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Organizational Alignment: Overlooked, but So Important.

Supply Chain Shaman

In 2012, I placed the first alignment study in the field. In the supply chain team analysis, note the 21% gap between procurement and manufacturing teams, the 35% gap between sales and operations and the 21% gap between finance and operations. Organizational Alignment 2012. Functional Metrics. Organizational Alignment.

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Supply Chain Performance Declined In the Last Decade. The Question is Why?

Supply Chain Shaman

Average performance in 2016-2019 across twenty-seven manufacturing sectors on inventory turns, Return on Invested Capital and operating margin was worse than in 2012-2015. Focus on functional metrics without alignment to a balanced scorecard to drive value. Belief in efficient procurement. Alignment Barriers. Mistake #3.

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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? Conclusion.

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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. In short, his vision of an end-to-end supply chain was transactional: better processing of order-to-cash and procure-to-pay. At that time, Supply Chain 2020 seemed so far away. My focus was simple.

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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. From interviews, I believe that it was a combination of leadership and metrics alignment. The result?

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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

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. Supply Chain Metrics That Matter: A Focus on the Pharmaceutical Industry. Published by Supply Chain Insights in December 2012.

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