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Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Why do companies focus on reducing a specific metric? by John Westerveld. Sound ridiculous?
Scaling manufacturing operations is crucial for business growth but presents unique challenges. Balancing increased demand with consistent quality and controlled costs is difficult but essential for manufacturers looking to expand. Successfully scaling manufacturing requires more than just adding resources.
Business practices have become synonymous with the application and collection of data for continuousimprovement. 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.
Remember, successful warehouse optimization is an ongoing process, requiring commitment, continuousimprovement, and a willingness to adapt to change. Which warehouse performance metrics should be tracked? Monitoring these KPIs helps identify areas for improvement and maintain effectiveness.
As companies across industries have discovered, a well-optimized supply chain can drive significant improvements throughout their operations. In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times. This post delves into the core drivers of supply chain efficiency.
From retail and food and beverage to manufacturing and life sciences, companies from a wide variety of industries are realizing the benefits of the technology, revolutionizing how they operate, collaborate, and generate value. Manufacturers use cloud technology for predictive maintenance, production planning, and supplier collaboration.
3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 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.
That means identifying areas of waste, overlap and large volumes and enabling continuousimprovement through the use of transportation metrics to track performance. Leveraging data for continuousimprovement makes transportation optimization more synonymous with managed transportation.
However, rapid growth and diversification of products are making shippers, manufacturers, and suppliers rethink their business strategy. As explained in a previous blog post, continuousimprovement in an organization can be achieved through the use of performance measurement tools via big data.
Consider the example of a large consumer goods manufacturer and distributor managing more than 80,000 locations. Minimize Manual Forecasting Adjustments : For this manufacturer, planners dont touch the forecast, focusing instead on strategic oversight. Performance tracking is another critical element in fostering adoption.
We continue our top blog posts of 2014 from our main categories today by focusing on something at Cerasis we are experts in : Logistics. We’ve already listed the top 10 manufacturing blog posts and the top 10 supply chain blog posts last week. Any process or management after the sale of the product involves reverse logistics.
Over the last five years, I have helped two companies, Sonoco Products and Owens Illinois (OI) with their selection of technologies to improve Sales and Operations (S&OP) planning. Both companies provide packaging materials to the food manufacturing industry. It cannot be about singular metrics. Owens Illinois (OI), a $6.3
Supply chain optimization is crucial for enhancing efficiency and cost-effectiveness by providing end-to-end visibility, aligning with demand forecasts, and continuouslyimproving processes through technology and analytics. Analyzing performance trends helps you find areas to improve across your supply chain.
The ability to ensure product quality is the cornerstone of a manufacturer’s success. By integrating quality into every step of the manufacturing process, companies can cut the production costs associated with rework and scrap, as well as lower the risk of recalls and potential litigation over defective products.
Just as the electric light bulb did not come from the continuousimprovement of candles, I believe that supply chain planning improvements will not come from doing more of the same. ” Today only 7% of manufacturers are innovators. Integrating data does not align an organization motivated by functional metrics.
Keeping track of all your moving parts in manufacturing is a tall order. That’s where manufacturing inventory management software comes in. In this ultimate guide, we’ll break down everything you need to know about manufacturing inventory management software. Spreadsheets just don’t cut it anymore.
SCM is focused on efficiency, throughput, and resilience across a much wider operational footprint and requires coordination between manufacturing, logistics and supply chain, and demand planning teams to ensure timely fulfillment and quality assurance. Tracking these KPIs helps you to measure alignment and identify areas for improvement.
Today I will discuss how a company can sustain a lean culture once they have implemented lean practices in order to achieve continuousimprovement. I use a method I call managing for daily improvement or MDI. How can we ContinuouslyImprove Daily and Sustain a Lean Culture and Behavior? Industry Week, March, 2016).
We continue our series on the top 5 blogs in our 4 main categories ( Freight , Manufacturing , Logistics , and Supply Chain ). Our last post covered the Top 5 Manufacturing blogs of 2016. We have already covered the top 6 trends for 2016 in manufacturing. Read More About the Metrics for Supply Chain Here.
We have talked a great deal about the evaulation of suppliers on our blog and this post continues that great tradition. When you choose a company to transport your freight or to supply you with the materials you need to manufacture a product, you are putting your hard work and reputation in their hands. Cost of quality.
Before I started doing this research, I believed procurement and manufacturing were aligned. While this is the case in 50% of the organizations, there are many organizations with large alignment gaps between finance/operations and procurement/manufacturing. The focus cannot be about only continuousimprovement of existing processes.
For example, we seldom outsource manufacturing. We take pride in our innovations in manufacturing. Today 95% of manufacturing is directly managed by the Colgate team and we have taken steps to vertically integrate some of the operations. We manage supply chain metrics. We want to continue these paths.
I have taken myself off the road to write the book Metrics That Matter. Because he had reduced his buffers—both inventory and manufacturing—and had built a push-based supply chain using a forecasted demand signal, he was failing in many markets. It is a slow week. Most of my friends are on vacation. It is tedious.
