Five Reflections From Supply Chain Planning Benchmarking

Supply Chain Shaman

Benchmarking is a measurement of the quality of an organization’s policies, products, programs or strategies against standard measurements. Today, I am going to share five insights that I have gleaned from our work on Supply Chain Planning Benchmarking. Benchmarking is not Benchmarking. There are many different meanings/understandings of the term supply chain benchmarking in the industry. Figure 1: Supply Chain Planning Benchmarking Methodology Overview.

6 metrics tips and tools to benchmark P2P Digital Transformation

ivalua

Digital sourcing tools can help make this a more manageable metric. #3 Without a full view to spend and supplier, at the line item level, sourcing organizations limit their reach and impact. The post 6 metrics tips and tools to benchmark P2P Digital Transformation appeared first on Ivalua. Vishal Patel, VP Product Marketing, Ivalua [link]. Data is beyond critical to Procurement Operations.

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Improve Your Response Time to Market Through Effective Benchmarking

Talking Logistics

In other words, if a planner receives multiple spot quotes for a load, the best he or she can do is a comparative analysis between the quotes without a benchmark. Technology vs. Manual Benchmarking Approach. The benchmark itself in this instance could be reflective of two different approaches. An alternative method to establish a benchmark is to consider the transportation budget itself.

Research in Focus: Sourcing Trends and Concerns

Talking Logistics

Below is an excerpt from a report published recently by Amber Road and the American Association of Exporters and Importers (AAEI) titled “ The Trade Trends Report: 2017 Report on Sourcing, Trade, and e-commerce.” Sourcing is the heart of today’s global supply chains, and decisions made on sourcing impact everything from transportation and shipping costs, to both social and regulatory compliance concerns. Sourcing decisions can complicate or simplify this process.

2019 Forecasting and Inventory Benchmark Study

Supply Chain Brain

Now in its ninth year, E2open’s 2019 Forecasting and Inventory Benchmark Study is the most consistent, comprehensive and useful study of its kind. What’s more, the data from this study doesn’t come from surveys and questionnaires, it is sourced from real data from E2open’s diverse customer base. What does best-in-class forecasting and inventory management look like?

Responsible Sourcing! Making Sustainability Happen for Real!

Supply Chain Game Changer

Sustainability is created at the source of our products, services, and consumption. Sustainability is created from Responsible Sourcing. How can you make Responsible Sourcing a Reality? If you can excite the people around you about sourcing responsibly, chances are you’ll be able to formulate a network of internal champions. in this case, responsible sourcing. Source Smarter. Source: Purina. Source: Nestlé. procurement #sourcing #purchasing.

Benchmarking Success: Focus on what Matters

Logistics Bureau

He joined Logistics Bureau Group back in 2009 and commenced by running the benchmarking business known as Benchmarking Success. Steven, you were a customer of Benchmarking Success with three different companies, most recently as Supply Chain Director with Ingram Micro, the world’s largest IT distributor. My first step was to engage Benchmarking Success (BMS) to understand what the “best” for each business really meant from an independent source.

White Paper: Strategic Sourcing in the Aviation Industry – How to Increase and Accelerate Savings

Bristlecone

In aviation, strategic sourcing can reduce the cost and fix the nuts and bolts of existing processes with the help of a well-performing sourcing team. Low-Cost Country Sourcing. This white paper explores why strategic sourcing is critical in the aviation industry and how it enables airlines and airline services providers to compete in a global market where margin for error is extremely low.

Why Benchmarking Alone Isn’t Enough for Proper Transportation Cost Analysis

Cerasis

Carriers in the trucking industry and also shippers today are actively looking for ways to combat the rising costs of operating their businesses, but they often do not fully understand proper benchmarking, transportation cost analysis, and profit management are intertwined. Without understanding true costs and using benchmarks as just that – benchmarks – carriers and shippers will struggle to effectively analyze and reduce their costs.

The Benefits of Maintaining Transportation Sourcing Analytics through a Platform Dashboard

CHAINalytics

By Venu Gadde | Senior Consultant, Transportation | Chainalytics A typical transportation sourcing process involves the following: a bid tool or platform which collects rates from suppliers, data exportation into Excel for supplier analysis and feedback, and finally, the Negotiation and Awarding stages. Blog Transportation Uncategorized Broker carriers Freight cost Transportation Cost Benchmarking Transportation Dashboard transportation network Transportation Sourcing Analytics

Reduce Costs: Invest In Talent

Supply Chain Shaman

In manufacturing-based companies, 70-80% of costs are in the processes of source, make and deliver. While the practices of finance are over 200 years old, in contrast, supply chain as a cross-functional practice (the combination of make, source and deliver) was recently defined in 1982. Due to popular demand, we are kicking-off an organizational benchmarking effort.

