Supply Chain Shaman

MAY 29, 2014

Meaningless Comparison. I just don’t think the comparison of very different industries in a spreadsheet based on growth, inventory values, and Return on Assets (ROA) is meaningful. As a result, the metrics have to be viewed together as a pattern over time. I find value in looking at these metrics together.

Gartner 366

Gartner Inventory Reduction Supply Chain Planning Software Pharmaceutical 366

Freight Waves

JUNE 3, 2025

Transportation metrics saw little change in May as capacity, utilization and pricing remained in expansion territory, according to a monthly survey of supply chain professionals. Spot rates remain slightly higher on a y/y comparison. Inventory costs (78.4) percentage points even as growth in inventory levels (51.5)

Capacity 98

Capacity Transportation Nevada Colorado 98

Kinaxis

JUNE 22, 2015

by Andrew Dunbar Over the last several weeks, this blog series on Inventory Management has explored the objectives and roles of inventory managers and outlined several of the improvement levers available to them. The metrics you choose should answer the questions your organization is asking, without requiring additional analysis.

Metrics 100

Metrics Inventory Reduction Inventory Inventory Management Software 100

Supply Chain Shaman

JUNE 24, 2022

The future inventory fire sale. One of my stark realizations this year is that smaller companies are beating larger and often more established companies on growth metrics, inventory turns, operating margin, and Return on Invested Capital (ROIC). (In The metrics selection resulted from work with Arizona State University in 2013.)

Supply Chain Planning Software 397

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Software 397

Supply Chain Shaman

FEBRUARY 26, 2024

Based on the work with Georgia Tech, we are getting clear on which metrics matter by industry. As companies adopt a balanced scorecard, the functional metrics shift to a focus on reliability. The implementation of NoSQL for inventory management gives them an inventory signal with little to no process latency.

Modeling 273

Modeling Supply and Demand Optimal Sourcing Supply Chain Planning Software 273

Supply Chain Shaman

SEPTEMBER 17, 2014

While the performance rankings were based on comparisons of inventory turns, operating margin and Return on Invested Capital (ROIC) for the periods of 2006-2013 and 2009-2013, the concept is that to be a supply chain leader you must outperform and drive improvement. Aligned Metrics. Supply Chain Design.

Optimal Sourcing 365

Optimal Sourcing Supply Chain Design Software Supply Chain Planning Software Manufacturing Procurement 365

Supply Chain Shaman

JULY 22, 2019

It is not as simple as trading-off inventory, cost, and customer service. In the Supply Chains to Admire analysis, the focus is to understand the relative performance of a company within a peer group of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). Comparison To The Gartner Top 25.

Supply Chain Design Software 304

Supply Chain Design Software Supply Chain Planning Software Gartner Supply Chain Software 304

Supply Chain Shaman

OCTOBER 5, 2018

The award, based on beating the industry peer group on rate of improvement on the key metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) while outperforming their peer group, is tough to achieve. The orbit chart below illustrates L’Oréal’s performance at the intersection of two metrics.

Case Study 329

Case Study Inventory Reduction Study Agile and Lean Supply Chain 329

Logistics Viewpoints

DECEMBER 15, 2022

ABC Analysis for Inventory Planning : Clustering products that behave similarly highlights issues, challenges, and opportunities for serving customers better. Price index and price elasticity are useful metrics on their own, and a combination of these can help determine the right price point to maximize revenue and profit.

Optimal Sourcing 260

Optimal Sourcing Analysis Procurement Analytics Purchasing Skills 260

GlobalTranz

APRIL 25, 2016

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. Inventory measurement is critical and it is money after all in that it took a capital expense to procure. Isn’t time important? Read more. .

Procurement Analytics 120

Procurement Analytics Supply Chain Performance Metrics Supply Chain Software 120

Logistics Viewpoints

FEBRUARY 15, 2023

We approached the topic from the perspective of importance in comparison to other objectives and change in importance over time. Inventory shortages/stock-outs was the factor with the second highest negative impact potential for 2023 in our preliminary survey results.

Supply Chain Planning 289

Supply Chain Planning Supply Chain Optimization Optimal Sourcing Supply Chain 289

Supply Chain Shaman

OCTOBER 29, 2014

Here are the three questions that I would like people to ask: Table 1: Comparison of Results for Best of Breed Solution Providers to ERP Expansionists in Supply Chain Planning. In addition, I am now done with the page proofs for my new book, Metrics that Matter. The board has not set-up the team for success. The book is a story.

