My Take: Metrics that Matter

Supply Chain Shaman

While Joe is trying to balance the feedback from Filipe and Frank, he is often asked to change his metric targets by his CFO named Lou. After two years of research, I think that we throw the supply chain out of balance and limit its potential through the use of traditional and functional metrics. It is for this reason, that I believe that the traditional SCOR Model metrics are problematic. Achieving Balance in Metrics. Last week, I held my new book in my hand.

3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance

Cerasis

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. Inventory measurement is critical and it is money after all in that it took a capital expense to procure. 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.

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Which Metrics Matter? Interview with Philippe Lambotte

Supply Chain Shaman

My journey to understand supply chain Metrics That Matter started three years ago. We are currently mapping the progress of all public manufacturing, distribution and retail companies on three factors: Strength: Year-over-year improvement on operating margin and inventory turns for the past six years. Balance: The ability to balance a portfolio of metrics to maximize market capitalization and free cash flow. How do you balance metrics ? .

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

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. We like the metrics of growth, on-time and in-full orders, operating margin, inventory turns, and Return on Invested Capital (ROIC).

Understanding Supply Chain Management

SupplyPike

Supply Chain Management (SCM) is a systematic and controlled procurement operation. Procurement usually comprises a diverse range of suppliers chosen according to a conceived ability to supply merchandise at the right price. Also, as offshoring makes modern supply chains more complicated, multi-channel distribution and global marketplace emphasize on the importance of SCM. Five Key Metrics for Monitoring the Impact of Panic Buying on your Supply Chain. Learn about.

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The Reorder Point Formula: Everything You Need to Know

Unleashed

A carefully calculated reorder point is therefore critical to good stock control, and keeps your key metrics looking healthy for your next inventory report. Example 2: The reorder point for retail and distribution. For example, Bryson manages a bike distribution company.

Manufacturing Gains From Machine Learning

IQMS

Honeywell is integrating AI and machine-learning algorithms into procurement, strategic sourcing and cost management. AI and machine learning constraint-based algorithms and modeling are making it possible scale inventory optimization across all distribution locations, taking into account external, independent variables that affect demand and time-to-customer delivery performance.

Gartner’s 2018 Top 25 Supply Chains List! Is it Still Relevant?

Supply Chain Game Changer

Gartner Survey Metric Notes: 1. SCM #SupplyChain #Logistics #Distribution #Technology #Leadership #Procurement #Purchasing #Freight. Supply Chain Management Distribution Freight Leadership Logistics Procurement Purchasing SCM supplychain TechnologySubscribe Here! Email Address. Check out 5 Trends in the Gartner Hype Cycle for Emerging Technologies. Gartner recently announced their 2018 Top 25 Supply Chains List.

Multichannel Fulfillment & Shipping: Considerations for Wholesale Distributors & OEMs in the Transition From Single Channel Shipping

Cerasis

Unfortunately, manufacturers and OEMs may lack the infrastructure necessary to facilitate such changes, and resellers face challenges in optimizing procurement for the world of e-commerce. Align metrics and incentives with unique e-commerce goals. Putting It All Together Manufacturing and distribution are evolving in the wake of the growth of e-commerce. Distribution E-Commerce Logistics Manufacturing

Supply Chain KPIs You’ll Want Every Morning

Logility

Maybe, but what is certainly clear from the examples is that the complexity of modern supply chains requires better visibility into every phase of production and distribution. Metrics. SCOR Level 1 Metrics are good examples of measures that have longer-ranging focus.

The Disintermediation of the Supply Chain!

Supply Chain Game Changer

A truly efficient and effective Supply Chain must include a strategy, plans, business processes, and performance metrics that incorporate disintermediation and the elimination of waste! Think about the typical set of objectives and metrics associated with managing a Supply Chain. We’ve experienced numerous situations involving extra product handling, handoffs, movements to and from extra distribution centres, and more. Subscribe Here! Email Address.

How to Get a Job in the Supply Chain Sector

Logistics Bureau

It touches many departments, from production, procurement, shipping, accounting, and finance to marketing, warehousing, research and development, and sales. Streamline standards , including in procurement, packaging, and delivery. Procurement Analyst.

Is Your Supply Chain A Cost Centre or a Value Creator?

Supply Chain Game Changer

Whatever your Industry you should be able to make comparisons to competitors, do benchmarking, and even compare yourself on key metrics across industries. The Supply Chain in the Financial sector is different from Manufacturing and Distribution for instance. From the inbound perspective he Supply Chain team typically procures raw materials, expedites their delivery. Subscribe Here! Email Address. Check out Brand Protection – The Definitive Role of the Supply Chain!

