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If you’re managing inventory with spreadsheets , you’re not alone—but you might be falling behind. While Excel has long been a go-to for planners, the landscape has changed. In this dynamic environment, inventory management powered by spreadsheets is no longer a viable strategy. But familiarity doesn’t equal effectiveness.
Molexs story is interesting because they excelled at overcoming these cultural issues. The most common form of trading partner collaboration is purchase order collaboration. With PO collaboration, buyers send digital purchase orders over the network to suppliers or other trading partners. The buyers dont report to Mr. Gainsford.
Instead, I would like to see us redefine work to improve decisions for the global multi-national. Compared to peer group performance for 2013-2023, 59% of the Gartner Top 25 score below their peer group on average revenue growth, 41% below inventory turns, and 41% below their sector on invested capital. The reason? What should we do?
We purchase data from Y charts. (A This data source synchronizes corporate reporting across global markets while tracking restatements, name changes, and currency shifts.) As an aside, I do not think that Lenovo is an example of a supply chain excellence. The second part of the story is that inventory turns for Lenovo are 10.8,
At the session, we discussed why companies have not made more progress on inventory management. In the case of Apparel and Automotive industries there are slight improvements, but they have shifted inventories to suppliers. Days of Inventory Pre and Post-Recession. IT View of the Current State of Inventory. Five Reasons.
Probabilistic forecasting is revolutionizing demand forecasting, supply planning, and inventory optimization by significantly improving forecast accuracy and decision-making across distribution networks. Enhancing Inventory with Probabilistic Forecasting A supply chain is a complex ecosystem influenced by dynamic variables.
At the Supply Chain Global Summit 2018 , Francois discussed the impact of digitalization, Industry 4.0, At the Supply Chain Global Summit 2018 , Francois discussed the impact of digitalization, Industry 4.0, Based in Paris, L’Oréal is a global personal care manufacturing company. We complete the analysis each year.
Richard Lebovitz and Joe Lynch discuss leading inventory attack teams. Richard is the CEO of LeanDNA , a purpose-built analytics platform for factory inventory optimization. About Richard Lebovitz Richard Lebovitz is the CEO of LeanDNA , a purpose-built analytics platform for factory inventory optimization. acquired by SAP).
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. In 2011, Yannis Skoufalos became the Global Product Supply Officer at Procter & Gamble. The reason? His focus was cash-to-cash.
We explore the concept of holistic inventory strategies focused on the form and function of inventory. In the process, we learn that only 15-20% of inventories are safety stock and that the current APS frameworks do not enable a holistic analysis of the form and function of inventory. Lack of executive buy-in.
Aptean is orchestrating the Blue Yonder/E2open/Infor playbook of buying undervalued assets and milking the maintenance and Software-as-a-Service contracts with existing customers. This is despite the strengths of the recent purchase of Optimity. Is it any wonder that this press release published on Friday afternoon? Kinaxis and o9.
How Do You Define Excellence? And, that the same techniques used in planning for a regional company could work for a global multi-national. In retrospect, I find that technology is an enabler, but only if we are clear on what defines supply chain excellence. An average margin of 21% with inventory turns of 1.58
Companies of all sizes have been capturing the value from Global Supply Chain to increase the economies of scale and scope for years. Due to the rapid change in global business environment, managers find it difficult to gain the edge over competitors. However, you may wonder what kind of practices really work.
If S&OP efforts were that effective, don’t you think that we would have made more progress against inventory levels, margin, and growth? The issues are largely rooted in politics and the lack of clarity on supply chain excellence. Regional companies outperform global brands in all but two industries in the market.
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% This research, completed in 2006, was during the transformation of multi-national to global supply chains. Profits were good, and the organization struggled to manage inventory.
Clear operating strategy and definition of supply chain excellence across plan, source, make and deliver. Most companies buy decision support technology, but do not redefine work to improve decisions. I like the use of growth, margin, inventory turns, Return on Invested Capital, customer service and ESG metrics. Drives Value.
Nick Lynch is the GlobalExcellence Manager at Shell Lubricants, a division of Shell Global. Located in the United Kingdom (UK), he has more than twelve years of experience in progressive roles driving demand-drive projects for their global supply chain. In this post we share our take on his journey.
Global supply chains are built on three assumptions: rational government policy, availability of transportation resources, and low variability. Where to Start Removing friction from trade fuels the global economy. Using the Global Supply Chain Pressure Index to view volatility, we can see patterns. Inventory Management.
The establishment of efficient global supply chains has become critical to competitiveness. From raw material procurement to final product sales, these supply chains’ ability to minimize inventory through product life cycle controls and facilitate prompt product supply is every bit as important as product differentiation strategies.
Global supply chains will be busy, congested and chaotic. There will be no slow down after the holidays and global supply chains will continue to be challenged. Online buying will fuel home delivery growth, challenges and new strategies. Here’s what to look for in 2022.
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. They do not excel in planning or forecasting.
