Your supply chain is costing you money – Reason #9: Relentless pursuit of one metric at the expense of other metrics.

Kinaxis

Reason #6 Not effectively managing inventory. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Yet, these are similar instructions as what is passed down to the supply chain from executives focused on a specific supply chain metric. One example that I’ve seen several times is around inventory targets. The result is a lower inventory level, but much higher expedited costs and reduced customer service.

Top Supply Chain Articles of 2015

Cerasis

As we head into 2016, we are featuring our most read articles of 2015 in our five main categories: Manufacturing, Supply Chain, Logistics, Transportation Management, and Freight. Yesterday we published the top 10 most read manufacturing articles of 2015. . Top 10 Supply Chain Articles from 2015. The following 10 supply chain articles are listed in order from the 10th most read blog post to the top most read post. We never ran out of or had too much inventory.

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Top Logistics Articles of 2015

Cerasis

We continue our top articles from each of our main 5 categories today by covering the top 10 logistics articles that were the most viewed in 2015. Each of these five include several sub categories for more specific articles, such as the TMS category under Transportation Management. In our series, we first created the top manufacturing articles list, followed by the top supply chain articles list. Top Logistics Articles of 2015.

6 Benefits of Effective a Reverse Logistics System & The 9 Core RevLog Metrics to Track

Cerasis

Importance of Metrics in Reverse Logistics Management. To monitor progress against its reverse logistics management plan, a company needs metrics that measure the financial impact of returns on the firm and on other members of the supply chain. Measures such as amount of product to be reclaimed and resold as is, or percentage of material recycled, are examples of such metrics. Energy used in handling returns : This metric is used in sustainability programs.

Supply Chain Metrics To Avoid Before It's Too Late!

Supply Chain Opz

Supply Chain Metrics are one of the most important best practices in supply chain management because " You can''t manage what you can''t measure ". However, under certain circumstances, metrics are not used or implemented properly. This article will explain to you 7 kind of supply chain metrics that you should pay special attention to. 2) Utilization Metrics : machine utilization is a classic example of this kind of metric. It''s the inventory metric).

Inventory Management Levers – Success Through Collaboration

Kinaxis

by Andrew Dunbar So you’re an inventory manager, and your CFO just asked you to reduce inventory by 10% before year end to free up some capital for next year’s big investment in R&D. But then you look at historical trends and see that lately, your inventory has been growing by 3% each quarter. Below are five levers that I believe should be available to an inventory manager to help them effectively plan and manage inventory.

10 Best Inventory Book for All Experience Levels

Supply Chain Opz

What inventory book can help you to cut inventory costs? In this article, we will show you 10 best inventory book that readers at all levels can learn from. Inventory Management Overview Many people think inventory management is a clerical task but they're absolutely wrong. Effective control of inventory requires a broad spectrum of knowledge.

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

At Supply Chain Insights , as we combed through over 9000 quantitative responses on supply chain management from business leaders to understand what drives supply chain excellence in preparation for the Supply Chain Insights Global Summit , in the process, we proved Hau Lee’s theorem in the Famous Harvard Business Review Article, “Triple A Supply Chains.” Reward teams for cross-functional metrics. Focus functional metrics to improving reliability.

Excess Inventory? No Problem. You Have Trailers In the Yard.­­

Talking Logistics

With the national warehouse vacancy rate hovering at record lows and warehouses bloated with inventory pulled in from China during 2018 to get ahead of impending tariffs, companies can combine flexible storage options with advanced technology to create an end-to-end supply chain solution that works. But even as developers have flooded the market with new inventory, some retailers are still having trouble finding adequate, flexible space. The post Excess Inventory?

The Supply Chain Detective™ and the Inventory Turnover Mystery!

Supply Chain Game Changer

Featuring Our 10 Best Inventory Management Articles! As I settled into the job and started learning, and studying, the various Supply Chain metrics I was surprised when I looked at the Inventory Turnover performance of the company. Looking at recent and historical Inventory performance I could see that turnover always stayed around 5-6 turns with little variation. There was no mentorship given to promote the team and raise visibility to inventory.

Why Have We Not Reduced Inventory?

Supply Chain Shaman

This year supply chain leaders will celebrate thirty years of progress in supply chain management; but we have not made progress on one of the funamentals: inventory management. I think that it is time for us to take the litmus test and ask the hard questions, “Have our practices impacted days of inventory? Have the early adopters of inventory optimization seen a reduction in inventory on their balance sheets?” Ownership of Inventory as a Metric.

