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In today’s architectures and functional metrics, value optimization does not exist. And, when procurement and tactical planning operate in isolation, there is no decision support framework to guide the trade-offs especially when the functions are tethered to different and conflicting metrics. You are right.
Yawn and walk on if the answer is i mproving demand error or reducing inventory levels. The homework is to bring a list of the data that you think could drive better decisions to the conference and ask the technology company for insights on how to best use different forms of data. How do you know you have a better outcome or decision?”
Offering comprehensive solutions, including warehousing, order fulfillment, and inventory management, Launch Fulfillment helps eCommerce brands streamline their supply chains. Data-Driven Insights: Provides valuable insights into shipping costs and performance metrics to optimize operations.
They dance in the bright light of these shiny objects at conferences with cell phones in hand depositing smiling selfies all over LinkedIn. Neils here is some feedback to consider: VMI: Vendor-managed inventory logic enables the downstream trading partner to manage inventories and the sell-through the channel.
Setting the Stage The National Retail Federation’s 2025 conference has unveiled a clear vision of retail’s future, where artificial intelligence, integrated planning solutions, and customer-centric approaches are reshaping the industry landscape. Here are the key insights we gathered firsthand at this year’s event.
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.
The research methodology for the Supply Chains to Admire compares the performance of a company against its industry peer group for the metrics of Year-over-Year Revenue Growth, Inventory Turns, Operating Margin, and Return on Capital Employed (ROCE). Today, companies measure too many metrics without a clear definition of value.
Background I find that each conference provides the audience with a new framework to consider. The issue is that when companies optimize functional metrics, they throw the supply chain out of balance and sub-optimize value. The third step is to do a data inventory. Many messages to the market, but where is the value?
The future inventory fire sale. At conferences, I hear many discussions about risk management and control towers. 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
Using balance sheet data from 2011 to 2019, we chart companies’ progress by peer group on rate of improvement and performance in the metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). A focus on functional metrics throws the supply chain out of balance.) We Give to You.
Don’t waste your time at conferences playing buzz word bingo or immerse yourself in yesterday’s tech. Form and socialize your own hierarchy of metrics. Design your supply chain with a focus on the form and function of inventory. Here is the metrics framework that I am using at present in my outside-in classes.
I smiled on the week following the conference as the accolades piled up in my inbox. Attending the conference was Alexia Howard, Senior Research Analyst – US Foods for Sanford C. Attending the conference was Alexia Howard, Senior Research Analyst – US Foods for Sanford C. Aligned Metrics. Bernstein & Co.,
This week, Gartner is hosting their annual supply chain conference. The research tries to establish “ who did supply chain best ” by looking at a weighted formula of Year-over-Year Growth, Return on Assets (ROA), and Inventory Turns for the Fortune 500 companies. See how different the progress is on this metric by industry?
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. This is the fun part of my job. This work is not easy. What Can We Learn? In Table 1.
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.
Nineteen of the 200 companies met the performance criteria of improving operating margin, inventory turns, and ROIC together in concert for the years of 2006-2013 or 2009-2013. Yes, we will do this study yearly in the preparation for our annual conference. There are a lot of misconceptions about inventory.
by Melissa Clow September is a busy time of year for us at Kinaxis – Many folks here are flying the skies to attend various conferences. Here’s the supply chain conferences we love and will be attending. Gartner Supply Chain Executive Conference. Automotive Logistics Global Conference. September 10-11. London, UK.
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. I smiled as I began to present the story of the “Metrics that Matter.”
The relationship between corporate financial performance and supply chain metrics was complex; and in my first attempts, I was unable to derive a correlation. I wanted to better understand which metrics truly mattered. The Metrics That Matter Are Different by Industry Sector. However, as many of you know, I am stubborn.
Instead, what I observed when I looked at the data, was that most companies that I had worked with (in my role as an industry analyst, I had worked with over 300) were going backwards on margin and inventory turns. Resiliency is the pattern at the intersection of operating margin and inventory turns. “Ugh,” I said.
