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Novo Nordisk: A Story of a Supply Chain Leader

Supply Chain Shaman

Note that neither company is making progress at the intersection of operating margin and inventory turns. Performance of BMS and Merck at the Intersection of Inventory Turns and Operating Margin. Orbit Chart for Novo Nordisk at the Intersection of Operating Margin and Inventory Turns for the period of 2006-2015.

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Reverse Logistics: Who Does it Well?

Logistics Bureau

They may recall inventory from retailers or reprocess it because it has passed its sell-by date or demand is insufficient. It makes sense to run reverse logistics as a profit centre with corresponding KPI and metrics. They may have ordered more than they need. They may have simply changed their mind. Speed will be an important factor.

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Lora Cecere: ‘All the metrics must be in balance’

Supply Chain Movement

They lack understanding of their inventory,” says Cecere. Desmet mentioned a company whose inventory turns, despite being ‘best in class’, are out of balance with profitability. This is a good example of focusing on a single KPI rather than all of them. Lora Cecere makes substantial use of orbit charts to illustrate this.

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7 Mini Case Studies: Successful Supply Chain Cost Reduction and Management

Logistics Bureau

The company was replenishing dealers’ inventory weekly, using direct shipment and cross-docking operations from source warehouses located near Deere & Company’s manufacturing facilities. The only option was to try to reduce levels of inventory, which, up to that point, had been kept very high to support a nine-week order cycle.

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What You Missed at the Gartner Supply Chain Planning Summit

ToolsGroup

Gartner research shows that companies that continued to increase earnings while others declined in 2009 and 2010 were those that were able to keep their foot on the gas through the downturn because they had planned responses in advance. This wasn’t “digital for the sake of digital”, but to support a very specific business KPI.

Gartner 27