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Then, blogging and web contents have become the primary source of business ideas for many working professionals. Please drop us a line to bloggeradmin [at] supplychainopz [dot] com with the subject " Blog Nomination " by the end of March 2014. Blogging also allows both business people and educators to reflect and stimulate opinions.
” Hau Lee, October 2014. We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. Reward teams for cross-functional metrics.
At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) I never calculated and accounted for the inter-dependencies between metrics.
Wikipedia In 2014, I was exploring methods to publish what is now the Supply Chains To Admire report. The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. Pattern recognition is the ability to discern patterns in data and use the insights for further analysis.
This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. When companies look at singular metrics (labor costs or inventory), they have moved backwards. Aligning metrics matters. Functional metrics in isolation degrade value. We enjoy writing them!
The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ). The definition of this metric is similar to the way it sounds. Cost of quality.
Here we share the answers to the questions that we get the most often about this research: What is the source of data? The data analyzed to compile the Supply Chains to Admire 2014 report came from publicly-available information from balance sheets and income statements. Which companies were considered in the study?
According to a July 2014 supply chain research study from Accenture focused on Big Data and supply chain risk management, most organizations have high hopes for using big data analytics in their supply chain but many have had challenges in deploying it.
They source from approximately 15,000 suppliers with a sourcing spend of over €7 billion. But even multi-sourcing is not enough. They built them between 2012 and 2014, and then enhanced them when better supply chain risk management solutions became available. Their revenues exceed €25 billion.
Bottom Line: Manufacturers are reaching a new level of results in 2018 because they have clearer, more actionable insights based on real-time manufacturing and quality metrics than ever before. Quality Metrics Enable Customer-Driven Manufacturing Networks. Quality Metrics Defining the Future of Manufacturing.
I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. Recently, I spoke to a major European retailer that lost 5% of their grocery revenues to Amazon in the first quarter of 2014. Why It Matters.
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. A ranking in the top 2/3 of the peer group qualifies a company for further analysis.
The field of supply chain management–combining source, make and deliver–into a common process started in 1982. Figure 1: Supply Chain Metrics Are a Balancing Act. The metrics shown in Figure 1 are difficult to improve together. Most companies improve singular metrics but are not able to drive portfolio.
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). Second Phase: 2006-2014. We are targeting much improved end-to-end planning in response to multiple demand sources. We are on the journey. What does the future look like?
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. The Company has a checkered past.
We developed the Supply Chain Index in 2014 as a way to measure supply chain improvement at a balance sheet level. After, I explained this, I granted Peter permission for the council to use the Index (the use of the Supply Chain Insights content follows the principles of open source), I then said to Peter, “I am glad that you called.
Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process. There should be metrics involved to monitor these objectives to ensure success across the supply chain. These metrics should be reviewed frequently to ensure supply chain success. Read the full article here. .
In 2014 Thoma Bravo acquired GHX, a Supply Chain Operating Network for healthcare. In 2014 OpenText acquired GXS. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is writing her third book, Leadership Matters. Is the announcement good for the industry? While, in 2012, SAP acquired Ariba.
You can use network design models, company KPIs and other metrics to get a holistic look at your supply chain. This provides high-level metrics for evaluating risk in the supply chain. Michael Rockett has been a Supply Chain Design Consultant with LLamasoft since May of 2014.
I was attending the Zycus Horizons 2014 conference at Amelia Island today, listening to speakers. And we follow a pattern: you do an assessment, a sourcing wave, build a process, and do it over and over. Over time, you get decent at this cycle. It is amazing that we do the same things.
Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. Over this period of 2013-2014 Shell made good progress on inventory, but faced unprecedented supply price volatility. Shell operates as a single-instance of SAP Enterprise Resource Planning (ERP). The reason?
Structured and unstructured data including that from social media, Internet of Things (IoT) and Blockchain sources continue to stream in but much is left untouched. Key Performance Metrics: The ability to identify and measure KPIs will help prioritize and measure transformation efforts. Accenture, 2014. References.
The network senses, translates, and orchestrates market changes (buy and sell-side markets) bi-directionally with near-real time data to align sell, deliver, make and sourcing organizations outside-in. E2open, following a rough 2014, was purchased by Insight Venture Partners in 2015. Thoma Bravo purchased Elemica in June 2016.
In most ‘benchmarking activities’, self-reported data is the most common source. Debra built the Gartner Hierarchy of supply chain metrics. In this work, there were over 85 companies and Debra looked at correlations between the metrics to determine the relationships. Increase in Complexity?
Often, departments take a vertical approach to reporting, whereby individual, functional metrics are tracked, instead of taking a horizontal view that gives insight into the health of the supply chain network and interdependencies of the individual functions. 1] Data Acceleration: Architecture for the Modern Data Supply Chain, Accenture 2014.