Supply Chain Planning Software 379

Supply Chain Planning Software Modeling Demand Planning Software Optimization Software 379

Silvon Software

JUNE 23, 2020

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. Inventory Turns and Sales-to-Inventory Ratio. DSO – Days Sales Outstanding.

Manufacturing Procurement 111

Manufacturing Procurement Metrics Gartner Supply Chain Planning Software 111

Unleashed

DECEMBER 15, 2021

Days Sales of Inventory (DSI) is a key measure to help you understand how efficient your inventory management is. Here explain what DSI is, how to use it, and why it’s crucial to track this metric in your business – whether you’re a retailer, manufacturer, wholesaler or distributor. How do you calculate Average Inventory?

Procurement Analytics 98

Procurement Analytics Inventory Reduction Metrics Inventory 98

Supply Chain Shaman

OCTOBER 22, 2015

The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study. Inventory management is a hot issue. Companies invest in project after project, yet inventory levels remain the same. The Business Problem. The analogy is weight loss.

Inventory Reduction 150

Inventory Reduction Supply Chain Design Software Inventory Supply Chain Planning Software 150

Supply Chain Shaman

MARCH 27, 2023

Definitions: Oxymoron: The combination of contradictory or incongruous words (such as cruel kindness) Juxtaposition: The act of placing words or concepts close together or side by side, for comparison or contrast. What is the role of inventory? Integrating data does not align an organization motivated by functional metrics.

Supply Chain Planning Software 365

Supply Chain Planning Software Supply Chain Planning Scenario Planning Supply Chain Design Software 365

Supply Chain Shaman

JUNE 7, 2021

Companies entered the pandemic with twenty more days of inventory than at the beginning of the great recession. A balance sheet analysis shows that 95% of publicly traded manufacturers are stuck (when compared to peer group) at the intersection of growth and margin, margin and inventory turns, and Return on Invested Capital (ROIC) and growth.

Gartner 221

Gartner Supply Chain Design Software Supply Chain Planning Software Eliminating Excel in Purchasing 221

Supply Chain Shaman

MAY 1, 2014

As hospitals adopted consignment planning programs, inventory progress slowed. The turns are the lowest of any industry, and despite investments in technologies and processes, inventory turns have only improved 3%, and Cash-T0-Cash (C2C) cycles have declined 4%. The shift of inventory without the sharing of data is a mistake.

Supply Chain Planning Software 333

Supply Chain Planning Software San Diego Supply and Demand Supply Chain Software 333

Supply Chain Shaman

MARCH 18, 2018

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.

Optimal Sourcing 191

Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software Supply Chain Optimization 191

Supply Chain Shaman

JULY 29, 2013

We have been taught, as supply chain leaders, that over the last decade supply chain processes have improved costs, shortened cycle times, improved customer service and decreased inventory. Based on our recent research, we find that only 1% of process-based companies are making progress on both operating margins and inventory.

Supply Chain Planning Software 350

Supply Chain Planning Software Supply Chain Design Software Modeling Analytics Software 350

Supply Chain Shaman

JUNE 13, 2017

The first number in a cell represents the average value for a specific industry for 2010-2016, and the percentage on the second line is a comparison of the average for 2010 when compared to 2016. If the arrow is red, the industry is moving backwards on a metric. Companies, based on culture, tend to focus on singular metrics.

Supply Chain Planning Software 0

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Supply Chain 0

ToolsGroup

AUGUST 20, 2019

Gartner says that the most common outsourced SCP processes are inventory management, statistical forecasting and service parts planning. Companies moving to BPO in these practice areas are experiencing supply chain improvements in metrics such as inventory turnover and customer service. versus $4.84 per $1000 of revenue).

Supply Chain Planning Software 214

Supply Chain Planning Software Supply Chain Planning Gartner Supply Chain Software 214

Supply Chain Shaman

MAY 3, 2015

When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” Inventory is the culmination of many business decisions. Tracking Progress.

Inventory Reduction 150

Inventory Reduction Supply Chain Design Software Supply Chain Planning Software Inventory Management Software 150

Supply Chain Shaman

JANUARY 14, 2013

Year after year, well intentioned people toiled against improving metrics that reduced, not improved, the effectiveness of the supply chain. ERP is valuable to improve transactional accuracy, but I can find no evidence that investments in ERP have reduced inventory or improved cash-to-cash cycles. Metrics comparison of Kellogg Co.

Supply Chain Planning Software 260

Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing Modeling 260

Supply Chain Shaman

AUGUST 7, 2019

In Figure 1, we show the aggregate trend of the chemical industry in an orbit chart format showing year-over-year results at the intersection of two metrics operating margin and inventory turns. inventory turns. for inventory turns define best-in-class performance? for inventory turns define best-in-class performance?

