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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. Belief in efficient procurement.

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

Supply Chain Shaman

Companies tightly coupling the budget to S&OP have significantly higher inventories and lower growth than their peer group. 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.

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When It Comes to Planning, Please Vote with Ike!

Supply Chain Shaman

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.

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

Supply Chain Shaman

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?

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Lifting The Gray Curtain

Supply Chain Shaman

This is despite the purchase of Terra Technology Demand Sensing and Multi-tier Inventory Management (MEIO) in 2014 for 12-14M$ (including implementation). The supply chain investments of the last decade focused on improving black & white processes–order-to-cash and procure-to-pay. The solution was too black box.

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This Week In Supply Chain Management Tech April 4 2023

Supply Chain Matters

Founded in 2007, Rotterdam based Flo Group specializes in Oracle focused logistics software support and deployment services capabilities. The data is then compared with the existing warehouse management system (WMS) in order to foster real-time inventory accuracy and availability information. All rights reserved.

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2020 Requires Big Wings and Feet

Supply Chain Shaman

Granular data by volume is a must to be able to manage replenishment, network design, and inventory targets. A simplistic view is that supply chain excellence is the trade-off of cost, inventory and customer service. The two primary buffers in the supply chain are manufacturing capacity and inventory. Time horizon. The takeaway?