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
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.
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. I observe that organizations are unclear on outcomes and the definition of supply chain excellence. The reason? Your next step?
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 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.
Each executive has a different perspective on the definition of supply chain excellence, but they are never discussed and aligned. His organization purchased an advanced planning technology from well-known best of breed provider, and the implementation should have been successful, but it was not. What Is The Ring of Fire?
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.
Supply chain excellence is easier to say than to explain. In this area of research, I find that companies are like dogs chasing cars. At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. Business leaders are action-oriented and competitive. The reason?
Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. Yawn and walk on if the answer is i mproving demand error or reducing inventory levels. We are in the middle of a hype cycle that in my mind looks like the image in Figure 1. The business network market is in need of innovation.)
I share research, observations, and insights. 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% I shared this after interviewing 150 companies on their S&OP processes while at AMR Research. Kraft was not as mature as Cadbury.
Here I share some insights from my research. I am currently doing research on inventory management. In the research, I ask inventory planners to define resilience. Of the twenty companies interviewed, only one can answer the question, “Do you have a good inventory plan?” Yes, I think so.
This year supply chain leaders will celebrate thirty years of progress in supply chain management; but we have not made progress on one of the funamentals: inventory management. I think that it is time for us to take the litmus test and ask the hard questions, “Have our practices impacted days of inventory? I want to believe.
When I started this research project, I was busy. One of my lessons learned in completing survey-based research over the past twelve years, is that projects are full of surprises. To manage continuous improvement, companies need a clear definition of excellence and organizational alignment to that goal. What Drives Value?
Tom, the colorful warehouse manager, constantly heckled Frank for the increasing inventory levels while Ed, the quiet material/logistics manager, constantly questioned if there was a better way. He felt that inventory was no problem, he would just cut it at the end of each quarter to make the balance sheet goals. Strength in S&OP.
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. A negative FVA increases cost, inventory, and risk. I don’t believe supply chain research is ever effective behind a paywall. The ripple effects are pervasive. The impact is exponential.
import volumes still climbing (see Figure 1), limited processing capacity at key West Coast ports and the International Longshore and Warehouse Union (ILWU) contract expiring next summer, importers will be scrambling to maintain the inventory they need to support the demand increase.
Consumers want to shop anywhere, and buy in the way that they want to buy. In my research, I do not see that any retailer has really redefined value chains through collaboration. Current State of Perpetual Inventory. Replenishment is fueled by an effective perpetual inventory signal. Get Good at Data Sharing.
While consultants know the answers (or believe they do), I believe my goal as a research analyst is to unearth new questions that should be asked (and answered together openly in the supply chain community) to improve value. Rolling up a perpetual inventory signal takes eleven hours. days to get a perpetual inventory signal and 2.2
Linkedin Comment Donald Cavin Data Warehousing Consultant at Ohio State University Comprehensive Cancer Center-James Cancer Hospital & Solove Research Institute. In 2004, I joined AMR Research, a Boston Analyst firm. We remain committed to open content research and firmly believe that content should never be behind a paywall.
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. The research that I have conducted has enabled me to look at this holistically. They are slow to adapt. It is easier said than done.
By purchasing planning and transactional systems for a common vendor, they had one throat to choke and they were familiar with the architectural elements. The results in table 1 come from a nine months research project of 120 respondents representing 183 instances of demand and supply planning. How do I know this?
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.
In a recent research project, we found that 2/3 of companies had a digital supply chain transformation strategy; however, those that were evolving their strategy performed better during the early months of the pandemic than those that were “clear” on the project plan for a digital transformation. I know, a head-scratcher.
In the warehouse context, a digital twin can be created to represent the physical layout, inventory, equipment, and workflows of a warehouse. Inventory management Another area where digital twins can be beneficial is inventory management. Simulation is the most widely used benefit of a digital twin.
