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In today’s architectures and functional metrics, value optimization does not exist. And, when procurement and tactical planning operate in isolation, there is no decision support framework to guide the trade-offs especially when the functions are tethered to different and conflicting metrics. You are right. The reason?
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?
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.
They integrate, align, and activate data across the business to drive better, faster decisions unlike legacy reporting tools that can’t. Modern platforms pull data from a wide array of sources: ERPs, relational databases, Excel files, cloud apps, third-party providers, and beyond.
Initially, the output was published to procurement to design strategic buying strategies. Advanced planning tools(APS) never considered the issues of logistics. Watermelon Metrics Don’t Drive The Right Results. I love the metaphor of watermelon metrics. What are functional metrics? Over time, this changed.
Interview for Metrics That Matter. My kitchen table is piled high with interviews for the upcoming book, Metrics That Matter. I recently interviewed him for my upcoming book, Metrics that Matter, that publishes in August 2014. Which metrics do you think matter to supply chain excellence? I am behind.
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.
Strategic sourcing and innovative solutions are often viewed as two distinct procurement tools, but they should not be seen in isolation. 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.
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.
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. An orbit chart is a plotting of data at the intersection of two metrics.
The market for network design tools was growing at a moderate rate, and most of the market had invested in technologies from either i2 Technologies (then termed i2 Strategist) or Logictools. Network design tools were essential to manage the improvement of both together. Ten years ago Llamasoft was an unlikely contender.
We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency. Technology integration: Leveraging digital tools to enhance visibility and decision-making. This post delves into the core drivers of supply chain efficiency.
If you are going to be excellent at ecommerce fulfillment, you need to have great perpetual inventory capabilities. Aggressively design and test products online and then bring the data into your forecasting tools to predict sales of new products by channel. Don’t fool yourself. 2) Endless Aisles Need Boundless Fulfillment.
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. Then could I buy it? For me, this was game changing! What if I save my money this month?
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 implementation of decision support tools needs to be a way of life. In addition, I am now done with the page proofs for my new book, Metrics that Matter.
Theme 2: Online buying will fuel home delivery growth, challenges and new strategies. In 2023, consumers will be less forgiving and poised to buy from retailers whose delivery performance is commensurate with the rest of the shopping experience. Figure 1: U.S. Container Import Volume Year-over-Year Comparison. Somewhat nailed it.
I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. I sometimes wonder if I should create a new class of technologies for the network design tools because they have changed so much.) I believe that it matters.
As an analyst in the supply chain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. The Terra Technology investment is one of what we believe will be a series of purchases to build inter-enterprise cloud-based software platforms to redefine supply chain planning.
While it does an excellent job in streamlining the front-end customer experience from discovery to checkout its true potential is unleashed when combined with CRM tools like Salesforce, HubSpot, Zoho, or Pipedrive. Check out SCMDOJO’s Inventory Optimization Tool , and enhance your inventory management capabilities!
As organizations continue to invest in these tools, their potential to reshape procurement strategies is immense, giving early adopters a serious competitive advantage. How JAGGAER Helps: CPOs who leverage JAGGAERs robust AI-powered tools identify emerging risks, forecast price volatility, and evaluate supplier performance with precision.
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. Getting the Most out of People.
Nick Lynch is the Global Excellence Manager at Shell Lubricants, a division of Shell Global. Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. What can often look like compliance in APO could actually be numbers calculated in Excel and posted into the SAP system.
by John Westerveld In part one of this blog we determined that the Master Scheduler has a challenging job with Master Scheduling, but you may be thinking that ERP system you’ve spent millions on buying and implementing must make the Master Scheduler’s job so simple it’s as easy as pushing a button, right? Well… not so fast. No, really!
However, with numerous e-procurement software vendors available, choosing the right tool can be overwhelming. An online procurement system, also known as e-procurement software, is a digital platform designed to streamline and automate the buying process within an organization. Let’s break them down.
To drive global scale, companies need to design the supply chain to buy globally and execute locally. The company leverages globally sourcing strategies to buy products at a lower cost and then deploys some unique process logic to drive mass customization for retailers. Performance on the Supply Chain Metrics That Matter.
Q: You mention that Executive Buy-in is the biggest stumbling block. What techniques are being used to get executive buy-in? Q: What is the best metric to begin analyzing when starting to evaluate Supply Chain agility? Q: You touched on robust network design tools which allow you to test your network to determine your agility.
