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Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.
OTIF is a key supply chain metric. Starting his career in carrier procurement and management within a Fortune 100 logistics company, Lynch has held positions of responsibility in all areas of?third-party?logistics. Andrew Lynch and Joe Lynch discuss the true cost of OTIF failure. About Andrew Lynch. third-party?logistics.
Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. While touted as a digital procurement provider, it took the Company nine days to onboard me as a vendor, and two weeks to process a Purchase Order. In times of uncertainty, cash is king.
Notice how the water turns from blue to brown in Figure 3 with the lack of demand translation capabilities within the enterprise for manufacturing and logistics. Orchestration enables companies to effectively manage trade-offs between source, make, deliver and sell.) We source this data from Y charts. My challenge? Measure it.
The number one question that I am asked today by manufacturers across all industries is “How can I improve customer service?” A common issue in financially-driven companies is the heavy utilization of manufacturing assets past reasonable limits throwing the supply chain out of balance. Background. These are natural shock absorbers.
The average manufacturing company’s supply chain organization is 15 years old. The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. We find that companies can improve one, but not two of the metrics. A Look at History. Resiliency.
OTIF is a key supply chain metric. Starting his career in carrier procurement and management within a Fortune 100 logistics company, Lynch has held positions of responsibility in all areas of?third-party?logistics. Andrew Lynch and Joe Lynch discuss the true cost of OTIF failure. About Andrew Lynch. third-party?logistics.
The traditional manufacturing job defined the middle class. Each time, I turn on the channel, manufacturing jobs frame the global debate. Ironically, as global manufacturing jobs decrease, there is a need for talent for the global supply chain. While sourcing roles are more aggregated, channel support is usually regional.
As an analyst in the supply chain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. In 2007-2014 Terra added inventory management, multi-tier demand sensing, transportation forecasting, and long-term forecasting. The Company has a checkered past. The Path Forward.
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. To meet the criteria for The Supply Chains to Admire for 2016, companies needed to score better than their peer group average for performance metrics, while driving a higher level of improvement than 2/3 of their industry peer group.
Lockdown of cities and manufacturing plants have significantly impacted many industries’ supply chains. Being customer-centric enables companies to improve sustainability and uplift manufacturing through higher quality products and strengthen logistics, which results in higher levels of on-time deliveries. Surviving and Thriving.
I remember December 2007 like yesterday. While the macroeconomic signals trigger market downturns, to meet Wall Street expectations, manufacturers usually push products into the market. Purchases in the center store of the grocery store are in decline, and apparel tastes are shifting. They are not. Reflection.
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. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is writing her third book, Leadership Matters.
I am a manufacturing gal by training. While traditional supply chain processes evolved from functional excellence definitions for source, make and deliver from the inside-out; to make the digital pivot and become more market-driven, companies need to define new supply chain processes outside-in. What drives my passion? Bio-engineering?
It hasn’t been too long ago that a typical consumer products manufacturer rep would replicate last year’s plan, make any adjustments for an account’s expanded stores, new markets, or new product launches, and dub it the new current year forecast. It was a tedious effort, but, overall, rather easy. Ah, those were the days! Just a nuisance.
Such systems are also instrumental in establishing aligned tactical and strategic performance metrics systems that drive improved economic outcomes (Bendoly et al., ERP systems are designed to integrate transactions from finance, human resources, procurement, operations, sales and marketing, logistics, and other functions in a firm.
Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” We are systemically evaluating each industry in the Supply Chain Insights Metrics That Matter series of reports. At Supply Chain Insights , this is our passion.
The right purchasing and logistics strategies give companies an edge during these unique, uncertain times and, during the return “to normal,” a greater competitive advantage and continued growth. With the right strategies in purchasing, logistics and supply chain, you can navigate through a recession and come out as a winner.
Before 2007], modern smartphones did not exist. ”[5] They add, “Some high-consequence, low-likelihood risks have to do with business strategy, such as those posed by the digital disruption; operational risks are another category and include serious quality-control failures in manufacturing. Tougher than most understand.”[6]
It has been forecasted that by 2040, approximately 95% of all purchases will be facilitated by ecommerce. It was the world’s largest VC firm in 2007 with over $20 million in assets during the year. Product sourcing. Product sourcing is the process of purchasing or creating products that you can sell.
Many metrics can be used to determine the top 3PL warehousing companies, such as company revenue, the number of warehouses, total warehouse square footage , etc. This compilation is based on the most currently available company revenue data (between 2018 and 2020) without factoring in any other metric. Revenue: $8.17
As another example, Mattel suffered from a massive recall of toys in 2007 because one of their contractor’s subcontractor’s employees substituted the paint purchased by Mattel with toxic lead paint. The more intermediaries, the worse the amplification! Time for Solutions.