Spectra Energy Supplier Forum: Driving Collaborative Project Management

Supply Chain View from the Field

These executives provided an overview of the incredible growth in the natural gas pipeline structure that is being driven by the massive shale gas reserves in North Dakota, Pennsylvania, and Ohio that are driving the need for gas and LNG distribution lines. Daily metrics of on-time, project dollars spent versus budget, and key milestones on time, as well as the use of two-way scorecards are important.

Supply Chain Collaboration – The New Way to Drive Value!

Supply Chain Game Changer

Sixty-five percent of procurement practitioners say procurement at their company is becoming more collaborative with suppliers, according to The Future of Procurement, Making Collaboration Pay Off, by Oxford Economics. By building common metrics and targets and jointly monitoring progress – companies avoid the misaligned incentives that damage so many collaboration efforts. Improved customer service metrics. Subscribe Here! Email Address.

The Supply Chain Detective™! In Search of Broken Supply Chain Clues!

Supply Chain Game Changer

You know the people, the processes and the metrics. Most companies have a Procurement function, Distribution, Logistics, Planning, Inventory Management, Product Data Management, and Operations. In the area of Procurement they did a lot of benchmarking and highlighted deficiencies in our materials costing and pricing processes, and the resultant uncompetitiveness and financial shortfall that resulted therefrom. Poor metric performance (eg. Subscribe Here!

Outsourcing Sourcing! 5 Lessons from Around the Globe!

Supply Chain Game Changer

Check out What is Virtual Procurement and Why Should You Care? Large companies can afford to have Strategic Sourcing Procurement staff around the world. They are better off considering dealing with partners and outsourcing agencies to provide the on-the-ground sourcing support necessary to have their products manufactured, distributed and shipped. Your in-house Procurement team must proactively manage your Outsourced Sourcing partner! Subscribe Here! Email Address.

Q: Food vs Fuel? A: Wrong question…We need more efficient markets!

Supply Chain View from the Field

Looking at vegetable oils, with a global population of 7B people, each consuming the recommended 40g of dietary fat per day, 365 days per year, would require just over 100M metric tons of oil. We are currently according to the USDA producing over 160M metric tons of refined vegetable oil alone. We have another 100M metric tons from animal sources.

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Top 5 Roadblocks to Effective Inbound Logistics Management

Cerasis

Approximately 54 percent of companies actively run metrics on inbound freight, but these metrics may be lacking. In other words, the term, “metrics,” can be deceiving. Since a metric is a data point, metrics can include the number of vendors used, the percentage of on-time deliveries or spend-to-carrier ratios. The nominal information gleaned by each of these factors results in confounding data that may be highly affected by metrics not being measured.

Best Practice: Creating a Governance Mechanism for Analytical Learning in Organizations

NC State SCRC

There are systems directors in both the procurement and logistics/planning teams. The team also leverages insights from university research centers and consulting groups, including CAPS Research, MIT, XEM, Gartner, ProcureCon, and Procurement Leaders, to ensure they are connected to emerging ideas. I recently interviewed a large semiconductor company that developed a cross-enterprise initiative to drive analytical learning across its entire supply chain.

The Top 10 Supply Chain Blog Posts from 2017

Cerasis

This year, most were interesting in supply chain optimization - from distribution to inventory management - and Key Performance Indicators. We want to make sure that supply chain practitioners, as well as manufacturers, understand how all of these technologies are affecting the entire supply chain, including the supply chain & procurement side of a manufacturing operation. 5 Tips for Warehouse and Distribution Center Management Success You MUST Instill Today.

Food Waste and World Hunger – The Food Supply Chain is Broken! (Videos)

Supply Chain Game Changer

If all the world’s food were evenly distributed, there would be enough for everyone to get 2,700 calories per day – which is more than the minimum 2,100 requirement for proper health. Better Supply-Demand planning, Quality management, transportation lead time reduction, distribution network optimization, cycle time reduction, better handling, more effective storage, real time order management, and reverse logistics improvement are all within the purvey of Supply Chain.

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Top 5 Trends to Know to Compete with Amazon’s Supply Chain

Cerasis

Technology Will Reshape Procurement Practices. Better procurement practices translate into better overall sales, but the role of procurement in driving sales’ statistics will change throughout 2017. Today, procurement drives up to 67 percent of sales, explains Johnathan Webb of Forbes magazine, as procurement professionals look for innovative ways to produce effective, superior products. Procurement strategy was not always evident.

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Gartner Top 25 Supply Chain List! Is it Still Relevant?

