My Take: Metrics that Matter

Supply Chain Shaman

Tomorrow, I have a call with a manufacturing company to answer the question, “ What is the most important concept in the book?” While Joe is trying to balance the feedback from Filipe and Frank, he is often asked to change his metric targets by his CFO named Lou. After two years of research, I think that we throw the supply chain out of balance and limit its potential through the use of traditional and functional metrics. Achieving Balance in Metrics.

Top 10 Metrics to Track and Manage Risk in the Supply Chain – Part 1

Cerasis

Procurement teams continue to struggle with finding available suppliers and shipping capacity to enable supply chain responsiveness. The post Top 10 Metrics to Track and Manage Risk in the Supply Chain – Part 1 appeared first on Transportation Management Company | Cerasis.

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3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance

Cerasis

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. Inventory measurement is critical and it is money after all in that it took a capital expense to procure. The handful of companies in the top quartile of working capital performance had working capital expenditures as a percentage of overall revenues of between 6% and 10%. 10 Soft Metric Considerations in Measuring Supply Chain Performance. Companies struggle with counterfeit goods.

Supply Chain Dashboards – Key Metrics For Manufacturers

Silvon Software

As I mentioned in my previous post, Sales Dashboards – 16 Metrics for Manufacturers , a strategy for measuring business performance should also incorporate metrics that focus on the supply chain and other operational areas of the enterprise. Supply chain metrics and key performance indicators (KPIs) are sometimes a bit tougher to compile than sales metrics. The Perfect Order Rate metric is one we’ve seen Gartner and others talk about quite a bit.

7 Ways to Strategically Elevate Freight Procurement

Talking Logistics

In the last decade, many companies, especially those with manufacturing operations, have evolved direct materials sourcing from an administrative function to a strategic procurement process. The embodiment of this transformation is the chief procurement officer, an increasingly common title for executives that strategically source goods and services. As a strategic process, transportation procurement may still seem very tedious and challenging.

MRO Spend Metrics Procurement Needs to Focus On

ProcurePort

As such, companies that have a stronger sense of control over their cashflow have a leg up on their competitors. This includes being able to dictate funds where they’re needed most, and address the companies […].

Procurement Interview Questions & Answers

Supply Chain Game Changer

Procurement, or Purchasing, is an area of Supply Chain that involves and requires very specific skills and expertise. This is particularly apparent if you are hiring a Procurement professional, you are looking for a Procurement job, you are looking to outsource anything, or you are dealing with Procurement people in the course of conducting business. Check out this list of 25 Procurement and Purchasing questions and answers. Subscribe Here! Email Address.

Rating Sustainability Performance: An Essential Business Metric

EcoVadis

There has been very positive reaction, and we’ve even seen a couple other loans announced, both of large listed companies. The majority of the activity in sustainable finance relies on “ESG” sustainability ratings of public companies only. For more than 10 years, EcoVadis has been rating companies of all sizes (70% are SMEs) most of which are non-listed companies. Why is it advantageous for a company to seek an EcoVadis rating?

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

” Here is an excerpt from the article: “…it isn’t by becoming more efficient that the supply chains of Wal-Mart, Dell, and Amazon have given those companies an edge over their competitors. Alignment: We assess alignment by asking companies to rate each function.

10 Tips Shippers Can Use to Reduce Costs in LTL Procurement with Better Request for Pricing Bidding

Cerasis

As a third-party logistics company focused on over the road transportation management, and having an LTL rating engine and web-based TMS for nearly 20 years (web-based even before Google!), at Cerasis, we know a thing or two about the nuances of LTL procurement. LTL procurement is something we do very well. So we thought we would impart upon all the shippers out there some tips on how to reduce overall costs for effective LTL Procurement. Logistics LTL ltl procuremen

4 Reasons to Integrate Order-to-Cash & Procure-to-Pay

OneSCM

Mid-market companies can no longer afford to manage their supply chains in individual silos that often produce inaccuracies in overall performance and constrain supplier relationships. To combat inefficient operational models, mid-market companies need an end-to-end view of the supply chain by integrating revenue and expense operations. In some instances, sales can become risky; procurement staff maintain higher buffer stock levels as a safety net.

