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Sorting through this to make a decision on a new planning solution at this time is tough. In today’s architectures and functional metrics, value optimization does not exist. .” I agree that the market is a bit of a mess. My advice? I coach clients to wait and see and let the market settle-out over the next year.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence.
Reason #4 Making key decisions by modelling the supply chain in Excel. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Just focus on geography and forget about anything else. One example that I’ve seen several times is around inventory targets. Don’t care. Social studies?
Supply chain excellence is easier to say than to explain. The promise of a well-intended consultant just sounds sooooooo good. At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. (For Business leaders are action-oriented and competitive. The reason?
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.
Real-Time Social Listening Integration Traditional supply chain planning relies heavily on historical transactional data, which inherently delays responses to rapidly shifting customer preferences. The latest ML algorithms can detect subtle shifts in consumer sentiment that precede actual purchasing behavior changes by weeks or even months.
The companies with the strongest year-over-year performance (placing in the winner’s circle for six more times in ten years) are Apple, L’Oreal, Nike, Paccar, TJX, and TSMC. How Do You Define Excellence? In retrospect, I find that technology is an enabler, but only if we are clear on what defines supply chain excellence.
The output was just not helpful. We have too hard-wired solutions bolted into IT architectures to enable the flexibility needed by business leaders during times of high variability. Initially, the output was published to procurement to design strategic buying strategies. Over time, this changed. It will not be over soon.
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. A shift from functional metrics to a balanced scorecard. The focus on functional metrics sub-optimizes balance sheet results.
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% Sounds easy, right? Leadership and S&OP? Shouldn’t it be like peanut butter and jelly? ” I cringe.
At the time, many business leaders did not know how to type and had no idea how to use a computer. Taxonomy of Outside-in Planning Based on the Art of the Possible To accomplish this goal, we need to discard the current crawl, walk, and run models and just jump. During the 1980s, I was on a management team for a large manufacturer.
The changeover times for the CM Bartlelts was 5X more prolonged than the more agile IM machines. Equipment washouts represented 11% of the change over time and were a significant barrier to agility. I reached out to the corporate R&D team for help, but they did not have the time to work on the change. Sharing My Experience.
In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times. We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency.
Understanding how your Procurement and Supply Chain KPIs are performing isn’t just a nice-to-have; it’s essential for survival and growth. Running procurement and supply chain without metrics is like driving blindfolded. Control Costs: Track value beyond just the purchase price and manage inventory effectively.
At that time, manufacturers talked about customer-centric supply chains, but were afraid to aggressively adopt ecommerce strategies. Get Good at Having a Real-time Perpetual Inventory Signal. Foundational for ecommerce is a real-time perpetual inventory (PI) signal. Details matter. Execution is essential. 3) Test and Learn.
This is part 2 of a 2-part series on how to succeed in planning and decisions amid times of disruption. In part 1 of my blog on Planning the Value Chain and Decision Making in Times of Disruption, the focus was on the ability to react and execute amidst the unpredictability of demand. Technology for Effective Planning.
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.
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.
As McCarthy put it, after a customer buys a bed, it’s his responsibility “to make sure we deliver it to their home brilliantly.” The battle ground in one-man delivery is free — free same day, free next day, time slots — and trying to charge customers for the premium slots and give the standard for free.
I remember the first time that I met the founders, Don and Toby. ” And from time to time, when we were behind deadline, and teasing each other about the looming weekly post, we would throw our llamas from cubicle to cubicle. It could no longer be just about inventory levels. The conference was low-key. Reflections.
As time goes on, these high energies dissipate. 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. ” Incrementalism. I am tired.
Think of them as apples and gearseach essential and effective on its own, yet when combined; they create a formidable mechanism for achieving procurement excellence. Moreover, early supplier involvement in product development helps businesses reduce time-to-market, improve product quality, and lower costs. Click here!
In 2021, more than $25 billion was invested in supply chain companies in just the first three quarters of the year. The company buying his company, EXE Technologies, is now infamous among those who have followed the WMS market. We asked for $2 million to buy more robots and then shortly thereafter another $4m.
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). In 2018, Rockwell Automation won the Supply Chains to Admire Award. Meet Ernest.
But to do that effectively, they need more than just spreadsheets and static dashboards. They served a purpose but lacked flexibility and real-time relevance. Modern platforms pull data from a wide array of sources: ERPs, relational databases, Excel files, cloud apps, third-party providers, and beyond. The bottom line?