Supply Chain Game Changer

Gartner Survey Metric Notes: 1. SCM #SupplyChain #Logistics #Distribution #Technology #Leadership #Procurement #Purchasing #Freight. Supply Chain Management Distribution Freight Leadership Logistics Procurement Purchasing SCM supplychain TechnologySubscribe Here! Email Address. Subscribe to Supply Chain Game Changer. 5 Trends in the Gartner Hype Cycle for Emerging Technologies. Gartner recently announced their Top 25 Supply Chains List.

9 Key Topics to Understand to Frame A Shipper’s Mind for Effective KPI Management with a 3PL

Cerasis

Editor's Note: As of late you may have noticed we have written a lot about procurement and the future of procurement. A large part of procurement is finalizing the contract and then the follow through of the determined deliverables in that agreement. The next step in procurement is then managing vendors and keeping service providers accountable for continued improvement. All KPIS have metrics to measure.

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Getting that “Swing” in Supply Chain Management

Talking Logistics

What you find instead are functional groups — such as Manufacturing, Distribution, Sales and Marketing, and Procurement — operating in silos, like a boat full of rowers each doing their own thing. How do you successfully align goals, metrics, and resources across functional groups? Having leaders with cross-functional responsibility — such as having Manufacturing, Logistics, and Procurement report to a single executive — also helps to drive alignment.

Achieving Healthcare Transformation, Powered by Supply Chain

ivalua

Shift towards self-contracting and self-distribution: With health systems gaining significant scale and wanting more control over their supply chain, this shift is accelerating. BSW built up a leading supply chain function and established a self-distribution model, all of which helped to improve overall margins. Ultimately, BSW was able to improve a key metric (Supply Expense as a % of Net Patient Revenue) and generate millions in savings.

How to Sustain a Lean Culture in Manufacturing & Supply Chain

Cerasis

These metrics would, of course, be aligned and are updated every hour. The metrics are also manual as automatic metric systems cannot retrieve the information at an hourly frequency as these metrics are process inputs and not outputs. Next, you would have management supporting this effort during their daily Gemba walk, reviewing these hourly metrics. Specific metrics: process metrics and outcome metrics.

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10 Ways Effective Transportation Management Drives Competitive Advantage

Cerasis

As we head towards what many experts are citing as a 2017 carrier capacity crisis and growing demands from consumers to keep them happy call for shorter delivery cycles, the traditional strategy of procurement cost saving and shipment consolidation opportunities have to be supplemented through innovative solutions, to deliver the best bang for the buck. Creating an Effective Transportation Management Program Run by Metrics.

How Can Supply Chain Leaders Use Big Data as a Tool to Continuously Improve?

Cerasis

Transportation modes used in procurement and shipping. Distribution of goods prior to purchase. Ultimately, performance measurement is a metaphor for tracking any metric in the course of the supply chain , but it's key to being effective is found in transferring the insights gleaned from big data into actionable results.

Defining and Implementing an Effective Transportation Strategy

Talking Logistics

The first element are the comprehensive set of strategies covering all the functional elements of your supply chain, including supply management, procurement, demand management, production, inventory management, distribution, customer service, and reverse logistics. What are the unique characteristics of the products that you manufacture and distribute, and then what’s the relative importance of transportation cost in the overall total cost?

Taking the Hill

Supply Chain Shaman

This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. We do not believe that there is much value in putting all companies into a spreadsheet and shaking them up… or looking at singular metrics without analyzing the intricate trade-offs of the supply chain when viewed as a complex system. When companies look at singular metrics (labor costs or inventory), they have moved backwards.

Boost Employee Engagement in Supply Chain!

Supply Chain Game Changer

Since we are specialized procurement recruiters here at SCM Talent Group, a great example would be a company searching to hire a procurement analyst. Subscribe Here! Email Address. Subscribe to Supply Chain Game Changer. 6 Reasons Supply Chain Employees Look For New Jobs!

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Study Shows Two-Thirds of Companies Yet to Execute Digital Transformation in Supply Chain Planning

ToolsGroup

A North American-based survey of nearly 200 supply chain professionals from top CPG, distribution/wholesale, food and beverage, manufacturing, and retail companies found that 58% of respondents are still in the exploring or evaluating phases of digital transformation. PRESS RELEASE. New survey finds that most companies are still formulating and gaining support for a digital strategy, with fear of change and data challenges as leading roadblocks. . BOSTON, Mass. and HOUSTON, Tex.

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Off to another exciting year of student-industry engagement at NC State on cutting-edge supply chain projects

NC State SCRC

MUFG Union Bank Strategic Performance Metrics. The team will seek to develop a comprehensive set of forward thinking, long lasting, Strategic Performance Metrics suitable for use by the Chief Procurement Officer within a major US bank’s procurement and vendor payment program. The Strategic Metrics should serve the needs of a Chief Procurement Officer that operates as a critical part of the enterprise, encompassing all material program elements.