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Supply Chain Leaders, Chained to Tradition, Face the Whip

Supply Chain Shaman

One of my stark realizations this year is that smaller companies are beating larger and often more established companies on growth metrics, inventory turns, operating margin, and Return on Invested Capital (ROIC). (In The metrics selection resulted from work with Arizona State University in 2013.) Look for the full report next week.).

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What is Supply Chain Visibility and Why Isn’t It Enough?

Logistics Viewpoints

Because we call it a supply chain for a reason – each link is connected, so if you rattle one link, you rattle the entire chain, as Boeing famously discovered in 2007 when a bolts and screws shortage delayed their Dreamliner. But the opposite is not true – if you optimize one link, you have not optimized the entire supply chain.

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

Supply Chain Shaman

Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. All industries operate today with more inventory than in the pre-recessionary period of 2004-2007. In times of uncertainty, cash is king. The average is twenty-five days.

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REPOST: The True Cost of OTIF Failure with Andrew Lynch

The Logistics of Logistics

OTIF is a key supply chain metric. Zipline Logistics , founded in 2007, is a digitally enabled transportation partner specializing exclusively in serving the food, beverage, and consumer product manufacturers. Andrew Lynch and Joe Lynch discuss the true cost of OTIF failure. About Andrew Lynch. third-party?logistics.

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What is Purchase Price Variance (PPV) and How to Calculate it?

SCMDOJO

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. worry no more! References Garnder, S.

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Unilever and Colgate: Two Bookends?

Supply Chain Shaman

However, what is now clear to me is that whatever the evaluative metric, Unilever is at the bottom of the CPG peer group and should never be seen as a supply chain leader. When the Great Recession of 2007 hit, Unilever went through a massive restructuring with a series of multiple layoffs. The focus was far more multinational.

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Measuring Up?

Supply Chain Shaman

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. Teams struggle to drive improvement in both metrics at the same time. The period of 2007-2008 was the great recession.