Managing a Third Party Logistics Partnership

The Logistics of Logistics

When you have chosen a 3PL partner, insure that you have an effective Service Level Agreement (SLA) with accompanying Key Performance Indicators (KPIs) to manage the Service Level of the 3PL. This SLA/KPI has to be negotiated and agreed upon by you and your 3PL partner.This negotiation time can take three (3) to Six (6) months. If you do not want to start at the 3PL as a contact customer with a SLA/KPIs, you can ship your goods and become a public account.

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.


Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

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. The strong functional silos focus on their own metrics which seldom include the cycle metrics of inventory turns, working capital or cash-to-cash. reference Carbon Disclosure Project 2012).

Why Have We Not Reduced Inventory?

Supply Chain Shaman

Ownership of Inventory as a Metric. In High-tech, there is greater ownership of the “inventory metric” across the organization. “If only I had the money that the company was supposed to save from the multiple ERP and supply chain projects. There were a myriad of projects and we are at the same place that we were when we first started. I am a skeptic. I just don’t believe it anymore when I see it on a project justification.”

Like A Green Lump of Clay….

Supply Chain Shaman

Q: What is the best metric to begin analyzing when starting to evaluate Supply Chain agility? My iphone buzzed on my nightstand. I groaned. I had gotten to bed late. It was 6:00 AM. This was before my wake-up call. I am not a morning person. As I picked it up , I saw a twitter alert welcoming people to the APICS webinar with @lcecere on Agility that afternoon. Much to my chagrin, I rubbed my eyes and checked my calendar. The APICS event was not there.

The End of a Fairy Tale

Supply Chain Shaman

In the modeling, my recommendation is to look at the cost metrics in aggregate. In the end, we were all going to live “happily ever after.” ” At least, that’s what was promised. I was at three clients’ sites over the course of the last two weeks. During those visits I heard comments like, “I believe that something has fundamentally changed in the market.” ” Or, a casual comment of, “We cannot run our supply chains like we used to.”

Gartner: The Supply Chain is Getting Harder


That was the question Michael Uskert, managing vice president, Gartner, asked at the end of the day 1 keynote at Gartner’s 2012 Supply Chain Executive Conference. Specifically she points out demand sensing and shaping, end-to-end supply chain planning, inventory optimization, segmentation, network design, and appropriate functional and cross-functional KPIs and metrics. What is your moon?

Gartner: The Supply Chain is Getting Harder


That was the question Michael Uskert, managing vice president, Gartner, asked at the end of the day 1 keynote at Gartner’s 2012 Supply Chain Executive Conference. Specifically she points out demand sensing and shaping, end-to-end supply chain planning, inventory optimization, segmentation, network design, and appropriate functional and cross-functional KPIs and metrics. What is your moon?

When Evaluating a 3PL, Check for These 8 Must Have Cultural Traits

The Logistics of Logistics

The best logistics companies use measurements (metrics, KPIs, etc.) When evaluating a 3PL, the culture should definitely be considered. Every company has a culture, sometimes called organizational culture or corporate culture. The culture refers to the values and attitudes of employees in the business or organization. Each company has it’s own unique culture that can be a great benefit to or a big detriment to performance.

3PL 100

The Challenges of Global S&OP


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? Where does your company want to be in 12, 18, 24 months? Do you know? If you don’t know where you are headed, any road will take you there. How will you know what success looks like?

Global 100

Refresh Your Supply Chain – Have a Coke and a Smile

Supply Chain Network

Coke’s main desires in terms of supply chain improvement included metrics with no manual intervention, industry standards that are not Coke specific and an even more vigorous system for reporting hierarchies. Coca-Cola is a globally recognized brand, and the company consistently delivers its products. Their scale is huge and the territories they cover vary from congested urban settings to remote rural areas. Clearly, this company knows a thing or two about supply chain management.

Webinar: How to Measure LTL Carrier Performance and Save Money (November 21, 2012)

The Logistics of Logistics

The post Webinar: How to Measure LTL Carrier Performance and Save Money (November 21, 2012) appeared first on The Logistics of Logistics. In this free webinar, participants will learn a methodology for measuring LTL carrier performance. They will also learn specific actions for reducing LTL carrier shipping costs. Webinar topics will include: 1.) Key process indicators (KPI) for the most important aspects of LTL shipping.

KPI 100

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. In today’s post, Chuck will take it a step further and break down metrics and issues to look out for by 5 main industries: Pharmaceuticals. Review of SQM Metrics and Issues Across 5 Core Industries. #1: Trend Metrics Collected per Site.

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. The future of manufacturing is being written today across the millions of shop floors which have chosen to excel at analytics, metrics and Manufacturing Intelligence. Quality Metrics Defining the Future of Manufacturing.

The 7 Habits of Highly Effective Shippers

The Logistics of Logistics

A highly effective shipper will use metrics or key process indicators (KPIs) to monitor logistics performance. Highly Effective Shippers. Highly effective shippers are successful because they have developed the right attitude and habits regarding shipping. Below is a list of the 7 habits of highly effective shippers: 1. Strategic view of shipping. Highly effective shippers see a well-run shipping function as a competitive advantage.

Why Segmentation and Profitability Go Hand in Hand


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. The conference format and size were just right to allow comfortable sharing of ideas and lessons learned about various topics from S&OP and supply chain planning, to inventory optimization and transportation.

