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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. What should we do?
Supply chain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times.
If so, optimizing your inventory management strategy can be a game-changer. Imagine shipping products directly from your supplier to your customer while maintaining the appearance that your business is the source. This method offers a solution to various inventory and shipping challenges for businesses just like yours.
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,
SourcingStrategy: Effective vs Efficient with Ron Crabtree. Joe Lynch and Ron Crabtree discuss sourcingstrategy: effective vs efficient. When developing a sourcingstrategy, the focus can be effectiveness (gaining desired results) or on efficiency (reducing cost, labor, and resources used).
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).
Even more impressive, lost sales due to stockouts can decrease by up to 65%, while inventory reductions of 20% to 50% are possible. Enhanced Promotions and Events Analysis Promotions, advertising campaigns, and trade events are vital components of marketing strategy, but accurately measuring their impact on demand remains challenging.
The client leaned across the table and asked, “Is a customer-centric supply chain strategy the same as a demand-driven supply chain strategy?” Drawing from the Whiteboard: Building Customer-Centric Supply Chain Strategies. The focus is on channel data: price; inventory positions; and policies.
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.
You’re juggling production schedules, managing inventory, keeping an eye on finances, and making sure everything runs smoothly on the shop floor. Think of it as the central nervous system of your operation, connecting everything from production planning and inventory control to supply chain management and financial reporting.
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. The high-efficiency machine project was approved by Fred, the Corporate Controller. Efficient supply chains may not be the most effective.
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Supply chain was defined in 1982 as interoperability between source, make and deliver. A negative FVA increases cost, inventory, and risk. The ripple effects are pervasive. The impact is exponential.
This article explores key strategies for enhancing logistical efficiency and thus improving profitability and reducing cost. Balancing consumer preferences for locally sourced products with logistical efficiency is crucial. Backloading: Optimizing vehicle utilization through backhauling is key to logistical efficiency.
Source: Dictionary.com. When I hear companies discussing the implementation of a customer segmentation strategy, I ask a series of questions: Who is your customer? How do they buy from you? What are you trying to accomplish through the execution of a customer segmentation strategy? How do they buy from you?”
As a result, most projects are not clear in scope, with the implementation of visibility as a “functional extension to existing process” lacking a holistic outside-in approach/strategy to sense, respond, and act. Too few companies have a holistic approach to embrace the plan, make, source, and deliver together. Reflection.
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.
In the age of same-day delivery and rising consumer expectations, there is immense pressure on warehouses to perform at peak efficiency. By maximizing space utilization, improving inventory control , and boosting workflow efficiency, you can unlock significant cost savings and elevate your customer service game.
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. Keith was an undisputed leader in building talent to drive manufacturing excellence. The reason? Discontinued in 2011.
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.
Inventory is the lifeblood of any manufacturing business. Striking the perfect balance between available stock and cost efficiency is key. By leveraging analytics and key performance indicators (KPIs), manufacturers can optimize inventory, reduce waste, and boost profitability. Thats where data-driven decision-making comes in!
To stay ahead of the curve, industry leaders are turning to data-driven strategies and artificial intelligence (AI) to transform how they manage inventory, forecast demand, and optimize the entire spare parts lifecycle. This lack of transparency hampers accurate demand forecasting, procurement efficiency, and inventory optimization.
Whether you''re a manufacturing company in China, a sourcing agent in London or a world''s leading company in Silicon Valley, we''re all in a global supply chain networks. That''s why we ask our experts a very simple question " How to improve the operational efficiency in global supply chain? ". But, it can be overdone.
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. The problem?
Source: Supply Chain Insights ASCM defines resilience in the SCM Supply Chain Dictionary as the ability of a supply chain to anticipate, create plans to avoid or mitigate, and to recover from disruptions to supply chain functionality. I am currently doing research on inventory management. Today, this is not the case. Yes, I think so.
Supply chain executives were under pressure to develop more efficient, customer-centric supply chains while finding innovative ways to reduce costs and enable growth. Companies tripped over themselves to build ecommerce portals, and one-click purchasing grew in relevance. What are the strategies that helped the best survive?
Reason #4 Making key decisions by modelling the supply chain in Excel. Reason #6 Not effectively managing inventory. I lost track of how many carrots we had and ended up buying more when we really didn’t need any. Unfortunately, all the same kinds of things can happen to your supply chain inventory. and it didn’t leak.
