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Supply Chain Performance Declined In the Last Decade. The Question is Why?

Supply Chain Shaman

Rise in Inventories. Less Effective at Inventory Management. Inventories grew twenty days over the decade. Yes, companies held more inventory (measured in days of inventory) in 2019 than at the start of the 2007 recession. Sadly, most of it is the wrong inventory. Despite spending 1.1%

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Is A Customer-Centric Strategy the Same as Demand-Driven? Outside-In?

Supply Chain Shaman

A Demand-Driven Value Network as defined by AMR Research in 2007: A network that senses demand with minimal latency to drive a near real-time response to shape and translate demand. The focus is on channel data: price; inventory positions; and policies. We then began the discussion on outside-in processes. Market-Driven Processes.

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Measuring Up?

Supply Chain Shaman

In our analysis, only one out of ten companies successfully improves operating margins and inventory turns at the same time. When this happens, we find that the organization is more aligned and perform(s) better on the Supply Chain Metrics That Matter –growth, inventory turns, operating margin, Return on Invested Capital (ROIC). (We

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Household Products Industry Stuck in Neutral and Going Backwards

Supply Chain Shaman

Both Kimberly-Clark and P&G are going backwards on operating margin while making progress on inventory turns. As the company spiraled in the updraft of the market, it built inventory. billion in inventory charges in April 2001. Economic Vision of Supply Chain 2030. Take a look at Figure 1. 21 versus P&G’s.19

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Building Outside-In Processes

Supply Chain Shaman

It pains me to see nine out of ten companies are stuck at the critical intersection of cost and inventory turns. For example, in the recession of 2007, DuPont missed the downturn in the market. In a similar vein, their forecasts for the automotive market would have been on new automotive sales and dealer inventory.

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Unpacking Supply Chain Traceability: A Comprehensive Guide

RFgen

These include: Barcodes: Barcodes can be used to track products and materials throughout the supply chain and validate inventory levels. In 2017, Walmart launched its Project Gigaton initiative, which aims to reduce greenhouse gas emissions by 1 billion tons by 2030.

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How Can We Heal the Global Supply Chain?

Supply Chain Shaman

Inventory Turns. Better performance in inventory turns than the peer group average for the period of 2006-2015. If you trace the year-over-year pattern, you can see that P&G made progress on inventory turns and operating margin 2006-2007, 2009-2010. Operating Margin. Return on Invested Capital (ROIC).