Logistics Viewpoints

APRIL 10, 2025

Leading organizations are building supply chains that are less exposed to single points of failure, more informed by real-time data, and more able to adjust sourcing, inventory, and routing based on current conditions. Metrics must reflect the new priorities. Technologyparticularly AIis playing a central role in enabling this shift.

Optimal Sourcing 216

Optimal Sourcing Modeling Supply Chain Optimization Cost Reduction Strategies 216

Supply Chain Shaman

MAY 15, 2023

Use of Supply Chain Descriptors Most organizations are locked into functional silos driven by functional metrics. Stuck in a rut, supply chain leaders try to punch their way through a set of conflicting metrics and priorities each day. The metrics defining success in manufacturing and procurement do not align.

Manufacturing Procurement 468

Manufacturing Procurement Optimal Sourcing Agile and Lean Supply Chain Supply Chain Planning 468

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. Now, let’s take consumer products. What can we learn?

Supply Chain Planning Software 418

Supply Chain Planning Software Forecasting Forecasting Software Modeling 418

Supply Chain Shaman

APRIL 27, 2022

At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) Let’s take P&G as an example. A Case Study.

Procurement Analytics 369

Procurement Analytics Manufacturing Procurement Supply Chain Planning Software Supply Chain Design Software 369

RFgen

DECEMBER 4, 2024

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.

Sourcing Strategies 96

Sourcing Strategies Waste Reduction Inventory Reduction Expense Reduction 96

Silvon Software

APRIL 16, 2025

Inventory is the lifeblood of any manufacturing business. By leveraging analytics and key performance indicators (KPIs), manufacturers can optimize inventory, reduce waste, and boost profitability. Tracking inventory flow and performance across your supply chain is a must. Thats where data-driven decision-making comes in!

Optimal Sourcing 65

Optimal Sourcing Inventory Reduction Supply Chain Optimization Price Mitigation Strategies 65

Supply Chain Shaman

SEPTEMBER 3, 2018

Over the last six years, we studied the connection between business results (growth, operating margin, inventory turns and Return on Invested Capital (ROIC)) and the link to company characteristics. Let me give you example. Reward teams for cross-functional metrics. Focus functional metrics to improving reliability.

Supply Chain Planning Software 377

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Software 377

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). A focus on functional metrics throws the supply chain out of balance.) Most are just that words.

Supply Chain Planning Software 370

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Design 370

ToolsGroup

MARCH 25, 2025

Even more impressive, lost sales due to stockouts can decrease by up to 65%, while inventory reductions of 20% to 50% are possible. This advanced analysis allows businesses to predict promotional lift with unprecedented accuracy, ensuring optimized production schedules and inventory positioning through sophisticated supply planning.

Supply and Demand 156

Supply and Demand Forecasting Forecasting Software Modeling 156

Supply Chain Shaman

MAY 13, 2024

How aligned do you believe your organization is to drive these metrics? For example, in the research, I found maturity in Cadbury, DuPont, and Gilette processes. P&G did not appreciate the work Gilette accomplished on form and function of inventory and using market signals. Is your plan feasible? Were they used?

S&OP 393

S&OP Supply and Demand Inventory Reduction Expense Reduction 393

Supply Chain Shaman

JANUARY 9, 2024

For example, in Figure A, we share on orbit chart on how Sanofi is underperforming the industry. An average margin of 21% with inventory turns of 1.58 As shown in Figure B, the company improved cash-to-cash through the extension of payables, but never improved inventory levels after the spin-off from Kraft.

Supply Chain Planning Software 386

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Gartner 386

Supply Chain Shaman

MAY 25, 2024

The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. As an aside, I do not think that Lenovo is an example of a supply chain excellence. The second part of the story is that inventory turns for Lenovo are 10.8, For the past decade, I have been studying these patterns.

Eliminating Excel in Purchasing 384

Eliminating Excel in Purchasing Gartner Supply Chain Design Supply Chain Strategy 384

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. For example, let’s take a look at the patterns of Anheuser Busch, Colgate-Palmolive, Mondelez, and Nestle shown in Figure 1. Collectively, these companies are not resilient. ” Figure 2.

Gartner 368

Gartner Supply Chain Planning Software Supply Chain Design Software Case Study 368

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 199

Optimization Software Inventory Reduction Forecasting Software Supply Chain Planning Software 199

Supply Chain Shaman

JUNE 24, 2022

The future inventory fire sale. One of my stark realizations this year is that smaller companies are beating larger and often more established companies on growth metrics, inventory turns, operating margin, and Return on Invested Capital (ROIC). (In The metrics selection resulted from work with Arizona State University in 2013.)

Supply Chain Planning Software 397

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Software 397

Supply Chain Shaman

MAY 29, 2014

I just don’t think the comparison of very different industries in a spreadsheet based on growth, inventory values, and Return on Assets (ROA) is meaningful. As a result, the metrics have to be viewed together as a pattern over time. In the journey, the supply chain leader needs to improve the potential of a portfolio of metrics.

