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Supply Chain Performance Declined In the Last Decade. The Question is Why?

Supply Chain Shaman

Yes, companies held more inventory (measured in days of inventory) in 2019 than at the start of the 2007 recession. Commercial and operating teams in manufacturing organizations greater than 5B$ in annual revenue were more aligned in 2007, at the beginning of the recession, than in 2020, the start of the pandemic. Alignment Barriers.

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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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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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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.

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

Supply Chain Shaman

I wrote my first report on Sales and Operations Planning (S&OP) while sitting on the floor in the Atlanta airport in 2005 when I was an AMR Research analyst. 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.

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What is the return on ERP implementation? Results from our research

Supply Chain View from the Field

Such systems are also instrumental in establishing aligned tactical and strategic performance metrics systems that drive improved economic outcomes (Bendoly et al., First the research shows that organizations who had implemented an ERP system had a higher overall level of supply chain maturity and performance.

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2020 Requires Big Wings and Feet

Supply Chain Shaman

The data in Table 1 is from a recent research study. 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. The takeaway?