Why Our Goal Should Not Be an Integrated Supply Chain

Supply Chain Shaman

It was also clear to me that transactional data was only one of the feeds to the planning engines (approximately 60% of the data feed, but not the sole source). planning benchmarking supply chain analytics Supply chain planning digital innovation planningThis week I spoke at an SAS Global Analytics Summit on the connected supply chain. In my view, the connected supply chain is very, very different from the integrated supply chain.

Misnomer

Supply Chain Shaman

The team was organized around the functional silos of source, make and deliver. 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. Instead, we found that the companies with the lowest total supply chain cost (a total of source, make and deliver) had average costs in manufacturing and distribution. Misnomer (n): A wrong name. The misuse of a term or name.

Parts Are Not Parts

Supply Chain Shaman

A slight change within a function–in sourcing or manufacturing, or along the chain–can greatly impact the outcomes of cost, customer service, or working capital. Let’s take a closer look at sourcing.

Lean 217

Procurement Cockpit – Strategic Sourcing KPIs

EC Sourcing Group

Today I will focus on KPIs that can provide deep insight into the efficiency and effectiveness of your operations, strategic sourcing efforts and how procurement systems are viewed internally. Each KPI should have a benchmark or reference point of comparison. Last week I suggested that a procurement cockpit is an essential tool to manage your business in 2019.

For Your Supply Chain KPIs to be Meaningful, Apply Some Golden Rules

Logistics Bureau

In an attempt to help you keep your supply chain organisation from analysis paralysis, metric manipulation, or measurement misnomers, I decided to use this post to share nine important guidelines, or golden rules, for benchmarking your business and monitoring performance using meaningful supply chain KPIs. Don’t get me wrong here; off-the-shelf KPIs can serve a useful purpose, for example, when used for external benchmarking exercises.

KPI 76

Leveraging Data in a Digital Transformation: Lessons from JAGGAER’s Fireside Chat

Jaggaer

In many cases this information is easy to understand without heavy data cleansing and can still provide clear benchmarks and intuitive action items. Events Source-to-Pay

COVID-19 Procurement Response: Your Questions Answered

Jaggaer

That means being able to get live pricing updates from your suppliers and from the broader market so that you can do live benchmarking. You can also run sourcing events more frequently to make sure that you’re getting the most up-to-date prices. . Based on this, we came to the conclusion that even if we can have many pre-designed dashboards for Spend and Sourcing in general, for Predictive Analytics, this can’t be an ‘out of the box’ capability. Source-to-Pay

Vendor Profiling Survey Now Open

Supply Chain View from the Field

A group of my MBA students are working on a project benchmarking vendor profiling approaches. MBA Supply Chain Organizing for Supply Chain Procure to Pay Strategic Sourcing Supplier Relationship Management If you’re interested in this topic, be sure to take the survey. The goal of the study is to. Understand different information companies ask from suppliers. Identify industry classification codes for categorizing suppliers.

Is Indirect Spend Killing Your Bottom Line and Your Strategic Sourcing Efforts?

EC Sourcing Group

For many mid-size companies, indirect spend is killing their bottom line and derailing their efforts to implement strategic sourcing. Procurement professionals know there are many opportunities to reduce indirect operating expenses but there are some common barriers blocking their efforts including: Lack of staff bandwidth Limited internal experience purchasing scientific or technical items/services Minimal useable spend data Reliable benchmark data.

A Diverse Supply Base Isn’t About Procurement…It’s A Leadership Issue!

Supply Chain View from the Field

The most important and common method for driving diversity objectives in the survey (in 73% of firms) involves explicitly building in diversity as an objective into sourcing processes. It is not uncommon to find that sourcing managers do not view diversity as a priority. I conducted benchmarking across a subsample of firms in the utility industry, to identify how supplier diversity is captured for this report.

Changing Your Perspective to Measure Supply Chain Performance

Logistics Bureau

Performance is analysed for the key SCOR supply chain processes of Plan, Source, Make, Deliver and Return. Level 3 – a further level down; may or may not cover an entire SCOR process (Plan, Source, Make, Deliver and Return). They can also compare their performance with SCOR benchmark data (as available) for their particular product/customer supply chain. Articles Benchmarking Performance Measurement - KPIs Supply Chain Benchmarking Supply Chain Performance

Procurement Must Contribute to Competitiveness to Become Relevant!

NC State SCRC

From a benchmarking perspective – every company would love to know exactly what their competitors spend on each raw material / service. This is the “holy grail” – but as the saying goes, don’t let great be the enemy of good – and should we strive to benchmark the unattainable? Beroe came up with a way to benchmark cost savings, through a measure of the COGS – Cost of Goods Sold. COGS benchmarking can help expose these types of issues.

