invested Capital, Inventory Turns and Operating Margin have the highest correlation to market capitalization.

Gartner 301

Gartner Inventory Reduction Supply Chain Planning Software Pharmaceutical 301

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. How did you select the final list of fifteen companies ? Was the list of the Supply Chains to Admire hard to select?

Pharmaceutical 179

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 179

Supply Chain Insights

SEPTEMBER 2, 2014

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

Supply Chain Design Software 253

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

Supply Chain Shaman

JUNE 7, 2021

I began analyzing correlations of groups of metrics to market capitalization and found that the most significant correlation was between market capitalization and growth. Initially, I worked with Arizona State statistics professors and graduate students to correlate market factors to 2006-2012 data.)

Gartner 197

Gartner Supply Chain Design Software Supply Chain Planning Software Eliminating Excel in Purchasing 197

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. .” As I shuffle along, I am not sure. I shake my head. Why Does It Matter? The result is outlined in figure 1.

Gartner 257

Gartner Supply Chain Strategy Supply Chain Software Supply Chain 257

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

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. It is for this reason, that we are hard at work on the analysis of the Supply Chain Metrics That Matter series of reports.

Gartner 150

Gartner Supply Chain Software Demand Planning Software Modeling Software 150

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. Inventory is often focused on as a singular metric, not as part of a complex supply chain system.

Supply Chain Planning Software 216

Supply Chain Planning Software Supply Chain Planning Supply and Demand Supply Chain Design Software 216

Supply Chain Shaman

JULY 5, 2016

Orbit Chart for Kimberly-Clark and P&G for the Period of 2006-2015. Orbit Chart of Colgate for the Period of 2006-2015. P&G’s rate of improvement on the Metrics That Matter was lower than the peer group. Item complexity is taking a toll. A similar pattern exists for Colgate. While Colgate posted better margin (.21

Supply Chain Planning Software 150

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

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. We find that this is true of too few companies.

Optimal Sourcing 301

Optimal Sourcing Supply Chain Design Software Supply Chain Planning Software Manufacturing Procurement 301

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 254

Case Study Inventory Reduction Agile and Lean Supply Chain Study 254

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. It is one of the reasons that I left Gartner in 2010.

Gartner 158

Gartner Pharmaceutical Predictive Analytics Modeling Software 158

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. Food and Beverage Company Performance on the Supply Chain Index for the Period of 2006-2012. Supply Chain Index Rankings for 2006-2013.

Case Study 286

Case Study Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software 286

Kinaxis

JUNE 1, 2016

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. This, my friends, is why we need to get back to CORE supply chain metrics when measuring the Top 25.

Gartner 100

Gartner Supply Chain Strategy Supply Chain Predictive Analytics Software 100

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. I see this as a problem. And, do you think that it takes a renegade?

Supply Chain Design Software 150

Supply Chain Design Software Supply Chain Planning Software Optimal Sourcing Modeling Software 150

Supply Chain Opz

JANUARY 29, 2020

Therefore, the challenge to establish the ranking method is to find a more economical data source and the unbiased metrics. Anyway, the access to this database costs an arm and a leg. Ranking of Supply Chain Books We're sure some of you've been using Google Scholar to find related publications. References - Moed, H. & Tang, C.

Agile and Lean Supply Chain 100

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Planning Software Supply Chain Strategy 100

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 150

Conference Gartner Supply Chain Planning Software Supply Chain Design Software 150

Supply Chain Shaman

FEBRUARY 12, 2017

The level of performance in 2015 is the same as 2006. Orbit Chart for Novo Nordisk at the Intersection of Operating Margin and Inventory Turns for the period of 2006-2015. In Figure 1 we track the year-over-year progress of these two pharmaceutical leaders. The patterns are circular. Sharing this story is the goal of this case study.

Pharmaceutical 150

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

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

Supply Chain Shaman

MARCH 29, 2015

In studies from the periods of 2006-2008, there was slow adoption of 15-20%, and today, the supply chain leader prefers a cloud-based solution. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. In 2002, there was no interest. The reason?

Supply Chain Planning Software 150

Supply Chain Planning Software Modeling Software Supply Chain Network Software Supply Chain Software 150

Supply Chain Shaman

APRIL 27, 2022

At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) Shown in Figure 2, we track the results for the period from 2006-to 2021.

Procurement Analytics 332

Procurement Analytics Manufacturing Procurement Supply Chain Planning Software Supply Chain Design Software 332

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 33

Supply Chain Software Supply Chain Planning Software Supply Chain Design Software Manufacturing Procurement 33

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

NOVEMBER 15, 2012

Based on the work I was doing on financial metrics, and studying the Supply Chain Effective Frontier, I was convinced that companies cannot effectively model the required trade-offs of good supply chain decision-making in S&OP using spreadsheets. Spreadsheets are insufficient. I encouraged him to do so.

Supply Chain Planning Software 265

Supply Chain Planning Software Modeling Software Forecasting Software Demand Planning Software 265

Supply Chain Game Changer

AUGUST 13, 2020

All the while, McDonald’s retained its global approach, brand, image, operations & supply chain ( Guardian 2006 ). Managers we surveyed across six countries in 2017 estimated these international production and trade metrics at 37% and 41%, respectively. Will COVID19 create more Local Supply Chains? You’re in good company.

Agile and Lean Supply Chain 121

Agile and Lean Supply Chain Supply Chain Strategy Global Supply Chain Design 121

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.

Optimal Sourcing 283

Optimal Sourcing Manufacturing Procurement Procurement Analytics Modeling 283

Talking Logistics

NOVEMBER 10, 2014

The German team overcame disappointments in 2006 and 2010 to win the World Cup this year, while favorites Spain (the defending champion) and Brazil (the host country) were humbled by the competition. That was my opening question to the executives attending last month’s Elemica reveal 2014 Conference in Frankfurt.

Optimal Sourcing 170

Optimal Sourcing Supply Chain Planning Software Supply Chain Network Software Optimization Software 170

Arkieva

MARCH 31, 2016

That balance is captured by the ROCE as a financial metric. January/February 2006.). To use the words of Lora Cecere, we are not only looking for strength in performance in each of the corners. We are also looking for balance. The Need for Balanced Supply Chain Careers. The typical career is still a ladder. John Dischinger, David J.

Supply Chain Optimization 60

Supply Chain Optimization Supply Chain Strategy Supply Chain Planning Supply Chain 60

Supply Chain Action Blog

MARCH 25, 2015

The “Moneyball” saga and other examples of premier organizations competing on analytics were featured in the January 2006 Harvard Business Review article, “Competing on Analytics” (reprint R0601H) by Thomas Davenport, who also authored the book by the same name. Root cause analysis. Role-based views with collaboration.

Prescriptive Analytics Software 40

Prescriptive Analytics Software Analytics Software Forecasting Software Predictive Analytics Software 40