Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

To make the argument, let’s look at industry orbit charts in aggregate for the period of 2006-2017 for the apparel and chemical companies. An orbit chart is a plotting of data at the intersection of two metrics. In this case, the metrics are operating margin and inventory turns. For apparel, it was the transition to cheaper labor in the Asian market. (In In the apparel industry 30-40% of the cost of goods is labor.) Definitions: Provocateur.

Getting Bangladesh’s Apparel Industry on the Map

Supply Chain Brain

Several major apparel brands and retailers, including J.C. The goal of the three-year undertaking is to assemble key information about each factory, including business name, GPS coordinates, business license, safety inspections and apparel brands served. Staff members from BRAC University are using the Sourcemap platform as they travel throughout Bangladesh to personally visit every apparel factory in the country.

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Carter’s: A Story of Supply Chain Leadership

Supply Chain Shaman

Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As As a group, these metrics have the highest correlation to market capitalization. As a group, public companies want to make progress to both drive and sustain metrics performance, but they cannot. Performance on the Supply Chain Metrics That Matter. Apparel Performance and Improvement Comparison. I have not seen this done well in the apparel industry.

Measuring Up?

Supply Chain Shaman

The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. We find that companies can improve one, but not two of the metrics. Teams struggle to drive improvement in both metrics at the same time. We term these the Supply Chain Metrics That Matter because they have a higher correlation to market capitalization.). C2C is a compound metric of receivables plus inventory minus payables.

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.

Jeff Bezos v the World: Why All Companies Fear 'Death by Amazon'

Supply Chain Brain

Business Strategy Alignment Global Supply Chain Management Quality & Metrics SC Analysis & Consulting Supply Chain Security & Risk Mgmt. Apparel Consumer Packaged Goods E-Commerce/Omni-Channel Food & Beverage High-Tech/ElectronicsAt $19.99 a pop, the laptop stand combines everything customers love about Amazon: utility, price and convenience.

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

Supply Chain Shaman

The supply chain is complex non-linear system that is easily thrown out of balance through a focus on functional metrics. They rock back and forth in improving singular metrics but struggle to improve a portfolio of growth, margin, inventory performance, and asset utilization. Shown in Figure 1 are the aggregate sector results for apparel retail. Aggregate Results for Apparel Manufacturers for the Period of 2010-2019. Stop the Focus on Functional Metrics.

Supply Chains to Admire: 2016 Results

Supply Chain Shaman

Unfortunately, we find most companies are moving backwards on the Supply Chain Metrics That Matter™ or making progress on singular metrics versus driving performance improvement on a balanced portfolio of supply chain metrics that correlate to market capitalization. (If Check out their performance by plotting year-over-year metrics at the intersection of two ratios and look at the patterns. Five months of analysis. Lots of heated debates. It is now over.

2020 Requires Big Wings and Feet

Supply Chain Shaman

No metric should be measured in isolation, and functional metrics should be replaced with the balanced scorecard metrics shown in Figure 2. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance. Industry patterns show a precipitous decline in supply chain metrics in 60% of manufacturing industries since 2010. Apparel is an example.

The Secret to Successful Enterprise Strategy? Always Include Supply Chain Management

Supply Chain Opz

For instance, competing in high-end fashion apparel will require a different supply chain strategy than selling cotton briefs. Create the right metrics and monitor them. There is no one right set of supply chain metrics, and there will be trade-offs that reflect the needs of the markets and customers. Align metrics with what is most important to the successful execution of the strategy.

Taking the Hill

Supply Chain Shaman

This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. We do not believe that there is much value in putting all companies into a spreadsheet and shaking them up… or looking at singular metrics without analyzing the intricate trade-offs of the supply chain when viewed as a complex system. Apparel is actually moving backwards. Aligning metrics matters. For most companies, growth has slowed.

Columbia Sportswear: Peeling Back the Onion on Your Supply Chain Processes

Talking Logistics

Columbia Sportswear is a 77-year old, profitable, multi-billion dollar company and a leading brand in the global outdoor and active lifestyle apparel, footwear, accessories and equipment industry. Such data enabled Columbia to increase supply to minimize out-of-stock issues, reducing the amount of apparel the company marked down as sales waned. How did this vast improvement in a key supply chain metric translate into financial performance?

Global Luxury Management “Lifestyle” brands require push supply chain design customization

Supply Chain View from the Field

More and more global luxury brands such as Gucci, Louis Vuitton, and others are promoting themselves as Lifestyle brands, spanning many products including fragrance, home collections, apparel, paint, wallpaper, foods, and many other products. Such brands may ship small runs of five bags, gowns, or shoes that cost thousands of dollars, whereas typical apparel products are produced in volumes of hundreds of thousands going to low cost retailers.

