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In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. Error is error, but is it the most important metric? My answer is no.
It creates a single source of truth for your rate management, automating RFQs and streamlining the entire procurement process. It handles everything from rating and booking to shipment management, invoice auditing, and beyond.
Supply chain management books that are praised by supply chain executives, consultants and supply chain management professionals at all levels. In order to facilitate smooth learning process, this article will show you 10 greatest supply chain management books that can help you accelerate the learning.
It creates a single source of truth for your rate management, automating RFQs and streamlining the entire procurement process. It handles everything from rating and booking to shipment management, invoice auditing, and beyond.
The genesis started with the writing of the book Bricks Matter. The relationship between corporate financial performance and supply chain metrics was complex; and in my first attempts, I was unable to derive a correlation. Sadly, while writing the book, I found that this was not the case. Why did I care? Definitions.
We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. Reward teams for cross-functional metrics. Customer-Centric Supply Chain.
Integration of corporate social responsibility metrics in planning. Comprehensive view of source, make and deliver. Most often the focus is on transportation or logistics, but does not take into consideration the trade-offs between make, source and deliver. Focus is on make, source and deliver together.
In my research, I find that the lack of alignment has a direct impact to value (operating margin and market price to book value). Functional Metrics. This maniacal focus on improving functional metrics threw the supply chain out of balance and made the organization less able to work together to solve issues.
I have taken myself off the road to write the bookMetrics That Matter. Let me just state for the record that “Saying that you are going to write a book, is far more exciting than writing one.” Writing the book is helping me to get perspective. It is tedious. I find it easier to write in the winter.
Movement solves for this by empowering AI agents to clean data, then communicate and act at the operational level, including booking shipments and performing complex reroutes, all while keeping stakeholders informed. This extensive connectivity has resulted in impressive metrics: 1.2
The team was organized around the functional silos of source, make and deliver. 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. We are a month away from the publication of Supply Chain Metrics that Matter.
This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. When companies look at singular metrics (labor costs or inventory), they have moved backwards. Aligning metrics matters. Functional metrics in isolation degrade value. We enjoy writing them!
Are you looking for logistics management books? In this article, we will show you 5 books that'll help you learn logistics faster than any other logistics book. Logistics Book Ranking Factors To provide the book recommendations, first, we collect the name of the books that appear on Amazon.com.
Many-to-many can also refer to many participants in a network accessing many, many sources of event data critical to supply chain operations through a public cloud network. The network supports a wide array of messaging types including real-time GPS, EDI, and API-based capacity requests, bookings, statuses, and customs messages.
Book Review - Supply Chain Transformation: Building and Executing an Integrated Supply Chain Strategy. The purpose of this article is to introduce you to the book " Supply Chain Transformation: Building and Executing an Integrated Supply Chain Strategy " and explain how it can help you to create sustainable supply chain excellence.
In this article, we rank books based on their influence, popularity, recency and practicality and then we come up with the list of the best supply chain books. Finding Best Supply Chain Books We've found that most recommendations for on the web are based on just personal opinion. A number of citations of the books are collected.
He recently wrote a book titled, “How the World Ran Out of Everything.” I would like for us to move past the conventional view of sourcing strategies and globalization to drive improvements to the supply chain in a variable world. The populist narrative of sourcing globalization is only part of the story. Let me explain.
Sitting waiting for a confirmed booking.) The focus of planning is volume not value, and leaders struggle to change and embrace bi-directional orchestration to capture the price/volume trade-offs between source, make, deliver and plan. Build Strong Supply Chain Sourcing Development Practices. This is unprecedented time.
It creates a single source of truth for your rate management, automating RFQs and streamlining the entire procurement process. It handles everything from rating and booking to shipment management, invoice auditing, and beyond.
Forward-thinking organizations have transformed the department into an untapped gold mine that creates value for the entire end-to-end manufacturing process—from design and sourcing to production and delivery. Our latest e-book, “ Is Manufacturing Missing Out On Procurement’s Value Add? Here are some key insights from the e-book.
Madhav Durbha I recently read this very interesting book, “Be the Business: CIOs in the new era of IT” by Martha Heller. In the book, the author made several very interesting observations about how the role of a Chief Information Officer is changing in the age of cloud computing, personalization of tech, and the rise of shadow IT.
Last week, after booking an additional $1B in unexpected supplier costs in the third quarter, the CFO led the company’s focus on restructuring to “support efficient and reliable sourcing of components and internal development of key technologies and capabilities.” COVID impacts also continue. Don’t Be Like Ford.
To understand supply chain excellence, Abby and I have been studying pattern recognition for industry peer groups at the intersection of the metrics in the Supply Chain Effective Frontier of growth, profitability, cycles and complexity. Publication of our next book. This analysis has been fun and insightful.
