2007 Analysis Inventory Procurement 
Supply Chain Shaman
APRIL 9, 2021
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. Belief in efficient procurement.
Supply Chain Shaman
FEBRUARY 14, 2022
They gave lip service to the need for IT standardization, but ran their process on a custom built model that enabled reverse bill of material, and profitability analysis. They were ahead of their time on simulation analysis and cross-functional orchestration.). Let’s start with inventory. So, why are inventories higher?
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Supply Chain Shaman
JUNE 1, 2022
I work with a group that has a sub-team focused on cost, one on customer service, and one on inventory, but lack alignment on a standard definition of supply chain excellence. On average, industries carry 38 more days of inventory than in 2007. The problem is that most of it is the wrong inventory due to planning fallacies.
Supply Chain Shaman
OCTOBER 29, 2020
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 is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. Inventory. My takeaway?
Supply Chain Shaman
SEPTEMBER 22, 2021
In our research, we find that 72% of planners primarily depend on Excel and desktop analysis despite the rollout of advanced platforms for planning in 92% of manufacturers with greater than 5B$ in revenue. The supply chain investments of the last decade focused on improving black & white processes–order-to-cash and procure-to-pay.
Kinaxis
SEPTEMBER 16, 2015
Before computers and data analysis became the norm, physical paper accounting ledgers were used. A poor procurement choice based on stale data can lead to a decline in profits. From our eBook, S&OP in the 21st century , “An audit of 50 corporate spreadsheets in 2007 revealed that 94% had errors… one for $100 million!”
Arkieva
APRIL 7, 2016
Ensure continued alignment by sharing inventory turns as a KPI. Figure 1 shows it for inventory and service. The idea is that more service, typically comes with a higher inventory (or lower turns). They increase the service but require a higher inventory. It will lower cost but increase inventory or decrease turns, cfr.
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