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Solvoyo has a metric they call the user acceptance rate. This metric measures the percentage of time the planners accept replenishment, transportation, or inventory plans as they are without any change in the timing of the delivery or the quantity to be delivered.
And how can consumergoods companies learn from their performance in this pandemic to prepare for the future? They provide these solutions to some of the largest consumergoods and food & beverage companies in the world. For multinational consumergoods and food & beverage companies, service is typically 99%.
For example, industries like transportation and logistics, technology or consumergoods will focus more on supplier collaboration. That’s where Procurement Metrics and Key Performance Indicators (KPIs) come into play. Procurement metrics and KPIs allow organisations to measure results and guide best practice performance.
Companies moving to BPO in these practice areas are experiencing supply chain improvements in metrics such as inventory turnover and customer service. Metrics – BPO vendors can also help firms utilize performance metrics and KPIs to help monitor performance and help to identify ways to improve it. versus $4.84 For example ….
Consumergoods article and permission to publish here provided by Wouter Nederkoorn. We all know and regularly purchase Fast-Moving ConsumerGoods (FMCG, often also referred to as Consumer Packaged Goods, or CPG). The post Will ConsumerGoods Be Stronger from the Pandemic? Subscribe Here!
No company in either the household non-durable (consumergoods) or the food manufacturing group beat their peer group on the balanced scorecard of growth, inventory turns, operating margin, and Return on Invested Capital (ROIC) for 2013-2022. The paradigm needs to change to buck the trend. Look at the industry decline in Figure B.
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.
OTIF is a key supply chain metric. Andrew Lynch is President and co-founder of Zipline Logistics , an award-winning North American 3PL that specializes exclusively in the transportation of retail consumergoods. It is generally calculated as a percentage of total deliveries that were complete and on time. About Andrew Lynch.
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. The next figure you need to calculate is COGS, which is a metric that relates to the direct costs of a product that a business sells.
In consumergoods industries, better forecasting leads to lower fines from retailers for late or incomplete deliveries. It is important to benchmark forecast accuracy and similar supply chain metrics against your peers. Large consumergoods companies believe that solutions based on a graph database also have real potential.
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)).
It is for this reason, that we analyze the patterns of the Metrics That Matter using orbit charts over the period of 2006-2014. The analysis is designed to analyze supply chain leader success on a portfolio of metrics. Nine out of ten are stuck unable to make improvements in these Supply Chain Metrics That Matter.
Comparison of Industry Players Within ConsumerGoods for the Period of 2012-2021. For many industries, the results are much worse than consumergoods. The focus needs to move from functional metrics to balanced scorecard outcomes. Functional metrics insulate organizations and throw the supply chain out of balance.
We are trying to understand how supply chain leaders have raised the bar at the intersection of these four sets of metrics on the supply chain effective frontier. I also believe that it is because the organization is not incented to manage cash-to-cash metrics. The results have been eye-opening. We hope to see you there!
Select a planning solution that can incorporate intelligent metrics and optimization technology. Retailers need a planning system that won’t force them to work in siloes and leave them with little control of the planning process. The digital supply chain runs continuously: Optimizing, reacting, tuning, executing and evaluating.
Other metrics and scorecards which help brands run successful businesses are also hard to calculate. For example, Walmart might directly import two shipping containers of a consumergoods company’s top 10 best performing SKUs. This is because they have limited visibility within their own internal systems to view those orders.
Develop Supplier Collaboration Frameworks , engage key suppliers in strategic discussions, develop joint value-creation initiatives, and establish clear performance metrics to ensure mutual growth. Ensure that these tools can scale with your business.
Companies moving to BPO in these practice areas are experiencing supply chain improvements in metrics such as inventory turnover and customer service. Metrics – BPO vendors can also help firms utilize performance metrics and KPIs to help monitor performance and help to identify ways to improve it. versus $4.84 For example ….
Read on for more details about EcoVadis ratings in this interview (first published on the ING Wholesale Banking site): Rating Sustainability Performance: An Essential Business Metric. How can gaining a rating affect how companies view CSR and sustainability issues internally?
On today’s episode we welcome Andrew Lynch, Co-Founder & President of Zipline Logistics, an award-winning logistics service provider that specializes exclusively in the transportation of retail consumergoods and food and beverage products. Capacity & Carrier Metrics Resources to Download. Download E-Book.
and Trading Partner Alliance outline some of the key considerations that should go into developing and using the on-time and in-full delivery metric. To fill these gaps, a growing number of companies operating in the consumer sector have adopted the “on-time in-full” (OTIF) delivery metric. McKinsey & Co., What is OTIF?
Depending on the product, their customers are consumergoods companies, retailers, food service distributors and restaurant chains. A 95% on time delivery metric – very high performance – is just not good enough for Simmons. That factory also aims to rapidly process the raw materials into product.
