Remove Customer Service Remove Eliminating Excel in Purchasing Remove Metrics
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How Can You Improve Value in Your Supply Chain?

Supply Chain Shaman

” Traditional planning models optimize functional processes to improve cost and customer service. In today’s architectures and functional metrics, value optimization does not exist. I observe that organizations are unclear on outcomes and the definition of supply chain excellence. You are right. The reason?

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Aligning Supply Chain Metrics to Improve Value

Supply Chain Shaman

In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. To manage continuous improvement, companies need a clear definition of excellence and organizational alignment to that goal. What Drives Value?

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Uh-Oh! Insights On How P&G Failed And What This Means For You

Supply Chain Shaman

Supply chain excellence is easier to say than to explain. At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.)

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Your supply chain is costing you money – Reason #9: Relentless pursuit of one metric at the expense of other metrics.

Kinaxis

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. Yet, these are similar instructions as what is passed down to the supply chain from executives focused on a specific supply chain metric.

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L’Oréal: A Case Study in Supply Chain Excellence

Supply Chain Shaman

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.

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Pandemic Lessons For Supply Chain Leaders

Supply Chain Shaman

Initially, the output was published to procurement to design strategic buying strategies. Watermelon Metrics Don’t Drive The Right Results. I love the metaphor of watermelon metrics. Customer service is red. What are functional metrics? Procurement: Purchase price variance and procurement cost.

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Congrats to the Winners of the Supply Chains to Admire 2023

Supply Chain Shaman

How Do You Define Excellence? In retrospect, I find that technology is an enabler, but only if we are clear on what defines supply chain excellence. Many believe that an ex-supply chain exec knows the definition of supply chain excellence. The group’s response is, “Are these supply chain metrics?”