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.

Why Demand-Driven Manufacturing is Focused on Metrics for Action

synchrono

There are two subordinate measurements: Inventory and Operating Expense. These three measurements cover the gambit of what needs to be measured because they are directly related to customer orders, cash captured inside the organization, and the cash it takes to turn inventory into sales. Demand-driven managers know that having too many metrics leads to conflicting measurements. We call these Metrics for Action. Metrics for Action. Driving Continuous Improvement.

The Most Important Metric for Increasing Revenue

Unleashed

Average Order Value (AOV) is one of the few important metrics for businesses to analyse and track to gain an understanding of their current revenue and how they may increase it. In this article, we consider closely what AOV is and how to use it to increase your bottom line. Tying conversion rate and Average Order Value together is the revenue per visit (RPV) metric which aims to quantify how much each visit to your website earns the company.

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

The Logistics & Supply Chain Management Society

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 end this article with a lovely quote from a visionary leader!!

7 Key Factors that Underpin the Success of your Inventory Optimization Initiative

Supply Chain Opz

From the most basic to the most advanced organization, Inventory Optimization is a critical goal and one which underpins the effectiveness of the supply chain operation. Inventory Optimization requires an organization to sustain and maintain the right mix of cost versus service. In this article we will examine inventory optimization processes as part of a structured sequential journey and examine seven of the key factors in delivering the optimal mix of stock.

Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

When we study 600 public companies by peer group, at the intersection of inventory turns and operating margin, only 5% drive improvement. 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. Operating margin is a measurement of profitability and inventory turns is a measurement of how fast inventory turns based on sales. of revenue on IT are we improving inventories.

Why Large Companies Increasingly Opt for 4PL Services

Logistics Bureau

Even slight delays or inventory shortages can have a severe impact on a company’s bottom line. At the height of the pandemic-linked supply chain disruptions, Amazon set the bar extremely high for other 4PL providers, despite initially experiencing inventory shortages.

How to Get a Job in the Supply Chain Sector

Logistics Bureau

You are not alone, especially as in the time since we first penned this article, one huge and unforeseen event has raised awareness of the global importance of this vital sector—and shown it to be an attractive career choice. Manage inventory levels.

Supply Chain Leadership Driving Industry 4.0 & Resilience During Crisis – LogiSYM July 2020

The Logistics & Supply Chain Management Society

This boosts revenues and optimises inventory. This can be applied to inventory management, fleet and order tracking, ID badging. Amazon’s supply chain heavily depends on the outsourcing of its inventory management. Article July 2020

Wanted: Supply Chain Architects!

Supply Chain Shaman

I knew nothing about the world of logistics, inventory management and order optimization. From the research, we know that when organizations have source, make and deliver reporting to the same leader, that supply chain performance improves (intersection of operating margin and inventory turns). For the purposes of this article, I define the processes of network design as the use of analytic tools to model and optimize the supply chain.

Is Your Company on top of its Inventory Planning Game?

Logistics Bureau

Good inventory management, like everything else, starts with good planning. But planning isn’t just the start; it’s the very foundation of effective inventory control. Inventory planning also happens to be an area that many companies fail to prioritise sufficiently. The Basics of Inventory Planning. Good inventory planning supports a number of vital business objectives including: Customer service and satisfaction. The Cost of Poor Inventory Planning.

Logistics Key Process Indicators (KPIs)

The Logistics of Logistics

A KPI is an indicator (a metric) that you have chosen, and agreed with your partners and or customers, that will determine whether you are meeting your critical success factors. Key Process Indicators vs. Metrics. I sometimes use the terms KPI and metrics interchangeably, but they are not the same. A metric is any standard of measurement (number of carriers, inventory turns, average shipment weight, etc.).

KPI 186

As Easy As ABC: Categorising and Managing Inventory

Unleashed

ABC analysis is an inventory management principle which stands for Always Better Control. It is based on the Pareto principle (20% of a commodity accounts for 80% of the net result) and can be very useful for management of a company’s inventory. In this article, we consider what ABC analysis is exactly and how it is calculated, an example of it in action and some pros and cons of its implementation. A metric you are aiming to improve for each item (e.g.

