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In today’s architectures and functional metrics, value optimization does not exist. And, when procurement and tactical planning operate in isolation, there is no decision support framework to guide the trade-offs especially when the functions are tethered to different and conflicting metrics. You are right.
The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. Performance of PepsiCo Compared to Beverage Peer Group for the Period of 2013-2023 Now let’s compare these patterns to a company driving improvement and outperforming. The company underperforms on margin. The secret?
We talk about the move from functional metrics to a balanced scorecard, but we don’t use a balanced scorecard as an objective function. Orbit charts of four companies for the period of 2013-2022 at the intersection of operating margin and inventory turns. We talk about complexity, but do not measure the impact on forecastability.
SAP Announces Second Quarter and First Half Results 2013. Here are some additional details from the press release: Data Services data sets will include mode-specific transportation costs and transit times, facilities cost estimates, demographics, risk metrics, duties and taxes, sustainability metrics and others.
Chainalytics Creates New Metrics for Demand Planning Consortium. Tweet The post This Week in Logistics News (May 13-17, 2013) appeared first on Talking Logistics with Adrian Gonzalez. In other news… Descartes Signs SuiteCloud Developer Network Agreement With NetSuite. HighJump Software Announces New Partnership With NetSuite.
I am looking at the data for 2000-2013 for several reasons. I am hearing it again in my interviews for the book Metrics That Matter. I define the resiliency measurement as the tightness of the pattern at the intersection of operating margin and inventory turns for the period of 2000-2013. We have stubbed our toes. Encompassing.
The relationship between corporate financial performance and supply chain metrics was complex; and in my first attempts, I was unable to derive a correlation. I wanted to better understand which metrics truly mattered. However, as many of you know, I am stubborn. I wanted to know more. I hungered to know the patterns. Definitions.
The companies were selected based on performance better than peer group for 2006-2013 and delivering better than average improvement within the peer group as determined by the Supply Chain Index. We find that companies will establish metric targets in isolation and throw the supply chain out of balance.
While the performance rankings were based on comparisons of inventory turns, operating margin and Return on Invested Capital (ROIC) for the periods of 2006-2013 and 2009-2013, the concept is that to be a supply chain leader you must outperform and drive improvement. Aligned Metrics. Supply Chain Design.
Sanofi Performance Versus Peer Group for 2013-2022 Similarly, I find 35% of companies following the pack not able to drive resilience in the face of market shifts. The performance in 2022 is almost the same as that in 2013 (note the circular pattern). The group’s response is, “Are these supply chain metrics?”
turns in 2013. Kellogg posted 19% margin in 2013 and 6.96 turns in 2013 but fell to 11% margin and 6.05 Orbit Charts for Kimberly-Clark and Kellogg for 2013-2022 A good friend of mine, asked, “Isn’t this the impact of the pandemic.” This work completed in 2013 defined the Supply Chains to Admire.
The AMR Top 25 was the first methodology that tried to connect financial metrics with supply chain excellence. It elevated the discussion on supply chain excellence and drove more discipline and rigor in the use of financial metrics. See how different the progress is on this metric by industry? The intent was good.
It will be launched during a webinar on April 25, 2013 and through a series of reports that will run in our May newsletter and throughout the summer. However, we have found that only a few companies are improving the potential of their supply chain to balance supply chain metrics. This analysis has been fun and insightful.
3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 10 Soft Metric Considerations in Measuring Supply Chain Performance. As of November 2013, there were 31 GPS satellites in operation. We are all in business to be successful and profitable, aren’t we? Read more. . Read More. .
One of my stark realizations this year is that smaller companies are beating larger and often more established companies on growth metrics, inventory turns, operating margin, and Return on Invested Capital (ROIC). (In The metrics selection resulted from work with Arizona State University in 2013.) My takeaway?
In 2013, we will continue to serve this community by expanding services. This week, we are also announcing our Supply Chain Insights Global Summit to be held at the Phoenician on September 11th-12th, 2013. We have had fun, but I feel that we have accomplished a lot, and I am excited for the work that we are planning to do in 2013.
Early 2012 marked the end of the third decade and 2013 finds us into the fourth. It will be nice to be home and to have time to write on this second book, Metrics that Matter. Supply chain management, as a practice in commercial operations, is now thirty years old. How would you have answered the question? Anything you would add?
It is a quest and the subject of my next book, Metrics That Matter , that will publish in September, 2014. We used the period of 2006 to 2012 to build the model and we used the formula to attempt to predict 2013. .” As I shuffle along, I am not sure. I shake my head. Why Does It Matter? The result is outlined in figure 1.
If the arrow is red, the industry is moving backwards on a metric. While we agree that each of these companies are leaders with significant contributions to the industry, we do not find these companies outperforming when compared against their peer groups on a balanced portfolio of metrics. If the arrow is green, progress was made.
Data Collection To answer the above question, I''ve searched for new books published during 2010-2013 on Amazon.com. Metrics used to evaluate these new books are as below, 1) Citation count from Google Scholar 2) Number of reviews found on Amazon.com 3) Editorial Opinion Citation count is a standard way to evaluate any publication.
While most companies have been able to make progress in one of these two critical metrics in the period of 2006-2013, they have not been able to make progress on both together. Today, 90% of publicly-traded companies are stuck at the intersection of operating margin and inventory turns.
I have taken myself off the road to write the book Metrics That Matter. Instead, you book the biggest conference room in the building and invite a cross-functional team to review what happened in 2013. You just do not see the patterns of the interrelationships of metrics in an Excel spreadsheet. It is a slow week.
