Examples, Forecasting, Inventory and Metrics

Aligning Supply Chain Metrics to Improve Value

Supply Chain Shaman

MAY 21, 2024

In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. For example, a cost improvement in one function could raise the costs in another. Error is error, but is it the most important metric? What Drives Value?

Procurement Analytics

Procurement Analytics Optimal Sourcing Metrics Supply Chain Planning Software

The Forecasting Accuracy Bugaboo

Logistics Viewpoints

MARCH 27, 2023

When it comes to running a company, when things break down executives have traditionally said “we need to improve our forecasting!” Would better forecasting accuracy be a good thing? Unfortunately, most companies cannot, and will never be able to, consistently rely on highly accurate forecasts. Absolutely! This increases sales.

Forecasting

Forecasting Forecasting Software Modeling Optimal Sourcing

Don’t Wait to Innovate: 3 Key Benefits of Causal Forecasting

Logility

JUNE 23, 2023

That’s precisely what demand forecasting feels like for many businesses today. Enter causal forecasting. Unfortunately, many companies hesitate to use causal forecasting, thinking it’s too complicated or resource-hungry. What is Causal Forecasting? That’s where causal forecasting comes into play.

Forecasting

Forecasting Forecasting Software Modeling Predictive Analytics Software

What is Demand Forecasting? Importance and Benefits of Forecasting Customer Demand

ShipBob

OCTOBER 24, 2022

You never really know how it will all turn out, yet you need to be able to answer questions like these: How many units of inventory do you need to have on hand to be at full stock for each SKU? How often do you project to replenish inventory ? Forecasting projections is one of the toughest things to get right. That’s fine!

Forecasting

Forecasting Forecasting Software Modeling Demand Planning Software

Weather Permitting: How to Use Weather Data in Retail Forecasting

ToolsGroup

MARCH 3, 2022

Despite knowing all this, too many retailers ignore the impact of weather and this adds error to plans and demand forecasts. And even though meteorology has come a long way, weather is a notoriously fickle and uncontrollable factor, and no forecaster can reliably predict it beyond the next few weeks. It all evens out in the end.

Forecasting

Forecasting Forecasting Software Procurement Analytics Retail

Just Jump

Supply Chain Shaman

MARCH 21, 2024

In my first classes, I taught the group how to speak the language of demand—forecastability, Forecast Value Added (FVA), backcasting, demand and market latency, and market drivers. We explore the concept of holistic inventory strategies focused on the form and function of inventory. Instead, we need to Jump. The So What?

Inventory Reduction

Inventory Reduction Supply Chain Planning Software Cost Reduction Strategies Supply Chain Design Software

Forecast Accuracy at the SKU Level is Achievable

Logility

FEBRUARY 26, 2020

Over my 25+ year supply chain career I have worked for several distribution-intensive companies and every single one of them had a focus on improving forecast accuracy. Achieving a high SKU level forecast accuracy is a top goal for supply chain planning teams regardless of industry, size, location, etc.

Forecasting

Forecasting Forecasting Software Optimal Sourcing Supply and Demand

Supply Chain Roundtable Series: Getting Demand Forecasting Right

Unleashed

MAY 1, 2023

Demand forecasting has gained increasing importance over the last few years. We met with five supply chain experts to discuss how crucial demand forecasting is for mitigating risk, and what businesses can do to improve forecast accuracy. Our experts explain that best-practice demand planning begins with a top-down forecast.

Forecasting

Forecasting Supply and Demand Modeling Forecasting Software

Building a Business Case for Improved Demand Forecasting

ToolsGroup

OCTOBER 11, 2017

I’ve always maintained that improving demand forecast accuracy, as helpful as it can be, shouldn’t be the end goal itself, but simply a means to the end. A recent report from Gartner agrees, focusing specifically on the challenge of building a better business case for improved forecast accuracy.

Forecasting

Forecasting Supply and Demand Forecasting Software Optimal Sourcing

Forecasting and Demand Planning for a Better, Unified Future

Logility

JANUARY 14, 2020

Year after year, survey after survey, forecast accuracy continues to be one of the top metrics for measuring supply chain performance. Russell Goodman, editor-in-chief at SupplyChainBrain , sat down with several supply chain leaders to discuss the impact of Forecast Accuracy on driving better decision making.

Supply and Demand

Supply and Demand Forecasting Demand Planning Modeling

What’s the Value of Demand Forecasting?

