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Despite the evolution of technology, none of the 28 industry segments I follow can drive improvement at the intersection of operating margin and inventory turns. Note the fall in 2014-2019. Figure A: Beverage Industry Aggregate Industry Trend 2014-2023 Figure B. Change is Hard. Unlearning is Tougher. Guess what?
We continue our top blog posts of 2014 from our main categories today by focusing on something at Cerasis we are experts in : Logistics. We’ve already listed the top 10 manufacturing blog posts and the top 10 supply chain blog posts last week. Top 15 Logistics Blog Posts of 2014. Read the Full Post. Read the Full Post.
At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. Keith led the work to move P&G from a regional to a global manufacturer opening up the Warsaw center of planning excellence and outsourcing IT to HP. A manufacturing capability is not ubiquitous.
While consumers may see some short-term benefit in the form of discounted goods, many retailers have had to reset investor expectations , reflecting the expected hit on margins from carrying so much inventory. Inventory management is challenging enough in normal times. So, what is it going to take to enable better inventory management?
In 2014, ecommerce strategies grew in importance. At that time, manufacturers talked about customer-centric supply chains, but were afraid to aggressively adopt ecommerce strategies. Manufacturers, today, are aggressively pursuing e-commerce strategies. Get Good at Having a Real-time Perpetual Inventory Signal.
Despite two decades of advancement in supply chain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. Recently, I spoke to a major European retailer that lost 5% of their grocery revenues to Amazon in the first quarter of 2014. They are slow to adapt.
Editor's Note: This is a two part series featuring Chuck Intrieri, who along with providing excellent insights over at his industry leading The Lean Supply Chain blog, is also a consultant who works with companies for Cost Reduction, Supply Chain Optimization, Logistics, Manufacturing, and 3PL Selection. What is Manufacturing?
A Manufacturer’s Guide to the Evolution of ERPs Lets start by declaring an interest. Most JAGGAER installations in the manufacturing industry specifically, and in product-centric businesses in general, involve integration with an enterprise resource planning (ERP) system of one sort or another. So, we have skin in this game!
Multiple manufacturers, multiple relationships, multiple distribution models, multiple contracts. Manifesting this trend is the terminology and concept of Digital Path to Purchase — the omni-channel, tech-focused approach to supporting and acting on a consumer’s purchase.
The bodega and building as it appears today (source: Google Maps). HighJump Software announced enhancements to its Retail Inventory and Point of Sale Management software, RETAIL vantage. The post This Week in Logistics News (August 4-8, 2014) appeared first on Talking Logistics with Adrian Gonzalez.
The manuscript is due to Wiley on March 1st for an August 2014 publish date. I need it for my conference on September 10th-11th, 2014. He is responsible for manufacturing, procurement, supply chain planning, logistics, quality, social responsibility and final product engineering. I am behind. The heat is on.
” Hau Lee, October 2014. Over the last six years, we studied the connection between business results (growth, operating margin, inventory turns and Return on Invested Capital (ROIC)) and the link to company characteristics. Successful network design strategies are holistic crossing the boundaries of source, make and deliver.
We conclude this two part series about manufacturing operations excellence by consultant Chuck Intrieri, by outlaying why manufacturers should focus on a critical component that will help sustain manufacturing operations excellence for years to come. What is Driving Sustainable Manufacturing Operations Excellence?
It is 2014. We have not been able to build the planning architectures that effectively let manufacturers plan from the customer’s customer to the supplier’s supplier. With the investment in transactional systems for order-to-cash and procure-to-plan, many have lost focus on planning. It is a story of parts.
As we close the year of 2015, we want to take a look at some manufacturing trends for 2016. We look at 6 core areas that manufacturing companies will take a long look at as they gear up for a successful 2016. E-Commerce for Manufacturing. Manufacturers will seek custom (or specifically tailored) e-commerce solutions.
They source from approximately 15,000 suppliers with a sourcing spend of over €7 billion. For some customers, they manage the inventory using a vendor managed inventory program. For some customers, they manage the inventory using a vendor managed inventory program. But even multi-sourcing is not enough.
Next week, I’ll be speaking at the Ryder Innovate Forum in Chicago and the Elemica reveal 2014 conference in Frankfurt. August 2014 Freight Transportation Services Index (TSI). August 2014 freight shipments were up 3.8 DHL launches freight capacity management program in the light of rapidly increasing trade volumes.
For most 3PLs, their customers — across a variety of industries — are growing their presence in Mexico, either manufacturing there or growing their supplier base there, so 3PLs need to align their services and capabilities accordingly to the changing supply chain networks of their customers. percent and truck by 8.8
Inventory, in this time of uncertainty, is the organization’s most important buffer to protect against variability. However, organizations are not good at managing inventory. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. Inventory.
The paradigm is shifting from foundational visibility to real-time decision-making, with positive implications for supply chain teams spanning sourcing & procurement, to production, to yard & DC operations and beyond. Why is this shift such a big deal? We don’t have to think back very far. Lesson learned.
Source: Dictionary.com. I find that in this world of the global multi-national that procurement processes have become convoluted and increasingly complex. (In In my opinion, we have made procurement increasingly complex without adding value. The company is the third-largest manufacturer of flash memory in the world.
I’ve had the good fortune to be presented with opportunities for compelling discussions with a significant group of leading thinkers, senior executives in procurement, logistics, and technology management over this past year. Not surprisingly, analytics is at the top of the list. This complexity is occurring in many forms.