Until then, I am traveling to South Africa to speak at SAPICS 2013 on the book Bricks Matter. Termed Metrics That Matter, it is based on our work on the Supply Chain Index, and the industry studies that we have completed in the Supply Chain Metrics That Matter series.
As I highlighted in my supply chain and logistics predictions for 2013 , tablets and smartphones are quickly becoming the preferred computing platform for business professionals, which is why technology providers are designing and optimizing their applications for these devices. Song of the Week: “Miracle Mile” by Cold War Kids.
The companies were selected based on performance better than peer group for 2006-2013 and delivering better than average improvement within the peer group as determined by the Supply Chain Index. How did you select the final list of fifteen companies ? Was the list of the Supply Chains to Admire hard to select?
This year, we will publish two new books: Supply Chain Metrics That Matter and The Shaman’s Journal. Supply Chain Metrics That Matter will publish in December 2014. The book details what is possible, and at what rate, for metrics improvement based on lessons from leaders. It is hard to not get cranky and out-of-sorts.
Update 9 Sep 2013 : I just come across one interesting discussion on Quora saying that Amazon actually named one of its building " Wainwright " after its first customer and this customer still have the original book and packing slip with him. Then the word "empty chair" becomes a symbol of customer centric business practices inside Amazon.
We have found that supply chain metrics are gnarly and complicated.During In our program, cost avoidance, while desirable, does not count towards the metric. Supply Chain Index Rankings for 2006-2013. We named it the Supply Chain Index. In addition, a one-time cost savings does not count either. Conclusion: Figure 2.
In our work on the Supply Chains to Admire report , we tracked the progress of manufacturing, retailing and distribution companies for the period of 2006 to 2013 and 2009-2013. We then rated companies on their ability to manage and improve a portfolio of metrics: operating margin, inventory turns and Return on Invested Capital (ROIC).
Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The The Supply Chain Metrics That Matter are a portfolio of metrics which correlate to higher market capitalization. I worked in Hong Kong for 4 years during 2009 to 2013.
Organizations can align to drive value despite the allegiance to functional metrics. Organizational alignment in manufacturing organizations is worse between operations and finance teams today than in 2013. As long as companies are motivated by functional metrics, inventory management will be an enigma. Mistake #5. Measurement.
Companies with the lower score on the Index are driving faster rates of metrics improvement. Energizer and Unilever are driving the fastest rates of improvement and Clorox and P&G improvement rates are the slowest on the Metrics That Matter of Growth, Operating Margin, Inventory Turns, and Return on Invested Capital (ROIC)).
I learned today that one of the articles I published with colleagues from the University of Tennessee, Oxford University, and Manchester University was cited for the 2013 Emerald citation of Excellence award. As papers need at least three years to accumulate citation data, the 2013 Awards have been selected from papers published in 2009.
The most popular posts are on demand management and Supply Chain Metrics that Matter. In 2013, we will continue to serve this community by expanding services. This week, we are also announcing our Supply Chain Insights Global Summit to be held at the Phoenician on September 11th-12th, 2013. The Shaman has served me well.
It will be launched on a webinar on April 25, 2013 and through a report that will run in our May newsletter. To understand supply chain excellence, we have been studying pattern recognition for industry peer groups at the intersection of the metrics in the Supply Chain Effective Frontier of growth, profitability, cycles and complexity.
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. Metrics look very simple and its kind of nice to have something like these. In general, you may not be able to get all level of metrics. Discussion.
I have a short list of retailers that I am watching that I think will fail in 2013 due to the lack of this understanding. Recently, I was facilitating a session at a Retail Connections conference on the “Role of the Store in 2013.” It requires a rethinking of the role of the store and the redesign of metrics.
” Institute for Manufacturing, 2013. __. I think about this discussion with Keith often as I work on the Supply Chain Index and edit the chapters of Metrics That Matter. How value chain activities are carried out determines costs and affects profits.” Tipping points are fascinating to watch.
I now have a working manuscript for the entire book of Metrics That Matter. There was no line in the bathroom at the Kansas City CLM conference in 2001, but there will be at the CSCMP conference in San Antonio in 2013. It appears SO barren from my window in seat 4D. It has been a good week. In fact, it will probably be a long line.
Growth 10% (Year-over-Year comparison of 2013 versus 2014). Supply chain leaders manage a complex system of non-linear, but very inter-connected metrics. Leaders need to balance a portfolio of metrics. Year-over-year Improvement at the Intersections of the Metrics. Inventory Turns (15%) (based on 2014 results).
Microsoft acquired them in 2013, the company then laid off 12,500 people in 2014, then acquired Alcatel Lucent only to sell off a business unit to Foxconn. In this area, Gartner should push the metrics benchmark. We need to figure out how to normalize this oddity that keeps McDonald’s in the top five every year.
The article reminds us of what Merck R&D head Roger Perlmutter said about the subject back in 2013. “We Imagine knowing so little about your customer, in this case, the human body. We really understand very little about human physiology. At other times, you can lower the dimmer and automate routine parts of the planning processes.
trillion in cash according to a 2013 US Working Capital Survey. And if you’re still using dated technologies that don’t support robust and adaptive collaboration, you may even need to make critical decisions without the context of knowing their impact on corporate-wide metrics and objectives. It’s certainly no walk in the park.
These examples point to a key metric that’s emerging for quantifying the value of social networking : Time-to-Resolution. Also this week, I came across some interesting survey results from the Pew Research Center published in August 2013.
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