Beyond Operational Metrics: Why Measuring Employee Interpersonal Performance is Also Important

Talking Logistics

Companies spend a lot of time and energy measuring operational metrics, the “what” of supply chain performance, but they generally fail to measure the “how” aspects of performance –i.e., Tweet The post Beyond Operational Metrics: Why Measuring Employee Interpersonal Performance is Also Important appeared first on Talking Logistics with Adrian Gonzalez.

The Two Best Supply Chain Metrics - The 21st Century Supply Chain




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This Week in Logistics News (May 27-31, 2013)

Talking Logistics

NAFTA Trade in March 2013. Finally, an article in the Wall Street Journal this week poses an interesting question: Is it better to cut ties with a supplier that doesn’t meet expectations — whether it’s safety standards, quality metrics, or other important factors — or is it better to work with them to improve? Tweet The post This Week in Logistics News (May 27-31, 2013) appeared first on Talking Logistics with Adrian Gonzalez.

This Week in Logistics News (May 13-17, 2013)

Talking Logistics

Chainalytics Creates New Metrics for Demand Planning Consortium. What I found most interesting, however, was this statistic quoted in the press release: “According to the Pew Internet & American Life Project, as of January 2013, 31 percent of American adults own a tablet computer , up from 25 percent in August 2012 and four percent in 2010.” Tweet The post This Week in Logistics News (May 13-17, 2013) appeared first on Talking Logistics with Adrian Gonzalez.

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

Talking Logistics

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. industrial economy drove revenue and operating profit below expectations [in Q2 2013],” said the company in the press release. “In

How Many Slaves Are in Your Supply Chain?

Talking Logistics

Coincidentally, at the Ariba LIVE 2013 conference yesterday, I attended a presentation by Justin Dillon, Founder and CEO of Made in a Free World , a nonprofit group that is “building a coalition of consumers, businesses, and governments to disrupt the system of slavery.” The collapse of the garment factory in Bangladesh last week , which killed at least 705 workers and injured thousands of others, has put a spotlight on a problem that plagues many supply chains: the use of slave labor.

Changing the Production Performance Metric


Inside-out to outside-in is starting to turn. Anyone who has worked with asset intensive process manufacturers knows how hard it is to change the thinking about machine capacity utilization. For years asset utilization has been the de facto measurement where running smaller lot sizes was not an option. My have things changed. I see many companies shifting to a more balanced approach as companies strive to become more demand driven.

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. As I wrote about this concept, and worked with Abby Mayer ( @indexgirl ) to write the Supply Chain Metrics that Matter series of reports, I discovered more on the depth of the complexity. I wanted to better understand which metrics truly mattered. The Metrics That Matter Are Different by Industry Sector.

This Week in Logistics News (February 18-22, 2013)

Talking Logistics

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. Tweet The post This Week in Logistics News (February 18-22, 2013) appeared first on Talking Logistics with Adrian Gonzalez.

Mexico 100

The 7 Habits of Highly Effective 3PLs

The Logistics of Logistics

A KPI is an indicator (a metric) that you have chosen, and agreed with your partners and or customers, that will determine whether you are meeting your critical success factors. White Paper: The Essential Guide to LTL Shipping Improvement: Action Plan and Metrics for Rapid Transformation. Highly effective 3PLs have developed the right habits, culture and processes to deliver excellent service to their clients.

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Why I No Longer Believe in the Gartner Supply Chain Top 25

Supply Chain Shaman

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 retail sector formula has far different metrics than the chemical industry. Capital Markets reward balance in a Portfolio of Metrics.

2013 Third-Party Logistics Study

Supply Chain Movement

The success of the third-party logistics industry is evident in the generally high marks given to 3PLs by respondents to a survey as part of the 2013 17th Annual Third Party Logistics Study, which identifies trends and explores how both 3PLs and shippers are using these relationships to improve and enhance their businesses and supply chains. They are tactical rather than strategic, offer insufficient visibility and are limited by metrics, contract terms, and risk mitigation strategies.

7 Elements of Seamless Supply Chain Integration

Supply Chain Opz

6) Trading partners should agree on the same metrics : unrealistic expectation can happen in any form of relationship. Seamless supply chain integration is a myth or reality? This articles will show you more about the theoretical background , related concepts and 7 elements you need to achieve this goal. Literature Review Supply chain integration has been around as early as 1989. Graham C.

10 Outstanding Books for SCM Professionals

Supply Chain Opz

Metrics used to evaluate these new books are as below, 1) Citation count from Google Scholar 2) Number of reviews found on 3) Editorial Opinion Citation count is a standard way to evaluate any publication. So, customer''s review on (3 stars or more) is also used as a metric. Are you a supply chain management professional who are looking for inspiring ideas to improve the operations of your supply chain?

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Is Apple Supply Chain Really the No. 1? A Case Study

Supply Chain Opz

So this section will explain some characteristics of Apple Supply Chain through various metrics and compare them with Amazon Supply Chain. Supply chain professionals also use this metric in inventory management function. NAVIGATE. Basics. Case Studies. Graphics. All Posts. About. Copyright. Privacy. Blogroll. Is Apple Supply Chain Really the No. A Case Study.

5 Keys to Implementing Improvement Initiatives

The Logistics of Logistics

It will be tricky to drive change because they are likely the CEO’s “dashboard metrics”. Many measurements are sacred to the board or other metric owners. Feel free to refer the metric owner to point number 3, after you have developed a meaningful alternative. Every industry seems to have its silver bullet for creating improvement.

Logistics Company


2 Key Inventory Metrics Your Logistics Company Should Be Measuring. Average Days on Hand (ADOH). ADOH represents how much inventory a process has stored expressed in terms of how many days that process could sustain activity by consuming the stored inventory. For example, if a production line has enough of one part on hand to supply the line for 30 production days, then the production line’s ADOH for that part is 30 days.

