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I laugh when business leaders tell me that they are going to replace their current supplychain planning technologies with “AI.” Each supplychain planning technology at the end of 2024, went through disruption–change in CEO, business model shift, layoffs, re-platforming and acquisitions. You are right.
Wikipedia In 2014, I was exploring methods to publish what is now the SupplyChains To Admire report. The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. We purchase data from Y charts. (A By charting the performance against peer groups, I could see the story.
At the SupplyChain Global Summit 2018 , Francois discussed the impact of digitalization, Industry 4.0, and L’Oréal’s approach to business that has allowed the company to continuously rank as a SupplyChains to Admire winner for four consecutive years. SupplyChains to Admire Methodology.
Today, we published The SupplyChains to Admire for 2023. SupplyChains to Admire Winners 2023 Examine Your Own Paradigm. How Do You Define Excellence? Most supplychain leaders are stuck in their own paradigms. Many believe that an ex-supplychain exec knows the definition of supplychainexcellence.
The Covid-19 pandemic tested the global supplychain. Like riding a bumpy road, the supplychain leader is riding the ups and downs of changing market conditions facing greater variability day-to-day. Here, based on interviews with supplychain leaders, I share lessons learned. What are functional metrics?
This is a story for the Eds, Franks, and Toms working together in supplychains across the globe. It is also a story for a young supplychain manager attempting to make a difference, but feeling stymied. Efficient supplychains may not be the most effective. Need for SupplyChain Leadership.
Supplychainexcellence is easier to say than to explain. Executive teams strive to drive improvement in supplychain results; yet, sadly, only four percent of public companies succeed. The supplychain is a complex non-linear system. Now, I view the company as a supplychain laggard.
When reviewing strategy decks for supplychain teams, I often see statements like “move from a functional-silo’d focus to a drive a more holistic response.” ” Followed by “How are you organized, and what defines functional excellence? Functional Metrics. ” Sound familiar?
Machine learning (ML)a specialized field within artificial intelligence (AI)is revolutionizing demand planning and supplychain management. These improvements directly strengthen the bottom line, making ML capabilities an essential component of modern supplychain management software.
Supplychain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. Healthcare providers are leveraging efficient supplychains to ensure critical supplies reach patients when needed most.
If you have walked in the shoes of the supplychain leader, you are probably laughing by now. When a supplychain leader opens a discussion with, “I am leading an initiative for digital transformation”, I know I am in trouble. How aligned do you believe your organization is to drive these metrics?
SupplyChain Planners Analogous to Secretarial Pools? In my forty years of studying supplychain planning, the groups became larger, but with questionable results. We sidestep vacuous terms like digital supplychain and attempt to measure and redefine flows based the redefinition of planning. The So What?
Let me start by saying that t he process is not a panacea to solve all supplychain ills. Clear operating strategy and definition of supplychainexcellence across plan, source, make and deliver. There is a clear definition of the role of the supplychain in the delivery of value. Governance.
Understanding how your Procurement and SupplyChain KPIs are performing isn’t just a nice-to-have; it’s essential for survival and growth. Why You Need Visibility of SupplyChain and Procurement KPIs? Running procurement and supplychain without metrics is like driving blindfolded.
The client leaned across the table and asked, “Is a customer-centric supplychainstrategy the same as a demand-driven supplychainstrategy?” Drawing from the Whiteboard: Building Customer-Centric SupplyChainStrategies. Customer-Centric SupplyChain Processes.
Michael Jacobs, Senior Vice President SupplyChain, Ferguson. Mr. Jacobs is the senior vice president for supplychain at Ferguson. While nominally a distributor, “supplychain management is our core competency. In particular, Ferguson’s supplychain is built for speed and to provide high service levels.
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.
In 2014, ecommerce strategies grew in importance. At that time, manufacturers talked about customer-centric supplychains, but were afraid to aggressively adopt ecommerce strategies. Manufacturers, today, are aggressively pursuing e-commerce strategies. They were afraid of retail retaliation. This has changed.
The consulting team pitches a theme–vision of supplychain best practices, big data analytics, or demand-driven value networks– to the executive team, and a new project is initiated. Question 1: What drives a Successful Implementation of SupplyChain Planning? Supplychain planning is now on its third decade.
Goodman titled “ The SupplyChain, Reconfigured.” ” His narrative centers on the evolution of the global supplychain evolving with a focus on labor arbitration ignoring geographic distance and shipping issues. Traditional supplychain practices are no longer best practices. Let me explain.
For the past five years, the team at SupplyChain Insights identified SupplyChains 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). About the SupplyChains to Admire Methodology.
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. This article delves into how these two elements, working together, can transform procurement strategies into long-term competitive advantages.
