This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
” Traditional planning models optimize functional processes to improve cost and customerservice. For example, if I improve the cost structure in transportation, procurement, manufacturing and sales independently, what decision support framework decides the right trade-offs? You are right. This is an opportunity.
Use of Supply Chain Descriptors Most organizations are locked into functional silos driven by functional metrics. Stuck in a rut, supply chain leaders try to punch their way through a set of conflicting metrics and priorities each day. The metrics defining success in manufacturing and procurement do not align.
This lifecycle is essential where timely and accurate decisions can significantly impact supply chain efficiency, safety, customerservice, and profitability. Not all the transactional data, just the data required to calculate a metric or make a decision. So, we deploy an agent on an SAP environment.
The focus of the transportation suites was on cost mitigation and price negotiation. More and more cargo shifted to ocean transport until the container imbalances resulted in issues with “rolling the freight” from ship to ship despite confirmed bookings. Watermelon Metrics Don’t Drive The Right Results.
We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. Reward teams for cross-functional metrics. What did we find?
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Do Invest in Distributor Capability Building : Provide training, digital tools, and performance incentives. A well-equipped distributor is an extension of your brand and a key to market penetration.
The group’s response is, “Are these supply chain metrics?” ” For many stuck in the myriad of functional metrics, like Operational Efficiency (OEE), Purchase Price Variance (PPV), or transportation cost, a focus on growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) is a stretch.
Data analytics helps you monitor key performance indicators (KPIs), like supplier performance, delivery times, and transportation efficiency — all in real-time. AI also optimizes transportation routes dynamically by looking at factors like weather, traffic, and delivery windows.
3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. Transportation is measured just as a cost rather than what it does for the rest of the organization. Other areas to consider measuring as it relates to transportation: Managing inventory. Read more. .
The best 3PLs communicate effectively throughout the entire lifecycle of the customer relationship. During the sales phase a good 3PL does the following: listens to client needs, manages client expectations, customizesservices, and builds relationships. Logistics Key Process Indicators (KPI). Habit 3 – Process Oriented.
Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. What Distribution Center Metrics Need Tracking? However, the most important metrics can be categorized into the following eight areas. Cycle Times.
Customers can place orders online, by phone, in person and in nearly any other means desirable. Unfortunately, this means manufacturers face an even greater challenge, as more customers translate into greater use of customerservice. In addition, customers are continuing to demand lower prices and free shipping.
Companies are stalled on improving customerservice and forecast accuracy. Supply chains have not morphed to manage the complexity at the same cost, quality and level of customerservice. Today, I spoke at the Chief Supply Chain Officer conference in Chicago at the Eye for Transport event on the results of the research.
There are countless number of logistics service providers who offer many different types of broad and niche services. Some logistics involves transportation or warehouses or both. Instead of becoming overwhelmed with data, managers should identify and focus on the most useful warehouse metrics to gather, report, and apply.
Last mile e-commerce, last mile technology, last mile metrics and white glove services make standard shipping conversations seem like child’s play, and the new focus on the last mile is anything but. Leveraging Metrics, Shippers Find Better Ways to Excel at CustomerService and Last Mile Services.
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.
There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Aligned Metrics. Can you help us with what you see in the data?” ” Yes, I said. We see that nine out of ten companies are stuck. Most companies just have too many disconnected projects.).
This extensive connectivity has resulted in impressive metrics: 1.2 Key features include Consumer Visibility and Last Mile Connect, built to “enhance the post-purchase customer experience” for retailers and drive Net Promoter Score by providing “advanced delivery communication.”
BONUS: Download the Ultimate Guide to Transportation Reverse Logistics White Paper. Increased service market share. Greater customerservice and higher retention levels. Importance of Metrics in Reverse Logistics Management. 6 Benefits of an Effective Reverse Logistics System. Increased velocity.
Uncompetitive pricing, less-than-remarkable customerservice, and undifferentiated products are only a few of the reasons for underperformance. Focus on the Customer Experience. Customerservice is the beginning, middle, and end of omnichannel strategies. Download white paper.
The second part of Drucker’s quote, “if you can't measure it, you can't improve it,” really brings home the importance of having the right set of metrics. In the field of supply chain management, we have created an abundance of metrics and key performance indicators (KPIs). requires a different set of metrics.
Transportation management is no longer a tactical approach to simply moving freight and doing it at the lowest possible cost. 10 Tips to Remain Competitive and Have an Effective Transportation Management Strategy. 10 Tips to Remain Competitive and Have an Effective Transportation Management Strategy.
I believed that we would find a company with the lowest distribution costs (warehousing and transportation), and the lowest manufacturing costs, and this would result in the best overall cost structure. I also believed that this company would have the best inventory and customerservice. I was wrong. What do you think?
Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. Applications that operate in this horizon are manufacturing or production planning, demand sensing, Vendor Managed Inventory (VMI), Supplier Managed Inventory (SMI), and Transportation Management Systems (TMS). They lack cohesion.