Retail Store Location Planning ? Creating Balance, Driving Profit

Logility

Imagine your apparel buyers are convinced yellow maxi coats will be hot next fall. Those two locations may differ across many important metrics: footprint, demographics, seasonality, logistical support, sell-through history, competitive landscape, sales trends, to name a few. More specifically, a planner lays out the merchandise plan by week, by category, by defined business metrics. The fundamental challenge in retail is one of balance.

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How Supply Chain Will be Affected by Hurricane Harvey

Material Handling & Logistics

The Institute for Supply Management conducted a special survey that asked members to assess how Harvey might impact six key business metrics and whether they may be impacted by shortages of input materials due to Harvey. "Our The manufacturing PMI and non-manufacturing NMI summarize supply managers’ reports as to how their organizations fared in the past month with regard to a set of key business metrics. Employment was the only metric in the third group of least impacted metrics.

6 Best Practices for eCommerce Warehousing

Cerasis

As a result, a single eCommerce warehouse may actually be responsible for processing groceries, fresh fruits and vegetables, beauty supplies, apparel and practically any other type of product. Use Metrics to Track Progress and Order Fulfillment Processes. Each of these metrics relates directly to consumer promises, such as free two-day shipping. Having metrics to track progress and productivity is only half of the battle. ECommerce is growing at an astonishing rate.

Reimagine Supply Chain of the Future – agile, resilient, and balanced – LogiSYM July 2020

The Logistics & Supply Chain Management Society

Zara has become Europe’s most profitable apparel brands by building agility end to end in their supply chains. To create flexible and balanced supply chain organisation, it is necessary to integrate strategy, processes, metrics, and technology enterprise wide and across customers, suppliers, and service providers. Let me start with a quote from a great leader!!

Let the Qs Begin

Supply Chain Shaman

The script will be distributed to CFOs of apparel, consumer packaged goods, and food/beverage companies next week. Aligned Metrics. To ensure the management of the complex system, the metrics of operating margin, inventory turns, ROIC, customer service, revenue, and forecast accuracy need to be managed together as a non-linear system. Last week was the Supply Chain Insights Global Summit. It was great to see old faces at the kick-off. 110 supply chain leaders attended.

Tips for Retailers (And All Shippers) to Overcome the Amazon Effect

Cerasis

retailers conducted by NRF and Forrester Research surveyed the key metrics of 195 apparel, footwear, general merchandise, home furnishings and personal care retailers, and determined that the average cost to fulfill an order is $10 (shipping + fulfillment costs).

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Supply Chains to Admire – 2016 Results

Supply Chain Insights

Unfortunately, we find most companies are moving backwards on the Supply Chain Metrics That Matter™ or making progress on singular metrics versus driving performance improvement on a balanced portfolio of supply chain metrics that correlate to market capitalization. (If Check out their performance by plotting year-over-year metrics at the intersection of two ratios and look at the patterns. Five months of analysis. Lots of heated debates. It is now over.

Transforming Consumer Value Chains: Navigating The Power Shift to the Shopper

Supply Chain Shaman

Note that apparel manufacturing is growing and apparel retail is declining. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. Last week, Wal-Mart announced the closing of 269 stores and the layoffs of 10,000 employees. In addition, Macy’s announced the closure of 36 stores and K-Mart followed suite with announcements of 27 store closings.

Defining and Measuring Fast Fashion

The UCLA Anderson Global Supply Chain Blog

These last two elements are particularly important from an operations and supply chain perspective and we postulate metrics to measure their effectiveness. Therefore, an appropriate metric to measure the effectiveness of quick response is the gross margin return on inventory (GMROI), which is defined as the ratio between the gross margin and the average, where both quantities are measured at the aggregate firm level. Felipe Caro and Victor Martínez-de-Albéniz.

Supply Chain and Logistics Resolutions for 2017: 4 Things to STOP Doing This Year

Talking Logistics

But technology won’t solve your supply chain problems or help you improve unless you also address the most common culprits of poor supply chain performance: poor data quality, lack of resources and training, lack of metrics and accountability, and poor communication and collaboration with trading partners (see resolution #3 below). Three years ago, I wrote a popular post highlighting “ 5 New Year’s Resolutions for Supply Chain and Logistics Executives.”

U.S. Manufacturing Activity Continues to Grow

Supply Chain Nation

How 3-D knitting could disrupt the apparel business. The apparel business as we know it may be on the cusp of major disruption. In The Washington Post article, How a custom blazer in 90 minutes just might change the apparel business , Sarah Halzack explores how 3-D knitting helps address growing demand for personalized garments, while also delivering potential benefits such as more durable products, fewer labor costs and the elimination of inventory obsolescence.

