Metrics that Matter: Inventory Effectiveness

QAD

The effective use of a manufacturer’s inventory investment is an important determinant of the company’s success. It is critical to monitor inventory effectiveness using five key metrics: Expedited orders, inventory turns, obsolete inventory, safety stock and stockouts. Inventory Turns: This represents the number of times a company sells and replaces its stock of goods during a given period. Many companies just estimate safety stock levels, which may or may not be effective.

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

Cerasis

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 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%. In comparison, the poorest-performing companies in the lowest quartile had a range of working capital between 23% and 39% as a percentage of revenues. 10 Soft Metric Considerations in Measuring Supply Chain Performance.

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Transportation Sourcing in an Omni-channel World

Talking Logistics

Unfortunately, many retailers are jumping in without a plan — that is, they are taking a short-term, silo’ed approach to transportation sourcing and execution, and as a result, are failing to meet their desired outcomes. Also, is multi-functional engagement important and, how does omni-channel impact transportation sourcing? According to Joe, enVista’s Director of Transportation, “The key to omni-channel sourcing is that it requires you to understand your goals and objectives.

Metrics that Matter: Customer Service

QAD

Very little has more impact on a company’s success than customer satisfaction. Most people realize that on-time delivery plays a key role in how business’ satisfy customer needs, but customer satisfaction can be an expensive undertaking if the company doesn’t manage all aspects of customer service and the business processes that affect them. Companies often absorb the cost of expedited shipments when the delays are attributable to internal factors. Choosing Metrics.

Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process

Cerasis

When you choose a company to transport your freight or to supply you with the materials you need to manufacture a product, you are putting your hard work and reputation in their hands. The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ).

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?

Why Large Companies Increasingly Opt for 4PL Services

Logistics Bureau

SUMMARY: Because 4PL providers handle a company’s entire chain, including challenges that are thrown up by advances in technology, they are increasingly being favoured over third-party logistics (3PL) providers, especially by big companies with complex supply chains.

Elephant in the Room: Thoughts on Metrics That Matter in Semiconductor and Hard Disk Drives

Kinaxis

Supply Chain Insights recently published a Metrics That Matter report covering both the Semiconductor and Hard Disk Drive (HDD) industries. Notice in the Supply Chain Insights report, there are only two HDD companies. Semiconductor is poised to consolidate, which will have huge impact on the metrics. With the OEM’s driving down the price, the semiconductor/HDD companies will have to follow (or innovate new products). by CJ Wehlage.

The SCRC’s Contribution to the WSJ’s Best Managed Companies

NC State SCRC

Once again, the Drucker Institute has put together a list of the “Top 250 Best Managed Companies” , which was highlighted in the Wall Street Journal. And like last year, the ratings put forth by the Supply Chain Resource Cooperative remain an instrumental component of the ratings, and are the only two major indicators used in the rankings for assessing the strength and maturity of the company ratings as it relates to its supply chain performance.

Last Mile Metrics: 11 Metrics to Measure in Last Mile Logistics

Cerasis

Using technology to improve last mile metrics is essential to driving last mile costs down, but how do shippers know if the technology is helping or hurting? The answer to this question lies in using last mile metrics to track key performance indicators and target levels of service to ensure accountability, visibility and continued reduction of costs in last mile delivery. Essentially, shippers need to track these 11 metrics. On-Time Deliveries Are King of Last Mile Metrics.

Top 25 3PL warehousing companies in 2020 (by revenue)

6 River Systems

Third-party logistics companies ( 3PLs ) specialize in distribution, warehousing and fulfillment services. The core competency of these companies is logistics , and they do it well. Revenue data is sourced from the companies’ websites and market research platforms such as Macrotrends.

Supply Chain Metrics: Make Sure They Are Aligned with Your Strategy!

Supply Chain View from the Field

Many people are talking about Key Performance Indicators, Metrics, Analytics, and other indicators of performance. The importance of selecting the right metrics or “measures” as I prefer to call them, is critical as we all know that metrics drive behaviors. Rather then selecting a plethora of meaningless metrics, it is always better to focus on a critical few, and select them wisely. Step 2 – Develop Metrics and Data Sources.

Podcast: Rob O’Byrne on Digital Transformation, Sustainability, and Diversification in Sourcing

Requis

He has been helping companies design more profitable supply chains for over 25 years, most of them as founder and CEO of Logistics Bureau. A lot of companies now will have regional hubs with just smaller satellite warehouses in each country. Will people change their sourcing strategies?

Guest Post: Ignoring this Performance Metric is Risky

TMC

By that I mean the time measured from the instant a company realizes it will be hit by a supply chain disruption to the time the incident actually takes place. In other words, the amount of warning time during which the company can prepare for and mitigate the disruption. Examples of the latter include a latent product defect that wreaks reputational damage, or a cyber bug that steals company secrets.

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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Data Analytics for Your CPG Company

SupplyPike

CEOs of successful consumer packaged goods (CPG) companies know they need to make clear-cut decisions in order to be true business leaders. By merging actionable insights and identifying the best analytic solution for their CPG company, retail and CPG brands can analyze and capitalize on the data when the time is just perfect. In CPG data analytics, brands must essentially focus on three key sources of data: observational data, activity data, and sales data.

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. Third, they align the interests of all the firms in the supply network so that companies optimize the chain’s performance when they maximize their interests. Only supply chains that are agile, adaptable, and aligned provide companies with sustainable competitive advantage.”

21 Vendor Metrics Your Supplier Scorecard Might be Missing

Supply Chain Cowboy

But is your scorecard missing key metrics? It includes a free Excel template that you can modify to match exactly what metrics you want to measure. While some of these metrics might not apply to your business model, there’s definitely a few to add if they measure something important to you and your customers. Of course, you’ll want to be courteous and professional with your feedback, but being open and honest with this metric can go a long way to solving problems between you.

