Remove 2019 Remove Manufacturing Remove Metrics Remove Procurement
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Organizational Alignment: Overlooked, but So Important.

Supply Chain Shaman

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. Organizational Alignment in 2019. Functional Metrics. Organizational Alignment 2012. Gap closure requires leadership.

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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. Belief in efficient procurement. Despite spending 1.1% Rise in Inventories.

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A New Decade: Give Science A Chance

Supply Chain Shaman

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. Their supply chain results in 2019 are worse than in 2015, and this was before the pandemic. Orbit Chart for Henkel versus Consumer Non-Durable Industry for the Period of 2010-2019.

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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. What is Direct Procurement?

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No Time Like the Present

Supply Chain Shaman

The larger the organization, the more tension with conflicting functional metrics making decisions more difficult. Note in Figure 1 the gaps from recent research between supply chain planning and manufacturing, logistics, and sales. The gap between logistics and procurement; and logistics and customer service increases process latency.

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How We Stubbed Our Toe in The Evolution of S&OP

Supply Chain Shaman

Notice how the water turns from blue to brown in Figure 3 with the lack of demand translation capabilities within the enterprise for manufacturing and logistics. Organizations can align to drive value despite the allegiance to functional metrics. With the increase in complexity, manufacturing cycle inventories rise. Mistake #5.

S&OP 195
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Seven Mistakes You Wish Your CFO Had Not Made You Make

Supply Chain Shaman

To understand the phenomenon , the 2019 GDP was 2.16%. The Chief Financial Officer gained more presence with procurement and IT reporting to finance. As a result, focusing on cost and efficiency, and functional metrics throws the supply chain out of balance. Manufacturing equipment lead times were 19 months.