Lean and Green Supply Chain Initiatives Can Be Complimentary

ModusLink Corporation

The needs to track and improve overall energy usage, GHG emissions, water usage and waste disposal not only provide opportunities for where supply chain efforts need to align, but also a framework where management performance metrics can also be aligned. A guest post by Bob Ferrari. I’m very pleased to have the opportunity to be a guest blogger and contribute commentary to the Value Unchained community of followers.

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Sustainability : Can Procurement do better than Governments?


All these projects should also trigger a massive domino effect, as suppliers are required to gather Sustainability metrics from their own suppliers. Since the failure of the Copenhagen conference, to agree on a real regulation of carbon emissions last December, it is becoming increasingly clear that governments are struggling to reach agreements on Sustainability issues.


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

Supply Chain Movement

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. Supply Chain Metrics that Matter.

The Hierarchy of Supply Chain Metrics


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. In each of these reports, the 'Hierarchy of Supply Chain Metrics' is positioned as the ideal set of metrics to measure supply chain operational performance.

How Many Slaves Are in Your Supply Chain?

Talking Logistics

California, for example, passed the California Transparency in Supply Chains Act of 2010 , which went into effect in January 2012. The company is also stopping production in Ecuador, Venezuela, Belarus and Pakistan by April 2014 (these countries scored low in a World Bank report that assessed countries on accountability, corruption, violence, and other metrics).

Manufacturing Labor Productivity: A Vital Metric to Spur for American Manufacturing to Compete


percent annual growth from 2010 to 2013. From 2010 to 2013, the European Union averaged 4.1 recovery ( 72 percent of jobs gained between 2010 and 2013 were in either automotive manufacturing or in metals). Twitter The post Manufacturing Labor Productivity: A Vital Metric to Spur for American Manufacturing to Compete appeared first on Freight Logistics Company | Cerasis.

Supply Chains to Admire – Technology Computer Hardware Calculation Example

Supply Chain Insights

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. Cisco showed strong improvement in both of these metrics from 2010 to 2016. Cisco Strength Metrics.

Supply Chain Leaders Rearranging Deck Chairs? Yes, I Think So.

Supply Chain Shaman

The supply chain is complex non-linear system that is easily thrown out of balance through a focus on functional metrics. They rock back and forth in improving singular metrics but struggle to improve a portfolio of growth, margin, inventory performance, and asset utilization.

Supply Chain Talk: Do Numbers Tell the Full Story?


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. The metrics that we put in place must have the drill down capability to point us towards an action that will improve the overall metric.

Why a Cashmere Sweater Can Cost $2,000 — or $30

Supply Chain Brain

Nearly $1.4bn of cashmere garments were exported globally in 2016, up from $1.2bn in 2010, according to United Nations trade data. Quality & Metrics SC Analysis & Consulting Global Supply Chain Management Apparel Retail All Technology Sourcing/Procurement/SRM Home Page Latest News Home Page Slider Featured Content

Supply Chains to Admire Household Nondurables Calculation Example

Supply Chain Insights

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. reflects a negative trend in Revenue Growth and a slight negative trend in ROIC as well for P&G from 2010 through 2016. P&G Strength Metrics.

The Better Goal: More Fuel Efficient Trucks or Using Fewer Trucks?

Talking Logistics

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). In 2010, IKEA changed its Ektorp sofa from one solid piece into several, with detachable armrests and a hinged back. percent of the truck un-utilized and by 2010 only 3.5

History Repeats Itself Without Supply Chain Leadership

Supply Chain Shaman

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 research, now in its sixth year, is an analysis of peer group performance and relative rate of improvement on four metrics (growth, operating margin, inventory turns, and Return on Invested Capital (ROIC)). The second step is to align metrics to the strategy.

Uncovering the hidden lessons in ???The Goal??? (part 2)

DELMIA Quintiq

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. Next, he translates the financial metrics into three measurements applicable to production: throughput, inventory and operational expense. 2010), The Goal: Third Edition, Gower Publishing: Burlington, USA.

Top 25 Supply Chains Pt. 1: Masters category


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. Research in Motion (RIM) – came in at #9 in 2010, went to #4 in 2011, then out of the Top 25. by CJ Wehlage On May 29, 2014, I posted a blog about the Top 25 Supply Chains predictions for 2015.

Tell Me Why

Supply Chain Shaman

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. In addition, they rank last in their ability to drive metrics improvement. P&G lost ground against their peer group, as judged by this metrics portfolio, in the last decade.

6 Best Practices for eCommerce Warehousing


Graves of Inbound Logistics , accounting for nearly one-half of $1 trillion by 2010. Use Metrics to Track Progress and Order Fulfillment Processes. However, shippers should use metrics to track the percentage of orders fulfilled within time requirements, numbers of orders shipped within a given time frame, accuracy in orders picked, packaged and shipped, and labor productivity. Each of these metrics relates directly to consumer promises, such as free two-day shipping.

Supply and demand production challenges with new products


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. by Iman Niroomand Supply chain performance depends on the matching of product features with supply chain features. When a new product hits the market, the existing supply chain that is optimal for a given set of product lines will not stay optimal.

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2020 Requires Big Wings and Feet

Supply Chain Shaman

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. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance. Industry patterns show a precipitous decline in supply chain metrics in 60% of manufacturing industries since 2010. It has been awhile.

Transportation Network Modeling: A Powerful Tool in Greenhouse Gas Emissions Reduction Strategy

Talking Logistics

In 2010, Walmart announced its goal to eliminate 20 million metric tons of GHG emissions from its global supply chain by the end of 2015. million metric tons to date, saying that some measures had led to a doubling of fleet efficiency. Companies need to be fully aware of global climate change conversations and how they will impact their supply chain in the near future.