Results from The Conference Board’s C-SUITE OUTLOOK survey showed supply chain disruptions, labor shortages, and rising inflation to be 3 of the 5 high impact external factors on the minds of CEOs. Negative Impact from External Factors The Conference Board survey results indicated labor shortages and inflation to be top concerns for CEOs.
Here is the list: Supply chain technology implementations have reduced inventory. Seemingly, most supply chain leaders that are reading the press, or going to industry conferences, would believe that all four statements are true. Here they are: The Lie of Inventory Reduction. Supply chain excellence matters. The reason?
I also continued to work on the manuscript for the book Metrics That Matter to publish in the fall of 2014. The average client that has implemented demand sensing technologies has reduced inventory by 11%. Spending the weekend writing and then off to New York to work with a client and then speaking later in the week at a conference.
It comes in many flavors–increase in inventory, changes in sales policies, new product lines– all add to the complexity. The only industry that has made progress in inventory management is consumer electronics. The only industry that has made progress in inventory management is consumer electronics.
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. Cash-to-Cash Metrics.
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. In the journey, the supply chain leader needs to improve the potential of a portfolio of metrics.
Interview for Metrics That Matter. My kitchen table is piled high with interviews for the upcoming book, Metrics That Matter. I need it for my conference on September 10th-11th, 2014. I recently interviewed him for my upcoming book, Metrics that Matter, that publishes in August 2014. ” Supply Chain Leader.
At the recent Coupa Inspire user conference, Nico De Golia, the director of cloud logistics sustainability for Microsoft’s cloud supply chain, spoke about how the Coupa supply chain design solution, powered by Llamasoft, is helping them achieve reduced emissions. A clear goal needs to be combined with good data and metrics.
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.”
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). Celebrating Success. Target Setting.
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.
Companies with the lower score on the Index are driving faster rates of metrics improvement. Energizer and Unilever are driving the fastest rates of improvement and Clorox and P&G improvement rates are the slowest on the Metrics That Matter of Growth, Operating Margin, Inventory Turns, and Return on Invested Capital (ROIC)).
I am speaking this morning at the Terra Technology conference and doing a book signing of my new book, Supply Chain Metrics That Matter. In parallel, I have been hard at work on a report on multi-tier inventory optimization for the last two weeks. It is morning in Orlando. The sun is rising. This inbound news adds to the story.
I also believed that this company would have the best inventory and customer service. It is one of the primary reasons why nine out of ten manufacturing companies are stuck at the intersection of operati ng margins and inventory turns.” My favorites are customer service, operating margin, inventory turns, and ROIC.
During the year, I go to a lot of conferences. When I hear them at a conference, I squirm uncontrollably in my seat. Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. Source: Dictionary.com. This makes me yawn.
It is hard work to maintain the status quo in metrics performance. A balanced portfolio of metrics delivers the greatest value. As a result, supply chain leaders focus on unrealistic goals of inventory or costs, they will throw the system out of balance. Companies balance supply chain metrics better in good times than bad.
This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. When companies look at singular metrics (labor costs or inventory), they have moved backwards. Aligning metrics matters. Functional metrics in isolation degrade value.
Today, 90% of publicly-traded companies are stuck at the intersection of operating margin and inventory turns. While most companies have been able to make progress in one of these two critical metrics in the period of 2006-2013, they have not been able to make progress on both together. It is needed. What is disruption?
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. The Dollar stores are struggling with higher inventory levels, but are outperforming the sector. The answer?
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.
Longbow Advantage had their first user conference in Nashville, Tennessee last week. But this conference was focused on a near real-time analytics solution they developed called Rebus. Here “near real-time” is defined as a refresh of key metrics every five minutes.
We draw a timeline on a conference room wall and using customer shipment and compliance data, we plot the issues with customer service and product outages. In the period of 2010-2018, within the chemical industry, margins fluctuated, largely driven by the price of crude, but inventory turns plummeted. inventory turns.
I have taken myself off the road to write the book Metrics That Matter. On the 2nd of April, I sat before a board discussing how a company could exceed expectations in the delivery of Return on Invested Capital (ROIC) and superior operating margins and fail at the delivery of customer service and inventory. It is a slow week.
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. Granular data by volume is a must to be able to manage replenishment, network design, and inventory targets. Time horizon.
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