U.S. Manufacturing Activity Continues to Grow

Supply Chain Nation

How 3-D knitting could disrupt the apparel business. The apparel business as we know it may be on the cusp of major disruption. In The Washington Post article, How a custom blazer in 90 minutes just might change the apparel business , Sarah Halzack explores how 3-D knitting helps address growing demand for personalized garments, while also delivering potential benefits such as more durable products, fewer labor costs and the elimination of inventory obsolescence.

Winners in business: Supply Chains to Admire 2016

Supply Chain Movement

Unfortunately, we find most companies are moving backwards on the Supply Chain Metrics That Matter (growth, operating margin, inventory turns and Return on Invested Capital) or are making progress on singular metrics instead of driving performance improvement on a balanced portfolio of supply chain metrics that correlate to market capitalization.

Addressing UN Sustainable Development Goal 5: Steps to Promote Gender Equality in the Supply Chain

EcoVadis

Women hold 60 to 90 percent of global supply chain jobs, particularly in the apparel and agricultural sectors, and represent the majority of workers in low-wage jobs in the lower tiers of the value chain. Increase transparency with better metrics and reporting. Setting up meaningful and accurate metrics and goals, appropriate to the size and sector of the organization, is key for quality reporting, which in the end means more transparency into sustainable progress.

Will the Downturn Signal an Upturn?

Supply Chain Shaman

Purchases in the center store of the grocery store are in decline, and apparel tastes are shifting. We will also be announcing the 2015 winners for the Supply Chains to Admire analysis which analyzes company progress on both supply chain performance and improvement on the Metrics That Matter for the period of 2006-2014. Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. Volatility.

Welcome Puff, The Magic Dragon, to Your Team

Supply Chain Shaman

My stepson calls them tidy whiteys) Imagine a boring, basic apparel item. Rules, engines, policies and metrics need to align. Remember the Peter, Paul and Mary song, Puff the Magic Dragon ? It was a song from my youth. While there is a raging debate on song intent— Was the goal of the song to celebrate a children’s story from Oliver Wilde about the loss of innocence or is it a statement about the use of drugs? —in

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Auditing, visibility and collaboration: The keys to a socially responsible supply chain

Supply Chain View from the Field

Metrics about safety standards, discrimination, labor conditions, child labor, and wages can be made a part of every assessment of every supplier, as well as every business case; countermeasures to react to unacceptable values of these metrics can also be implemented. Another example is Nike’s sustainability index, which eventually became the HIGG index adapted by the entire apparel industry.

Is it Advantage Organized Retail in India?

Logistics Trends and Insights

This will enable Amazon to transition from books, electronics phones and apparel to the next key segment which is underpenetrated – Food & Grocery. Guest post by a former UPS colleague and now independent consultant with a particular specialty in India, e-commerce and retail.

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The Importance of Transparency in Supply Chains

Enterra Insights

” They note an MIT survey of apparel companies found vastly differing definitions of supply chain transparency across organizations. performance-based metrics. In the information age, it’s difficult to hide things you would prefer to remain undiscovered. This is as true for businesses as it is for individuals. Consumers, activists, and investors increasingly want to know the products they buy are sourced sustainably and ethically.

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Leveraging Supply Chain Business Intelligence for Better Performance

Demand Solutions

Which metrics are most important to track? Any sophisticated supply chain business intelligence platform should deliver analytics packs that are designed to help you focus on the most important metrics for your industry. So, whether you’re a decision-maker in the food and beverage, automotive, or apparel industry, you’ll be able to spend more time on your key data while filtering out the statistical noise.

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Decline In Performance in Consumer Products. Are You To Blame?

Supply Chain Shaman

Industry Averages for Apparel Manufacturers for the Period of 2010-2019. Shift functional metrics to focus on reliability. On Thursday morning, I began an engagement with a food manufacturer attempting to drive “Supply Chain 2.0. When I asked for a definition, the phone was silent. The answer was not clear to them. They wished that I had not answered the question… ) So, I want to give you a helping hand. My observation?

Can Supply Chains Adjust to a Circular Economy Over the Next Decade? Part 2

Enterra Insights

However, innovative manufacturing methods can provide opportunities for textile and apparel recycling too.” ” Steutermann adds, “It is important not to confuse [sustainability] metrics with the circular economy. Good metrics for the circular economy could be the percentages of reclaimed, reused materials for production and the reduction of single-use plastic.”