Apple Inc purchases raw materials from various sources then get them shipped to an assembling plant in China. Some components are currently obtained from the single or limited sources. So this section will explain some characteristics of Apple Supply Chain through various metrics and compare them with Amazon Supply Chain.
When I wrote the book Bricks Matter , I cavalierly penned a chapter on the evolution of supply chain thinking from cost to value. I found this out the hard way when Keith Harrison , contributor to the Forward of the book, asked me to define what I meant by ”value.” What Is Value? It sounds simple, but it is not.
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. A Look at History. Resiliency.
I was writing the book, Bricks Matter and I wanted a better definition of Supply Chain Excellence. This research was the backbone of the Supply Chain Metrics that Matter series of reports. Instead, they have measured functional metrics or focused on projects. It started at my kitchen table. The Building of the Index.
It is data driven research: a deep analysis of performance, improvement and Price to Tangible Book Value of 320 companies across 31 industries for the period of 2009-2015. The source data for the analysis is public reporting of balance sheets and income statements. The Supply Chains to Admire analysis is now in its third year.
However, the logic Cisco uses to manage the disruption is very robust and details are summarized into the infographic below, Note: metrics data is for illustrative purpose. Cross-functional team, part standardization, back-up suppliers, dual-sourcing, supplier collaboration are the basic foundation that is tried and true. Discussion.
Each customer in US or EU might already control the source of raw materials, ask you to provide dedicated production lines, nominate 3pl companies and air/sea carriers. 7) Adopt Both Service and Financial Metrics. 10 Greatest Supply Chain Management Books of All Time. 3) Align Demand Planning Across Supply Chain. A Case Study.
Digital commerce efficiently requires the digitalization of many customer-facing operations and sourcing and procurement. Supply chain planning involves interaction with different types of information based on internal and external data sources. These data sources are often spread across multiple platforms and come in various formats.
Why advanced technologies such as blockchain , AI, and the IoT get a lot of attention, but that focusing on real-life solutions to issues like labor shortage, safety, and capacity sourcing instead of wasting so much breath on disruptions that won’t take place for decades is more productive for those who work in freight.
To achieve Stage 5, S&OP must be “a fully integrated business planning forum… (where) metrics are value-based and aligned across the network and enterprise to support the required trade-offs.”. Gartner’s research is echoed by Lora Cecere of Supply Chain Insights. Finance and supply chain spoke the same language—the language of success.
Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The The Supply Chain Metrics That Matter are a portfolio of metrics which correlate to higher market capitalization. Value, i.e. Price to Tangible Book Value (PTBV). Performance.
According to Kurzweil’s new book, nanorobots may be the key to stopping human aging and letting us live for thousands of years. The company said that it used 85,916 metric tons of single-use plastic that year, an 11.6 But now, scientists are saying that the fountain of youth could be a reality, but just in a very different form.
The winners drive improvement while posting financial results in the Supply Chain Metrics That Matter ahead of the peer group. Price to Tangible Book Value. A Supply Chain Leader will make progress on both of these key metrics with a very tight and controlled pattern. Return on Invested Capital (ROIC). 5) Design.
In the traditional supply chain world, the processes of sell, deliver, make, source, and plan are separate and distinct. The metrics reward functional thinking. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is writing her third book, Leadership Matters.
Ive seen KPI “packs” the size of phone books, and even KPI sets circulated as a monthly magazine that no one reads. Unlike most of the KPIs we recommend, perfect order is a composite of several elementary metrics. Aside from applying the SMART acronym, my basic take on KPIs is this; Dont have too many! What about DIFOT?
Traditionally, the focus has been on building efficient organizational silos for make, source or deliver. As a result, tor most companies, the goals are unclear and the financial metrics are not well-understood. This year-over-year comparison, enables visualization of performance on two metrics. Overview of the Methodology.
With the rise in complexity, most Supply Chain Metrics That Matter are going backwards (inventory turns, ROIC, operating margin and growth). Open source needs maintenance. With the evolution of open source software, be sure that the solution that you are purchasing can be maintained and evolved over time.
Much to my chagrin, when I entered into the world of supply chain, the processes of source, make and deliver were usually not designed. Instead, I think that it needs to be holistic to balance the trade-offs of source, make and deliver together. (I know… I am showing my age.). Let me continue with my story.
Over the course of the last decade, companies have moved at different rates to align source, make and deliver processes to report to common leader. Based on our research at Supply Chain Insights , today, 34% of supply chain organizations have source, make and deliver reporting through a common organization.
The field of supply chain management–combining source, make and deliver–into a common process started in 1982. Figure 1: Supply Chain Metrics Are a Balancing Act. The metrics shown in Figure 1 are difficult to improve together. Most companies improve singular metrics but are not able to drive portfolio.
When source, make and deliver report to the same organization, progress is quicker. The company that plays to win does not strive to have the best manufacturing costs, or the best procurement practices; instead, the team focuses on winning together cross-functionally on a commonly held portfolio of metrics.
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