This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) I never calculated and accounted for the inter-dependencies between metrics.
While the performance rankings were based on comparisons of inventory turns, operating margin and Return on Invested Capital (ROIC) for the periods of 2006-2013 and 2009-2013, the concept is that to be a supply chain leader you must outperform and drive improvement. Aligned Metrics. We find that this is true of too few companies.
Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The The Supply Chain Metrics That Matter are a portfolio of metrics which correlate to higher market capitalization. Comparison of Performance and Improvement of Companies in the Chemical Industry for 2009-2015.
Nineteen of the 200 companies met the performance criteria of improving operating margin, inventory turns, and ROIC together in concert for the years of 2006-2013 or 2009-2013. I am surprised at how many companies are raising improvement in one of the three metrics, but not driving performance improvements in the total portfolio.
One of my favorite interviews on this topic, that I recently completed for my upcoming book Metrics That Matter , was with Amway’s Chief Supply Chain Officer George Calvert. Service level is our most important metric. Reliability in both of these metrics is critical. Our activities are broad.
In our work on the Supply Chains to Admire report , we tracked the progress of manufacturing, retailing and distribution companies for the period of 2006 to 2013 and 2009-2013. We then rated companies on their ability to manage and improve a portfolio of metrics: operating margin, inventory turns and Return on Invested Capital (ROIC).
We are trying to understand how supply chain leaders have raised the bar at the intersection of these four sets of metrics on the supply chain effective frontier. I also believe that it is because the organization is not incented to manage cash-to-cash metrics. The results have been eye-opening.
Nineteen of the 200 companies met the performance criteria of improving operating margin, inventory turns, and ROIC together in concert for the years of 2006-2013 or 2009-2013. I am surprised at how many companies are raising improvement in one of the three metrics, but not driving performance improvements in the total portfolio.
2009: H1N1 Outbreak in Mexico. However, the logic Cisco uses to manage the disruption is very robust and details are summarized into the infographic below, Note: metrics data is for illustrative purpose. Metrics look very simple and its kind of nice to have something like these. And according to the U.S. 2011: Thailand Floods.
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. A Look at History. Resiliency.
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As As a group, these metrics have the highest correlation to market capitalization. As a group, public companies want to make progress to both drive and sustain metrics performance, but they cannot.
Supply chain leaders manage a complex system of non-linear, but very inter-connected metrics. Leaders need to balance a portfolio of metrics. Year-over-year Improvement at the Intersections of the Metrics. It is for this reason, that we are hard at work on the analysis of the Supply Chain Metrics That Matter series of reports.
It is data driven research: a deep analysis of performance, improvement and Price to Tangible Book Value of 320 companies across 31 industries for the period of 2009-2015. Check out their performance by plotting year-over-year metrics at the intersection of two ratios and look at the patterns. We hope to see you there!
These examples point to a key metric that’s emerging for quantifying the value of social networking : Time-to-Resolution. Back in April 2009, only about 25 percent of 50-64 year olds were using social networking technologies, compared to about 78 percent of 18-29 year olds.
But in fact, all the metrics must be in balance,” says Lora Cecere from Supply Chain Insights. The analyst was joined by Bram Desmet, managing director of Solventure, to present her latest book, Supply Chain Metrics that Matter, in Brussels on 18 March 2015. They are often measuring individual metrics versus the whole,” states Cecere.
When you run the graphs, there is marked difference for these companies that begins to appear in 2009. In the modeling, my recommendation is to look at the cost metrics in aggregate. Each of these companies performed better than their peer group on Return on Assets (ROA), but worse than their peer group on operating margin.
In the selection of time frames to analyze, we look at the long-term view including the recessionary period of 2006-2009, the post recessionary period of 2009-2014 and the more recent time period of 2011-2014. Overall Results on the Supply Chain Metrics That Matter. Supply chain leaders make progress in three-to-five years.
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. Companies passing these two tests are then analyzed against the performance factors for 2009-2015: Growth. We had silo’s and different functional areas had competing metrics that prevented progress.
In 2009, the United States boosted import duties on Chinese tires from 4% to 35%, and did so with only 15 days’ notice. The post Guest Post: Ignoring this Performance Metric is Risky appeared first on Connect Blog by TMC, a division of C.H. This post is credited to Dr. Yossi Sheffi.
For instance, during the great recession of 2009, 85% of Chief Procurement Officers reported they had more influence than prior to the crisis, but by 2013, that influence waned significantly for two-thirds of those leaders. This list should include the business metrics that each procurement project impacts.
The selection of metrics is based on prior work with Arizona State University to understand which metrics, in combination, correlate to market capitalization and price to book value. They used the work built together in 2004-2009 to build a course with Georgia Tech for executive training.) Why do we spend four months doing this?
The winners drive improvement while posting financial results in the Supply Chain Metrics That Matter ahead of the peer group. The performance factors evaluated in the analysis are: Growth. (If you trace the year-over-year pattern, you can see that P&G made progress on inventory turns and operating margin 2006-2007, 2009-2010.