Supply Chain Design Software 271

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Supply Chain Design 271

Supply Chain Shaman

JULY 8, 2013

In the Supply Chain Metrics that Matter table, we can clearly see that “operating margin” and “inventory turns” matter to public financial performance. Note the trends in operating margins and inventory turns. Each faces four years of deterioration on this important supply chain metric.

Supply and Demand 259

Supply and Demand Demand Planning Software Modeling Supply Chain Planning Software 259

Supply Chain Shaman

JUNE 26, 2017

As a result, tor most companies, the goals are unclear and the financial metrics are not well-understood. They do not have a peer group for comparison. We do not include them in the analysis because there is no peer group comparison. This year-over-year comparison, enables visualization of performance on two metrics.

Sourcing Strategies 170

Sourcing Strategies Agile and Lean Supply Chain Inventory Reduction Supply Chain Strategy 170

Supply Chain Insights

SEPTEMBER 9, 2014

They had to be publicly traded, we had to have a nearly complete data set for the years studied, and they had to have a peer group of at least six companies to be able to draw the comparisons. However, due to a variety of factors, companies are losing ground on driving progress on both inventory turns and operating margin.

Pharmaceutical 179

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 179

The Logistics & Supply Chain Management Society

NOVEMBER 22, 2022

Sales, Inventory, Operations Plan (SIOP) is a process within many successful supply chain organizations that recognizes the integral relationship between all departments in the company, but how do you piece together an SIOP process? SIOP stands for “Sales, Inventory, Operations Plan”, not to be confused with “S&OP”.

Supply and Demand 246

Supply and Demand Inventory Reduction Supply Chain Planning Software Supply Chain Planning 246

ToolsGroup

APRIL 25, 2019

Without baseline metrics on what you want to improve on and why, how can you be confident your strategy is working? Gathering the necessary data to formulate an accurate comparison between previous results and those provided by machine learning is an excellent way to establish confidence in your results.

Supply and Demand 227

Supply and Demand Demand Planning Modeling Supply Chain Planning Software 227

GlobalTranz

MAY 20, 2015

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 ). The definition of this metric is similar to the way it sounds. Cost of quality.

Procurement Analytics 120

Procurement Analytics Metrics Quality Supply Chain Planning Software 120

Supply Chain Shaman

JULY 3, 2015

Inventory Turns (15%) (based on 2014 results). Growth 10% (Year-over-Year comparison of 2013 versus 2014). Opinion makes up 50% of the rating; and in the ranking system, company comparisons are against each other with little consideration of industry drivers. Leaders need to balance a portfolio of metrics. It is a HOAX.

Gartner 150

Gartner Supply Chain Software Demand Planning Software Modeling Software 150

Supply Chain Shaman

APRIL 26, 2013

As a follow-up to this article, I wanted to talk one-on-one with the leadership teams of the two companies and get their insights on the ten-year comparison. We manage supply chain metrics. We have significant opportunity to strengthen inventory management. Recently, I wrote a blog post that contrasted Colgate and Unilever.

Supply Chain Planning Software 303

Supply Chain Planning Software Supply Chain Planning Supply Chain Scenario Planning 303

Supply Chain Shaman

OCTOBER 8, 2019

Granular data by volume is a must to be able to manage replenishment, network design, and inventory targets. A simplistic view is that supply chain excellence is the trade-off of cost, inventory and customer service. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability.

Supply Chain Design Software 207

Supply Chain Design Software Inventory Reduction Supply Chain Planning Software Forecasting 207

Supply Chain Shaman

JULY 12, 2022

Growth agendas with the spiraling demand require cash, supplier shortages necessitate the shortening of payables, and the longer/more variable transport lead times decrease inventory turns increasing the need for cash. Comparison of Industry Players Within Consumer Goods for the Period of 2012-2021. The answer? The how is tricky.

Supply and Demand 221

Supply and Demand Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing 221

Supply Chain Shaman

JULY 19, 2015

However, for elements like forecast error, customer service and slow-moving inventory self-reported data is not sufficient. While every company will agree that this data is VERY important, the lack of standard definition precludes comparison. A lag is the comparison against points in time. We then worked on the analysis.

Supply Chain Planning Software 150

Supply Chain Planning Software Benchmarking Supply Chain Planning Scenario Planning 150

Supply Chain Shaman

FEBRUARY 23, 2017

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. Inventory Turns. We eliminate the lower 1/3 of companies for the period from consideration.

Agile and Lean Supply Chain 186

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Design Supply Chain Planning Software 186