Ronan Stephens, the Senior Vice President of Supply Chain Management and External Manufacturing, explained how the company set out on a journey to improve customer service while also reducing costs. It was thought that the company probably did need to improve their supply chain planning (SCP) capabilities.
It is a crucial metric that reflects the supply chain’s contribution to the customer experience, impacting brands, wholesalers, retailers, manufacturers, and distributors, both online and offline. How to measure OTIF: OTIF measurements pose challenges for organizations regardless of their type or industry.
Consider the case of food manufacturing. The only metric that we have improved through ten years of IT investments is the revenue/employee number. Over the course of the last decade, I have worked with many companies that moved manufacturing to countries with lower labor costs. Performance is stalled.
Manufacturers can miss opportunities to adapt due to their lack of speed in responding to disruptive forces, under-investing in new growth areas or applying existing business models to new markets. How will Manufacturers Survive Disruption? It’s all about how manufacturers are able to prepare themselves for future change.
We continue our series on the top 5 blogs in our 4 main categories ( Freight , Manufacturing , Logistics , and Supply Chain ). It was also evident that many folks wanted more information around KPIs and Metrics, as our top 5 included two posts from this sub-category. Get Your FREE eBook Here.
While Contract Pharma & BioPharma manufacturerscontinue to experience an increase in demand for more projects, new challenges are emerging from nearly every angle including new regulatory and quality requirements, workforce shortages and of course, supply chain disruptions. is likely to reach 2.1
Over the course of the last two years, we at Supply Chain Insight s have worked on a methodology to gauge supply chain improvement. We have found that supply chain metrics are gnarly and complicated.During I strongly believe diversity of experience and thought leads to improved performance. We named it the Supply Chain Index.
Cardinal Health, a global manufacturer and distributor of medical, surgical and laboratory products, is focused on continuousimprovement of service. Global logistics leaders wanted to improve service levels, lower costs, and fortify Cardinal Health’s supply chain planning process.
This means developing supplier evaluation frameworks that include carbon metrics, working together on joint emission reduction projects, and incentivising suppliers to meet or beat carbon targets. Furthermore, consumers are starting to select products, based on the amount of carbon emissions produced in their manufacture.
The average manufacturing company’s supply chain organization is 15 years old. Historically, the traditional supply chain focused on improving costs. While companies want to improve supply chain performance and drive value, it is easier said than done. We find that companies can improve one, but not two of the metrics.
This is in part due to the fact that as a third party logistics company, focused on efficient and strategic transportation management solutions through technology and services, it is vital for us to educate our shipper customers and our team in order to continuallyimprove and always provide value. .
If you follow the Demand-Driven Matters blog, you know we specialize in Demand-Driven Manufacturing and have identified the two key components of this method as synchronization and flow. In this post, I want to introduce a discussion around what we’ve identified as the Five Key Elements that Drive Flow in manufacturing production.
In one case, a long-time packaging manufacturer changed its reporting structure, putting in place a new manager responsible for the MRO supply chain. It is our responsibility to know their business inherently and introduce new savings opportunities and continuousimprovements to continue driving those savings.
Supply chain organizations within the automotive supplier industry contribute to manufacturing excellence in many ways, including quality, cost, and delivery to their OEM and subsystem customer base. Repeatable processes that minimize human intervention including continuous process measurement and reporting.
Transactional and customer-facing data, such as transportation data and manufacturing and purchase orders, are important for generating demand signals and calculating demand variability. The presence — or absence — of required data is going to have an impact on the metrics being used to measure the success of the project.
As the pressure mounts for manufacturers to deliver in shorter timelines because of increased competition and the urgency to solve a myriad of climate-related challenges, legacy ways of doing things have become an insurmountable hindrance to progress. Overcoming Challenges in Product Lifecycle Management With Advanced Solutions The problem?
Leverage Inventory as Data When systems communicate, they create inventory data, but actual inventory can be turned into data points and metrics to understand the flow of products. In other words, systems need to distinguish the “good” data from “bad” data.
Warehouse managers and manufacturing businesses face a growing demand for rapid order fulfillment across multiple channels, complex production processes, and an unpredictable supply chain. Following these practices will improve throughput, reduce labor costs, and boost employee satisfaction by removing frustration.
Beyond automation, digital systems like Manufacturing Execution Systems (MES) provide real-time visibility into production activities. Project management software for manufacturing environments can also centralize scheduling, task assignments, and workflow visibility. Hence, automating these functions ensures greater consistency.
It started in manufacturing and spread, step by step, to improvements in the way the company runs its supply chain. Being able to look at a service failure and get down to root causes is necessary for continuousimprovement. COVID has led many companies to talk about improving their resilience. It takes time.
Lean manufacturing involves 13 core principles – many more than the ‘five principles’ that are often associated with this popular manufacturing system. The lean concept originally came from manufacturing, but it has gained in popularity and is now used widely across different industries and sectors.
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