One Year!

Supply Chain Insights

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 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.

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Emerald Citation of Excellence 2013 for supply chain innovation article

Supply Chain View from the Field

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. A full list of the 2013 winners, as well as lists of previous winners, is available at: [link].

Lean Logistics


Most companies typically use metrics such as cost, quality, and delivery to track progress and assess improvements. If PDCA is in place, problems will be solved before they escalate or show up in output metrics. Why is PDCA Important in Lean Logistics? In lean logistics (or any field), PDCA (Plan, Do, Check, Act) allows individuals and teams to thoughtfully review an operation for problems or opportunities, and experiment with ways to improve the situation.

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Will Arrogance Stunt your Growth?

Supply Chain Shaman

Which supply chain metrics correlate to market capitalization by Morningstar sector? It happened on Thursday morning last week. It will probably happen again on Tuesday. And, again on Wednesday. I am driving on a campaign to change thinking. It is hard to change a mindset. The brain is wired to believe what it has been told for many years. Every time that it happens, I smile. I understand. I was once there also. Let me start with a story.

What About the Supply Chain Index?

Supply Chain Shaman

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. Overall, supply chain leaders deliver results that have strength (year-over-year performance improvements), balance (a set of balanced metrics within a portfolio) and resilience (predictable and reliable results with few swings).

7 Elements of Seamless Supply Chain Integration

Supply Chain Opz

6) Trading partners should agree on the same metrics : unrealistic expectation can happen in any form of relationship. Seamless supply chain integration is a myth or reality? This articles will show you more about the theoretical background , related concepts and 7 elements you need to achieve this goal. Literature Review Supply chain integration has been around as early as 1989. Graham C.


Supply Chain Shaman

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. When we look backwards and use the results on corporate financials as a litmus test on supply chain excellence, we find that: We have made Improvements in Productivity.

Sage Advice? Only for Turkeys.

Supply Chain Shaman

The only metric that we have improved through ten years of IT investments is the revenue/employee number. Bricks Matter Demand Market-Driven supply chain community Supply chain excellence supply chain execution Supply Chain Index supply chain management supply chain metrics that matter This week, I am grounded due to weather. So, I am spending my time writing. Music is blaring, my toe is tapping, and I am hard at work on what I love. I enjoy writing research.

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What Should Be the Role of the Store?

Supply Chain Shaman

The traditional metrics within each silo are a barrier. The Omnichannel approach that they are implementing encourages shoppers to execute returns at the store; however, the metrics within the store discourages returns. To improve the experience, retailers have to focus on changing siloed metrics to cross-functional metrics, and designing the store based on shopper insights and in-store monitoring to better understand and shape conversion. I love retail research.

What Makes a Mature Planning Organization? (Part 2)

Supply Chain Shaman

Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. Metrics Alignment. As a result, they never look at metrics in isolation of each other, and try to build the overall potential of the system focusing on alignment and balance. Yesterday, I finished a post on supply chain planning maturity. A client had asked me, “How do I know if we have a mature supply chain planning organization?”

What Is Old Is New Again. Maybe, Just Maybe, the Emperor Is Getting Some Clothes.

Supply Chain Shaman

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. Over the Memorial Day weekend, I stumbled on an old article that I wrote in 2001. At the time, I was a junior Gartner analyst. The piece, “CPG/Retail E-Marketplaces: The Emperor’s New Clothes?”

4 Questions Before Investing in a Transportation Management Solution

Talking Logistics

Alternatively, companies can partner with a managed transportation services provider that effectively combines a software-as-a-service TMS with power users — i.e., provides not just the technology, but also experienced supply chain experts who can connect all the pieces together (software, process changes, metrics, best practices, continuous improvement, etc.)

Dump the Performance Review: A Better Way to Evaluate Supply Chain Talent

Talking Logistics

They generally focus on operational metrics, operational necessities, but they miss a lot of pieces that are important. First of all, they fail to measure all the operational pieces that are important, and second of all, the vast majority of metrics today — and I can say this will full confidence because I see a lot of companies — miss the interpersonal piece…[Companies] are measuring what gets done versus how things get done.

How Can I Move Forward if I Cannot Align?

Supply Chain Shaman

Supply chain centers of excellence help with metrics alignment, and product portfolio alignment, between finance and the supply chain team, and the supply chain team and marketing. Next week, I will be writing on my new book Metrics That Matter. For years, as an industry analyst, I have written the statement that “IT and line-of-business teams need to be aligned.”

Training for the Next Triathlon. Insights for You?

Supply Chain Shaman

Abby and I are writing an e-book on Supply Chain Metrics that Matter. Over the last decade, the only metric that we have improved in the supply chain is revenue/employee, a measurement of productivity. Companies that are not looking holistically at metrics are stuck. The process industries have mistakenly viewed Return on Assets (ROA) as the proxy metric for reducing operating costs. I have never been an athlete. At the age of 58, I buried my mother in November 2012.

Talk Doesn’t Cook the Rice

Supply Chain Shaman

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. To understand supply chain excellence, Abby and I 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. As they say in Mississippi, “Talk doesn’t cook the rice.”

Red Robin, GE, and Baby Boomers: An Update on Social Networking for Business

Talking Logistics

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. I’m always on the lookout for companies that are using social networking technologies to enable business processes other than marketing and customer service.

Logistics Management


If your current performance metrics show 90% – pet yourself (and your team!) Set the right metrics. Be very honest and think critically when setting your metrics in logistics management. The Key to Customer Satisfaction in Lean Logistics Management. Welcome to Los Angeles, the local time is 3:05 pm.