Supply Chain Insights

JUNE 19, 2017

Balance looks at the change in Revenue Growth and the change in Return on Invested Capital (ROIC) over the years included in the analysis (2010 – 2016). For this reason, a company shows greater balance if the improvement of one of the metrics does not cause a negative effect on the other. P&G Balance Metrics. Resiliency.

Examples 137

Examples Supply Chain Strategy Supply Chain Inventory Reduction 137

Supply Chain Shaman

JUNE 13, 2017

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. If the arrow is red, the industry is moving backwards on a metric. Companies, based on culture, tend to focus on singular metrics.

Supply Chain Planning Software 0

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Supply Chain 0

Supply Chain Shaman

JUNE 19, 2018

It is now our fifth year of analyzing balance sheets to understand which companies are outperforming their peer groups on the metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC) while driving improvement. This is the fun part of my job. This work is not easy. Today, it is not.

Gartner 203

Gartner Supply Chain Design Software Supply Chain Design Supply Chain Strategy 203

Supply Chain Shaman

JUNE 26, 2017

As a result, tor most companies, the goals are unclear and the financial metrics are not well-understood. When I started this research in 2010, I believed that P&G and Wal-Mart would meet this criteria. This year-over-year comparison, enables visualization of performance on two metrics. ” The answer will be “Yes!

Sourcing Strategies 152

Sourcing Strategies Agile and Lean Supply Chain Inventory Reduction Supply Chain Strategy 152

Supply Chain Shaman

SEPTEMBER 4, 2017

We loaded 493 financial metrics from balance sheets and income statements for each company into the data lake for the period of 2004-2016 using YCharts data. They all sound alike and each company makes similar claims of how the implementation of supply chain planning improves costs, lowers inventory and improves the return on assets.

Supply Chain Planning Software 169

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Supply Chain Software 169

Supply Chain Shaman

AUGUST 7, 2019

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. inventory turns. for inventory turns define best-in-class performance? for inventory turns define best-in-class performance?

Supply Chain Design Software 250

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Supply Chain Design 250

DELMIA Quintiq

AUGUST 13, 2014

Not because he lacks vision, but because he has been focusing on the wrong performance metrics for too long. His first realization is that in order to improve the plants performance, he needs new relevant metrics and KPIs. 2010), The Goal: Third Edition, Gower Publishing: Burlington, USA. Got a comment? Reference: Goldratt E.,

Scenario Planning 214

Scenario Planning Supply Chain Planning Software Predictive Analytics Software Expense Reduction 214

Supply Chain Shaman

JUNE 30, 2018

Companies with the lower score on the Index are driving faster rates of metrics improvement. Energizer and Unilever are driving the fastest rates of improvement and Clorox and P&G improvement rates are the slowest on the Metrics That Matter of Growth, Operating Margin, Inventory Turns, and Return on Invested Capital (ROIC)).

Supply Chain Design Software 161

Supply Chain Design Software Inventory Reduction Supply Chain Planning Software Price Reduction 161

Supply Chain Shaman

JUNE 7, 2021

Gartner purchased the firm in 2010.) Companies entered the pandemic with twenty more days of inventory than at the beginning of the great recession. I began analyzing correlations of groups of metrics to market capitalization and found that the most significant correlation was between market capitalization and growth.

Gartner 197

Gartner Supply Chain Design Software Supply Chain Planning Software Eliminating Excel in Purchasing 197

Supply Chain Shaman

JULY 22, 2019

Industry-by-industry, I compiled data for the period of 2010-2018. It is not as simple as trading-off inventory, cost, and customer service. We selected these metrics based on correlation work with Arizona State University in 2012. The companies I work with struggle to set metrics targets. Celebrating Success.

Supply Chain Design Software 250

Supply Chain Design Software Supply Chain Planning Software Gartner Supply Chain Software 250

Arkieva

APRIL 19, 2016

Using so called orbit charts, we have benchmarked companies on EBIT% versus Inventory Turns. That benchmark helped to reveal the ‘best practice frontier’, which in turn helped in setting aggressive but aligned targets for EBIT% versus Inventory Turns. Benchmarking EBITDA% versus Inventory Turns. It proves to be more resilient.

Benchmarking 60

Benchmarking Inventory Reduction Inventory Expense Reduction 60

Supply Chain Shaman

DECEMBER 29, 2016

As I study research methods, and the market, I realize the lies I’ve spun for prior employers (Gartner and AMR Research) are untrue: The AMR Research Hierarchy of Supply Chain Metrics. This research, released in 2005, gives a compelling view of a metrics hierarchy. This does not mean I think forecasting is an unimportant process.

