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Autonomous Business Planning Is Not Only Possible, It Has Already Been Achieved

Logistics Viewpoints

That was our vision, even starting back in 2010. This metric measures the percentage of time the planners accept replenishment, transportation, or inventory plans as they are without any change in the timing of the delivery or the quantity to be delivered. You set a target inventory level. That’s an action.

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History Repeats Itself Without Supply Chain Leadership

Supply Chain Shaman

Tom, the colorful warehouse manager, constantly heckled Frank for the increasing inventory levels while Ed, the quiet material/logistics manager, constantly questioned if there was a better way. He felt that inventory was no problem, he would just cut it at the end of each quarter to make the balance sheet goals.

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Trying to Push Content Above the Noise

Supply Chain Shaman

The month of December was my longest writing respite since I started this blog in January 2010. All four of these companies were selected as winners of the Gartner Top 25 award, yet all four underperform on growth and no company is driving improvement at the intersection of operating margin and inventory turns. Today is a writing day.

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Supply Chain Diagnostic: A Four-Step Process

Supply Chain Shaman

In Figure 1, we show the aggregate trend of the chemical industry in an orbit chart format showing year-over-year results at the intersection of two metrics operating margin and inventory turns. In the period of 2010-2018, within the chemical industry, margins fluctuated, largely driven by the price of crude, but inventory turns plummeted.

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Announcing the Supply Chains to Admire 2017 Award Winners

Supply Chain Shaman

The first number in a cell represents the average value for a specific industry for 2010-2016, and the percentage on the second line is a comparison of the average for 2010 when compared to 2016. The industry made progress on revenue/employee, but struggled on growth, margin, inventory turns.

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A New Decade: Give Science A Chance

Supply Chain Shaman

Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns. When compared to pre-recession years, we ended the decade with twenty more days of inventory. Days of Inventory Comparison. Now, let’s take consumer products. What can we learn?

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Looking Beyond Red Arrows

Supply Chain Shaman

As a result, supply chain leaders focus on unrealistic goals of inventory or costs, they will throw the system out of balance. Reader’s note, the way to reach this chart is to first identify the average value for the metric for the period of 2010-2016. The growth rate of 2016 when compared to 2010 is an increase of 28%.