8 Things Companies Get Wrong in Supply Chain Management

Logistics Bureau

Even the biggest companies make supply chain management mistakes, and they typically have dedicated management hierarchies focused solely on balancing supply and demand. Does your company have true supply chain visibility? Confusing Strategic with Single (Sourcing).

Announcing the Supply Chains to Admire for 2019

Supply Chain Shaman

No company in the past decade achieved the promised economy of scale. Companies performing the best have three characteristics: Business Model Innovation. Smaller, more agile companies outperform the larger and well-known brands in the retail, beverages, food, and pharmaceutical industry sectors. Companies with traditional definitions of marketing and sales struggle to beat the competition. The source data for the analysis comes from Ycharts.).

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.

Measuring Up?

Supply Chain Shaman

The average manufacturing company’s supply chain organization is 15 years old. While companies want to improve supply chain performance and drive value, it is easier said than done. The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. For many companies, improving results is elusive. We find that companies can improve one, but not two of the metrics.

Supply Chain’s New World Order: How Companies can go from From Good To Great

The Network Effect

Key elements that must be brought together as part of this holistic approach are overall network assets, demand and supply information, market demographics, financial data, trading contracts, material sourcing, commodity pricing, and any relevant standards bodies, statutory, or regulatory requirements. As today’s practitioners know, supply networks appear to be straightforward on the surface, using normalizations such as SCOR’s Plan, Source, Make, Deliver and Return.

8 Things Companies Common Mistakes in Supply Chain Management

Logistics Bureau

Even the biggest companies make supply chain management mistakes, and they typically have dedicated management hierarchies focused solely on balancing supply and demand. Does your company have true supply chain visibility? With so many analytics applications available and all the hype about big data, a lot of companies are drowning themselves in supply chain data to the point where it’s hard to see the wood for the trees. Confusing Strategic with Single (Sourcing).

5 Crucial Software Every 3PL Company Needs To Have

Abivin

Introduction Third-party logistics provider (3PL) is a company that provides outsourced logistics services to other organizations. This article will present five software that every transporter and 3PL company should employ to stay competitive, cost-effective and ensure on-time delivery. TMS provides 3PL companies with the opportunity to look back and analyze past decisions through data storage capabilities. Finding a suitable WMS for 3PL companies is no easy task.

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Customer Experience Driving Innovation for High-Performing Companies

Talking Logistics

The research, produced by Adelante SCM and presented by BluJay Solutions (a Talking Logistics sponsor), was conducted to explore the links between supply chain management innovation, customer experience, technology adoption, and company performance. A total of 137 respondents completed the survey from Manufacturing, Retail, Logistics Service Provider, and other companies in the Americas, EMEA, and APAC. Customer Experience: A Bigger Focus for High-Performing and Innovator Companies.

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.

What Supply Chain Risks are Threatening Your Company?

Enterra Insights

”[1] The report focused on four key metrics: supplier criticality, supplier financial risk, global sourcing risk, and foreign exchange risk. If you are an upstream supplier or a downstream retailer, different metrics must also be considered. Yet, Bain & Company partners, Peter Hanbury and David Schannon, write, “Supply chains are suddenly under threat.”[2] If you don’t think your company faces serious risks, you’re wrong.

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. We found equipment and materials that can’t be sourced locally. The company searched for smart people who understand what the next new technology will be. As globalization has taken place, more things can be sourced locally. 13:34] You had to choose a 3PL for the world’s largest company.

Understanding Supply Chain Management

SupplyPike

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. Supply Plan: The Supply Plan metric provides Walmart’s best guess on how many units it expects to order from a supplier. The supply chain at Walmart offers three examples of advanced technologies implemented by the company to address certain issues.

SCM 48

A Tale of Two Companies: Different Quality Management Starting Points!

Supply Chain Game Changer

Company 1. But there was absolutely no Quality management process in the company. Company 2. I toured all of the company’s facilities around the globe. Both of these companies knew of the word “Quality” But their views of what it meant were diametrically opposed. In Company 1 if you asked anyone what quality was they would describe the aesthetic characteristics of an item. In Company 1 my focus began with education.

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

Financial reengineering focuses on the optimization of short-term results that are usually based on a functional analysis of source, make, or deliver. Few consultants understand the interrelationships between source, make and deliver. Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. Ironically, most companies are very entrapped in measuring and rewarding functional metrics which degrades overall improvement.

Wanted: Supply Chain Architects!

Supply Chain Shaman

Much to my chagrin, when I entered into the world of supply chain, the processes of source, make and deliver were usually not designed. Over time, companies acquired assets. Instead, I think that it needs to be holistic to balance the trade-offs of source, make and deliver together. This is difficult for the average company since only one in two supply chains have source, make and deliver reporting through the same organization (reference Figure 1).

Public Markets Reward Supply Chain Alignment

Supply Chain Shaman

The relationship between corporate financial performance and supply chain metrics was complex; and in my first attempts, I was unable to derive a correlation. The year 2012 marked the 30th anniversary of the use of supply chain management as a cross-functional process for source, make and deliver in the commercial sector. I wanted to build a useful tool that could help companies irrespective of size or geographic location. Today, I am proud to launch the Supply Chain Index.

The Reorder Point Formula: Everything You Need to Know

Unleashed

A carefully calculated reorder point is therefore critical to good stock control, and keeps your key metrics looking healthy for your next inventory report. This creates one source of truth for data and enables effortless data analysis and collaboration. Source from local suppliers.