New Horizon Supply Chain Blog

AUGUST 30, 2023

Introduction I was recently in a conversation about forecasting with a client team, and one individual, whose background was not in supply chain, asked what the value of demand forecasting is. Inventory metrics are less intuitive, but ever since U.S. The link between forecast accuracy and corporate goals is less clear.

Forecasting

Forecasting Supply and Demand Material Savings Inventory Reduction

How to Get Started with Value-add Forecasting (Part 2)

Logility

APRIL 23, 2020

So, the promise of using statistical algorithms, forecasting and predictive analytics is now added to the list of a company’s number one priorities. Here are a few steps that you will need to take to deploy your forecasts successfully. Take a data asset inventory. Here lies a classic example of ‘garbage in, garbage out’.

Forecasting

Forecasting Forecasting Software How To Procurement Analytics

Outside-in Process Q&A

Supply Chain Shaman

FEBRUARY 26, 2024

Based on the work with Georgia Tech, we are getting clear on which metrics matter by industry. As companies adopt a balanced scorecard, the functional metrics shift to a focus on reliability. For example, in manufacturing, the shift in focus is away from OEE to focus on first pass yield and schedule adherence.)

Modeling

Modeling Supply and Demand Optimal Sourcing Supply Chain Planning Software

A New Decade: Give Science A Chance

Supply Chain Shaman

DECEMBER 28, 2020

Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns. When compared to pre-recession years, we ended the decade with twenty more days of inventory. Days of Inventory Comparison. So, I asked the questions, “Is your data forecastable?

Supply Chain Planning Software

Supply Chain Planning Software Forecasting Forecasting Software Modeling

Demand Forecasting: A Primer

New Horizon Supply Chain Blog

SEPTEMBER 18, 2023

Introduction I started to write a “Demand Forecasting 101” article but decided that was going to turn into another Ph.D. This is a list of things that I learned about demand forecasting early in my career – things that would have been nice to know from day one. But this list is agnostic of the particular forecasting technology used.

Forecasting

Forecasting Supply and Demand Forecasting Software Modeling

Asking the Right Questions Is The First Step To Drive Supply Chain Excellence

Supply Chain Shaman

JUNE 29, 2021

Using balance sheet data from 2011 to 2019, we chart companies’ progress by peer group on rate of improvement and performance in the metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). Let me share some and see what you think: Does forecast ownership make a difference in outcomes?

Supply Chain Planning Software

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Design

Avoiding Dead-end Streets As We Build the Future of Supply Chain Planning

Supply Chain Shaman

SEPTEMBER 22, 2022

I forecast this disruption period as the new normal is not over. At the beginning of the pandemic, the forecasted period of disruption of seven-to-eight months. Examples include projects like control towers, lights-out planning, real-time planning, DDMRP, forecast sharing, and sales forecasting. Forecast Sharing.

Supply Chain Planning Software

Supply Chain Planning Software Supply Chain Planning Optimal Sourcing Modeling

Inventory Control Chart: Definition, Uses, Examples

Unleashed

MAY 1, 2023

An inventory control chart is an immensely helpful tool for demand forecasting and inventory management. What is an inventory control chart? An inventory control chart, also known as a stock control chart, is a visual diagram that reflects the minimum and maximum stock levels of a business over time.

Inventory Reduction

Inventory Reduction Examples Inventory Inventory Management Software

Metrics that Matter: Inventory Effectiveness

QAD

JUNE 25, 2019

The effective use of a manufacturer’s inventory investment is an important determinant of the company’s success. Excess and obsolete inventory is a drain on resources, as is excessive safety stock. Managing an Inventory Investment. Managing an Inventory Investment. Using Metrics to Measure the Health of the Business.

Procurement Analytics

Procurement Analytics Metrics Inventory Reduction Inventory

17 Key Inventory Metrics & KPIs for 2023

Unleashed

APRIL 18, 2023

Great inventory management comes down to good systems, good processes, and constant improvement. The last of these can be achieved by tracking the right inventory metrics, analysing the results, and making data-driven optimisations. So, what are the ‘right’ inventory metrics, and how do you calculate them?

Procurement Analytics

Procurement Analytics Metrics Inventory Reduction Inventory

Dispelling Untruths: 10 Generative AI Myths

Logility

MARCH 21, 2024

During this time, the same AI tools that underwrite new technologies have been key in improving efficiency and optimizing all areas of logistics and supply chain processes including forecasting, supply planning, inventory management, manufacturing, network optimization, and more. trillion parameters.

