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In today’s architectures and functional metrics, value optimization does not exist. And, when procurement and tactical planning operate in isolation, there is no decision support framework to guide the trade-offs especially when the functions are tethered to different and conflicting metrics. You are right. The reason?
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. To manage continuous improvement, companies need a clear definition of excellence and organizational alignment to that goal. What Drives Value?
I am currently working on a couple of case studies for this blog on how business leaders used digital twin modeling during the pandemic. Initially, the output was published to procurement to design strategic buying strategies. Watermelon Metrics Don’t Drive The Right Results. I love the metaphor of watermelon metrics.
The latest ML algorithms can detect subtle shifts in consumer sentiment that precede actual purchasing behavior changes by weeks or even months. ML excels in these scenarios, quickly identifying and adapting to intricate seasonal patterns and trends that traditional statistical methods miss entirely.
I try to post weekly on this blog. Optimization engines to improve functional metric performance resulted in an exploding number of planners. In my last blog post, I shared insights on data synchronization between brand owners and contract manufacturing. days to receive a purchase order confirmation. He wants answers.
By purchasing planning and transactional systems for a common vendor, they had one throat to choke and they were familiar with the architectural elements. I will write more on this in my next blog post.). In this blog, I hope that I push you too. This new solution was favored by the Information Technology (IT) organization.
Running procurement and supply chain without metrics is like driving blindfolded. Identify Bottlenecks & Opportunities: Quickly spot areas that are underperforming and need attention or areas where you’re excelling. Control Costs: Track value beyond just the purchase price and manage inventory effectively.
In part 1 of my blog on Planning the Value Chain and Decision Making in Times of Disruption, the focus was on the ability to react and execute amidst the unpredictability of demand. Ultimately, what KPIs, as metrics and indicators derived from the set of plans are taken into account and prepared for each scenario.
If you are going to be excellent at ecommerce fulfillment, you need to have great perpetual inventory capabilities. It was great to see click and pay on the London tube, and I love some of the new models that are being developed in grocery and specialty stores for purchases on-line and pick-up at the stores. Don’t fool yourself.
Theme 2: Online buying will fuel home delivery growth, challenges and new strategies. In 2023, consumers will be less forgiving and poised to buy from retailers whose delivery performance is commensurate with the rest of the shopping experience. Figure 1: U.S. Container Import Volume Year-over-Year Comparison. Somewhat nailed it.
As an analyst in the supply chain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. The Terra Technology investment is one of what we believe will be a series of purchases to build inter-enterprise cloud-based software platforms to redefine supply chain planning.
In part one of this blog series, I started the saga of the supply chain fairy tale. It was a story where people believed that functional excellence leads to supply chain superiority. Year after year, well intentioned people toiled against improving metrics that reduced, not improved, the effectiveness of the supply chain.
There is an inverse relationship between margin and supply chain excellence. Zimmer’s strategic framework focuses on growth, operational excellence and prudent capital allocation. Leaders need to start a system to improve measurement and tie performance to buying incentives. I don’t think so. It matters more. My Challenge.
I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. I would build an expertise system in the Supply Chain Center of Excellence. After three years of research, I have just refined the methodology to start to pull the trends.
In this blog, I’ll try to shed more light on it with examples from our work with our customers. In this blog, I’ll focus on the Q-commerce case. They can adjust quantities and generate supplier replenishment orders in PDF or Excel as needed. Composability as an Enabler of Agility & Resilience.
You’ll note in the headline I use the preposition “of” instead of “to” when describing the “journey of Supply Chain Excellence.” The differentiator is whether Supply Chain Excellence is defined as a one-time project or as on ongoing process. Circuit City failed to adapt and is now history.
“Reach out to other departments about ways to collaborate on sustainability initiatives, and talk to your executive team to gain buy in.” Translating corporate targets into specific team goals and building them into each function’s performance metrics helps embed sustainability into regular workflows.” The post St.
I think about this discussion with Keith often as I work on the Supply Chain Index and edit the chapters of Metrics That Matter. Our current processes and dependencies on Excel spreadsheets cannot get us to our goal. E2open last week announced the purchase of Serus. I believe that value is what you create. 3) Risky Business?
” In this blog, I share the insights on the current state of the healthcare value chain and the recommendations of the panelists. They each lag in their understanding of supply chain excellence, and are now struggling to build effective supply chain teams. I think both factors are at play. Healthcare.
This data empowers procurement teams to negotiate better supplier terms, optimize purchasing decisions, and eliminate wasteful spending ensuring procurement supports broader organizational goals. Impact on Procurement: Spend analytics give CPOs visibility into spending patterns, supplier performance, and inefficiencies.
Several customers addressed those questions in excellent case study presentations: Dr. Bernhard Herzog, Oxea GmbH – “Business Impact of a Supply Chain Operating Network”. It’s impossible for me to capture all of the great insights shared by the speakers in a brief blog post, but here are some highlights and key takeaways.
I have come to the conclusion that this needs some further analysis, which I won’t be able to complete in a single blog. They have piloted the process in Excel and know that they need an enterprise level solution for a global roll-out of S&OP. However, excellence in corporate planning matters. Their words. She states that.
