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Compared to peer group performance for 2013-2023, 59% of the Gartner Top 25 score below their peer group on average revenue growth, 41% below inventory turns, and 41% below their sector on invested capital. I observe that organizations are unclear on outcomes and the definition of supply chain excellence. The reason? Your next step?
Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. Yawn and walk on if the answer is i mproving demand error or reducing inventory levels. We are in the middle of a hype cycle that in my mind looks like the image in Figure 1. The business network market is in need of innovation.)
This year supply chain leaders will celebrate thirty years of progress in supply chain management; but we have not made progress on one of the funamentals: inventory management. I think that it is time for us to take the litmus test and ask the hard questions, “Have our practices impacted days of inventory? I want to believe.
Consumers want to shop anywhere, and buy in the way that they want to buy. Each year I go to the Consumer Goods and Technology (CGT) conference where speaker-after-speaker talks about retail/supplier collaboration. It is for this reason that I sit on the back row at most conferences watching, listening, and smiling.
Today, I speak at the North American Manufacturing Association, Manufacturing Leadership Conference, in Nashville on the use of data to improve supply chain resilience. I am currently doing research on inventory management. In the research, I ask inventory planners to define resilience. Today, this is not the case.
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%. This precipitous drop in margin hurts. Companies are feeling pain.
If S&OP efforts were that effective, don’t you think that we would have made more progress against inventory levels, margin, and growth? The issues are largely rooted in politics and the lack of clarity on supply chain excellence. Or planned orders to purchase orders?) And how do we measure it? (Is I don’t know.
This week, I spoke at the Llamasoft Summercon Conference. The conference was low-key. We laughed, and felt a bit silly, leaving the conference room holding our new furry tchotchkes. It could no longer be just about inventory levels. It was held at the University of Michigan in Ann Arbor. “What a crazy name!
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.
We were discussing the results of the planning benchmarking work that we have just finished, and I was sharing some insights on inventory management when one of the panelists emphatically stated, “Inventory is a waste to manage. We feel so strongly about this that we do not have an inventory planning role.”
During the year, I go to a lot of conferences. How do they buy from you? How do they buy from you?” When I hear them at a conference, I squirm uncontrollably in my seat. Platitude: a flat, dull, or trite remark, especially one uttered as if it were fresh or profound. Source: Dictionary.com. This makes me yawn.
Concurrent macro forces–material shortages, war, shifts in consumer buying patterns, logistics constraints, inflation/recession, and climate change– are reshaping today’s reality necessitating the need for a supply chain reset button. Focus on right-sizing inventories. These are our weakest links. What can be done?
Gartner purchased the firm in 2010.) Driving Improvements in Supply Chain Excellence. He felt strongly that supply chain leaders knew how to drive supply chain excellence and needed a forum– or maybe two or three depending on the business model– to help them network and refine their approaches. I disagreed.
Despite two decades of advancement in supply chain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. Next week I will be speaking at the Llamasoft Summercon conference (follow this link to see the slides). Today, nine out of ten supply chains are stuck.
As an old gal attending multiple conferences (more than I would like at times), I have listened to speakers waft eloquently about the value of concepts like networks, big data, industry 4.0, similarly, over 95% of manufacturers invested and implemented supply chain planning, but their primary tool today is Excel. Makes sense.
Many of the case studies being presented at today’s conferences were born during the pandemic and the post-pandemic turbulence. We find that the companies with the most marked improvement in a balanced scorecard of growth, inventory turns, operating margin, and Return on Invested Capital (ROIC) are smaller and less well-known.
We conclude this two part series about manufacturing operations excellence by consultant Chuck Intrieri, by outlaying why manufacturers should focus on a critical component that will help sustain manufacturing operations excellence for years to come. What is Driving Sustainable Manufacturing Operations Excellence? Work centers?
If the word collaboration was listed on a card as a drinking game at supply chain conferences, we would be drunk at many. Inventory, in this time of uncertainty, is the organization’s most important buffer to protect against variability. However, organizations are not good at managing inventory. Inventory.
<Bear with me… > Here I share a nine-step process in an attempt to help companies unravel the process for buying supply chain planning software. They center on how to make a good decision in the purchase of supply chain planning solutions. Most have purchased software, but are dependent on Excel spreadsheets.
Lora Cecere, founder of Supply Chain Insights, noted in a recent webinar that a common outcome of these failed implementations is that supply chain organizations end up in “Excel ghettos where lots of people are touching data but not improving it.”.
As we discussed this drawing the dialogue flowed in the conference room. The network senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time data to align sell, deliver, make and sourcing organizations outside-in. .” I drew the picture shown in Figure 1.
I need it for my conference on September 10th-11th, 2014. Which metrics do you think matter to supply chain excellence? The ultimate metric of success used by Starbucks was the percent of coffee purchased from CAFE Practices verified farmers. The manuscript is due to Wiley on March 1st for an August 2014 publish date.
Dependency on Excel. Due to the shortfalls in the evolution of Advanced Planning, 68% of business users use Excel spreadsheets as the primary mechanism for planning. Excel–while widely used for planning–is not equal to the challenge of modeling complex supply chains. Don’t rush to buy. The result?
