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For over a decade, since founding Supply Chain Insights in 2012, I have pounded the keyboard, asking business leaders to think more holistically about the impact of supply chain decisions on the firm’s value, the improvement of a value chain, and the impact on the environment. Functional Metrics and the Lack of Alignment to Strategy.
Early 2012 marked the end of the third decade and 2013 finds us into the fourth. Today, I spoke at the Chief Supply Chain Officer conference in Chicago at the Eye for Transport event on the results of the research. It will be nice to be home and to have time to write on this second book, Metrics that Matter.
Results in the Automotive Industry for the period of 2012-2021. There was a strong negative correlation (at an 80% confidence level) when companies were not aligned between customer service and transportation. During the pandemic, transportation costs skyrocketed, creating increasing tension between customer service and price.
I also think that Quintiq’s leadership in concurrent planning to solve new problems is promising, especially in the design of transportation and inventory flows. For example, we discovered that transportation and duties are 5x the expense of labor and overhead. Service level is our most important metric. Is it labor?
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). And with that, have a happy weekend! Song of the Week: “Safe and Sound” by Capital Cities.
Looming transportation shortages in the United States with the adoption of AB5 and the redefinition of the owner-operator are risks. Comparison of Industry Players Within Consumer Goods for the Period of 2012-2021. The focus needs to move from functional metrics to balanced scorecard outcomes. Green stagnation? The answer?
Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. When the price of oil dropped from $120 per barrel in 2012 to the staggering $29 per barrel in 2015, everyone in the oil and gas industry felt the impact. A Brief History of IT Investments. The reason?
performance metrics to influence vendor behavior and impact sourcing choices. As performance reporting metrics capture vendor performance, the company can substantiate penalties for noncompliance and poor performance, recognize or reward high performers, and incent positive results and consistent behavior. Sourcing uses P.O.
Managing adverse weather conditions is part and parcel of transportation planning. When Cisco saw news of wildfires in Colorado in 2012, it wasn’t concerned, because it had no manufacturing or suppliers in the area. Professor Yossi Sheffi is Director of the MIT Center for Transportation & Logistics.
Overall Results on the Supply Chain Metrics That Matter. I was challenged on this in 2012 by a client, and it forced me to do deeper research. I started this research in 2012 with the writing of Bricks Matter , and it continues today. It is exciting to see a country so excited about building global transportation infrastructure.
Chainalytics Creates New Metrics for Demand Planning Consortium. Descartes’ GLN, route planning and transportation management solutions and deep domain expertise can help our retail, distribution and manufacturing customers in managing their global and local inbound logistics and delivery operations.”. .
Environmental Protection Agency (EPA) and the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) jointly proposed standards for medium- and heavy-duty vehicles that would improve fuel efficiency and cut carbon emissions. billion barrels over the lifetime of the vehicles sold under the program.
While, in 2012, SAP acquired Ariba. After a very tough decade, the Supply Chain Operating Network solutions were evolving with strong development plans during the period of 2012-2015. . Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is writing her third book, Leadership Matters.
In 2012 I built on these concepts to define the market-driven value network. These Supply Chain Operating Network Strategies enable multi-tier many-to-many enablement of first and second/third tiers of suppliers of services, materials and transportation. Market-Driven Processes. Buffer Design.
Increased Shipping Costs, Delays, and Transportation Issues. Within a week of Russian troops crossing into Ukraine, the benchmark for thermal coal prices reached a record high of $446 per metric ton. a bushel, the highest price since July 2012. Increased Shipping Costs, Delays, and Transportation Issues. Deloitte ).
As a result, many organizations are turning to third-party logistics providers (3PLs) and enhanced transportation management systems (TMS) to deliver the velocity, visibility, predictability and control they need. Today’s Next-Gen TMS Meets Today’s Supply Chain Needs. Today’s supply chain requirements demand more advanced tools.
In 2007-2014 Terra added inventory management, multi-tier demand sensing, transportation forecasting, and long-term forecasting. The adoption of Terra’s products were brisk until 2011, but during 2012-2014 sales softened, resulting in employee layoffs and downsizing.
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. Keith Richard is Vice President, Operations, Transportation Management, at Transplace.
million in FY 2012 to $203.8 getting buy-in from drivers and other stakeholders) and implementing appropriate metrics to measure and drive performance.). In five years, the company’s revenues have grown from $114.0 million in FY 2017 (net income has grown from $12.0 million to $23.8 million over the same time period).
This comes after Blue Yonder received similar long-standing recognitions for the 2023 Gartner Magic Quadrant for Transportation Management Systems (TMS) 3 in April and 2023 Gartner Magic Quadrant for Supply Chain Planning (SCP) Solutions 3 in May. Also, recognitions were in the post-JDA/RedPrairie acquisition timeframe announced in 2012.
Transportation optimization is more than moving freight for the lowest cost or a short-term boost in performance; it’s also about continuous improvement delivered through smart, data-driven planning and efficient execution. What key metrics should they be driving for as an organization? What are their pain points?
Many metrics can be used to determine the top 3PL warehousing companies, such as company revenue, the number of warehouses, total warehouse square footage , etc. This compilation is based on the most currently available company revenue data (between 2018 and 2020) without factoring in any other metric. Nippon Express owns more than 31.7
CombineNet and Transplace Extend Partnership in Delivering Advanced Transportation Procurement Solution to North America. Transplace delivered more than 50 customer solutions in 2012 using the CombineNet sourcing technology, in industries including consumer goods, chemicals, manufacturing, and retail.