Inventory Reduction 0

Inventory Reduction Supply Chain Planning Software Forecasting Gartner 0

Supply Chain Shaman

FEBRUARY 22, 2015

The more that I work on supply chain metrics, the more that I believe that both the SCOR model and the Gartner Hierarchy of Supply Chain Metrics (which I worked on for the period of 2006-2010) reward functional, not end-to-end supply chain behavior. What CEO does not like the concept of reducing inventory? It is cash.

Supply Chain Design Software 150

Supply Chain Design Software Supply Chain Planning Software Optimal Sourcing Modeling Software 150

QAD

AUGUST 12, 2021

In 2020, Coca-Cola achieved a goal to reduce relative carbon emissions by 25% by 2020, against a 2010 baseline, and is now working on further reductions. In other examples, you’ll find ERP provides the necessary insights and metrics, like OEE , to enhance production execution.

Waste Reduction 98

Waste Reduction Resource Reduction Material Savings Inventory Reduction 98

Arkieva

FEBRUARY 24, 2017

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!

Supply Chain Software 60

Supply Chain Software Supply Chain Strategy Supply Chain Metrics 60

Supply Chain Shaman

AUGUST 2, 2017

Metrics Definition. The organization needs to be clear on the Metrics That Matter and the alignment of vertical silos’ metrics to the balanced portfolio. Forecasting hierarchies need to roll up to define business requirements, and inventory needs to be reported by form and function. Form and Function of Inventory.

S&OP 154

S&OP Supply and Demand Supply Chain Design Software Supply Chain Planning Software 154

Logility

JANUARY 15, 2014

The two companies’ results on operating margin and inventory turns are shown in figure 1. Owens Illinois is investing 3X more in R&D than Sonoco Products; yet Sonoco products had 5X greater growth with 1/2 the inventory. Alignment on a Metrics Portfolio. Notice the more controlled pattern of Sonoco products.

S&OP 101

S&OP Illinois Agile and Lean Supply Chain Inventory Reduction 101

Supply Chain Shaman

MAY 19, 2016

It is one of the reasons that I left Gartner in 2010. We believe that supply chain excellence is driving improvement while averaging a higher level of performance in the Supply Chain Metrics That Matter. Pharmaceutical Ranking for the Supply Chains to Admire Analysis. This is problematic for the supply chain leader.

Gartner 158

Gartner Pharmaceutical Predictive Analytics Modeling Software 158

Logility

JANUARY 15, 2014

The two companies’ results on operating margin and inventory turns are shown in figure 1. Owens Illinois is investing 3X more in R&D than Sonoco Products; yet Sonoco products had 5X greater growth with 1/2 the inventory. Alignment on a Metrics Portfolio. Notice the more controlled pattern of Sonoco products.

S&OP 100

S&OP Illinois Agile and Lean Supply Chain Inventory Reduction 100

Arkieva

AUGUST 8, 2016

A new study by the SupplyChainDigest analyzing the main components of working capital: Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payables Outstanding (DPO) revealed an uptick in DIO. New Study Shows a Rise in US Company Inventories. This and much more, in your Monday supply chain briefing from Arkieva.

Sourcing Strategies 60

Sourcing Strategies Inventory Reduction Supply Chain Planning Software California 60

Supply Chain Shaman

AUGUST 2, 2017

Metrics Definition. The organization needs to be clear on the Metrics That Matter and the alignment of vertical silos’ metrics to the balanced portfolio. Forecasting hierarchies need to roll up to define business requirements, and inventory needs to be reported by form and function. Form and Function of Inventory.

S&OP 152

S&OP Supply and Demand Supply Chain Design Software Supply Chain Planning Software 152

Supply Chain Shaman

JANUARY 19, 2014

Despite multimillion dollar technology projects, and tomes of strategy documents, they are stuck in their ability to overcome market factors and rising complexity to drive continuous improvement on a portfolio of metrics. I have spent the last month working with clients that are out of balance. They quickly acknowledge that they are stuck.

Supply Chain Planning Software 278

Supply Chain Planning Software Supply Chain Design Software Price Mitigation Strategies Inventory Reduction 278

Kinaxis

JUNE 1, 2016

I am bolder on Samsung, simply because they had the highest 2016 Inventory Turns aside from McDonalds. 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.

Gartner 100

Gartner Supply Chain Strategy Supply Chain Predictive Analytics Software 100

The UCLA Anderson Global Supply Chain Blog

APRIL 15, 2014

These last two elements are particularly important from an operations and supply chain perspective and we postulate metrics to measure their effectiveness.   Since the purpose of quick response is to reduce markdowns and stockouts, its effective implementation should lead to a better gross margin and less inventory.

Metrics 74

Metrics New York Inventory Reduction Apparel 74

Unleashed

JANUARY 5, 2021

Inventory management is a critical function of any business, with drastic implications on profit margins. Inventory turnover is a key formula that’s often discussed in the context of inventory management efficiency, and crops up in most types of inventory report. Let’s take a closer look at this important metric.