The production and use of biobased products replacing petroleum-based products has the potential to reduce GHG emissions up to 10 million metric tons of CO2 equivalents. “Better economic opportunities, like those offered by the biobased product manufacturers, are creating wealth in rural America.
of revenue on information technology (IT), only six percent of manufacturers drove performance at the intersection of growth and margin. Yes, companies held more inventory (measured in days of inventory) in 2019 than at the start of the 2007 recession. Belief in efficient procurement. Despite spending 1.1% Rise in Inventories.
Before boarding the plane, I watched a traveler pull a diet Coke from the bin and thought about the struggle to source sweetener with the rise of COV-19. As I poured the dog food into the bowl for my pups, I wondered if I was going to have to switch kibble due to the looming issues of sourcing taurine—a health additive in many pet foods.
Abby and I are writing an e-book on Supply Chain Metrics that Matter. Likewise, in today’s supply chain environment, I find that supply chain leaders favor a single function of logistics, manufacturing or sourcing. Companies that are not looking holistically at metrics are stuck. Measurement. What do I mean?
Van Gundy believes the corporate landscape is different from what it was in the early 2000s and during the Great Recession of 2007-2008. Where in the past they might have focused primarily on days payable outstanding (DPO) as a financial metric, they’re now giving equal attention to days sales outstanding (DSO) and inventory levels.
Seasoned supply chain professionals used the mental model from the recession of 2007 as a guidepost.) Planning taxonomies change to enable the trade-offs between source, make and deliver based on market signals and the design of supply chain flows to enable this shift. Procurement/Buyers Workbench. Bi-Directional Orchestration.
in May, but falling below the key 50 mark that separates US manufacturing expansion from contraction for 30 out of the last 32 months. Another manager in the computers and electrics sector stated that: “Tariffs continue to cause confusion and uncertainty for long-term procurement decisions. A Manufacturing PMI above 42.3,
Commandment 9: Insist on User Friendliness Independent of the effort put forth to design a system, purchase hardware and develop software, the single biggest test of implementation occurs when an operator attempts to scan bar coded media. In comparison, in 2000-2007 the U.S. locations to be in close proximity to the U.S.
In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring. In order to help companies decide objectively to reshore manufacturing back to the U.S. Financial performance metrics are valuable as they capture the economic consequences of business decisions. Good advice from Drewry.
In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring. In order to help companies decide objectively to reshore manufacturing back to the U.S. Financial performance metrics are valuable as they capture the economic consequences of business decisions.
In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring. In order to help companies decide objectively to reshore manufacturing back to the U.S. Financial performance metrics are valuable as they capture the economic consequences of business decisions.
In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring. In order to help companies decide objectively to reshore manufacturing back to the U.S. Financial performance metrics are valuable as they capture the economic consequences of business decisions.
In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring. In order to help companies decide objectively to reshore manufacturing back to the U.S. Financial performance metrics are valuable as they capture the economic consequences of business decisions.
That also led Klappich to recently define a new category of software, which Gartner calls a Multiagent Orchestration Platform (MAOP) for managing mobile robots in warehousing and manufacturing. ( In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring.
In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring. In order to help companies decide objectively to reshore manufacturing back to the U.S. Financial performance metrics are valuable as they capture the economic consequences of business decisions.
You can find the full breakdown by logistics cost bucket in the chart below: Source: CSCMP/Kearney Within transportation, trucking-related spend (including private fleets but excluding parcel) comprised 59.7% CSCMP members can download a copy for no charge, and others can purchase one for a modest fee. I recommend it.
The trade war is likely to extend the for-hire freight recession further as higher prices reduce goods affordability and consumers’ real incomes.” ( See More Below) CATEGORY SPONSOR: SOFTEON Each month, Cass nicely summarizes the state of freight, as seen in the graphic below for May: Source: Cass An y reaction to thi s Cass report?
In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring. In order to help companies decide objectively to reshore manufacturing back to the U.S. Financial performance metrics are valuable as they capture the economic consequences of business decisions.
In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring. In order to help companies decide objectively to reshore manufacturing back to the U.S. Financial performance metrics are valuable as they capture the economic consequences of business decisions.
Source: State of Logstics Report 2025 May you live in interesting times, as the Chinese saying goes. In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring. In order to help companies decide objectively to reshore manufacturing back to the U.S.
In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring. In order to help companies decide objectively to reshore manufacturing back to the U.S. Financial performance metrics are valuable as they capture the economic consequences of business decisions.
In comparison, in 2000-2007 the U.S. lost net about 200,000 manufacturing jobs per year to offshoring. In order to help companies decide objectively to reshore manufacturing back to the U.S. Financial performance metrics are valuable as they capture the economic consequences of business decisions.
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