Remove Eliminating Excel in Purchasing Remove Lean Remove Metrics
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Your supply chain is costing you money – Reason #9: Relentless pursuit of one metric at the expense of other metrics.

Kinaxis

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. Yet, these are similar instructions as what is passed down to the supply chain from executives focused on a specific supply chain metric. Sound ridiculous?

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What is Purchase Price Variance (PPV) and How to Calculate it?

SCMDOJO

Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.

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Supply Chain Efficiency: A Deep Dive into the Core Drivers

RFgen

We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency. An efficient procurement process optimizes vendor selection and purchasing decisions to maintain cost-effective inventory levels.

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Let the Design Begin…

Supply Chain Shaman

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. Most companies are still struggling with “what good looks like” and “what defines supply chain excellence.”

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Collaboration? When It Comes to Cash-to-Cash, We Don’t Know How to Walk the Talk

Supply Chain Shaman

Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. While touted as a digital procurement provider, it took the Company nine days to onboard me as a vendor, and two weeks to process a Purchase Order. In times of uncertainty, cash is king.

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Essential Supply Chain KPIs to Track for Enhanced Decision Making

SCMDOJO

Running procurement and supply chain without metrics is like driving blindfolded. Identify Bottlenecks & Opportunities: Quickly spot areas that are underperforming and need attention or areas where you’re excelling. Control Costs: Track value beyond just the purchase price and manage inventory effectively.

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Throwback Thursday

Supply Chain Shaman

There is an inverse relationship between margin and supply chain excellence. Zimmer’s strategic framework focuses on growth, operational excellence and prudent capital allocation. Leaders need to start a system to improve measurement and tie performance to buying incentives. Yet, the attendees wanted to discuss Lean warehousing.