Inventory Reduction 83

Inventory Reduction Inventory Procurement Analytics Inventory Management Software 83

Supply Chain Shaman

AUGUST 5, 2015

Overall Results on the Supply Chain Metrics That Matter. These giants drove slight improvements in operating margin, inventory turns and Return on Invested Capital (ROIC) despite a slowing economy. You can see this in my writing during the period of 2000-2010. Supply chain leaders make progress in three-to-five years.

Agile and Lean Supply Chain 150

Agile and Lean Supply Chain Supply Chain Strategy Global Supply Chain 150

crisp

SEPTEMBER 6, 2023

In 2010, the U.S. Environmental Protection Agency (EPA) mandated annual greenhouse gas emissions (GHG) reporting for organizations emitting over 25,000 metric tons of GHGs per year, and those in specific industries like vehicle manufacturing and industrial gas.

Procurement Analytics 52

Procurement Analytics Manufacturing Procurement Waste Reduction Supply Chain Design Software 52

Supply Chain Shaman

JULY 6, 2020

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.

Agile and Lean Supply Chain 287

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Planning Software Supply Chain Strategy 287

Arkieva

APRIL 7, 2016

Ensure continued alignment by sharing inventory turns as a KPI. Figure 1 shows it for inventory and service. The idea is that more service, typically comes with a higher inventory (or lower turns). They increase the service but require a higher inventory. It will lower cost but increase inventory or decrease turns, cfr.

Agile and Lean Supply Chain 60

Agile and Lean Supply Chain Supply Chain Software Supply Chain Optimization Supply Chain Strategy 60

Supply Chain Shaman

DECEMBER 4, 2018

For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). Diversified Industry Performance For the Period of 2010-2017. Meet Ernest.

Supply Chain Software 33

Supply Chain Software Supply Chain Planning Software Supply Chain Design Software Manufacturing Procurement 33

RFgen

SEPTEMBER 28, 2015

Inventory management strategies surrounding traceability must account for seasonal demand for products. restaurants featured pumpkin-flavored options in 2010, that number rose to 14.5 Inventory workers must track products as they move through the warehouse to ensure nothing gets left behind. percent in 2015.

Supply and Demand 52

Supply and Demand Manufacturing Procurement Supply Chain Software Inventory Reduction 52

RFgen

SEPTEMBER 28, 2015

Inventory management strategies surrounding traceability must account for seasonal demand for products. restaurants featured pumpkin-flavored options in 2010, that number rose to 14.5 Inventory workers must track products as they move through the warehouse to ensure nothing gets left behind. percent in 2015.

Supply and Demand 52

Supply and Demand Manufacturing Procurement Supply Chain Software Inventory Reduction 52

Supply Chain Shaman

AUGUST 11, 2016

I want to understand why some companies outperform on the Supply Chain Metrics That Matter while others do not. The Company was my client for many years at AMR Research, and when I look at Mark’s slides for the webinar, I see many of the elements that we heatedly debated in the period of 2009-2010. I am on a mission.

Cost Reduction Strategies 150

Cost Reduction Strategies Inventory Reduction Price Reduction Supply Chain Strategy 150

Supply Chain Shaman

DECEMBER 4, 2018

For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). Diversified Industry Performance For the Period of 2010-2017. Meet Ernest.

Supply Chain Software 30

Supply Chain Software Case Study Supply Chain Planning Software Supply Chain Design Software 30

Supply Chain Shaman

FEBRUARY 25, 2016

Stuck at the intersection of operating margin and inventory turns, only 10% of companies are making progress. Unable to power additional year-over-year improvements at the intersection of cost and inventory, companies struggle. Short cycles require buffer inventories and short lead times. Let me explain. Responsive Supply Chain.

Supply and Demand 150

Supply and Demand Prescriptive Analytics Software Supply Chain Design Software Supply Chain Planning Software 150

Talking Logistics

MAY 17, 2013

Chainalytics Creates New Metrics for Demand Planning Consortium. In other news… Descartes Signs SuiteCloud Developer Network Agreement With NetSuite. HighJump Software Announces New Partnership With NetSuite. UPS App For iPad Advances Suite Of Customer Technology Offerings. Maersk warns on slowing global trade ( Financial Times ).

Logistics Network Optimization Software 142

Logistics Network Optimization Software Supply Chain Planning Software Supply Chain Design Software Forecasting Software 142

IQMS

OCTOBER 18, 2019

Key factors influencing inventory levels, supplier quality, demand forecasting, procure-to-pay, order-to-cash, production planning, transportation management and more are becoming known for the first time. Big data analytics in supply chain management between 2010 and 2016: Insights to industries. no opt-in). no opt-in).

Supply Chain Planning Software 73

Supply Chain Planning Software Supply Chain Design Software Supply Chain Software Analytics Software 73