Is inventory bloating your costs? A scorecard acts as your dashboard, providing crucial visibility that helps you: Make Data-Driven Decisions: Replace guesswork with facts when evaluating suppliers, processes, and inventory levels. Improve Efficiency: Understand process timelines and inventory holding to streamline operations.
Primed for transactional efficiency, these legacy architectures based on relational databases drive order-to-cash and procure-to-pay efficiencies. Like Linus clinging to his blanket, supply chain teams make most of their decisions on Excel spreadsheets. Or a unified data model across source, make, and deliver for planning?
So, the parking spots are getting more and more occupied with drop trailers, meaning lot capacity shrinks while finding the trailer with the highest-priority inventory becomes even harder. Create a facilities “Center of Excellence.” Problem number three: appointment scheduling is a mess.
While the desire to improve network interoperability is high, the organization’s mindset is focused on transactional efficiency. With slim margins and ever-increasing inventories, companies invested less in capital assets. Today, this network operates with less capacity and ballooning inventories.
I want to be part of the evolution that helps leaders to redefine strategies based on the changing physics, electronics and capabilities in value networks. However, no company in this chart is on a linear path towards improving both margin and inventory turns. 2) Efficient Supply Chains, Not Effective Networks.
In this blog post, well explore the importance of robust supply chains, the key risks they face during economic downturns, and practical strategies. While no strategy can prevent every challenge, businesses can take proactive steps to minimize disruptions and avoid critical breakdowns. Why Recession-Proof Your Supply Chain Now?
Q: Is it only inventory disrupting the agility resulting from inaccurate forecasts by S&OP? In the supply chain, variability and volatility come from many sources. The less conversion of materials in the inventorystrategy, the greater the flexibility of the supply chain. Is it S&OP?
In a Deloitte survey of retail professionals , 60% reported that AI tools improved their ability to forecast demand and manage inventory in 2024. This level of computational power in the hands of supply chain professionals enables previously unattainable levels of responsiveness and efficiency.
Procurement is a complex and dynamic process involving strategic planning and several stages of execution, from sourcing to paying and reporting. Supply chain management, purchase requisitions and orders, budget management, and three-way matching – all these processes are integral to procurement as a whole. Low-Quality Documentation.
This reality is compelling F&B companies to rethink their strategies and approach to supply chain optimization and demand planning. Staying competitive in this intense landscape demands finely tuned operations that are highly efficient and effective – from product concept to customer consumption.
What is Source to Pay (S2P)? Yet in the case of source to pay, it is wholly justified. That said, many organizations, including large enterprises, may not think in terms of source to pay as an end-to-end process, if they think about it at all. Yet there are good reasons to do so. the public sector).
Supply chain strategy is critical to business success, but companies often underestimate its importance and hence pay it less leadership attention than other areas of operation. Supply Chain Strategy In 2014, a survey by Tompkins Consortium delivered a shocking revelation.
Supplier problems will cause a cascade of problems up and down the value stream, leading to supply order delays that cause inventory shortages, production disruptions, missed shipments and lost revenue. Establishing real-time shared visibility and processes with supply chain partners facilitates identification and resolution of issues.
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.
Dependency on Excel. Due to the shortfalls in the evolution of Advanced Planning, 68% of business users use Excel spreadsheets as the primary mechanism for planning. Excel–while widely used for planning–is not equal to the challenge of modeling complex supply chains. Clarity on Supply Chain Strategy.
It was a story where people believed that functional excellence leads to supply chain superiority. The example that I give in the first post is the focus of manufacturing strategies to drive strong results to improve Return on Assets (ROA) that have actually caused a deterioration in operating margin.
Wholesalers and manufacturers need effective B2B strategies to sustain business growth and beat the competition. From targeted email campaigns to inventory management integrations, we’ll outline how you can develop strong B2B CRM strategies to improve business performance and achieve predictable growth.
Among the various data sources at their disposal, point-of-sale (POS) data stands out as a crucial one. Some of the most common real-world applications of POS data analytics include: Sales Analysis to identify trends in customer behavior, assess the effectiveness of pricing strategies, and evaluate the success of marketing campaigns.
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