We have found that supply chain metrics are gnarly and complicated.During In our program, cost avoidance, while desirable, does not count towards the metric. Over the course of the last two years, we at Supply Chain Insight s have worked on a methodology to gauge supply chain improvement. We named it the Supply Chain Index.
It is data driven research: a deep analysis of performance, improvement and Price to Tangible Book Value of 320 companies across 31 industries for the period of 2009-2015. Check out their performance by plotting year-over-year metrics at the intersection of two ratios and look at the patterns. We hope to see you there!
Here’s what I wrote back on this date in 2009, as I recalled the events of that tragic day eight years earlier. They also lack process controls and metrics. Author’s Note: Today is September 11. I never forget. I grew up in Brooklyn, New York, near Red Hook and the docks. Some things never change.
2009 was an exception due to the 2008–2009 recession.) Implement a Transportation Management System (TMS) to comprehensively manage logistics surrounding and including the shipping function as well as related performance metrics. Such a system affords a strong competitive advantage to shippers.
At first glance, supply chain metrics may seem to tell you a lot about your current supply chain operations. Between 2009 and 2010 during the economic downturn, it was difficult to make sense of the unemployment numbers. In developing supply chain metrics , we need to be conscious of this as well. Look again!
Reverse Logistics Strategy 3: Make it Profitable It makes sense to run reverse logistics as a profit centre with corresponding KPI and metrics. Retailers have often been faster than manufacturers to move to the requisite technology. Speed will be an important factor. Design reverse logistics into operations.
A CPO in the financial services industry also noted that a need to redefine procurement’s role in the enterprise is happening, driven by the recognition that a new type of procurement capability is needed: Prior to our transformation, the ONLY metric by which our performance was measured is how much money we saved for the organization.
The article published in question, Knowledge sharing in interorganizational product development teams: the effect of formal and informal socialization mechanisms , was published in the Journal of Production Innovation Management in 2009.
In the process of compiling the Supply Chains to Admire report for last year’s Supply Chain Insights Global Summit , the research team at Supply Chain Insights calculated the rate of supply chain improvement of companies by industry for the period of 2006-2013 and 2009-2013. We studied this pre and post-recession.
As some component lead times push into 2023, the shortage is expected to last 24 months before it recedes – similar to the chip shortage of 2008-2009. Within a week of Russian troops crossing into Ukraine, the benchmark for thermal coal prices reached a record high of $446 per metric ton. Deloitte Global). AlixPartners). Deloitte ).
3PL market has grown by roughly 7% annually since 2009 and is expected to reach $170 billion by the end of 2016. 3PLs are being asked by shippers to create better metrics to provide both added understanding and a deeper perspective as to what’s occurring inside their business both yesterday, in real time and tomorrow.
Tuesday, July 07, 2009. and $745 million internationally with first-tier diverse suppliers In 2008, IBM’s PELM operations worldwide processed 42,302 metric tons of end-of-life products and product waste. Without supply chains consumers would be stuck using products that they had to make or grow with their own two hands.
The new trend to be sustainable is part of the current category: Revenue Growth, so why add another category like CSR when we should be moving towards the core supply chain metrics of total delivered cost and customer service. This, my friends, is why we need to get back to CORE supply chain metrics when measuring the Top 25.
Mariotti states that you first have to measure it, and he outlines several metrics and techniques in the book, including ranking customers by annual sales, profit, and gross margin percentage. How do you reduce supply chain complexity, or at least slow its growth?
For December 2015, retail sales were the lowest since 2009. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. In addition, Macy’s announced the closure of 36 stores and K-Mart followed suite with announcements of 27 store closings.
Performance and Improvement within the Pharmaceutical Industry for 2009-2015. As shown in Table 1, based on continued improvement initiatives, the Novo Nordisk company outperforms their peer group in all areas except inventory turns. Understanding What Drives Supply Chain Excellence.
It immediately brings home the need for trade-off across competing metrics and objectives. Ian is more of a futurist, though I only have a link from 2009. I much prefer Yves use of the word “cooperation” rather than “collaboration”. The second is by Ian Goldin.
He led the team during the period of 2007-2009. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. While Shane did not start out with a supply chain background, he was a fast learner and a great leader.
But to make their strongest case, SCRM advocates need to focus on one key metric: return on investment. It’s important to frame the program in strategic terms and to ensure that decision-makers understand the linkages between the tactical objectives of the SCRM and key metrics such as revenue, earnings, brand, and shareholder value.
Unfortunately, we find most companies are moving backwards on the Supply Chain Metrics That Matter (growth, operating margin, inventory turns and Return on Invested Capital) or are making progress on singular metrics instead of driving performance improvement on a balanced portfolio of supply chain metrics that correlate to market capitalization.
Here’s what I wrote back on this date in 2009, as I recalled the events of that tragic day eight years earlier: I grew up in Brooklyn, New York, near Red Hook and the docks. They also lack process controls and metrics. Today is September 11. I never forget. Some things never change.
However, digitization really became mainstream around 2009 when there were officially more “things” than people connected to the internet. The tools supporting digitization enables the presentation of information in ways not conceived of pre-2009. Digitization began in the early 1970s with the advent of the computer.
We organize all of the trending information in your field so you don't have to. Join 102,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content