8 Common Warehousing Mistakes and How to Avoid Them

Logistics Bureau

1: Holding Excess Inventory. Despite years of knowledge dissemination in the warehousing field, encouraging lean practice and inventory reduction, storing too much inventory is still one of the most common warehousing mistakes made by supply chain organizations worldwide. Reducing inventory levels as far as possible makes your supply chain leaner and leaves you with less money tied up in stock. Articles Inventory - S&OP Warehouse warehouse management warehousing

Control Towers: If Only There Was A Clear Definition

Supply Chain Shaman

My client writhed in her seat and hung her head as she asked, “I read your article on control towers, but I am confused. The focus is on functional metrics, but are unable to get to overall supply chain metrics. For example, only 29% of manufacturing companies can access total cost data and 31% struggle to see the impact of business decisions on inventory. We finished dinner. I pressed my neatly folded napkin to my lips.

Data 266

Sage Advice? Only for Turkeys.

Supply Chain Shaman

I am currently writing an article on supply chain excellence. While companies have increased Revenue per Employee across the healthcare value chain, the Days of Inventory have increased for suppliers, and there is a shift in power to the healthcare provider. I also see that we are not decreasing the total inventory levels in the network or accelerating time to value. The only metric that we have improved through ten years of IT investments is the revenue/employee number.

Turkey 196

Healthcare Supply Chain Software: Features You Need

Hybrent

Inventory Management. Healthcare supply chain management software takes the guess work out of inventory because it is directly tied to ordering. That means inventory is updated in real time to reflect when items are ordered, in stock, or on back-order. This allows you to access metrics and detailed spend analysis quickly and easily, allowing you to gain insights and make decisions to optimize your business.

Supply Chain Scope: New Study Shows Rise in US Inventories; California Estimated to Improve Freight Efficiency by 25% in 2030

Arkieva

A new study by the SupplyChainDigest analyzing the main components of working capital: Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payables Outstanding (DPO) revealed an uptick in DIO. New Study Shows a Rise in US Company Inventories. SupplyChainDigest benchmark study of about 100 companies reveals an increase in US company inventories since the recession. “In In the US economy, overall inventory levels have been ticking up in recent years.

How Can Small Businesses Make the Most of Big Data?

Unleashed

For smaller businesses just starting out, they may not have adequate resources to capture this information — and managers may not know what metrics to look out for. In this article, we explore what big data is and its benefits for small businesses, from tracking sales trends to keeping an eye on competitors. Small businesses will benefit hugely from recording and tracking data about everything from sales trends to inventory turnover and more.

What If You Could Take The Guesswork Out Of Forecast Planning? Guest Post from Osgood Vogler

Kinaxis

by Melissa Clow Our partner Celestica recently published the following article, ‘What If You Could Take The Guesswork Out Of Forecast Planning?’. Persistent planning biases can tie up cash by driving excess inventory. To accurately judge one approach versus another, the primary metric for evaluation purposes may need to be established at a different level.

Hospital Supply Chain Management Software: 8 Features You Need

Hybrent

Inventory Management. Hospital supply chain management software takes the guess work out of inventory because it is directly tied to ordering. That means inventory is updated in real time to reflect when items are ordered, in stock, or on back-order. This allows you to access metrics and detailed spend analysis quickly and easily, allowing you to gain insights and make decisions to optimize your business.

SCRC Meeting – Tom Linton’s “Supply Chain Eight” and Golden Winged Warblers : Questions Every New CSCO Should Ask Their CEO

NC State SCRC

When it is not in motion, it is classified as inventory. My first Monday in, I asked for a full report of all our supply chain metrics, and my analyst told me he could get it to me by Friday. But this took time – we had to “defrag” our supply chain, and eventually I learned we had 59 days of inventory. A simple chart was used to depict inventory, with the size of the indicative of the amount of cash tied up in that inventory.

The Necessity of Tracking Average Order Value

Unleashed

In this article, we’ll explore one particular metric used to measure sales and profitability — the Average Revenue per order , or the Average Order Value (AOV). Business managers will often use the AOV metric to identify successful and unsuccessful sales patterns and trends over a certain time period in order to make adjustments in future. Could there be a problem with your inventory ? Business Tips inventory reporting sales orders sales revenue

Three Lies and a Truth

Supply Chain Shaman

Here is the list: Supply chain technology implementations have reduced inventory. I have averaged about 100 articles a year. Here they are: The Lie of Inventory Reduction. Repeatedly, I heard that supply chain applications have saved costs, reduced inventory and improved customer service. We are trying to understand how supply chain leaders have raised the bar at the intersection of these four sets of metrics on the supply chain effective frontier.