Three Lies and a Truth

Supply Chain Shaman

We are trying to understand how supply chain leaders have raised the bar at the intersection of these four sets of metrics on the supply chain effective frontier. I also believe that it is because the organization is not incented to manage cash-to-cash metrics.

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Why Have We Not Reduced Inventory?

Supply Chain Shaman

” CFO of a major manufacturer. Ownership of Inventory as a Metric. In High-tech, there is greater ownership of the “inventory metric” across the organization. A decade ago, the supply chain had two buffers: inventory and manufacturing.

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How Did We Get it All Wrong?

Supply Chain Shaman

Based on the work I was doing on financial metrics, and studying the Supply Chain Effective Frontier, I was convinced that companies cannot effectively model the required trade-offs of good supply chain decision-making in S&OP using spreadsheets. I recommended that Steve take the last four years of shipment data, and give the technology vendors 2009-2011 and ask them to forecast 2012. Last week, my mother died. It was not unexpected.

The End of a Fairy Tale

Supply Chain Shaman

To minimize costs, supply chain teams of manufacturing leaders have designed the value network to absorb this volatility. The tendency is to build a supply chain for the lowest manufacturing cost-per-case which they believe is the lowest ROA.

Like A Green Lump of Clay….

Supply Chain Shaman

These can be shift in the channel, issues in manufacturing, increasing variability in transportation, or a shift in commodity prices. Alternate Bill of Materials and Alternate Sourcing: The more alternatives that exist through the manufacturing and procurement processes, the easier it is to design the supply chain to absorb cost and supplier variability. Flexible Manufacturing Scheduling Practices: The design of manufacturing processes to flex with market fluctuations.

5 Quality Metrics Predicting The Future Of Manufacturing


Bottom Line: Manufacturers are reaching a new level of results in 2018 because they have clearer, more actionable insights based on real-time manufacturing and quality metrics than ever before. Quality Metrics Enable Customer-Driven Manufacturing Networks. 2012).

The Challenges of Global S&OP


The manufacturing team will talk about how much they can produce efficiently which will likely translates into holding more finished goods inventory than you need. Each department is concerned with its area and metrics, not necessarily the corporate goals until they are translated to the language of each area of the business. The following is an excerpt from European Business Review. To read Karin's entire article, please visit [link]. What do you want to achieve?

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Metrics and Issues to Consider in SQM (Supplier Quality Management) By 5 Big Industries


In the first post our long tme guest blogger, Chuck Intrieri of The Lean Supply Chai n, gave us 5 core metrics to evaluate supplier performance using supplier quality management and a 4 step process to execute. Review of SQM Metrics and Issues Across 5 Core Industries. #1:

Why Segmentation and Profitability Go Hand in Hand

Supply Chain Nation

It is critical to align the whole organization on the right metrics, otherwise the segmentation will fall apart. The Aberdeen Supply Chain Summit in Chicago earlier this month was a productive event for supply chain executives and practitioners.

AGCO: Driving a Digital Manufacturing Transformation

Supply Chain Shaman

While many employers would have penalized the employees for tablet breakage , Peggy explored the world of wearables to enable her digital manufacturing transformation. AGCO’s culture of innovation policy deployment enabled employees to pioneer a technology solution for manufacturing.

Part 2: How the Cloud Impacts the Software Lifecycle

Supply Chain Nation

KPIs also enable you to demonstrate the value of IT to business users and management through metrics that are meaningful to the business community. I recently wrote about how the shift to cloud computing moves the burden of installing, operating, or maintaining software from you to your vendor, and how the four phases of the software lifecycle shift as well. The new lifecycle phases are launch, perform, optimize, and continually improve.

Guest Post: Ignoring this Performance Metric is Risky


When Cisco saw news of wildfires in Colorado in 2012, it wasn’t concerned, because it had no manufacturing or suppliers in the area. The post Guest Post: Ignoring this Performance Metric is Risky appeared first on Connect Blog by TMC, a division of C.H.

Supply Chain Management:Rapid Innovation will Differentiate the.