With slim margins and ever-increasing inventories, companies invested less in capital assets. Today, this network operates with less capacity and ballooning inventories. Many of these outsourced products have demand latency of weeks and months (shelf purchase through the replenishment cycle for a manufacturer to receive an order).
” My response, “Sorry Ryan, the research does not support that increased digitalization brought unprecedented levels of connectivity. similarly, over 95% of manufacturers invested and implemented supply chain planning, but their primary tool today is Excel. I am researcher. ” Does the Dog Hunt? Makes sense.
Millions of shoppers, like my Dad, are not going back to their old habits because there are now faster and more convenient ways for buying daily household needs. It excels on a union of E-Commerce mobile apps and last-mile delivery innovations. Inventory Optimization. Supply Chain Digitalization & Autonomous Planning.
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.
It was a story where people believed that functional excellence leads to supply chain superiority. I strongly feel that a blind focus on functional excellence will cause the supply chain to become out of balance. As a researcher, due to merger and acquisition activity, it is getting harder and harder to compare companies.
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.
We were discussing the results of the planning benchmarking work that we have just finished, and I was sharing some insights on inventory management when one of the panelists emphatically stated, “Inventory is a waste to manage. We feel so strongly about this that we do not have an inventory planning role.”
Get Good at Having a Real-time Perpetual Inventory Signal. Foundational for ecommerce is a real-time perpetual inventory (PI) signal. If you are going to be excellent at ecommerce fulfillment, you need to have great perpetual inventory capabilities. No matter where inventory is, put it to work. 3) Test and Learn.
Lately, as I reflected on my conversations with John (fictitious name) when I was at AMR Research, I yearn to go back in time. AMR Research was an industry analyst firm in Boston. Gartner purchased the firm in 2010.) Driving Improvements in Supply Chain Excellence. John and I held differing beliefs. I disagreed.
They were born from well-intentioned, bright professors from great schools – Boston College, Carnegie Mellon, and Massachusetts Institute of Technology (MIT )– in operations research. It was called multi-enterprise inventory optimization. SmartOps was purchased by SAP. They knew little about the software market.
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.
How do they buy from you? How do they buy from you?” In my research, I find that the companies with the most progressive procurement processes also have the most advanced customer supply chain process evolution.)Without The discussion of customer-segmented supply chains happens often. Why does it matter to you?
This data will be combined with the financial ratio data and published in an Open Content Research report in April on the Supply Chain Insights Community. Here is a link to the healthcare research study in the field. Pharmaceutical companies are struggling with falling margins and rising inventories. What Can We Do?
<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.
A Demand-Driven Value Network as defined by AMR Research in 2007: A network that senses demand with minimal latency to drive a near real-time response to shape and translate demand. The focus is on channel data: price; inventory positions; and policies. We then began the discussion on outside-in processes. Market-Driven Processes.
They also brought me and my colleagues at AMR Research stuffed Llamas. 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. “What a crazy name! The gap is tough.
In Figure 1, I share a composite orbit chart of progress of Cisco Systems, Intel, Samsung and Flextronics on the Effective Frontier at the intersection of inventory turns and operating margin for 2006-2012. However, no company in this chart is on a linear path towards improving both margin and inventory turns. What can we learn?
After Manugistics, I worked for two analyst firms; Gartner and AMR Research, and I continued to question if the extended ERP platform that included SCP delivered greater value. The implementations were longer, the purchase costs were higher, and the functionality was less robust and lacking flexibility. I did not see it. Study Results.
This team is not buying the message. So much so, that three years ago, I founded a research company to focus on understanding supply chain excellence. In our work, we tie research from quantitative and qualitative studies to financial results to drive new insights. “Lucky me,” I thought, and smiled.
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. If you enjoy our research, please help us by filling out our current survey. The result? Background.
Eerily the case studies sound the same as the ones heard when I completed S&OP research in 2004. As a result, after three months of research, writing the sequel on S&OP technologies is a challenge. Dependency on Excel. Driving supply chain excellence is a balancing act. The question central to the research?
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