Why Agile Procurement is Essential for CPOs in 2020

Jaggaer

His insights are numerous, and can all be heard in his full podcast episode, but among them is his main focus in 2020, the opportunity presented by agile procurement. Bartolini’s view of modern procurement is one of an industry at a crossroads. While digitalization has dramatically increased procurement performance over the last decade, the function is beginning to approach a plateau. “We’re way that procurement organizations are?organizing Companies are no?longer

Which Metrics Matter? Interview with Philippe Lambotte

Supply Chain Shaman

My journey to understand supply chain Metrics That Matter started three years ago. When I sat down to write the book, Bricks Matter, I believed that companies had used supply chain technologies to reduce operating margin and improve inventory turns. What I found was erratic results with many companies going backwards. In fact, I now know that nine out of ten companies are stuck. Here I share his insights: Philippe, which supply chain metrics do you think matter?

Supply Chain Personified! The Link Between Your Company Silos!

Supply Chain Game Changer

How many parts of your company act as independent silos? How many functions in your company conduct themselves like they are islands? One of the main problems in a functionally organized company is that those functions over time can become isolated from each other.

Study Shows Two-Thirds of Companies Yet to Execute Digital Transformation in Supply Chain Planning

ToolsGroup

New survey finds that most companies are still formulating and gaining support for a digital strategy, with fear of change and data challenges as leading roadblocks. . September 26, 2019) A new study by ToolsGroup, a global leader in supply chain planning software, and Spinnaker, a supply chain services company, has found that only 7% of companies are reaping the benefits of digital transformation of supply chain planning. PRESS RELEASE.

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Achieving Best-in-Class Procurement

ivalua

In my last post , I discussed how to successfully launch a digital Procurement transformation. Why do so many Procurement organizations struggle to make progress? In this post, I’ll look at the key challenges and how to accelerate your journey to best-in-class Procurement. . A recent Forrester survey on Executing a Successful Procurement Transformation looked at the top challenges to Procurement transformation at each stage of transformation.

Companies See Strongest Working Capital Performance Since Recession

Material Handling and Logistics

The 1000 largest non-financial companies in the U.S. In 2017, companies significantly extended payments to suppliers, taking 3.4 Overall, the survey found the companies had a Cash Conversion Cycle (CCC) of 33.8 days for top quartile companies versus 47.5

How Mid-Market companies can get the most from Supply Chain BI without a hefty price tag (pt 2)

OneSCM

In part one , I provided two key steps to help mid-market companies evaluate their existing measurement tools and data sources. A BI tool can create a large amount of visibility for your company. Unfortunately, I’ve seen companies work from a wish list rather than a needs list, simply due to the dramatically expanded options and control offered by BI tools. Solution availability and pricing for mid-market companies has never been better.

3 Practical Metrics for Supplier Performance Evaluation

Logistics Bureau

Supplier Performance Metrics for Every Organisation. In this post, you’ll find some suggested metrics for supplier performance evaluation and management. You should be able to realistically track these three KPIs, whether your procurement or inbound logistics functions have access to cutting-edge analytics software or are visualising data via less advanced means. Other Supplier Performance Metrics. Returns rate metrics. Order fill rate metrics.

4 Reasons Procurement Consulting is Supercalifragilisticexpialidocious

AFFLINK

Mary Poppins might not be real, but her deliverables certainly can be – when you hire the right procurement consulting firm. Just as Mary Poppins delivered more than a traditional nanny, today’s procurement consulting firms do a lot more than improve your KPIs. Increasingly, strategic procurement is viewed as an essential part of overall company strategy, rather than as a separate unit that’s responsible only for carrying out objectives the company’s leaders come up with.

6 Trends to Make Supply Chain Managers the Heroes of Their Company!

Supply Chain Game Changer

This includes flexible solutions that allow the logistics infrastructure to meet market fluctuations, and it serves as a safeguard for established companies looking for a way to stay competitive as more startups increase. Subscribe Here! Email Address.

6 Trends to Make Supply Chain Managers the Heroes of Their Company!

Supply Chain Game Changer

This includes flexible solutions that allow the logistics infrastructure to meet market fluctuations, and it serves as a safeguard for established companies looking for a way to stay competitive as more startups increase. Subscribe Here! Email Address. Subscribe to Supply Chain Game Changer.

The Future of Procurement Is Upon Us. Are You Ready?

ivalua

Niul Burton wrote a great article in Industry Week titled “Procurement 2025: 10 Challenges that Will Transform Global Sourcing”. For those of you who are executives in Supply Chain, Procurement or New Product Introduction/Development, this is a must read. If you or your company have not put this initiative on your business process roadmap yet, it is critical you do so in 2017. Most companies we see today have their finance departments bogged down with spreadsheets.