Infosys Supply Chain Management

Industrial Manufacturing. In our March commentary, the takeaway was that these rapidly changing retailer business models imply that organizations can no longer assume the same organizational structures of accountability where marketing and supply chain teams supporting physical stores and online fulfillment reside in separate organizational entities with conflicting metrics. Posted by Bob Ferrari on August 10, 2012 1:21 PM | Permalink. December 2012. November 2012.

Supply Chain Management:Supply Chain Visibility: The need.

Infosys Supply Chain Management

Industrial Manufacturing. Example: For a shipper, number of shipments at a 3PL warehouse might be a relevant metric while the 3PL provider may be more interested in the number of shipments for all serviced shippers. Posted by Naveen Polyamut on May 9, 2012 11:10 AM | Permalink. December 2012. November 2012. October 2012. September 2012. August 2012. July 2012. June 2012. May 2012. April 2012. March 2012.

Data and Digitization in Manufacturing

Enterra Insights

Manufacturing has been the lifeblood of the global economy for hundreds of years. Because manufacturers have historically moved factories to regions featuring cheap labor and few regulatory restrictions (sometimes referred to as outsourcing or offshoring), a misconception has arisen about the importance manufacturing to national economies. ”[1] Manufacturing becomes even more relevant to advanced economies thanks to data and digitization.

Data 100

Supply Chain Management:Growing interest in sustainability from.

Infosys Supply Chain Management

Industrial Manufacturing. This is certainly an exciting area, and one that is starting to mature, but from our Asset Management centric perspective we realize that the majority of the work around making buildings "smarter" is being done by manufacturers of sensors and devices and by software application developers of building management software systems, such as IWMS (Intelligent Workplace Management Systems) and RESP (Real Estate and Space Planning). December 2012. May 2012.

Novo Nordisk: A Story of a Supply Chain Leader

Supply Chain Shaman

She joined Novo Nordisk in 2012. Given the level of industry maturity within pharmaceutical manufacturing, Novo Nordisk has a strong foundation in manufacturing. We also have strong manufacturing culture and high focus on “Lean” initiatives.

Demand Planning - Practicing the Best Practices - Infosys Blogs

Infosys Supply Chain Management

Industrial Manufacturing. In this blog I will focus on first couple of sub process of demand planning cycle - 1) Setting up demand planning objectives and metrics for different business units/customers/key items/locations 2) Setting up the frequency of the forecasting process (create/review/publish) with the time horizons. Hence it is not recommended as a single metric to be followed. Hence it is also not recommended as single metric to be followed. December 2012.

[INFOGRAPHIC] Public Perception of & A Brief Timeline of Moments from the American Manufacturing Industry


At Cerasis, our customers are manufacturers from the American Manufacturing Industry. In today's post, we feature an amazing infographic below from a joint report by Deloitte Manufacturing and the Manufacturing Institute. 1850: American System of Manufacturing.

New Bookends: The Tale of Supply Chain Global Leaders in Consumer Products

Supply Chain Shaman

Overall Results on the Supply Chain Metrics That Matter. With a strong manufacturing culture, much of the focus was on lean production systems. I was challenged on this in 2012 by a client, and it forced me to do deeper research. Definition.

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What Should Be the Role of the Store?

Supply Chain Shaman

To understand the pervasive nature of this change, consider Amazon’s 2012 announcement: “We now have more than 15 million items in Amazon Prime, this is up 15x since we launched in 2005. Amazon 2012 Annual Report. The traditional metrics within each silo are a barrier.

Changing Mental Models

Supply Chain Shaman

Medical Device Manufacturer. While hospital supply chain organizations have made progress in the last decade, the gap has widened between the supplier sectors of pharmaceuticals and medical device manufacturers and other manufacturing industries.

Training for the Next Triathlon. Insights for You?

Supply Chain Shaman

At the age of 58, I buried my mother in November 2012. Abby and I are writing an e-book on Supply Chain Metrics that Matter. Likewise, in today’s supply chain environment, I find that supply chain leaders favor a single function of logistics, manufacturing or sourcing.