Esther is the Chief Revenue Officer at Flowspace , an ecommerce fulfillment platform that helps brands meet their customers’ post-purchase expectations. Flowspace is an ecommerce fulfillment platform that helps brands meet their customers’ post-purchase expectations. About Esther Kestenbaum Prozan.
Commerce is global and regional at the same time, the world is getting smaller and more interconnected, and Consumer Packaged Goods (CPG) manufacturers operate in this build-anywhere and sell-anywhere market. The classical approach involves functional silos, sequential decisions, and Excel and people to render a plan executable.
When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” Inventory is the culmination of many business decisions.
How do they buy from you? How do they buy from you?” I find that in this world of the global multi-national that procurement processes have become convoluted and increasingly complex. The supply chain is vertically integrated and global shipping almost 2 million units daily. Why does it matter to you?
Next week is the annual Supply Chain Insights Global Summit , and summit preparation is on my agenda for the weekend. We feel so strongly about this that we do not have an inventory planning role.” His feeling was that inventory is an asset to manage. Inventory is both. Inventory management is a complex subject.
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Irony Over the last decade, the number of planners at global manufacturing companies exploded. A negative FVA increases cost, inventory, and risk. The ripple effects are pervasive.
Regional supply chain companies are attempting to define global requirements. They are well versed in requirements for regional supply chain planning, but they are attempting to redefine their processes and be more global. I am trying to not sound like a broken record. Instead, it requires some rethinking of processes.
When you look behind the scenes of a global business operation, procurement strategy and supply chain management are usually top priorities, though theyre not always working in sync. This blog explores procurement vs supply chain strategy and looks at how aligning the two leads to operational excellence. It doesnt have to be that way.
Or agreement on the definition of supply chain excellence. As a result, functional excellence anchors action. The focus is on digitization—automating today’s processes—versus rethinking process excellence based on the art of the possible. In this case, the metrics are operating margin and inventory turns.
Key takeaways Importance of Procurement Procurement vs. Purchasing Key Functions Departmental Structure Role Descriptions The blog emphasizes the significance of a well-structured procurement department with qualified personnel to achieve organizational objectives. Read In Detail About Procurement Department Here 2.
“Increasing digitalization means that global supply chains now have unprecedented connectivity, monitoring capabilities, and information-sharing potential. similarly, over 95% of manufacturers invested and implemented supply chain planning, but their primary tool today is Excel. ” Does the Dog Hunt? Makes sense.
As hospitals adopted consignment planning programs, inventory progress slowed. The turns are the lowest of any industry, and despite investments in technologies and processes, inventory turns have only improved 3%, and Cash-T0-Cash (C2C) cycles have declined 4%. This precipitous drop in margin hurts. Companies are feeling pain.
<Bear with me… > Here I share a nine-step process in an attempt to help companies unravel the process for buying supply chain planning software. They center on how to make a good decision in the purchase of supply chain planning solutions. Most have purchased software, but are dependent on Excel spreadsheets.
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). He is currently the vice president of global supply chain. Meet Ernest.
The secondary problem is the lack of definition of process requirements and a buying team that cannot see past simple MRP/MRP II/DDMRP requirements. Global Summit. We archive past events on the Supply Chain Insights Global Summit archives. As leaders, be patient. What sounds simple is not. from attendees.
At the end of a long day of a strategy session on supply chain excellence with a client, I needed to fill up some time in an agenda. The strategy day owner was a global process center of excellence leader. We will display the images of the different rivers at the Supply Chain I nsights Global Summit and Blaze 2022.)
By purchasing planning and transactional systems for a common vendor, they had one throat to choke and they were familiar with the architectural elements. I am speaking at their global kick-off. Instead, he wants to drive supply chain excellence and build the metrics that matter. Attendees at our 2015 Global Summit.
As background, Peter Gibbons is the Executive Vice President, Global Supply Chain for Mattel, Inc. Prior to joining Starbucks, he worked at the executive leadership level in Europe, Latin America and North America at ICI, a global chemical company. Which metrics do you think matter to supply chain excellence?
The network senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time data to align sell, deliver, make and sourcing organizations outside-in. The focus is on channel data: price; inventory positions; and policies. An example of a global demand network is IBM iBAT.
Despite two decades of advancement in supply chain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. Instead, I would look at network flows, the form and function of inventory, cost-to-serve analysis, and the determination of the supplier network.
Today’s supply chain—with greater outsourcing, global manufacturing, and complex bill of materials–requires synchronization of the links. Bonuses and incentives align with functions and are often counter productive to driving supply chain excellence. Days of Inventory by Industry Across Years. Fire fighting is the result.
With the purchase of i2 by JDA, and Logictools by IBM, manufacturing companies serious about network design started looking for a company, with a well-established community, that was more serious about network design. It could no longer be just about inventory levels. Mergers and Acquisitions and the Management of Global Operations.
Excess inventory – it’s taking up your warehouse space, tying up working capital, and limiting your planning team’s range of motion. It’s time to Marie Kondo your supply chain by eliminating excess inventory and learning how to avoid it in the first place. Let’s talk about: What Excess Inventory Is. What Causes Excess Inventory.
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