Nick Lynch is the Global Excellence Manager at Shell Lubricants, a division of Shell Global. It is just not enough to do a software upgrade or slowly push continuous improvement projects. Nick is a master of influence skills and building cross-functional, horizontal processes. In this post we share our take on his journey.
One of the first applications I installed was a cookbook — the killer home PC application of the time. When making discretionary purchases, I could look at my projection to make sure that if I made that purchase, I would have enough money in the bank, not only now, but at the end of the month when my mortgage and car loan came out.
Inventory, in this time of uncertainty, is the organization’s most important buffer to protect against variability. Cash-to-Cash Metrics. In times of uncertainty, cash is king. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. Let me explain.
I find that many times companies have the wrong name, or a misnomer, for what they are trying to achieve. It was my first time working with this group. As I sat in the back of the room, shifting in my chair, waiting for my time to speak, I watched speaker after speaker endorse the concept of one team. .
While it is a difficult time, you have to also applaud the heroic efforts of this industry as a whole. Unfortunately, it just got worse. The healthcare provider world is facing tremendous strain as a result of the pandemic. I have some real context of this, living in NYC and having a family member that works at a hospital.
Driving an excellent supply chain depends on how people are recruited and managed, processes, and the technology used. In the annual report where they report on their key performance indicators (KPIs), they don’t just report on core financial metrics and the NPS, they also have people metrics.
Lately, as I reflected on my conversations with John (fictitious name) when I was at AMR Research, I yearn to go back in time. Gartner purchased the firm in 2010.) Driving Improvements in Supply Chain Excellence. I did not think that anyone had a clear definition of supply chain excellence. I disagreed.
This morning, the New York Times pushed me an article by Peter S. The only products that can be efficiently outsourced with long lead times are in the “forecastable” column. Goodman titled “ The Supply Chain, Reconfigured.” The populist narrative of sourcing globalization is only part of the story. Not so today.
After three years of research, I have just refined the methodology to start to pull the trends. I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. ” —Translation from the Greek by Ludwig Edelstein. I am an old gal.
“May you live in interesting times,” widely attributed as a Chinese curse, some claim this as a blessing; whichever side you take, this is exactly what’s happening in the supply chain world since 2020, and it looks like we will be living with this blessing/curse for a while longer. Composability as an Enabler of Agility & Resilience.
Gen AI & Predictive AI: Enhancing Decision-Making with Smarter Automation Why Its Critical: Gen AI and Predictive AI are transforming procurement by automating not just tasks, but the decision-making process. Impact on Procurement: Spend analytics give CPOs visibility into spending patterns, supplier performance, and inefficiencies.
These KPIs are based on Silvons long-time experience working with manufacturers and distributors to enhance their sales and operational performance analysis and reporting capabilities. Average Time to Sell Average Time to Sell measures how long it takes to sell a product after it becomes available in inventory.
I just don’t believe it anymore when I see it on a project justification.” 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? There were a myriad of projects and we are at the same place that we were when we first started. I am a skeptic.
With green being the order of the day, it’s a good time to think about sustainability efforts. Patrick’s Day is the holiday when even the most recalcitrant American feels tempted to don green clothing or sip on some green beer. But what if everyone wore blue on March 17 each year instead? After all, the earliest depictions of St.
I wrote many reports on airport floors in those days–electrical plugs were just too scarce.) (I wrote many reports on airport floors in those days–electrical plugs were just too scarce.) At the time, I was fascinated how the most mature teams bucked the system. Sales and Operations Maturity Model from 2005-2008.
To drive global scale, companies need to design the supply chain to buy globally and execute locally. Brands include Carters, OshKosh B’gosh, Child of Mine, Just One You, and Genuine Kids. Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As Carter’s, Inc.,
My schedule had me on a plane to Chicago at the time of the presentation. The APICS event was not there. There were 250 attendees signed up and I needed to adapt. We rescheduled my flight and I quickly put together some slides for the presentation. (To As we went live with the webinar, I laughed. They are also very confused. Is it S&OP?
Demand forecasting is the process of making future estimations of how much of a given product will sell by location and time period. Organizations then convert those demand forecasts to the associated quantities of raw materials to purchase, goods to be manufactured, or finished products to ship. When will the recession hit?
Many companies talk about Supply Chain Excellence, but most leaders struggle to define it. One supply chain leader, in a discussion last week, likened supply chain excellence to fitness. He felt that supply chain excellence was analogous. As a goal, it is easier to say than to define. His reasoning? We want to help. Figure 1.
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