For the past month, I have been working alongside companies implementing digital strategies. Or agreement on the definition of supplychainexcellence. Sometimes, even the definition of a supplychain is not clear. As a result, functional excellence anchors action. ” Incrementalism. I am tired.
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. Today, supplychain design has become a process all to its own. Demand and Supply Variability.
Theme 1: Global supplychains will be busy, congested and chaotic. 2023 call: Global supplychains will be slightly less busy, congested and chaotic, but cheaper – at least the transportation part. Theme 2: Online buying will fuel home delivery growth, challenges and new strategies. Figure 1: U.S.
SupplyChain Disruptions: A Survival Guide. Do you feel supplychain risk management is too complicated to implement? This article will show you how one of the worlds leading companies put a theory into practice and survive many supplychain disruptions. Robust risk mitigation strategies really work.
In part one of this blog series, I started the saga of the supplychain fairy tale. It was a story where people believed that functional excellence leads to supplychain superiority. I strongly feel that a blind focus on functional excellence will cause the supplychain to become out of balance.
Driving Sustainable Growth Through SupplyChain Resilience. Every industry sector and every business across the board, in APAC and around the globe have been impacted by the Great SupplyChain Disruption over the last two years, causing a blow out of transportation costs and continuous delays at every stage of the channel.
To drive global scale, companies need to design the supplychain to buy globally and execute locally. The design of the supplychain is fundamental to making this happen. In our interview of the SupplyChains to Admire Winners, we found a unique approach at Carter’s. SupplyChain Index.
I am a supplychain gal. I work with many organizations on their supplychainstrategies. Let me give you an example: Last week, I gave a presentation at a global supplychain team meeting of 175 professionals. This team is not buying the message. “I study supplychains.
With so much being written and discussed about supplychain transformation, it’s good to remind ourselves what supplychain management is fundamentally about. Lora Cecere ( @lcecere ), Founder and CEO of SupplyChain Insights, bluntly states, “The best supplychains are fit for function.”[1]
Today, nine out of ten supplychains are stuck. Despite two decades of advancement in supplychain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. Market volatility is increasing and supplychains can respond, but they cannot sense.
As supplychain clichés take flight, clients struggle with execution. One of these concepts that I hear a lot; but see few tangible examples, is the idea of “customer-segmented supplychain.” The discussion of customer-segmented supplychains happens often. How do they buy from you?
Nick Lynch is the Global Excellence Manager at Shell Lubricants, a division of Shell Global. Located in the United Kingdom (UK), he has more than twelve years of experience in progressive roles driving demand-drive projects for their global supplychain. Understanding the Lubricant SupplyChain. Overview of Shell.
“We live in a world where supplychains, not companies, compete for market dominance. But companies often have diverging incentives and interests from their supplychain partners, so when they independently strive to optimize their individual objectives, the expected result can be compromised. ”. What Is Value?
Many companies talk about SupplyChainExcellence, but most leaders struggle to define it. One supplychain leader, in a discussion last week, likened supplychainexcellence to fitness. He felt that supplychainexcellence was analogous. His reasoning? We want to help.
When I engage with supplychain leaders , I ask the question, “Are you making progress?” It is hard work to maintain the status quo in metrics performance. A balanced portfolio of metrics delivers the greatest value. The supplychain is a complex, non-linear system. Most are treading water.
The Logility team writes, “Environmental sustainability in the supplychain is top of mind for consumers, and a brand that fails to hold itself responsible risks reputational damage that will affect the bottom line.”[2] In the past, sustainability initiatives have often been considered bad for the bottom line.
For the past five years, the team at SupplyChain Insights identified SupplyChains 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). About the SupplyChains to Admire Methodology.
How to leverage AI-powered insights to move supplychains from reactive to proactive. Supplychain missteps can hit sales and brand loyalty hard. Amid shifting trends, tariffs, supplychain disruptions, and more, CPG supplychain teams are constantly navigating uncertainty to keep products moving.
In essence, this includes the entire chain of supply, production, storage, distribution and finally, the customer, so that the plans make sense all involved parties. Ultimately, what KPIs, as metrics and indicators derived from the set of plans are taken into account and prepared for each scenario.
What defines a high-performing supplychain? However, this year promises a significant paradigm shift where traditional performance metrics are replaced by technology-driven frameworks, as recent breakthroughs with Generative AI in supplychains have demonstrated. Enter our list of supplychain trends for 2024.
For AFFLINK's partners and affiliates navigating complex procurement environments, ESG integration reshapes how supplychains are built, evaluated, and optimized. Why ESG Matters to SupplyChain Management Modern supplychainstrategies extend beyond efficiency and cost containment.
As an analyst in the supplychain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. It is a story of supplychain innovation. The products of Terra Technology are unique, but poorly understood by the mainstream supplychain team.
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