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
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. Error is error, but is it the most important metric? My answer is no.
That was our vision, even starting back in 2010. Solvoyo has a metric they call the user acceptance rate. 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.
Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. The analysis covers the period from 2010 to 2019. The analysis covers the period from 2010 to 2019. The second step is to align metrics to the strategy.
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.
It is hard work to maintain the status quo in metrics performance. A balanced portfolio of metrics delivers the greatest value. Companies balance supply chain metrics better in good times than bad. 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.
Orbit Chart for Henkel versus Consumer Non-Durable Industry for the Period of 2010-2019. It is my hope that we can side-step political discussions demonstrated in my stories and ground the problem solving in scientific methods to understand the properties of data, the potential of supply chains through modeling, and the alignment of metrics.
The month of December was my longest writing respite since I started this blog in January 2010. We talk about the move from functional metrics to a balanced scorecard, but we don’t use a balanced scorecard as an objective function. Today is a writing day. My last post was December 7th, 2023.
Balance looks at Revenue Growth and Return on Invested Capital results from 2010 to 2016. Cisco Balance Metrics. Cisco Balance Metrics Orbit Chart. As a result of decreasing in both metrics, Cisco’s balance score was -0.19. Strength looks at Operating Margin and Inventory Turn results from 2010 to 2016.
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 plants performance, he needs new relevant metrics and KPIs. 2010), The Goal: Third Edition, Gower Publishing: Burlington, USA. Got a comment? Reference: Goldratt E.,
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.
Data Collection To answer the above question, I''ve searched for new books published during 2010-2013 on Amazon.com. Metrics used to evaluate these new books are as below, 1) Citation count from Google Scholar 2) Number of reviews found on Amazon.com 3) Editorial Opinion Citation count is a standard way to evaluate any publication.
Industry-by-industry, I compiled data for the period of 2010-2018. We selected these metrics based on correlation work with Arizona State University in 2012. The companies I work with struggle to set metrics targets. The focus on functional silo excellence and transactional processing reduces value. Celebrating Success.
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!
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. Average Inventory Levels by Industry over the Period of 2010-2018.
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. The better supply chain planning implementations produce tighter and more reliable patterns at this important metrics intersection. Shown in Figure 1 is an example of resiliency.
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.
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)).
Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred. worry no more! References Garnder, S.
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.
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. I have openly written about the issues with the Gartner Top 25 methodology. This is problematic for the supply chain leader.
By implementing the above actions, supply chain managers can use the Tracking Ratio (TKR) metric during the introduction phase to measure the rate between the variety manufactured and customer orders. Setting of specific strategic safety stocks on critical components. Manufacturing flow simplifications. Alternative sources for parts.
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). To decide winners, we analyze post-recession period performance of 2010-2018 by peer group.
More than 10 years pass and this article is considered the "classic" article and got republished in 2010. 7) Adopt Both Service and Financial Metrics. At that time, SCM was a pretty new term so this article did the excellent job to explain the important supply chain management principles in one shot.
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). To decide winners, we analyze post-recession period performance of 2010-2018 by peer group.
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.
Metrics Definition. The organization needs to be clear on the Metrics That Matter and the alignment of vertical silos’ metrics to the balanced portfolio. As a group, we will examine the impact of supply chain strategies on balance sheet and income statements for the period of 2010-2016 and celebrate success.
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. Bimodal Supply Chains Are a Viable Strategy. Reflections.
Gartner purchased the firm in 2010.) I began analyzing correlations of groups of metrics to market capitalization and found that the most significant correlation was between market capitalization and growth. When companies were growing, I also discovered that the cost and inventory metrics better aligned with peers.
According to the press release : The proposed standards are expected to lower CO2 emissions by approximately 1 billion metric tons, cut fuel costs by about $170 billion, and reduce oil consumption by up to 1.8 mpg for tractor trailers (compared to 6 mpg for 2010 tractor trailers). percent of the truck un-utilized and by 2010 only 3.5
Since 2010, Gartner, the world's leading information technology research and advisory company, has been publishing an annual report entitled 'Gartner Supply Chain Top 25' which ranks organizations that demonstrate leadership in supply chain management. To emphasize Gartner's stance, the subtitle reads: 'The Metrics We Wish We Had'.
Blenko and others, 2010 A key aspect of new operating models will be to minimise human weaknesses, like irrational decision making, whilst exploiting strengths like the ability to learn, adapt, recreate a vision and understand strategic context. Ultimately, a companys value is just the sum of the decisions it makes and executes.
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. I see this as a problem. And, do you think that it takes a renegade?
The German team overcame disappointments in 2006 and 2010 to win the World Cup this year, while favorites Spain (the defending champion) and Brazil (the host country) were humbled by the competition. That was my opening question to the executives attending last month’s Elemica reveal 2014 Conference in Frankfurt.
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.
Metrics Definition. The organization needs to be clear on the Metrics That Matter and the alignment of vertical silos’ metrics to the balanced portfolio. As a group, we will examine the impact of supply chain strategies on balance sheet and income statements for the period of 2010-2016 and celebrate success.
Alignment on a Metrics Portfolio. The leadership team at Sonoco Products aligned a metrics portfolio against a business strategy in 2010. Through S&OP, they worked to combine both and align the metrics to drive resiliency. Each of the supply chains had a different target in the metrics portfolios.
Alignment on a Metrics Portfolio. The leadership team at Sonoco Products aligned a metrics portfolio against a business strategy in 2010. Through S&OP, they worked to combine both and align the metrics to drive resiliency. Each of the supply chains had a different target in the metrics portfolios.
Graves of Inbound Logistics , accounting for nearly one-half of $1 trillion by 2010. Use Metrics to Track Progress and Order Fulfillment Processes. Each of these metrics relates directly to consumer promises, such as free two-day shipping. Having metrics to track progress and productivity is only half of the battle.
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 ).
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.
Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. In 2010-2011 Shell partnered with Terra Technology to roll-out demand sensing as a bolt-on to the SAP environment. Shell operates as a single-instance of SAP Enterprise Resource Planning (ERP). The reason?
I would have preferred adding and changing the metrics to rank the companies rather that a category to remove two. I mentioned another quote in my May 2014 blog , “The more things change, the more they stay the same”– Jon Bon Jovi, 2010, Greatest Hits. I do submit that business changes, and quite abruptly.
These last two elements are particularly important from an operations and supply chain perspective and we postulate metrics to measure their effectiveness. Note that he GMROI metric is largely used among retailers but several other ratios could serve the same purpose.
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. To meet the criteria for The Supply Chains to Admire for 2016, companies needed to score better than their peer group average for performance metrics, while driving a higher level of improvement than 2/3 of their industry peer group.
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