There was a strong negative correlation (at an 80% confidence level) when companies were not aligned between customerservice and transportation. During the pandemic, transportation costs skyrocketed, creating increasing tension between customerservice and price. Excel usage increased during the pandemic.
Transportation management systems ( TMSs ) are not a new concept, but where they are hosted now, in the cloud, is still new to the shipping industry. The cloud offers unique benefits to shippers, vendors, customers and logistics providers. Eliminates the Need to Store Equipment, Servers, and Software in Your Building.
Concurrent Optimization for Lower Total Cost to Serve Traditional planning systems operate within the scope of classical silo definitions: demand forecasting, inventory optimization, replenishment planning, production planning, materials planning, transportation planning, order fulfillment, etc.,
This configuration screen shows how Solvyouo maps transportation constraints. Here the savings are based on transportation and facility cost savings. There is no point in reducing the amount of inventory carried if it results in poor customerservice and lost sales. Supply chain management has been in the news.
There are many benefits for manufacturing companies that use ERP systems, including: Better supply chain, warehouse, transportation and inventory management. Improving communication between departments and comparing metrics across them. Optimizing operations for better efficiency, productivity and customerservice.
We Assumed that Transportation Would Always Be Available And That We Just Needed to Negotiate Price. Over the past decade payments to transportation carriers from shippers increased from net 30 to net 60 moving to net 90 in 2019. Redefine Metric Systems and Clearly Define Supply Chain Effectiveness In These Volatile Times.
When it comes to the logistics industry, whether it's transportation management contracts or warehouse contracts, there are a million moving parts, and as many questions. Performance or Service. Customermetrics. Use Gainsharing so both the Warehouse/3PL and customer/shipper gain where cost reduction is found.
meaningful and accurate performance metrics. customer satisfaction. Managing returns is a customerservice fundamental requiring your company to balance your customers’ needs for competitive product and service value and your company’s need to yield profit. reverse logistic cycle time control.
Procuring transportation for freight is much different than any other procurement category. Transportation procurement needs to support both customerservice and a company’s internal supply chain goals. Simmons has highly demanding internal and external customers. The freight market is mercurial.
In the first episode of this educational series focused on the link between transportation management and supply chain excellence, Chris Timmer of LeanLogistics (a Talking Logistics sponsor) outlined the attributes of a strong transportation management foundation and how to build it. What’s the first step in that process?
The number one question that I am asked today by manufacturers across all industries is “How can I improve customerservice?” Nine times out of ten improving customerservice requires different management of the budget cycle and a rethinking of financial planning. Background. The River of Demand. #3 The reason why?
Every company today runs on data – the key to using your data is choosing the right metrics for visibility into your supply chain. While Key Performance Indicators (KPIs) may be reviewed quarterly or monthly, the speed with which supply chain operations occur makes a daily view of more tactical and operational metrics a growing necessity.
He is an industrial engineer with a diploma in transportation and logistics from the University of Applied Sciences in Bremerhaven. Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The Ralf has worked at BASF since 1989 in a variety of jobs across continents.
Unlike most of the KPIs we recommend, perfect order is a composite of several elementary metrics. Perfect order results can help you assess performance and diagnose issues impacting service, costs, and overall supply chain effectiveness. What about DIFOT?
Obviously, shippers cannot track what consumers use their personal devices for all the time, but they can use metrics and Big Data to track what consumers are doing on their respective e-commerce sites. Moreover, last mile logistics is key to reducing overhead and improving customerservice. Be Consumer-Centric.
However, the needs of the modern shipping industry have reached an optimal point, and the only way to further push the envelope is by using a dedicated transportation management system (TMS). Stronger, Higher Level of CustomerService. Mobile Access to KPIs and Metrics. The Ideal TMS Helps Complete Warehouse Management.
3PLs can quickly assess client-level profitability via accurate cost-to-serve metrics and analytics on demand while creating a verifiable audit trail of events and charges that reduce potential credit settlements and contribute to customer satisfaction. To learn more, visit Open Sky Group today.
In the annual report where they report on their key performance indicators (KPIs), they don’t just report on core financial metrics and the NPS, they also have people metrics. The company has shown sustained improvement on this metric. Ferguson uses the net promoter score (NPS) as their core measure of their customerservice.
Teresa spends a bulk of her time recruiting the top talent in the transportation technology & solutions world, and as you’ll hear, a whole lot more. Why company culture is something that shippers should ask about when looking to hire a transportation management partner like Cerasis. Download E-Book. Download E-Book.
For Mars, digitalization has focused on improved customerservice, cost reductions, and making their supply chain associates more productive. The second goal was to work with a fourth party logistics (4PL) partner that had invested in cutting-edge transportation management and visibility solutions.
We organize all of the trending information in your field so you don't have to. Join 102,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content