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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. The Effective Frontier.

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

Supply Chain Shaman

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.

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

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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. 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.

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Judging Supply Chain Improvement: Campbell Soup Case Study

Supply Chain Shaman

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.

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Is Covid-19 the Death of Global Supply Chains?

Supply Chain Game Changer

Many supply chain, sourcing & procurement teams have been asked to row upstream without a paddle during this time of crisis. All the while, McDonald’s retained its global approach, brand, image, operations & supply chain ( Guardian 2006 ). Will COVID19 create more Local Supply Chains? You’re in good company.

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SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

I find that in this world of the global multi-national that procurement processes have become convoluted and increasingly complex. (In In my opinion, we have made procurement increasingly complex without adding value. Orbit Chart for SanDisk for 2006-2014. Most supply chain planning teams do not know their customers.