3PLex was then purchased by Maersk. To address the returns and reverse logistics challenge, companies like ReverseLogix have created reverse logistics technology that reduces costs and enhances the customer’s experience, while increasing inventory recovery and visibility into the reverse logistics life-cycle. Ecommerce fulfillment.
The focus is on the role of supply chain finance in driving supply chain excellence. Next year’s conference will be on September 8th-11th in Franklin, TN, south of Nashville, TN. The design of the conference includes tours of several modern warehouses and centers of excellence. Time horizon. The takeaway?
This team is not buying the message. So much so, that three years ago, I founded a research company to focus on understanding supply chain excellence. I also believed that this company would have the best inventory and customer service. My favorites are customer service, operating margin, inventory turns, and ROIC.
Below I will outline how a vendor managed inventory model, in conjunction with reverse marketing, value analysis, and collaboration will achieve supply chain cost reductions. Vendor Managed Inventory Model for Supply Chain Cost Reductions. The distributor maintains the inventory plan. What is Reverse Marketing?
When my flight canceled, I was en route to the annual AMR conference in Phoenix. Companies tightly coupling the budget to S&OP have significantly higher inventories and lower growth than their peer group. Demand latency is two-eight weeks delayed from consumption purchase to translate to an order. Mistake #3. My challenge?
Three years ago, after attending a conference focused on AI, machine learning, and control towers, Sam McCartt, Vice President of Supply Chain Planning at Comcast returned to the office and was immediately confronted with a stark reality. In construction materials, implementation began with purchasing to resolve delays in field projects.
As a result, supply chain leaders focus on unrealistic goals of inventory or costs, they will throw the system out of balance. Growth in car buying stimulated the value chain. In critical industries like semiconductor and computer hardware, growth is down, operating margin is off and inventory turns are declining.
So why do we feature content related to Vendor Managed Inventory? In a VMI model, part of the equation is the inbound & outbound flow of the inventory. Inventory is then put on pallets and shipped as freight. ” Vendor Managed Inventory Model: A Quick Back Story. No Purchase Orders were used.
Buying a car is overwhelming. We sit on 9,000 quantitative responses and we want to better understand the drivers of supply chain excellence. Supply chain planning satisfaction is a driver of excellence. Companies that are better at supply chain planning are better able to manage operating margins and inventory turns.
Editor's Note: This is a two part series featuring Chuck Intrieri, who along with providing excellent insights over at his industry leading The Lean Supply Chain blog, is also a consultant who works with companies for Cost Reduction, Supply Chain Optimization, Logistics, Manufacturing, and 3PL Selection. It was called, “ The Short List ”.
During the spring, I get to spend a lot of time in airplane(s) attending and speaking at technology confer ences. Stuck at the intersection of inventory turns and operating margins, nine out of ten companies struggle to improve balance sheet results. Avoid buying software from a consulting company. I have done this for a decade.
Having published two of the interviews already in the last few weeks, I’ve gone ahead and written up the final one for you, in which Deborah talks about some key things that supply chain professionals get wrong when dealing with inventory. 3 Things Supply Chain Pros Get Wrong in Inventory Thinking. So let’s get right into it.
My goal in this blog post is to answer a series of questions I got from the audience when I spoke at a couple of conferences this week. Through digital marketing, small brands are cropping up all over, and it is sentiment analysis and digital content driving purchases. A strong center of excellence tied to network design is essential.
As we walked, I reflected and kept asking Scott, “How can we optimize outcomes if companies are not clear on what defines excellence?” Sean strongly believed that the sales group knew what the customers wanted and that tight supply chain integration to sales information would drive excellent results. At the first meeting.
As we walked, I reflected and kept asking Scott, “How can we optimize outcomes if companies are not clear on what defines excellence?” Sean strongly believed that the sales group knew what the customers wanted and that tight supply chain integration to sales information would drive excellent results. He saw all inventory as “bad.”
If a planning project short-circuits the conference room pilot stages, it will be difficult to ever maximize the value from the investment. The third issue is the lack of understanding that global processes–to maximize the economies of scale in transportation and material buying–need strong governance.
They have piloted the process in Excel and know that they need an enterprise level solution for a global roll-out of S&OP. The issue is that none of their IT investments in the last 10 years have moved the needle on operational metrics such as inventory levels, case fill rates, and other operational metrics. Their words.
This week, I was at Informs Analytics Conference. Can we build collaborative platforms for role-based discussions across commercial (sales and marketing) and operations (manufacturing, logistics, and purchasing) teams? Focus on improving operating margin, inventory turns, and revenue/employee simultaneously. in inventory value.
According to the Conference Board, despite lockdowns and COVID-19 related restrictions, consumer confidence in Asia rose in the last quarter of 2021 to 128 points from 126 points. Brand loyalty is no longer the driver for consumer purchasing decisions. As a result, consumer behaviour is likely to become more and more unpredictable.
In the past, supply chain professionals are trained to handle the service issues through a planning of inventory , service level and after-sales operations. In order to excel in this operations, they try to find the people with positive attitude. They have a warehouse very close to 3PL''s hub.
3PLex was then purchased by Maersk. To address the returns and reverse logistics challenge, companies like ReverseLogix have created reverse logistics technology that reduces costs and enhances the customer’s experience, while increasing inventory recovery and visibility into the reverse logistics life-cycle. Ecommerce fulfillment.
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