Top 8 software every FMCG company should invest in

Abivin

Here are the top 10 softwares other than ERP that every FMCG company should invest in to improve their quality and quantity of products and services. Choosing a suitable software for your FMCG firm is necessary as it must be tailored for complicated and multi-tier distribution systems involving numerous distributors, retailers, the company and its end users. It takes FMCG companies so much time and costs planning route in the conventional way.

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics. Ironically, most companies are very entrapped in measuring and rewarding functional metrics which degrades overall improvement.

Where Will Companies Find Their Future I.T. Expertise?

Supply Chain Brain

Companies need to start thinking about I.T. It’s the model under which companies draw on talent from multiple sources, including in-house staff, outsourced services providers, and freelancers. In the past, many companies chose to employ I.T. Now, with so many companies treading the same path, that’s no longer a market differentiator. Talent today comes from the source that meets a company’s needs of the moment.

5 Procurement Strategies For Small Medium Enterprises

CormSquare

Subsequently, procurement tends to be an afterthought, when it should be approached strategically! Small businesses spend between 40% – 65% of sales revenue on procurement of inputs. Improved Internal Procurement Processes. Outsource Procurement Needs.

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

Supply Chain View from the Field

Companies need to develop a culture of buy in and support of the Supplier Diversity program goals that reaches from top management all the way through the supply chain. An example of a metric captured in the form several key measures of commitment towards supplier diversity. First, a Community metric identifies the percent of spend that goes to diverse suppliers, while the Financial metric assesses the volume of spend (in absolute dollars) diverse supplier contracts.

Understanding Supply Chain Management

SupplyPike

Supply Chain Management (SCM) is a systematic and controlled procurement operation. Procurement usually comprises a diverse range of suppliers chosen according to a conceived ability to supply merchandise at the right price. Essentially, supply chain management is the administration and control of the movement of goods between companies and end customers. . Five Key Metrics for Monitoring the Impact of Panic Buying on your Supply Chain. Learn about.

SCM 48

Writing: Working on My Book

Supply Chain Shaman

Interview for Metrics That Matter. My kitchen table is piled high with interviews for the upcoming book, Metrics That Matter. He is responsible for manufacturing, procurement, supply chain planning, logistics, quality, social responsibility and final product engineering. Prior to joining Starbucks, he worked at the executive leadership level in Europe, Latin America and North America at ICI, a global chemical company. How do you define the metrics that matter?

Managing Logistics for The World’s Largest Company with Gary Sostack

The Logistics of Logistics

[00:38] Please introduce yourself and your company. Right out of college, I worked at a logistics company in Atlanta. 04:37] Tell us about the world’s largest company. The company searched for smart people who understand what the next new technology will be. I was involved with the procurement of equipment and materials. 13:34] You had to choose a 3PL for the world’s largest company. We wanted to find a company that could go global if needed.

What Gets Measured Is What Gets Done!

Supply Chain Game Changer

As with many aspects of your business there can literally be dozens and dozens of different metrics. So if you are trying to drive breakthrough results in your company or win on the field how do you determine what is important to measure? Results Metrics and Contributing Factor Metrics.

Assessing the True Return of Procurement Transformation on Total Shareholder Return: A Tough Proposition

NC State SCRC

In my earlier book with Gerard Chick on “ The Procurement Value Proposition “, we advance the notion that buildoing a business case for investing in people, process, and technology improvement in procurement is key. Many procurement assessments developed by consultants seek to provide an answer to the question “how far along are you relative to your peers in your procurement transformation journey”, and “which processes are lagging compared to your peers?”

KPI 40

Procurement Fact File

Claritum

Claritum Article - Procurement Blog. We’ve read through some of the best analyst reports and surveys to bring you this procurement fact file containing some of the most interesting findings, statistics and quotes. Click here to download a printable pdf version of the procurement fact file. Procurement. Indirect Spend represents 20-40% of a company’s revenues. source: (1 page infographic) AccentureOperations , High Performance Procurement (2015).

Five Predictions (About Prediction) that Every Procurement Professional Should Consider

Supply Chain View from the Field

As part of the conference, I’m delivering a talk on five predictions that every procurement professional should consider. These aren’t so much “predictions”, as opportunities that procurement professionals should become aware of, and educate themselves on. In one company, the analytical team explored the relationship between economic activity, consumer demand, and demand for their products.