Remove Benchmarking Remove Eliminating Excel in Purchasing Remove Metrics
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Uh-Oh! Insights On How P&G Failed And What This Means For You

Supply Chain Shaman

Supply chain excellence is easier to say than to explain. 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.) The reason?

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L’Oréal: A Case Study in Supply Chain Excellence

Supply Chain Shaman

The award, based on beating the industry peer group on rate of improvement on the key metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) while outperforming their peer group, is tough to achieve. The orbit chart below illustrates L’Oréal’s performance at the intersection of two metrics.

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What is Purchase Price Variance (PPV) and How to Calculate it?

SCMDOJO

Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.

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History Repeats Itself Without Supply Chain Leadership

Supply Chain Shaman

Ed argued that instead of buying new packaging equipment that we should work with R&D to have a base flavor and add the color and flavoring at the head of the machine. Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. The So What?

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Misnomer

Supply Chain Shaman

This team is not buying the message. So much so, that three years ago, I founded a research company to focus on understanding supply chain excellence. When we started benchmarking companies, Deborah and I had a friendly wager. Deborah and I benchmarked 97 supply chains; and, we found the inverse to be true. I was wrong.

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What Is Old Is New Again. Maybe, Just Maybe, the Emperor Is Getting Some Clothes.

Supply Chain Shaman

While there is work within SAP to rethink SNC and use the assets purchased with Ariba to build multi-tier capabilities, the progress is not encouraging. the company is owned today by 20 organizations representing manufacturers, distributors, hospitals and group purchasing organizations (GPOs). Marketplace Rebirth.

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Strategic Sourcing + Smart Solutions: The Unbeatable Duo for Procurement Success

SCMDOJO

Think of them as apples and gearseach essential and effective on its own, yet when combined; they create a formidable mechanism for achieving procurement excellence. However, they create an unbeatable duo for procurement excellence. PwC, “Procurement Performance Benchmarking,” 2023.