Optimal Sourcing

Optimal Sourcing Supply Chain Planning Software Modeling Software Inventory Reduction

Demand Forecasting: A Primer

New Horizon Supply Chain Blog

MARCH 20, 2023

Introduction I started to write a “Demand Forecasting 101” article but decided that was going to turn into another Ph.D. This is a list of things that I learned about demand forecasting early in my career – things that would have been nice to know from day one. But this list is agnostic of the particular forecasting technology used.

Forecasting

Forecasting Supply and Demand Forecasting Software Modeling

Omnichannel Supply Chain Metrics: What Should Supply Chain Leaders Measure?

GlobalTranz

JUNE 14, 2017

The answer lies using these omnichannel supply chain metrics to carefully track and improve operations continuously. Inventory Accuracy. This is a simple key performance indicator (KPI), another name for metrics, to track. It refers to the in-stock or out-of-stock accuracy of supplier inventory. Forecasting Accuracy KPIs.

Procurement Analytics

Procurement Analytics Omnichannel Metrics Supply Chain Design Software

Here’s What’s Wrong with Demand Forecasting

ToolsGroup

DECEMBER 21, 2015

Since there will be a week off between posts, we wanted to forgo the fluff in most year-end blogs and leave you with a deep philosophical thought to ponder while on your holiday break, and it’s this: Maybe you are doing your demand forecasting completely wrong. And the impact is that you may not be getting the forecast accuracy you want.

Forecasting

Forecasting Forecasting Software Demand Planning Software Supply and Demand

What’s the Value of Demand Forecasting?

New Horizon Supply Chain Blog

JULY 15, 2022

I was recently in a conversation about forecasting with a client team, and one individual, whose background was not in supply chain, asked what the value of demand forecasting is. Inventory metrics are less intuitive, but ever since U.S. The link between forecast accuracy and corporate goals is less clear.

Forecasting

Forecasting Supply and Demand Material Savings Inventory Reduction

AI in the Retail Industry: Benefits, Case Studies & Examples

ThroughPut

MARCH 27, 2024

Every aspect of operations, be it managing the inventory, forecasting demand or fulfilling orders was dependent on human wisdom and intuition. Besides, AI is helping retailers optimize inventory, warehouse and pricing. Every decision was based on data generated and analyzed by humans.

Case Study

Case Study Waste Reduction Inventory Reduction Price Reduction

Supply Chain Dashboards – Key Metrics For Manufacturers

Silvon Software

JUNE 23, 2020

As I mentioned in my previous post, Sales Dashboards – 16 Metrics for Manufacturers , a strategy for measuring business performance should also incorporate metrics that focus on the supply chain and other operational areas of the enterprise. Inventory Turns and Sales-to-Inventory Ratio. DSO – Days Sales Outstanding.

Manufacturing Procurement

Manufacturing Procurement Metrics Gartner Supply Chain Planning Software

How To Use The Days Sales of Inventory (DSI) Metric

Unleashed

DECEMBER 15, 2021

Days Sales of Inventory (DSI) is a key measure to help you understand how efficient your inventory management is. Here explain what DSI is, how to use it, and why it’s crucial to track this metric in your business – whether you’re a retailer, manufacturer, wholesaler or distributor. How do you calculate Average Inventory?

Procurement Analytics

Procurement Analytics Inventory Reduction Metrics Inventory

Vendor Managed Inventory (VMI): Advantages and Examples

Clear Spider

OCTOBER 26, 2022

For many of these successful companies, a Vendor Managed Inventory (VMI) system is the secret to their enviable growth. To break it down, efficient supply chain and inventory management practices should do two things: minimize inventory costs and maximize profits. Why Vendor Managed Inventory? The Problem with Sales Data.

Vendor Strategies

Vendor Strategies Inventory Reduction Examples Cost Reduction Strategies

eCommerce Automation: Solutions, Benefits, & Examples

Unleashed

MARCH 5, 2024

eCommerce automation helps businesses maximise productivity by optimising daily processes such as inventory management , fulfilment, and customer service. This article explores the basics, before diving into common challenges and examples. But what does eCommerce automation look like, and how does it work? What is eCommerce automation?

Supply Chain Software

Supply Chain Software Procurement Solutions Examples Inventory Management Software

Beware the Swinging Pendulum on Supply Chain Inventory Practices

Logistics Viewpoints

FEBRUARY 3, 2022

Supply shortages resulting in empty shelves or parking lots of WIP inventory represent a spectre causing supply chain leaders to reconsider supply chain inventory practices. Opinion of just-in-time (JIT) as a practice has taken a battering and inventory is rising. Is supply chain inventory the problem?