“Reach out to other departments about ways to collaborate on sustainability initiatives, and talk to your executive team to gain buy in.” It’s pretty difficult to reduce waste in your supply chain if you don’t have a tool that gives you visibility and transparency into what you are trying to do.” The post St.
Several customers addressed those questions in excellent case study presentations: Dr. Bernhard Herzog, Oxea GmbH – “Business Impact of a Supply Chain Operating Network”. BASF’s goals included: Automating the end-to-end Purchase-to-Pay process from purchase requisition to invoice. Improve process quality for vendors and BASF.
Available to Promise (ATP) Available to Promise (ATP) is a real-time inventory management metric that tells you how much of a product you can promise to customers without overcommitting. It supports smarter buying by showing which categories or products deliver the best ROI. Why is GMROI important? Want to dive deeper into KPIs?
Procter & Gamble and Kimberly Clark); but for most companies that I have worked with, I see that they have purchased and implemented inventory technologies, but there has not been an impact on future years results in either Days of Inventory or Days of Working Capital. Ownership of Inventory as a Metric. What I Think it Means.
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. Our journey for supply chain excellence has changed and evolved over time.
Organizations then convert those demand forecasts to the associated quantities of raw materials to purchase, goods to be manufactured, or finished products to ship. It is important to benchmark forecast accuracy and similar supply chain metrics against your peers.
Having an excellent business fleet is one of the secrets of highly successful companies. A functional digital tachograph can measure significant metrics like speed, driving time, and driver’s activity. The increasing cost of fuel, car maintenance and purchasing of vehicles can drain a company’s resources.
She works with supply chain leaders to take teams to higher levels of excellence and is an influencer with more than 340,000 followers on LinkedIn. How often do your purchase orders change? For example, if your supplier is on wafer-thin margins, it may be bulk purchasing in order to reduce costs, leaving it with excess stock.
Brand loyalty is no longer the driver for consumer purchasing decisions. People simply want to purchase products from businesses which provide a more transparent and streamlined service, and who deliver on their customer promise, even if it means inflated prices to obtain it. Embedded AI that is purpose-built for supply chain.
There is no doubt, that the retail landscape is increasingly looking like an online one as traditional brick-and-mortar retailers, such as Toys R Us, Foot Locker, and Best Buy mobile shutter hundreds of stores unable to keep up with the changing customer that wants fast, free delivery all with just a click of a button. trillion, a 3.8
These critics sensed a sinister “rebranding” ploy designed to get companies to purchase technology and services they already own but perhaps have not fully implemented. Challenge yourself to think beyond the traditional Available-to-Promise metric and ask if an action meets the criterion of Profitable-to-Promise.
This guide provides you with all the tools you need to make significant positive changes in a few simple steps. Don’t forget to check out our best practices , tools , and a list of helpful supply chain resources on the website! Want to streamline your distribution operations?
AGCO was honored to receive the AME 2017 Excellence Award. The new tool had to be integrated into AGCO’s work environment. Google Glass in its original form was not very useful on the floor, since it did not allow for typing, connecting to current tools, or storing passwords. The new tool cut the learning curve in half.
Leverage Data Analytics for Demand Forecasting Advanced analytics tools can predict customer demand and help you optimize inventory. Data-driven forecasting improves purchasing and cuts storage expenses. To maintain operational excellence, establish feedback loops between staff and management.
Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” We are systemically evaluating each industry in the Supply Chain Insights Metrics That Matter series of reports. At Supply Chain Insights , this is our passion.
By infusing intelligence into every supply chain touchpoint—from sourcing to shelf—AI is driving operational excellence, customer satisfaction, and exponential growth. Standardize Metrics Across Teams: Align KPIs so that supply chain, finance, and sales speak a common language. ThroughPut.AI Here’s how ThroughPut.AI
An accomplishment-based resume provides metrics and quantifiable info about a candidate’s accomplishments. It is the quickest and simplest way to help an employer buy into you and answer the common interview question ‘so…. Functional resumes tend to list prior experience in terms of “duties.” Thus, never throw a number away.
For teams looking to systematize their logistics documentation practices, SCMDOJO’s Logistics Management Track and Mastering Transportation Management System courses offer practical training on how to implement digital tools, automate document flows, and optimize transportation records across the supply chain.
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