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And I thought last year’s Top 25 Supply Chain was a surprise


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. 2010 – Leo Apotheker – 11 months. 2010.

Clay Christensen – A Great Academic and a Good Guy


An explanation offered by Christensen was what he coined“The Church of New Finance,” in which business school professors act as the high priests that indoctrinate their MBAs into a belief system of complex, ratio-based financial metrics as the only correct system of measurement. In a 2010 article and lecture, “How Will You Measure Your Life?,” This week we lost a great operations management scholar, Clay Christensen , who passed away in a battle with leukemia.

Lora Cecere Asks: Why Do People Question the Value of S&OP?


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. Frequently, I get asked the question, “What is the value of S&OP?” ” When I get the question, I smile.

Groundhog Day

Supply Chain Shaman

It is one of the reasons that I left Gartner in 2010. Fighting city hall is hard… My greatest objection with the Gartner methodology is that only 5 of the 27 supply chains are driving improvement on the Supply Chain Metrics that have the highest correlation to Market Capitalization (Growth, Operating Margin, Inventory Turns, and Return on Invested Capital (ROIC)) and driving improvement on Market Price to Tangible Book. Groundhog Day is celebrated on February 2.

The Rewards of Supply Chain Transformation: Avaya’s Journey


This was Avaya’s reality around 2010. It not only impacted key operational metrics (like reducing gross inventory levels, improving inventory turns and reducing cash-to-carry cycles) but also had a huge impact on corporate culture. by Meranda Powers Change, even under the most ideal circumstances, is difficult. Think about how hard it is (or was!) to stick to that New Year’s resolution you made to eat better, get to the gym more often or find a better work/life balance.

Defining and Measuring Fast Fashion

The UCLA Anderson Global Supply Chain Blog

These last two elements are particularly important from an operations and supply chain perspective and we postulate metrics to measure their effectiveness. Therefore, an appropriate metric to measure the effectiveness of quick response is the gross margin return on inventory (GMROI), which is defined as the ratio between the gross margin and the average, where both quantities are measured at the aggregate firm level. Felipe Caro and Victor Martínez-de-Albéniz.

SCRC Innovation and Social Responsibility Supply Index: A Critical Input to “Drucker Management Top 250 List”


In the innovation category, metrics related to spending management, category management, strategic sourcing and supplier relationship management. In the social responsibility category, metrics related to supply chain policies, practices and results, including audits and lawsuits, with respect to human relations and the environment. 2010;).

Lora Cecere Asks: Why Do People Question the Value of S&OP?


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. Frequently, I get asked the question, “What is the value of S&OP?” ” When I get the question, I smile.

Podcast: Marcia Williams on Supply Chain Optimization and Digital Transformation


And, no surprises here, I attach metrics so I can measure the baseline. I write a lot about metrics, and change management and the soft aspects that you need to consider, and I provide tools and recommendations that I think will be helpful.

Managing for Daily Improvement: Bridging the Gap Across Teams and KPIs

Talking Logistics

Due to the enhanced visibility of data and metrics across peer groups, sales leads have improved their customer service by walking prospective customers through the operations process and comfortably answering any queries on how success is measured. And the customers will feel that added value not only in metrics but also from a morale perspective.

We Need Supply Chain Immunity, not Resiliency: A Position Paper


Such a structure must be able to clearly articulate the communication, command and control for response, and deliver a transparent site picture through metrics to execute precision targeted relief and recovery. Handfield, 2010, p. 2010). In today’s post I am sharing insights from a position paper that my colleague Dan Finkenstadt, PhD , myself, and other academic and government officers are working on.

Insights from Elemica reveal 2014 Frankfurt

Talking Logistics

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. What do the Germany World Cup Team and the Boston Red Sox have in common? That was my opening question to the executives attending last month’s Elemica reveal 2014 Conference in Frankfurt. The answer: Both teams illustrate that past performance is no guarantee of future results.

Air Cargo Tech Is Falling Behind. It Doesn’t Have to.


While electronic passenger tickets were introduced in 1994 and reached a 97% penetration rate by 2007, the eAWB standards was adapted as an IATA standard in 2010, and adoption in 2018 still hovers at 53%. Amazon, the kings of automation built a $780 billion dollar empire on automated customer service…and their customer satisfaction metrics consistently outperform every other industry. This article first appeared in The Loadstar on June 8th, 2018.

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Financial Benchmarking for Inventory Turns and Working Capital


Where EBIT or EBITDA per inventory $ or per working capital $ helps in getting meaningful benchmarks and aligned targets, they are not common financial metrics. We will close this blog by discussing the Return On Capital Employed (ROCE) which is close to the EBIT% vs CCC, and which is a more common financial metric. The direction of 2010 – 2012 was a better one, decreasing CCC while increasing EBIT%. The ROCE as a common financial metric spanning the Supply Chain Triangle.

Decline In Performance in Consumer Products. Are You To Blame?

Supply Chain Shaman

In the findings, they share, “Since 2010, portfolio complexity has increased at more than twice the rate of sales, rising by 44% compared to an 18% growth in revenue. Since 2010, the number of cumulative items rose by a staggering 296%. Shift functional metrics to focus on reliability. On Thursday morning, I began an engagement with a food manufacturer attempting to drive “Supply Chain 2.0. When I asked for a definition, the phone was silent. The answer was not clear to them.