It’s About Time for a new “World Class Supply Chain” Paradigm

NC State SCRC

As a young assistant professor at Michigan State University in 1992, I was part of a group called the Global Procurement Benchmarking Initiative. This initiative benchmarked over 300 global companies, and set forth many of the principles for what we called “World Class Supply Chains”. Leveraging and strategic sourcing has gotten in the way of that.

Post Award Contract Management with $40 Oil: Insights from Shell’s Kevin Fronk

Supply Chain View from the Field

Kevin and I worked together years ago to help define the a baseline framework for strategic sourcing and category management that was deployed within the Lubricants group, and which later became deployed across the entire Shell Procurement organization. For these meetings we bring in benchmark data, comparing the different operating cost categories for Shell, and another chart that shows the cost models for all other rigs operating in the GOM.

New Survey from JDA and KPMG Highlights Top Drivers and Inhibitors of Supply Chain Investment

Supply Chain Nation

During the Executive Exchange, JDA and KPMG released an exclusive preview of the findings from the new survey, Digital Supply Chain in Retail & Manufacturing: A State of the Industry Benchmark , conducted by Incisiv. Using data effectively will become a key source of differentiation, and the vast amount of data that the supply chain collects creates both a huge challenge and an opportunity for retailers and manufacturers alike.

Remembering Supply Chain Executive Ken Miesemer

Supply Chain Digest

Global Trade Volumes Continue to Slow, for Now, While New SCDigest Study Benchmarks Global Sourcing and Trade Management Practices

Newly minted MBA from NC State heads off to Apple’s Supply Chain Organization

Supply Chain View from the Field

Next, students perform a detailed supplier evaluation for a global sourcing case study, involving a high tech situation. As part of this, they are exposed to concepts of total cost of ownership, “should-cost” modeling, and utilizing price indices to track and benchmark supplier price quotes and RFQ’s. One of my recent students from last year, Guarav Chhabra, just graduated this semester, and landed a job in Apple’s supply chain organization.

New Survey from JDA and KPMG Highlights Top Drivers and Inhibitors of Supply Chain Investment

Supply Chain Nation

During the Executive Exchange, JDA and KPMG released an exclusive preview of the findings from the new survey, Digital Supply Chain in Retail & Manufacturing: A State of the Industry Benchmark , conducted by Incisiv. Using data effectively will become a key source of differentiation, and the vast amount of data that the supply chain collects creates both a huge challenge and an opportunity for retailers and manufacturers alike.

MBA Supply Management Class Prepares Exciting New Set of Projects for Fall 2016

NC State SCRC

Benchmarking Supply Management salaries : Understand what the ‘going rate’ is for key roles in Supply Management, so it can better develop its ‘employee value proposition’ to more effectively attract, develop and retain key staff. This project presents an opportunity to benchmark salaries (base salary, incentive compensation and equity/stock grants, etc. Commodity/Category sourcing profiles within Research and Development (R&D).

How Supply Chain Strategy Misalignment is Killing Kmart USA

Logistics Bureau

Had Kmart consolidated sourcing across a number of key suppliers, and offered those suppliers huge-volume purchases and partnership contracts, the company could have greatly reduced inventory purchase prices , emulating the Wal-Mart strategy and perhaps preventing the Kmart arch-rival from usurping its place as the USA’s most successful big-box variety retailer. Articles Benchmarking Case Studies

Where is the Global Supply Chain Headed

Supply Chain Digest

Global Trade Volumes Continue to Slow, for Now, While New SCDigest Study Benchmarks Global Sourcing and Trade Management Practices

Healthcare Has Fallen Down and Can’t Get Up: Get Your Own Spend Cube!

Supply Chain View from the Field

In today’s environment, hospitals continue to outsource their sourcing capabilities to a national or regional group of Group Purchasing Organizations (GPO’s), who claim to obtain leveraged savings for groups of large commodities. In the second level of maturity, supply chain managers begin to engage clinicians in sourcing decisions, particularly high value and clinically sensitive items.

Consumer Goods Forum Creates Sustainable Supply Chain Program

Material Handling and Logistics

SSCI will streamline benchmarking processes across the CGF by replicating the successful approach of its Global Food Safety Initiative to recognizing standards. The SSCI is designed to help them navigate through this complexity and make sustainable sourcing more efficient." . By undergoing benchmarking and achieving SSCI recognition, scheme owners signal a strong commitment to raising the bar while driving harmonization.

Transportation Assessments are Like Self-Scouting in Football – Due Diligence Matters!

Talking Logistics

This tees up benchmarking to ensure rates are at market. From there, it is a matter of obtaining clean source data, implementing efficient processes that leverage advances in transportation technology, and building effective integration with carriers to drive down transaction cost. Guest Commentary Guest Commentary - enVista Transportation Management benchmarking integration flow diagram process flow mapping spend diagram Stephen Craig transportation assessment