Inventory Metrics: From Insight to Action

Kinaxis

This post will discuss some of the metrics and analysis tools that an inventory manager needs to identify risk and opportunities and to make intelligent decisions to optimize the performance of their inventory. When determining the metrics required for any business process, the first question you need to ask yourself is, “What are the business goals of the process?” The metrics you choose should answer the questions your organization is asking, without requiring additional analysis.

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

GlobalTranz

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 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. Twitter Google+ LinkedIn The post 3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance appeared first on Transportation Management Company | Cerasis.

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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.

[e-Book] The Ultimate Guide to Manufacturing, Supply Chain, Logistics, Transportation, & Freight Metrics & KPIs

GlobalTranz

Furthermore, some data may be of minimal use without comparison to and identification of trends and collaborations between data from other transactions within a given warehouse or transportation system. Take a look at how a business can use technology, metrics, and services to improve transportation processes, which range from supplier shipping to route optimization. Business practices have become synonymous with the application and collection of data for continuous improvement.

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

GlobalTranz

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. Quality affects many different parts of the business, so it is critical to establish a comprehensive metric that provides visibility into the most important areas of operations.

Metrics that Matter: Manufacturing Performance Benchmarking

QAD

As long as clear goals are set, and with the proper infrastructure, this results comparison can help a company move in the right direction and even help to mitigate risk. Establish baselines on internal performance (or metrics) and gather your actual results.

A New Decade: Give Science A Chance

Supply Chain Shaman

Days of Inventory Comparison. It is my hope that we can side-step political discussions demonstrated in my stories and ground the problem solving in scientific methods to understand the properties of data, the potential of supply chains through modeling, and the alignment of metrics.

Common Sense Warehouse Performance Metrics for Supply Chain Benchmarking

Logistics Bureau

Some Common-sense Warehouse Benchmarking Metrics. In this post, you can discover some common-sense warehouse metrics that should probably be included in your project, regardless of whether you are benchmarking internally or externally. These KPIs will help you evaluate performance , choose an appropriate benchmarking comparison group, set targets, and stay on course to attain them. Other Warehouse Performance Benchmarking Metrics.

Announcing the Supply Chains to Admire for 2019

Supply Chain Shaman

We selected these metrics based on correlation work with Arizona State University in 2012. The winners drove long-term value (measured by market capitalization) while outperforming on the portfolio of metrics shown in Figure 1 and driving improvement faster than their peer groups. Comparison To The Gartner Top 25. Shown in Figure 3 is the comparison of the two approaches. Comparison of the Supply Chains to Admire and the Gartner Top 25 Methodologies. .

Don’t Perpetuate the Hoax of the Gartner Top 25

Supply Chain Shaman

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. Supply chain leaders manage a complex system of non-linear, but very inter-connected metrics. Leaders need to balance a portfolio of metrics. A year-over-year comparison is not sufficient. Year-over-year Improvement at the Intersections of the Metrics.

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. Cash-to-cash is a compound metric.

Separating Your Metrics and KPIs: What They Are and How They Differ?

Unleashed

When discussing analytics, the terms metrics and KPIs (Key Performance Indicators) are often treated interchangeably, however, they should both be approached differently because both can have a huge impact on how your business strategy is designed and implemented, as well as impact your inventory reporting. Metrics are a quantifiable measure of tactical activity while KPIs are a quantifiable strategic measure. Comparing metrics and KPIs. Metrics and KPIs working together.

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Value Chain Planning and Decision Making in Times of Disruption (Part 2)

DELMIA Quintiq

Ultimately, what KPIs, as metrics and indicators derived from the set of plans are taken into account and prepared for each scenario. Dashboard with scenario comparison and KPIs for decision making in S&OP.

Supply Chain Leaders Rearranging Deck Chairs? Yes, I Think So.

Supply Chain Shaman

The supply chain is complex non-linear system that is easily thrown out of balance through a focus on functional metrics. They rock back and forth in improving singular metrics but struggle to improve a portfolio of growth, margin, inventory performance, and asset utilization.

The Coffee Pot Conversation That Will Not Happen

Supply Chain Shaman

I began analyzing correlations of groups of metrics to market capitalization and found that the most significant correlation was between market capitalization and growth. When companies were growing, I also discovered that the cost and inventory metrics better aligned with peers.

Who Should Be In The Winner’s Circle?

Supply Chain Shaman

The first step was to charter a research project with the Arizona State University statistics department to analyze which combination of metrics drives the highest market capitalization. From interviews, I believe that it was a combination of leadership and metrics alignment.

Congratulating the Supply Chains to Admire Winners

Supply Chain Shaman

It is now our fifth year of analyzing balance sheets to understand which companies are outperforming their peer groups on the metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC) while driving improvement. In Table 3, I share a comparison of the two methodologies. Comparison of the Gartner Top 25 and the Supply Chains to Admire Methodology.

Digital Transformation of the Supply Chain

Logility

Start with documenting the “As-Is” process capabilities and corresponding key performance metrics. This will lay the foundation for any future performance comparison and provide the starting point to develop benefits for transformation.

Supply Chain Planning BPO: What’s Driving It and Should You Get On Board?

