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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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10 supply chain KPIs and metrics to track

Taulia

Blog Expert Advice 8 min read 12 Jun 2023 By Taulia Share: Share via linkedin Share via twitter Share via facebook Share via email Copied Copy page URL to clipboard 10 supply chain KPIs and metrics to track We’ve listed the 10 top supply chain KPIs you can use to measure your supply chain performance and find opportunities for optimization.

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How We Stubbed Our Toe in The Evolution of S&OP

Supply Chain Shaman

Deployment of deeper statistical engines for inventory management with a focus on safety stock will improve inventory levels. Industries carried on average 32 days more inventory in 2020 than in 2007. (I Organizations can align to drive value despite the allegiance to functional metrics. Mistake #5.

S&OP 195
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Collaboration? When It Comes to Cash-to-Cash, We Don’t Know How to Walk the Talk

Supply Chain Shaman

Yet, only 20% of companies actively manage supplier development programs to get cash to suppliers in need. Cash-to-Cash Metrics. Management of the cash-to-cash cycle is critical to maintaining working capital. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle.

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2020 Requires Big Wings and Feet

Supply Chain Shaman

No metric should be measured in isolation, and functional metrics should be replaced with the balanced scorecard metrics shown in Figure 2. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance.

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Seven Misconceptions on Managing Inventory in a Market-Driven World

Supply Chain Shaman

While we cannot access customer service levels for public companies, we can measure progress at the intersection of operating margins and inventory turns. We are systemically evaluating each industry in the Supply Chain Insights Metrics That Matter series of reports. The Inventory Management Journey.

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5 supply chain initiatives to combat ESG risks

Taulia

During supplier selection, companies should apply appropriate procedures and use suitable metrics to select suppliers that align with the company’s ESG policies and broader values. Rethink inventory management strategy Sustainability and optimal inventory levels go hand in hand.