Remove 2012 Remove Inventory Remove Metrics Remove Procurement
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Supply Chain Performance Declined In the Last Decade. The Question is Why?

Supply Chain Shaman

Rise in Inventories. Less Effective at Inventory Management. Inventories grew twenty days over the decade. Yes, companies held more inventory (measured in days of inventory) in 2019 than at the start of the 2007 recession. Sadly, most of it is the wrong inventory. Belief in efficient procurement.

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When the Rubber Hits the Road

Supply Chain Shaman

In this volatile world, efficient procurement led by a CFO is not the answer. The low Return on Invested Capital (ROIC) and the growth below the industry average comes from the lack of network design and organizational alignment between new product development, manufacturing, and procurement. What is the issue? So, you might ask, why?

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A New Decade: Give Science A Chance

Supply Chain Shaman

When I started my business in 2012, I frequently wrote about the future using the moniker of Supply Chain 2020. Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns. Days of Inventory Comparison. My focus was simple. What can we learn?

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Who Should Be In The Winner’s Circle?

Supply Chain Shaman

Total cost analysis is more difficult than it sounds and most technology implementations automated functional measurement systems (manufacturing or procurement), but leave the organization blind on the management of total costs. Note that while the company drove improvement in margin, there is underperformance in inventory turns.

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Three Lies and a Truth

Supply Chain Shaman

Here is the list: Supply chain technology implementations have reduced inventory. Here they are: The Lie of Inventory Reduction. Repeatedly, I heard that supply chain applications have saved costs, reduced inventory and improved customer service. ” I played three lies and a truth with the group. The reason? They did not.

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Patrick Hopkins at Coupa: Coca Cola’s four truths of procurement to pay in action

Supply Chain View from the Field

At the Coupa INSPIRE procurement conference in San Francisco this week, the Chief Procurement Officer of Coca Cola Consolidated, Patrick Hopkins, shared his views on the “4 Truths of Procurement”, and how he has operationalized his views through the deployment of Coupa procure to pay software. Data must be right.

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Changing Mental Models

Supply Chain Shaman

Be sure to not overlook the inventory carrying costs and the impact of demand latency. Generalize procurement of materials. Some helpful reports include: Supply Chain Metrics That Matter: The Cash-to-Cash Cycle. Published by Supply Chain Insights in November 2012. Published by Supply Chain Insights in December 2012.

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