ToolsGroup

Companies moving to BPO in these practice areas are experiencing supply chain improvements in metrics such as inventory turnover and customer service. By comparison, vendors have been investing in advanced technologies such as artificial intelligence (AI) and advanced analytics to enhance their offerings. Metrics – BPO vendors can also help firms utilize performance metrics and KPIs to help monitor performance and help to identify ways to improve it.

May retail sales supportive of freight flows

The Supply Chain Journal

The data showed that on a year-over-year comparison, May sales were 28.1% The comparison to the year-ago number reflects demand weakness at retail stores (notably apparel), many of which were closed due to COVID protocols in 2020. The metric is up 22.3%

Actionable Insights: Purchasing Commitments and Spending

QAD

QAD Action Centers provide analytics to help both managers and users monitor metrics and KPIs. This helps enable budgeting by site and comparisons of spend and commitment policies by site. Which KPIs and metrics are most important to your organization?

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Five Steps to Launch a Supplier Scorecard

Logility

3 Get the metrics right. However, if lead times tend to be very short for some suppliers and longer for others, an average will generate an irrelevant basis of comparison. Supplier metrics should be captured about monthly.

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Five Reflections From Supply Chain Planning Benchmarking

Supply Chain Shaman

While every company will agree that this data is VERY important, the lack of standard definition precludes comparison. We then augmented the data to understand planner productivity, complexity, and organizational views of planning excellence (comparison of the views of supply chain planners and supply chain leaders). For me, this was disappointing to see.This comparison is a good way to measure the effectiveness of forecasting processes.

Supply Chain Planning BPO: What’s Driving It and Should You Get On Board?

ToolsGroup

Companies moving to BPO in these practice areas are experiencing supply chain improvements in metrics such as inventory turnover and customer service. By comparison, vendors have been investing in advanced technologies such as artificial intelligence (AI) and advanced analytics to enhance their offerings. Metrics – BPO vendors can also help firms utilize performance metrics and KPIs to help monitor performance and help to identify ways to improve it.

What’s Your Forecast Accuracy Target for 2017?

ToolsGroup

According to Ben, who oversees Chainalytics’ Demand Planning Intelligence Consortium , many companies take last year's forecast accuracy metric and simply add a few percentage points to establish the coming year’s goals. Defining “good” requires (1) a basis of comparison, and (2) controlling for key differences between data points. Editor's Note: Due to the Thanksgiving holiday, there will be no blog post next week.

Tell Me Why

Supply Chain Shaman

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. In addition, they rank last in their ability to drive metrics improvement. Metric balance is difficult for supply chain teams.

Walmart Sales Analytics – Inside the Insights

SupplyPike

Therefore, each retailer tends to use similar sales metrics with a few exceptions. Those new to retail metrics may not know what critical sales or metrics are or why they are so critical for Walmart sales analytics. These metrics represent the sum of dollars sold at the register and the sum of units sold at the register, respectively. Necessarily, these metrics inform every part of Walmart sales analytics- from the simple to the advanced.

9 Throughput Supply Chain KPIs to Measure for Shippers

Intelligent Audit

The so-called perfect order metric is the ideal supply chain KPI. But the metric shows how well a warehouse operates. That’s why it’s crucial to track the comparison between the two. On-time pickup and delivery are like the delivery on-time-in-full metric.

4 Ways to Optimize Your Transportation Network Strategy

Intelligent Audit

Track the Right Performance Metrics. The next key to transportation network optimization rests with performance metrics. Further, data normalization has the ability to cut down on all the noise to uncover a true comparison between carriers, services lanes, and related fees.

What’s Your Forecast Accuracy Target for 2019?

ToolsGroup

According to Ben, who oversees Chainalytics’s Integrated Demand and Supply Planning practice (which includes their Demand Planning Intelligence Consortium), many companies take last year's forecast accuracy metric and simply add a few percentage points to establish the coming year’s goals. Defining “good” requires (1) a basis of comparison, and (2) controlling for key differences between data points.

L’Oréal: A Case Study in Supply Chain Excellence

Supply Chain Shaman

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. Orbit Chart Comparison of L’Oreal and Estee Lauder.

Quick Start Guide to Using Machine Learning for Demand Planning

ToolsGroup

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.

3 Ways to Benchmark to Boost Supply Chain Performance

Logistics Bureau

What would be the key number, or metric that you would need to know? You might start to measure the same metrics and see which one is performing better. It’s very important in benchmarking to have a standard way of applying the metric.

Q&A on the Supply Chains to Admire

Supply Chain Shaman

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. We know that this is not perfect; but it is the best that we could do, and we think that it is a fairer comparison than putting all companies in a spreadsheet and shaking them up without any consideration for peer group analysis. Today we published a new report, Supply Chains to Admire.

Seeing the Bigger Picture: How a Global Trade Network Can Create More Accurate KPIs

Talking Logistics

The question becomes, “how are you comparing your transportation metrics to what’s happening around you?” You need to explore the metric relationships to see the full story. Reviewing the metrics simultaneously helps identify potential cause-and-effect relationships. Consider the following metrics: Tender Acceptance: The frequency at which a carrier is accepting tendered loads.