Inventory Reduction

Inventory Reduction Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning

Track the Supply Chain Metrics that Really Matter

Precoro

MAY 19, 2023

To monitor supply chain performance, stakeholders of successful companies typically define supply chain metrics that are relevant to the given business and track these KPIs regularly. By setting benchmarks for metrics, analysts can recognize unsettling trends and take preventive measures on time.

Procurement Analytics

Procurement Analytics Metrics Supply Chain Planning Software Supply Chain Software

Trying to Push Content Above the Noise

Supply Chain Shaman

JANUARY 2, 2024

We talk about the move from functional metrics to a balanced scorecard, but we don’t use a balanced scorecard as an objective function. We talk about complexity, but do not measure the impact on forecastability. Orbit charts of four companies for the period of 2013-2022 at the intersection of operating margin and inventory turns.

Gartner

Gartner Supply Chain Planning Software Supply Chain Design Software Case Study

What is Dead Stock? Meaning, Strategies, & Examples

Unleashed

SEPTEMBER 28, 2023

If you’ve ever had inventory sitting in the storeroom or warehouse unused, unsold, and taking up space – you’ve experienced dead stock. Fortunately, efficient dead stock inventory management can help you avoid those losses. It can appear in the form of raw materials, in-progress inventory, or finished goods. Let’s dive in.

Material Savings

Material Savings Inventory Reduction Price Reduction Cost Reduction Strategies

Holding Ourselves Accountable for Business Results

Supply Chain Shaman

JULY 25, 2021

Orbit Chart of Four Industry Sectors at the Intersection of Operating Margin and Inventory Turns (Year-over-Year Averages for the Sector). Implementation of Sales Forecasting. The focus on sales forecasting started shortly after Y2k. Lack of Focus on Form & Function of Inventory and Designing Network Flows.

Procurement Analytics

Procurement Analytics Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Planning Software

Driving Supply Chain Analytics User Adoption with Cross-Departmental Metrics

Logility

MAY 22, 2020

The obvious danger of this is that business rules and data governance often don’t exist from department to department or user to user, leaving an overall picture into the health of the business that is foggy because KPIs and metrics do not correlate across the organization. A great example of this comes from a Logility customer.

Analytics Software

Analytics Software Metrics Supply Chain Design Software Supply Chain Software

Corporate Politics and the Right Forecast Level for Planning

New Horizon Supply Chain Blog

JUNE 18, 2022

If you do a Google search, you can find a huge number of articles providing expert guidance on how to measure forecast accuracy, going into the merits of root-mean-square error and other esoteric topics. Corporate Politics Should Not Drive the Forecast Level. First, a story that prompted this blog post.

Forecasting

Forecasting Supply Chain Planning Scenario Planning Supply and Demand

Demand Planning Software: Your Comprehensive Guide

Logility

JULY 20, 2023

Good forecasting leads to good demand planning —and good demand planning means better profitability. When you choose the right solution, you can stay ahead of fluctuations in customer demand, achieve high levels of forecast accuracy, handle seasonality, and drive collaboration across supply chain stakeholders.

Supply and Demand

Supply and Demand Supply Chain Planning Software Demand Planning Software Forecasting Software

Business Intelligence vs. Inventory Optimization: Are You Solving Symptoms Instead of the Real Problem?

ToolsGroup

JANUARY 22, 2020

In my decades of working in replenishment and inventory optimization, I’ve noticed that many companies seek solutions to symptoms rather than the underlying problem. For example, I get many requests for business intelligence (BI) tools; mostly because they want to monitor symptoms. Let’s examine the first: inventory aging reports.

Optimization Software

Optimization Software Inventory Reduction Forecasting Software Supply Chain Planning Software

Toilet Paper Shortages, Empty Shelves, and Panic Buying: Just How Bad Did the Grocery Supply Chain Perform in 2020?

Logistics Viewpoints

OCTOBER 4, 2021

Because of service disruptions – not being able to buy toilet paper, for example – the supply chain has been more discussed than ever before. A study by E2open – the 2021 Forecasting and Inventory Benchmark Study: Supply Chain Performance During the Covid-19 Pandemic – provides the answers. But just how bad was it?

Inventory Reduction

Inventory Reduction Supply Chain Performance Cost Reduction Strategies Supply and Demand

Thriving In ‘The New Normal’ With 5 Demand Forecasting Models

ThroughPut

OCTOBER 7, 2022

Step Up Demand Planning Efforts with a Robust Forecasting Model . Demand forecasting can be a game changer in today’s volatile environment. Infact, according to McKinsey , applying AI-driven demand forecasting to supply chain management can cut down errors by 20-50% and this helps reduce lost sales by 65%.