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. How do you reduce supply chain complexity, or at least slow its growth? Take, for instance, Six Sigma black belts.
General warehouse industry statistics Warehousing costs & revenue statistics Warehouse efficiency statistics Labor statistics in the warehousing industry Automation adoption in the warehousing industry Warehouse performance metrics Warehouse automation stats: General warehouse industry statistics 1. Since 2012, rents have increased by 5.6%
We prefer not to transport our product, yet we do a lot of trucking transportation, and drive many miles. Riva emphasized that “We need to create metrics that we have intention to follow. And the metrics we care about deeply include zero waste on all our sites.
Marina Mattos, a Postdoctoral Associate at the MIT Center for Transportation and Logistics, bluntly asks, “How will such a shift affect supply chains?”[3] ” Steutermann adds, “It is important not to confuse [sustainability] metrics with the circular economy. ” The Green Supply Chain , 31 July 2012.
Since most companies invested in the automation of the enterprise, not the value network, visibility within the company and the transportation network is a strength. The process industry’s reliance on the 3PL transportation model is a similar dilemma. Similarly, the Worldwide Retail Exchange (WWRE) sold to Neogrid in 2012.
The performance measurement pillar, which is the one used for benchmarking, is essentially a hierarchy of key performance indicators (KPIs), comprising more than 150 metrics organised into two levels. Editor’s Note: This post was originally published in May 2012, and has now been revamped and updated with more comprehensive information.
This popular metric helps buying and finance teams justify capital outlays as they bring on new products and services. The mission of our firm is to help companies implement transportation technology so that their teams work strategically and make better decisions every day. Part 5 - Strategic Transportation Tech Stack.
This regulation will see the largest reduction in the Sulphur content of the transportation fuel under taken at any time in the history. Later in the year 2012, it was further reduced to 3.5% million metric tons annually. The current maximum fuel oil limit of 3.5% m/m will fall to mere 0.5% What is IMO 2020? Sulphur cap).
Editor’s note: This post originally ran in 2012. Transportation accessorials can represent another type of gap in your total landed cost calculation. These are costs for supplementary services that are provided in connection with transportation; they are not always included in the freight charge. There’s a reason for this.
We may also choose to fly material instead of using slower transportation like rail or truck. In her excellent book ‘Supply Chain Metrics that Matter’ (Cecere, L.M., Supply Chain Metrics that Matter, John Wiley & Sons, 2015), Lora Cecere shows how we can reveal the ‘best-practice-frontier’ using so-called ‘orbit charts’.
Demand planning is the most critical process in the CPG industry, since it drives all downstream processes (raw material/finished goods inventory planning, procurement planning, capacity planning, manpower planning, transportation planning, etc.) Posted by: Kundan Raj Singh | January 11, 2012 12:01 PM. December 2012. April 2012.
Some of those are Cognos, iLog, SPSS, Core Metrics, Emptoris, Vivisimo and many others, as world is moving from reactive to proactive. IBM already has multiple use cases configured for this offering - Water, Transportation, Public Safety and City Planning & Operations. December 2012. November 2012. October 2012.
We spoke to many sustainability and business domain experts who have wide expertise working within asset intensive organizations like Power Generation, Utilities, Oil & Gas, Telecommunications and Transportation. Posted by Praveen Kumar Agrawal on June 29, 2012 7:13 AM | Permalink. Posted by: Rohit Choubey | July 5, 2012 4:12 PM.
According to data gathered from the IDC , as of 2017, the average supply chain had more than 50 times more data than in 2012. For instance, the data gathered may summarize inventory turnover rate, warehouse receiving and turnaround times, order accuracy rates, transportation and shipment data, fulfillment costs, and more.
Part of this optimization and warehouse execution challenge is to balance an array of operational metrics, not just to reduce the total number of labor hours worked. have been increasing steadily since 2012, with some estimates putting job growth as high as 46% over the past five years. Warehouse and DC jobs in the U.S.
Include elements of the processes, technologies, organizational needs, control philosophy and metrics to analyze along the way. Jason Kay @helloretreaver Jason Kay is the CEO of Retreaver and has been working with telephony systems since 2012 to solve complex problems involved with large scale market attribution. Logistics 5.
If you look back ten years ago, being a good supply chain manager was about understanding the operations, understanding your metrics, keeping a tight grip on the costs—it’s a lot more than that now. We’ve got to show them that the steps involved in transportation, refurbishment, reusing parts, whatever they may be, are worthwhile.
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. Sadly, most of it is the wrong inventory. Alignment Barriers.
Our goal is to not only talk about how they can make transportation management more effective through our blog articles about technology and best practices but to also inform them about their own industry and how they might use this information to better their companies. 2012: The Rise of Robotics Use in Manufacturing.
GT Nexus is one of the strongest providers of transportation visibility for the global ecosystem. SAP purchased Ariba in 2012 for 4.2B$, and the company has been slow to actualize the asset and drive incremental revenue. It is clear. There is a great market for a holistic solution on supply chain visibility. I am not surprised.
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