Cost Reduction Strategies Eliminating Excel in Purchasing Metrics 
Supply Chain Shaman
JANUARY 7, 2025
” Traditional planning models optimize functional processes to improve cost and customer service. The problem is that the reduction of costs within one function does not necessarily drive value. In today’s architectures and functional metrics, value optimization does not exist. You are right.
Supply Chain Shaman
MAY 21, 2024
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. For example, a cost improvement in one function could raise the costs in another. Error is error, but is it the most important metric?
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Supply Chain Shaman
NOVEMBER 21, 2024
(Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. ” My problem is that we move through these hype cycles with little accountability for spending and with a major opportunity cost to not redefine work. Or that a focus on cost reduction can actually undermine value creation?)
Kinaxis
DECEMBER 3, 2014
Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #4 Making key decisions by modelling the supply chain in Excel. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. by John Westerveld.
RFgen
DECEMBER 4, 2024
In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times. We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency.
Supply Chain Shaman
OCTOBER 5, 2018
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.
Supply Chain Shaman
MAY 13, 2024
How aligned do you believe your organization is to drive these metrics? Observations on What It Takes In the Mea Culpa post, I wrote that I used to believe that excellence in S&OP was a ratio of 60/30/10. (60% One of my favorite stories was his initiative to reduce the number of cuts of carrots in soups from 33 to three.
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