Forecasting

Forecasting Modeling Supply and Demand Forecasting Software

Tools of the Trade: How “Forecastable” is Your Data? Complexity Exists Whether You Ignore It or Not

Arkieva

NOVEMBER 9, 2021

The folks in the trenches want a definitive answer – give me a simple metric that I can use in all cases that provides guidance. Tools of the Trade: How “Forecastable” is Your Data? They do not want the academic cop out – “it depends”.

Forecasting Software

Forecasting Software Forecasting Supply Chain Planning Software Supply Chain Software

7 Cash Flow Metrics & KPIs You Should Be Tracking

Unleashed

FEBRUARY 12, 2023

To stay on top of your financials, there are a few key cash flow metrics and KPIs you can track that will help you make the right decisions and avoid insolvency or liquidation. Learn more: Inventory Accounting: A Video Guide for Accountants & Advisors What are cash flow metrics? Here’s a look at our top seven.

Procurement Analytics

Procurement Analytics Metrics Expense Reduction Inventory Reduction

Supply Chain Performance Declined In the Last Decade. The Question is Why?

Supply Chain Shaman

APRIL 9, 2021

Rise in Inventories. Less Effective at Inventory Management. Inventories grew twenty days over the decade. Yes, companies held more inventory (measured in days of inventory) in 2019 than at the start of the 2007 recession. Sadly, most of it is the wrong inventory. Despite spending 1.1% Alignment Barriers.

Supply Chain Planning Software

Supply Chain Planning Software Procurement Analytics Supply Chain Performance Manufacturing Procurement

Aligning Supply Chain Metrics to Improve Value

The Forecasting Accuracy Bugaboo

Trending Sources

Don’t Wait to Innovate: 3 Key Benefits of Causal Forecasting

What is Demand Forecasting? Importance and Benefits of Forecasting Customer Demand

Weather Permitting: How to Use Weather Data in Retail Forecasting

Just Jump

Forecast Accuracy at the SKU Level is Achievable

Supply Chain Roundtable Series: Getting Demand Forecasting Right

Building a Business Case for Improved Demand Forecasting

Forecasting and Demand Planning for a Better, Unified Future

What’s the Value of Demand Forecasting?

How to Get Started with Value-add Forecasting (Part 2)

Outside-in Process Q&A

A New Decade: Give Science A Chance

Demand Forecasting: A Primer

Asking the Right Questions Is The First Step To Drive Supply Chain Excellence

Avoiding Dead-end Streets As We Build the Future of Supply Chain Planning

Inventory Control Chart: Definition, Uses, Examples

Metrics that Matter: Inventory Effectiveness

17 Key Inventory Metrics & KPIs for 2023

Dispelling Untruths: 10 Generative AI Myths

Demand Forecasting: A Primer

Omnichannel Supply Chain Metrics: What Should Supply Chain Leaders Measure?

Here’s What’s Wrong with Demand Forecasting

What’s the Value of Demand Forecasting?

AI in the Retail Industry: Benefits, Case Studies & Examples

Supply Chain Dashboards – Key Metrics For Manufacturers

How To Use The Days Sales of Inventory (DSI) Metric

Vendor Managed Inventory (VMI): Advantages and Examples

eCommerce Automation: Solutions, Benefits, & Examples

Beware the Swinging Pendulum on Supply Chain Inventory Practices

Track the Supply Chain Metrics that Really Matter

Trying to Push Content Above the Noise

What is Dead Stock? Meaning, Strategies, & Examples

Holding Ourselves Accountable for Business Results

Driving Supply Chain Analytics User Adoption with Cross-Departmental Metrics

Corporate Politics and the Right Forecast Level for Planning

Demand Planning Software: Your Comprehensive Guide

Business Intelligence vs. Inventory Optimization: Are You Solving Symptoms Instead of the Real Problem?

Toilet Paper Shortages, Empty Shelves, and Panic Buying: Just How Bad Did the Grocery Supply Chain Perform in 2020?

Thriving In ‘The New Normal’ With 5 Demand Forecasting Models

Tools of the Trade: How “Forecastable” is Your Data? Complexity Exists Whether You Ignore It or Not

7 Cash Flow Metrics & KPIs You Should Be Tracking

Supply Chain Performance Declined In the Last Decade. The Question is Why?

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