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.

Three Tough Headlines: What Can We Learn?

Supply Chain Shaman

Three weeks is substantial and may tip the hand to reshore more manufacturing into North America. In July 2012, E2open went public with a market capitalization of 442M. Today is a rainy day in Philadelphia. I am recovering from bronchitis.

Can Supply Chains Adjust to a Circular Economy Over the Next Decade? Part 1

Enterra Insights

Former McKinsey analyst Markus Zils adds, “The circular economy aims to eradicate waste — not just from manufacturing processes, as lean management aspires to do, but systematically, throughout the life cycles and uses of products and their components. Steutermann notes, “While some metrics on sustainability already exist, they are mostly related to linear metrics, such as reducing waste to landfills or carbon dioxide emissions.

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


Alignment on a Metrics Portfolio. OI) is a $7 billion manufacturer of glass bottles while Sonoco Products is a $5 billion manufacturer of paper packaging. The leadership team at Sonoco Products aligned a metrics portfolio against a business strategy in 2010.

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


Alignment on a Metrics Portfolio. OI) is a $7 billion manufacturer of glass bottles while Sonoco Products is a $5 billion manufacturer of paper packaging. The leadership team at Sonoco Products aligned a metrics portfolio against a business strategy in 2010.

One Year!

Supply Chain Insights

We founded Supply Chain Insights on February 9th, 2012. Over the course of 2012, I feel that we made a lot of progress. This will be a monthly public two-day training course in manufacturing centers in Europe and the United States. It has been one year.

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A Toast to the Shaman

Supply Chain Shaman

The most popular posts are on demand management and Supply Chain Metrics that Matter. In 2012, I am proud that we have published 24 reports, completed 14 quantitative research studies and have had over 72,000 views of our work on Slideshare. Tonight, I pour a toast.

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Make Your Supply Chains Less Complex – and Less Wasteful!

Talking Logistics

Mariotti states that you first have to measure it, and he outlines several metrics and techniques in the book, including ranking customers by annual sales, profit, and gross margin percentage. Lean is often associated with discrete manufacturing processes, but the discipline has been adapted and implemented in the process industries too, as documented in the book “ Lean for the Process Industries: Dealing with Complexity ” (Productivity Press, May 2009) by Peter L.

Making Cents Out of Demand Sensing


I was guilty of this from time to time when I led a demand-planning group because we were evaluated on forecast accuracy as one of our key metrics. Used in conjunction with other demand management capabilities and downstream capabilities like inventory planning and optimization, supply planning and optimization, and manufacturing planning and finite scheduling, demand sensing can provide value in certain situations, i.e., engineer-to-order and configure-to-order products.

The Evolution of a Supply Chain Planning Support Team


QAD acquired DynaSys in 2012. We adapted the metrics put in place by QAD in order to measure our activity, which helped us in understanding what we could do, how we could improve, and what were our limits. From a small local player ….

Supply Chain Disruptions: A Survival Guide - SupplyChainOpz

Supply Chain Opz

The company won the ISM 2012 Award for Excellence in Supply Management (category:process). However, the logic Cisco uses to manage the disruption is very robust and details are summarized into the infographic below, Note: metrics data is for illustrative purpose. NAVIGATE. Basics.

Infor’s Acquistion of GT Nexus: If I Had a Magic Wand

Supply Chain Shaman

There is seldom one technology used within a manufacturing company to connect B2b value networks.) With the larger ocean carriers and the port congestion, GT Nexus becomes more and more important to retail and manufacturing companies.

This Week in Logistics News (July 15-19, 2013)

Talking Logistics

As I’ve commented in previous postings, if you are a 3PL or transportation company and you’re not involved in cross-border shipping with Mexico, then you are missing out on a growing business opportunity (see Reuters article from December 2012).

50 warehouse automation stats you should know

6 River Systems

Average warehouse capacity utilization among manufacturers is about 68%. Since 2012, rents have increased by 5.6% Warehouse automation stats: Warehouse performance metrics 42. This metric reflects the average time between the supplier receiving an order and shipping it.