Lean and Agile Performance Measurement Governance (Part 1)


At a recent industry conference, I asked my 80-plus audience to raise their hands if they were “OK” with the current status of their performance measurement governance practices – including Metrics Identification, Measuring, Tracking, and Controlling. Upon digging a little deeper, I learned that the widespread feeling among middle and senior managers is that they are measuring too much or too little, or are measuring the wrong metrics. Systemized metrics tracking.

Part 2: How the Cloud Impacts the Software Lifecycle


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.

Next-generation supply chains: Efficient, fast and tailored

Global Trade Management

Friday, 7 December 2012. metrics that really impact the bottom line; the Leaders in our survey. ▼ 2012. (1). Global Cargo Monitoring / Cargo Tracking. International trade is the engine of global prosperity today. The size of global trade has nearly doubled since 1990. The healthy growth continues as world merchandise trade continues to grow with an average of 10% per year.

Cargo 40

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. Use data and new metrics systems to free the organization from the ball and chain of corporate politics.

Supply Chain Management:Rapid Innovation will Differentiate the.

Infosys Supply Chain Management

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. Posted by: Navdeep Sidhu | August 13, 2012 5:42 PM. December 2012.

Supply Chain Management:Supply Chain Visibility: The need.

Infosys Supply Chain Management

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. February 2012. January 2012.

Supply Chain Management:Growing interest in sustainability from.

Infosys Supply Chain Management

A further benefit of integration of these many systems is to allow organizations to effectively report on their sustainability metrics. Posted by Praveen Kumar Agrawal on June 29, 2012 7:13 AM | Permalink. Posted by: Rohit Choubey | July 5, 2012 4:12 PM. Posted by: Sivaraamakrishnan | August 2, 2012 6:13 AM. December 2012. November 2012. October 2012. September 2012. August 2012. July 2012. June 2012. May 2012.

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. There are many ways to measure supply chain performance in terms of resilience, but there is one that’s easily overlooked even though it is gaining in importance: Detection time.

Looking for Growth in Lean Times? Look North to Canada!

Supply Chain Network

On whichever metric one compares, Unemployment, GDP, Inflation or Currency, Canada has fared better during this downturn. There’s no getting around it, times are tough and we may still be in for more of these lean times for years to come. Every company is looking for that elusive source of growth to keep driving the top line, or at least to replace any shrinkage in business from the downturn.

Announcing the Supply Chains to Admire for 2019

Supply Chain Shaman

We selected these metrics based on correlation work with Arizona State University in 2012. The winners drove long-term value (measured by market capitalization) while outperforming on the portfolio of metrics shown in Figure 1 and driving improvement faster than their peer groups. The companies I work with struggle to set metrics targets. I watch the news channels on mute. The reason? I hate political pundit debates.

Public Markets Reward Supply Chain Alignment

Supply Chain Shaman

The relationship between corporate financial performance and supply chain metrics was complex; and in my first attempts, I was unable to derive a correlation. The year 2012 marked the 30th anniversary of the use of supply chain management as a cross-functional process for source, make and deliver in the commercial sector. I wanted to better understand which metrics truly mattered. The Metrics That Matter Are Different by Industry Sector.

New Books for Your Bookshelf

Supply Chain Insights

This year, we will publish two new books: Supply Chain Metrics That Matter and The Shaman’s Journal. We are adding these two new books for your bookshelf to stand beside Bricks Matter which published in December, 2012. Here is an overview of the different books: Bricks Matter published in December, 2012 and is a chronology of 30 years of supply chain progress. Supply Chain Metrics That Matter will publish in December 2014.

Demand Planning - Practicing the Best Practices - Infosys Blogs

Infosys Supply Chain Management

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. November 2012.

Novo Nordisk: A Story of a Supply Chain Leader

Supply Chain Shaman

She joined Novo Nordisk in 2012. Supply chain excellence Supply Chain Talent Supply Chains to Admire cold chain healthcare Metrics That Matter Novo NordiskWith more than 90 years of innovation in diabetes care, Novo Nordisk is a global pharmaceutical leader. The logo to the left showcases the evolution of the brand over time.) The Company’s goal is to defeat diabetes and drive better patient outcomes.

Measuring Forecast Accuracy – Getting Started


a highly respected information technology research and advisory firm, puts forecast accuracy at the top of its pyramid of supply chain metrics. In a study published in February 2012, Gartner stated that a 6% forecast improvement could improve the perfect order by 10% and deliver a 10-15% reduction in unnecessary inventory. historical data low demand volume MAD MAPE Mean Absolute Deviation Mean Absolute Percentage Error metrics outliers unnecessary inventory

Introducing Supply Chain Power Influencers on Twitter

Supply Chain Opz

Background In January 2012, Forbes published the article named " Who Are The Top 50 Social Media Power Influencers? " Related Metrics There are 3 other metrics dedicated to the measurement of social media influence as below, 1) Klout develops Klout Score, the number between 1-100 that represent influence (the ability to drive action). Data Collection As you may notice, "retweet" is the key metric for influence measurement and each database adds its own secret ingredients.

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 Here’s an excerpt from the article (emphasis mine): In 2012, IKEA lowered the price of its Textur lamp by 34% after slimming down the number of components to nine from 33. Last Friday, the U.S.

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. On the federal government front, President Obama signed an Executive Order Strengthening Protections Against Trafficking In Persons In Federal Contracts on September 25, 2012.

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. The focus of this conference will be the evolution of Supply Chain Metrics that Matter and the launch of the Supply Chain Index (a formulaic representation of supply chain excellence by peer group). It has been one year. One year later, we are an eight person team. Supply Chain Insights is a true bootstrap startup.

Poland 193