As first reported by Fairfax Media , a factory in North Korea has been making high-priced surf and snow gear for Australian surfwear company Rip Curl since at least 2014, with the garments labeled “Made in China.” no metrics, operate in functional silos). The root causes generally fall into three categories: IT issues (e.g.,
The rising complexity of items sold decreases the organization’s ability to forecast, and the longer lead times across multiple tiers of sourcing and supply, increases the bullwhip impact (distortion of the demand signal across multiple tiers of the value network). This increases risk. Figure 1: Bullwhip Impact. This is significant.
When we do these types of analysis, we look back at the data as far as we can reach (Y chart data is available only back to 2006 in a reliable form) and then we look at the period of 2006-2014 and the more recent period of 2011-2014. Note that apparel manufacturing is growing and apparel retail is declining. The difference?
Number 4 – Startups, Sourcing, and Sustainability with Mark Dwight of Rickshaw Bagworks – Interview Part 1 of 2. Check it out here: Startups, Sourcing, and Sustainability with Mark Dwight of Rickshaw Bagworks – Interview Part 1 of 2. Grab your cowboy hat and join me in riding your forklift into the sunset of 2014.
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. To meet the criteria for The Supply Chains to Admire for 2016, companies needed to score better than their peer group average for performance metrics, while driving a higher level of improvement than 2/3 of their industry peer group.
Source: Google. This was not a trivial transition because the software industry, until relatively recently, was long fixated on measuring its health and success by new license revenue (sales of products) instead of customer-centric metrics, such as realization of ROI and payback objectives. Where is Descartes today?
Development of the model began in 2014, and included several prototype phases, with increasingly larger samples of companies included. Based on several iterations of discussions, reviews of metrics, and benchmarking, the team settled on a system for assessing two important indications of supply chain performance.
Top 10 Supply Chain Innovations of 2014 : hybrid DCs, 3-D prototypes, location-based inventory system, and more. The retail giant plans to take out 50 million metric tons (MMT) by 2030, which is equivalent to the emissions associated with the average annual electricity consumption of 40 million Chinese households. Warehouse Automation.
According to sources, Stevedores are demanding advance payment in cash. However, a 2014 report by University of Tennessee on managing risk in global supply chains points out that 90% of the firms surveyed do not quantify risk when outsourcing production! Any such event will cause congestion in the ports.
On 12 May 2014 IMD organized a one-day open event in Lausanne that analyzed big data and its impact on value chains. edge websites started to analyze the information collected from their users, in order to create metrics and patterns that allowed companies to better know them and their behaviour. Personalized homepage. Some leading?edge
Source: Dictionary.com. Orbit Chart for SanDisk for 2006-2014. Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. Platitude: a flat, dull, or trite remark, especially one uttered as if it were fresh or profound.
Potential Sources of Disruption. Identifying sources of risk and developing a plan are only part of the story. Establish appropriate metrics that correspond with the steps outlined in your contingency plan. What alternative plants/factories/sources of supply do they have at their disposal? Cyberattack and data breach.
Launched in 2014 and brought to you by the eWorld Procurement & Supply team, The Procurement Summit will provide senior purchasing, sourcing and supply chain executives across the North of England with an unmissable opportunity to keep up-to-date with the latest industry innovations, best practice and new technology solutions.
Now they want to know what acre of land it was grown on, the source of the water and the living conditions of the workers.” In 2014, it was estimated that over half of the global child laborers were working over 9 hours per day. As a friend of mine states often, “Consumers previously just wanted to know if their food is organic.
Having more timely, accurate, and complete data — and converting it into actionable intelligence — will not only lead to cost reductions and increased asset utilization, but also improvements in customer service and satisfaction, the top metric cited by the respondents.
There is more in-transit inventory–sitting on the water in larger ships, in-transit through international sourcing strategies, or work with contract manufacturers–as a result, to avoid inventory write-offs, the foot needs to hit the brake faster. The supply chains are more complex today than a decade ago.
source: (1 page infographic) AccentureOperations , High Performance Procurement (2015). source: (p2) Deloitte – The Deloitte Global CPO Survey 2016. CPO’s will continue their focus on generating value through traditional levers over the next 12 months: source: (p7) Deloitte – The Deloitte Global CPO Survey 2016.
Big business are jumping on the bandwagon too – utilizing collaborative distribution, reverse logistics and cooperative sourcing to lower costs, improve efficiency and better optimize their supply chain. Think Uber , Airbnb , and other peer-to-peer lending services. But it’s not just individuals taking part. Not an easy task.
The food supply chain refers to the process of preparing a food product from start to finish: sourcing the raw materials and taking the food through a manufacturing process, through to the final packaging of the product, the sale to the customer and the final delivery. What is the food supply chain? Food supply chain challenges and issues.
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