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Organizational Alignment: Overlooked, but So Important.

Supply Chain Shaman

If you answer the survey, I will gladly give you a custom analysis of your organization against the peer group. In the supply chain team analysis, note the 21% gap between procurement and manufacturing teams, the 35% gap between sales and operations and the 21% gap between finance and operations. Functional Metrics.

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Supply Chain Performance Declined In the Last Decade. The Question is Why?

Supply Chain Shaman

of revenue on information technology (IT), only six percent of manufacturers drove performance at the intersection of growth and margin. Yes, companies held more inventory (measured in days of inventory) in 2019 than at the start of the 2007 recession. Despite spending 1.1% Rise in Inventories. Less Effective at Inventory Management.

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What’s the Difference Between Direct vs Indirect Procurement?

ivalua

What does Procurement mean? An organization’s Procurement function is responsible for managing spend, in other words the buying goods and services that are used to make the products sold to customers as well as the purchasing of products and services used to run the organization on a day to day basis.

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A New Decade: Give Science A Chance

Supply Chain Shaman

My goal is to convince you to ground supply chain processes and technology implementations in data analysis while tying the results to the improvement in corporate performance. In the orbit chart in Figure 2, you first will notice that both VF is less resilient than Nike and that from 2015 to 2019, Nike outperformed VF.

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Market Beat. Four Thumbs Down and One Thumb Up.

Supply Chain Shaman

Globally ten percent of jobs are in manufacturing, while 37% are associated with supply chain management. The discipline, first defined in 1982, includes source, make, deliver, and planning functions. Kinaxis Purchase of Rubikloud. Kinaxis, with 2019 revenues of $191.5M, is flush with cash and slow to invest. Reflection.

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Build Supply Chain Resilience with a Diverse Sourcing Strategy 

Logility

Since 2019, nearly 70% of supply chain leaders have been constantly responding to disruption. Developing Diverse, Resilient Sourcing Strateg ies. Once a responsible sourcing network is established, you can then include product and supply chain strategies to design the supply chain network,” suggests Balte. Feeling overwhelmed?

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Supply Chain Leaders Rearranging Deck Chairs? Yes, I Think So.

Supply Chain Shaman

Conversely, the value of a firm will never be created by improving the functional metrics of Purchase Price Variance, Overall Equipment Efficiency (OEE), lowest cost of transportation, or cash-to-cash efficiency. Almost all quality improvement comes via simplification of design, manufacturing… layout, processes, and procedures.