OTIF is a key supply chain metric. Andrew Lynch is President and co-founder of Zipline Logistics , an award-winning North American 3PL that specializes exclusively in the transportation of retail consumergoods. It is generally calculated as a percentage of total deliveries that were complete and on time. About Andrew Lynch.
In industries such as e-commerce, consumergoods, food and beverage, electronics, aftermarket, and industrial distribution, companies are seeing 50% and more of their revenue coming from long tail demand items. Traditional “single number” forecasts and forecast accuracy metrics are nearly meaningless in the long tail environment.
Space utilization, or vehicle fill, is a critical metric that can be measured in various ways: Pallet numbers and height: While common, this method can be misleading depending on cargo density. Two crucial measures applicable to this level of detail are space utilization and productive time.
Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. As a frequent contributor of supply chain content to the industry, Lora writes by-line monthly columns for SCM Quarterly, ConsumerGoods Technology, Supply Chain Movement and Supply Chain Brain.
The number of companies is growing that are saying that their forecast accuracy, service levels and inventory efficiency metrics have hit a ceiling that they just can’t get past. Whether you read the analyst reports or listen to planners talk about their jobs, it’s all the same: metrics and KPIs are stuck.
This blog post is in response to recent results from the APICS/Logility Survey, ConsumerGoods S&OP research, and ChainLink’s end-user research. I recently read a very good survey by ConsumerGoods Technology , focused on S&OP.
What is Procurement’s North Star Metric? The North Star Metric (NSM). As published by Forbes in a 2017 article, “The North Star metric concept originally emerged from Silicon Valley and is best utilized by companies that invest in long-term sustainable growth. These sub-metrics should be your own mini-North Star Metrics.
Mars is one of the largest fast moving consumergoods companies in the world. 95% is very high performance on this metric; It implies significant transportation cost savings. In 2019, Will Beery was appointed the vice president and tasked with leading the company’s global digital supply chain transformation.
Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is working on her third book, Leadership Matters. As a frequent contributor of supply chain content to the industry, Lora writes by-line monthly columns for SCM Quarterly, ConsumerGoods Technology, Supply Chain Movement and Supply Chain Brain.
To say that the global supply chain isn’t going easy on consumergoods brands might be something of an understatement. In today’s supply-constrained environment, making sure your products are on the shelf when and where consumers want them is even more critical. .
Gary began our discussion by pointing out that the Amazon Effect, which he says had a critical turning point during the 2017 holiday season, has sped up supply chains for retailers and consumergoods manufacturers, causing a greater emphasis on sourcing. There is much more involved now than the perfect order metric.”.
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. To meet the criteria for The Supply Chains to Admire for 2016, companies needed to score better than their peer group average for performance metrics, while driving a higher level of improvement than 2/3 of their industry peer group.
Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. As a frequent contributor of supply chain content to the industry, Lora writes by-line monthly columns for SCM Quarterly, ConsumerGoods Technology, Supply Chain Movement and Supply Chain Brain.
The teams feel good because cash-to-cash metrics improve; but in many cases, in the joyous celebrations, companies do not realize that they have reduced capabilities with suppliers and not made improvements in inventory. To help, we are sharing all the work we have done on maturity models and supply chain performance metrics.
Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. As a frequent contributor of supply chain content to the industry, Lora writes by-line monthly columns for SCM Quarterly, ConsumerGoods Technology, Supply Chain Movement and Supply Chain Brain.
This simulated metric projects what demand, and thus sales, would be if you were in-stock during a given period. This forward-looking metric is key to predicting where outages may occur, empowering you to take proactive steps to mitigate the most significant risks. Chasing demand is a team sport.
Retail and consumergoods supply chain leaders can use AI to gain a similar competitive edge in the race to meet customer demand. This level of computational power in the hands of supply chain professionals enables previously unattainable levels of responsiveness and efficiency.
Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is working on her third book, Leadership Matters. As a frequent contributor of supply chain content to the industry, Lora writes by-line monthly columns for SCM Quarterly, ConsumerGoods Technology, Supply Chain Movement and Supply Chain Brain.
Supply chains at a consumergoods company, for example, make up about 80% of the company’s greenhouse gas (GHG) emissions. Metrics and Performance Management Legacy supply chain metrics rarely capture the effectiveness of circular supply chains. A circular supply chain can reduce greenhouse gas emissions.
The editorial team at ConsumerGoods Technology (CGT) argues CPG companies have been slow to embrace cognitive technologies; however, the coronavirus pandemic is changing that picture. ” In other words, the right data can place the consumer at the center of CPG operations.
Terence: So, it’s about improving these metrics and business performance simultaneously. In the fast-moving consumergoods space, we have Coca-Cola FEMSA presenting. Can you shed some light on that? Hong Mo: OTSR, which stands for Operational Total Shareholder Returns, is important.
However, there is a wide range of metrics that you should be tracking to help your online store grow. Why ecommerce performance metrics are important. This is a good KPI because it: Has a quantifiable target of 1,000 new customers and. Why are ecommerce performance metrics important to your online store? Sales KPIs.
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