Remove Eliminating Excel in Purchasing Remove Government Remove Metrics
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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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Organizational Alignment: Overlooked, but So Important.

Supply Chain Shaman

” Followed by “How are you organized, and what defines functional excellence? And, how do you tie functional excellence to corporate value?” Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. Functional 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. The issue is that traditional functional metrics drive underperformance—the greater the variability, the larger the gap.

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What Does Good Look Like S&OP?

Supply Chain Shaman

Clear operating strategy and definition of supply chain excellence across plan, source, make and deliver. Governance. Most companies buy decision support technology, but do not redefine work to improve decisions. A shift from functional metrics to a balanced scorecard. Drives Value. S&OP is a business process.

S&OP 390
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Make Room for Leadership to Drive S&OP

Supply Chain Shaman

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% The demand latency (the time of purchase in the channel to the visibility of an order) was 2-12 weeks.

S&OP 393
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Driving Supply Chain Analytics User Adoption with Cross-Departmental Metrics

Logility

Users are accustomed to building everything in Excel and manipulating the data as needed for their own particular use, typically using static reports or spreadsheets that are siloed in specific departmental needs. A key first step is to have buy-in at the highest level of the organization. Starting at the Top.

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What Is Old Is New Again. Maybe, Just Maybe, the Emperor Is Getting Some Clothes.

Supply Chain Shaman

The high-flying company had no clarity of purpose or clear governance, but the funds kept coming. Clear governance. While there is work within SAP to rethink SNC and use the assets purchased with Ariba to build multi-tier capabilities, the progress is not encouraging. Transora had a short history. Marketplace Rebirth.