Supply chain management in manufacturing is by no means a simple process, but the United States is learning from past mistakes and they're poised to start playing a little catch-up in the manufacturing world due to their expertise. Government Weighs In on Supply Chain Management in Manufacturing. The Numbers Are In.
According to a survey by Deloitte from 2014, 79% of companies with high-performing supply chains achieve revenue growth superior to the average within their industries. Supply Chain Strategy In 2014, a survey by Tompkins Consortium delivered a shocking revelation. The Top 7 Supply Chain Points to Address for Business Success 1.
Raw materials are in short supply, many manufacturers have temporarily mothballed production lines, transportation costs are rising, and labor is getting tight on our roadways , railways and ocean vessels. Until we have this kind of pervasive visibility, inventory management will continue to be largely an exercise in futility.
I was attending the Zycus Horizons 2014 conference at Amelia Island today, listening to speakers. Chris Sawchuck from the Hackett Group interviewed three heads of procurement from three large companies, and asked an important question. Does procurement add to top line revenue. And if not – what will change?”.
Mindmap for medtech supply chains 2014. At the same time, new sales markets are emerging for manufacturers of medical devices, and innovative technologies such as 3D printing are making a breakthrough. Manufacturers of medical technology (‘medtech’) must choose a clear strategy: Plan. I accept the Terms & Conditions.
For nearly a decade, pundits have been touting the transformative effects of additive manufacturing (aka 3D printing). ”[1] Most analysts include additive manufacturing in their list of technologies that collectively are fostering the next industrial revolution, which is often referred to as Industry 4.0.
Oil prices jumped, with Brent rising above $105 a barrel for the first time since 2014, after Russia’s attack on Ukraine exacerbated concerns about disruptions to global energy supply. Oil, gas, steel and metal products account for other everyday items purchased from the two countries.” electricity generation in 2020.
So why do we feature content related to Vendor Managed Inventory? In a VMI model, part of the equation is the inbound & outbound flow of the inventory. Inventory is then put on pallets and shipped as freight. ” Vendor Managed Inventory Model: A Quick Back Story. No Purchase Orders were used.
However, what is clear from our recent study of 73 manufacturers using supply chain planning is that companies using best-of-breed solutions implement faster, achieve a quicker Return-on-Investment (ROI), and are more satisfied. These solutions require greater insights and understanding by the manufacturer and implementing company.
By purchasing planning and transactional systems for a common vendor, they had one throat to choke and they were familiar with the architectural elements. Tomorrow, I get to deliver this message to a large manufacturing client. The book publishes in December 2014. Most know very little about the true definition of demand driven.
Here we examine manufacturing downtime in detail, including what it is, what causes it, and what it can cost your business. Because even small manufacturing firms with limited capital can reduce the risk of suffering unexpected outages through measures like preventive maintenance, staff training and the use of smart manufacturing software.
In a 2014 study, 46% of manufacturing executives didn’t know what the internet of things was. Here are some examples: Manufacturing monitoring – Devices measure ambient temperature, humidity, air pressure, etc. Inventory Tracking – Despite all the efforts manufacturers put into inventory accuracy it still happens.
We believe that a supply chain leader is defined by both the level of performance on the Effective Frontier (balance of growth, Return on Invested Capital, Profitability and Inventory Turns) and driving supply chain improvement. Resiliency is the tightness of the pattern, or the reliability of operating margin and inventory turns results.
So your company is looking to reduce costs, and you’ve been asked to contribute by reducing your inventory cost. That makes sense – inventory is one of the most capital intensive areas for any product business. Here we explain how you can do this with 16 cost reduction strategies in inventory management?that
As an analyst in the supply chain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. In 2007-2014 Terra added inventory management, multi-tier demand sensing, transportation forecasting, and long-term forecasting. The Company has a checkered past.
However, complex supplier relationships, unreliable sources of material supply, and ever-increasing customer expectations greatly add to the expectations to select the best suppliers and conduct their operations more efficiently. In the past, many buyers relied on safety stock inventory to mitigate any risks or disruptions to suppliers.
Below I will outline how a vendor managed inventory model, in conjunction with reverse marketing, value analysis, and collaboration will achieve supply chain cost reductions. Vendor Managed Inventory Model for Supply Chain Cost Reductions. The distributor maintains the inventory plan. What is Reverse Marketing?
Walmart would not have the ability to provide such low prices and have consistent inventory in the over 5,000 stores in the United States and over 1.3 That income was generated by more than 4,100 stores and fed by a sprawling supply chain, ranked 14th in 2014 by research and analyst company Gartner. restaurant industry made in 2013.
On Monday, November 27th, Logility announced the purchase of privately-held Halo Business Intelligence. A significant source of revenue for the company is maintenance renewals. Optiant, inventory optimization, 2010, $3.3M MID Retail, 2014, assortment planning, price undisclosed. A Look Back .
In countless surveys over the past decade, manufacturers and retailers rank “improving supply chain visibility” as one of their top priorities. An interruption in delivery of parts from a partner in Europe can therefore also have implications in China,” said [Markus Duesmann, BMW board member in charge of purchasing and supplier network].
Supply Chain is just one of our five main categories we are covering all this week, which consist of: Logistics, Manufacturing, Supply Chain, Freight, and Transportation. We have already covered the top logistics blog posts and the top manufacturing blog posts by the most views those blogs in those categories have received in 2015.
Improving semiconductor manufacturing yields up to 30%, reducing scrap rates, and optimizing fab operations is achievable with machine learning. Manufacturers care most about finding new ways to grow, excel at product quality while still being able to take on short lead-time production runs from customers.
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