This blog post formed in my head as I worked with clients this month. The focus is on the role of supply chain finance in driving supply chain excellence. The design of the conference includes tours of several modern warehouses and centers of excellence. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance.
The network senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time data to align sell, deliver, make and sourcing organizations outside-in. The translation of independent demand into cycle stock reduction in production planning and material buying in demand-driven MRP.
Many companies talk about Supply Chain Excellence, but most leaders struggle to define it. One supply chain leader, in a discussion last week, likened supply chain excellence to fitness. He felt that supply chain excellence was analogous. Our journey for supply chain excellence has changed and evolved over time.
Demand latency is two-eight weeks delayed from consumption purchase to translate to an order. I give you this evidence in this blog.). Organizations can align to drive value despite the allegiance to functional metrics. Organizations can align to drive value despite the allegiance to functional metrics. My challenge?
The network senses, translates, and orchestrates market changes (buy and sell-side markets) bi-directionally with near-real time data to align sell, deliver, make and sourcing organizations outside-in. Thoma Bravo purchased Elemica in June 2016. This is a missionary buying market where taxonomies and technologies are not clear.
With the rise in complexity, most Supply Chain Metrics That Matter are going backwards (inventory turns, ROIC, operating margin and growth). Avoid buying software from a consulting company. Do not buy software based on partnerships. Consulting and software are very different business models. They are very different.
Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” We are systemically evaluating each industry in the Supply Chain Insights Metrics That Matter series of reports. At Supply Chain Insights , this is our passion.
In this blog post, I publically answer the questions from the webinar. Q: You mention that Executive Buy-in is the biggest stumbling block. What techniques are being used to get executive buy-in? Q: What is the best metric to begin analyzing when starting to evaluate Supply Chain agility? They are also very confused.
The blog was uglier then and less polished, and I have learned a lot about blogging over the years; however, my focus is the same. The Supply Chain Shaman is an independent blog. You will note that there is no advertising for the blog and I am never paid to write. I take independence seriously. This is my 310th post.
She works with supply chain leaders to take teams to higher levels of excellence and is an influencer with more than 340,000 followers on LinkedIn. How often do your purchase orders change? For example, if your supplier is on wafer-thin margins, it may be bulk purchasing in order to reduce costs, leaving it with excess stock.
in this blog, I am going to rely on the account of the songwriter, that the song is a childhood story about a dragon that lived in Honalee. Older men buy less underwear than younger males and their packaging was not as attractive to the female shopper buying for the family. Rules, engines, policies and metrics need to align.
Buying these solutions is far more complicated than is represented in a simple four-box quadrant. In parallel, we now know that the Demantra solution purchased by Oracle lacks scalability and usability, but the perception is that it is well-integrated into the Oracle suite. It is complex. There are many parameters.
E2open went public in July 2012 and in February 2015 participated in a private buy-out for $273M by Insight Venture Partners. Prior to the buy-out, E2open’s stock price was battered with a decline in the company’s shares by 74% over the last year. The initial public offering of 4,687,500 shares of its common stock at $15 per share.
” In order to achieve that goal, companies need to move from Excel spreadsheets to cognitive technologies with embedded advanced analytics. ” In other words, digital transformation is not about buying technologies, it’s about using technologies the right way. ” 6 Rivers Systems Blog, 24 June 2019. [3]
Today, 7% of order and purchase order flows move through business networks. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. She also actively blogs on her Supply Chain Insights website, at the Supply Chain Shaman blog, and for Forbes.
An accomplishment-based resume provides metrics and quantifiable info about a candidate’s accomplishments. Here''s a blog post we did that goes into some more detail about how to write an accomplishment-based resume. It is the quickest and simplest way to help an employer buy into you and answer the common interview question ‘so….
During the afternoon, as I quietly held the pieces for Jake’s monster, my mind composed my blog post for the week. In the outside-in supply chain, the signals are from the buy and sell-side markets back to the enterprise. Too much quilting, typing and repetitive motion….) I smiled and sat back enjoying the moment. Bio-engineering?
How do they buy from you? How do they buy from you?” Kehat’s feedback is that “Getting management buy-in for the implementation of cost-to-serve process is easy, but the implementation is difficult.” Both improvement and performance define supply chain excellence. Why does it matter to you?
If you leave her to build reports and metrics that she needs in excel then she’ll spend all her time crunching numbers instead of planning your company’s largest asset. I covered this last week , but I really can’t stress enough how important it is to select metrics that support all of your business goals. Hierarchies.
Customers are buying less. The days of going to a brick and mortar store to buy product is only one of the ways that people want to buy. The days of going to a brick and mortar store to buy product is only one of the ways that people want to buy. As I end this blog post, let me leave you with three thoughts.
Specifically, practitioners can use intuitive displays to drill into safety metrics, product quality, on-time delivery, cost efficiency, and much more. Over time, ineffective quality control processes will affect customer satisfaction, buying behaviors, and ultimately lead to lost market share. Quality Control. Life Cycle Maintenance.
Manufactures are continuously faced with the challenge of forecasting how much (raw material) to purchase and how much (finished goods) to produce. Even though business data availability has increased, customer purchase patterns has also become more complex, and therefore harder to predict with accuracy.
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