Gartner 366

Gartner Inventory Reduction Supply Chain Planning Software Pharmaceutical 366

Supply Chain Shaman

OCTOBER 5, 2018

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.

Case Study 329

Case Study Inventory Reduction Study Agile and Lean Supply Chain 329

Logistics Viewpoints

JUNE 4, 2025

Recent examples included the rollout of a new inventory planning application and the introduction of a hybrid AI-powered demand forecasting engine. Clark noted that these developments were designed to meet emerging customer needs, particularly in markets experiencing unpredictable demand and inventory constraints.

Supply Chain Design Software 215

Supply Chain Design Software Supply Chain Planning Software Modeling Software Forecasting Software 215

ivalua

MAY 29, 2025

While procurement operates as a function within the broader supply chain, it has its own set of priorities for strategic sourcing in procurement, performance metrics, and specialized processes. These agreements often include performance metrics, sustainability requirements, and service-level expectations that are continuously monitored.

Procurement Solutions 130

Procurement Solutions Optimal Sourcing Manufacturing Procurement Supply Chain Planning Software 130

Logistics Viewpoints

FEBRUARY 16, 2021

This example illustrates why supply chain visibility isn’t enough. And the impact doesn’t stop there, since trade-off decisions will be required to answer questions like which customer is most important to satisfy with the limited bolts in inventory and if production capacity should be reallocated. Agility to act on transparency.

Supply Chain Visibility 329

Supply Chain Visibility Agile and Lean Supply Chain Supply Chain Planning Software Scenario Planning 329

SCMDOJO

OCTOBER 30, 2024

For instance, a student struggling with inventory management concepts can receive supplementary materials, interactive simulations, and one-on-one tutoring sessions tailored to their needs. Conversely, a student who quickly grasps procurement strategies can be challenged with advanced case studies and leadership projects.

Supply Chain Planning Software 97

Supply Chain Planning Software Analytics Software Forecasting Software Predictive Analytics Software 97

Supply Chain Shaman

MARCH 5, 2019

For example, the goal is not track truck location, but to provide insights on location in context with a delivery appointment. For example, will the truck be late to arrive against a pre-established appointment. The focus is on functional metrics, but are unable to get to overall supply chain metrics. 2) Latency.

Supply Chain Design Software 339

Supply Chain Design Software Real-time Visibility Prescriptive Analytics Software Supply Chain Planning Software 339

Logistics Bureau

DECEMBER 22, 2024

A KPI is a practical and objective measurement of progress, either: Towards a predetermined goal, or Against a required standard of performance It might help to think of a KPI as something like an instrument on a car dashboarda speedometer, for example. Why Are KPIs Important?

KPI 74

KPI Agile and Lean Supply Chain Supply Chain Strategy Supply Chain 74

Taulia

DECEMBER 6, 2024

How are companies rethinking their liquidity management strategies in response to the recent degradation across major working capital metrics? In the wake of economic uncertainty, many companies have experienced a degradation in key working capital metrics.

Inventory Reduction 52

Inventory Reduction Forecasting Software Supply Chain Planning Software Optimization Software 52

Logistics Bureau

JANUARY 21, 2025

An efficient supply chain strategy is one that takes every aspect of your supply chain into account, from inventory management and warehouse design to freight tendering and transport optimisation. Inventory Management The key starting point is implementing proper ABC analysis, and you need to look at it from multiple angles.

Supply Chain Design Software 98

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Supply Chain Design 98

Supply Chain Shaman

SEPTEMBER 17, 2014

While the performance rankings were based on comparisons of inventory turns, operating margin and Return on Invested Capital (ROIC) for the periods of 2006-2013 and 2009-2013, the concept is that to be a supply chain leader you must outperform and drive improvement. Aligned Metrics. Take General Mills and Kellogg an example.

Optimal Sourcing 365

Optimal Sourcing Supply Chain Design Software Supply Chain Planning Software Manufacturing Procurement 365

Precoro

MAY 13, 2025

  In this guide, we’ll explore what cost efficiency is, examples, and best practices on how cost efficiency can make your company more competitive and profitable in today's fast-paced economy. Example of cost efficiency A TechRepair Company operates two service plans: Plan A costs $6,000 monthly and services 1,200 devices.

Sourcing Strategies 45

Sourcing Strategies Cost Reduction Strategies Purchasing Skills Negotiating Skills 45

Supply Chain Shaman

MARCH 21, 2024

We explore the concept of holistic inventory strategies focused on the form and function of inventory. In the process, we learn that only 15-20% of inventories are safety stock and that the current APS frameworks do not enable a holistic analysis of the form and function of inventory. Lack of aligned metrics.

Inventory Reduction 434

Inventory Reduction Supply Chain Planning Software Cost Reduction Strategies Supply Chain Design Software 434

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 273

Modeling Supply and Demand Optimal Sourcing Supply Chain Planning Software 273

Enchange Supply Chain Consultancy

JULY 3, 2024

If you don’t, you risk choosing the wrong distributor partner and, for example, the market entry fails to meet expectations. Ensure they have the necessary inventory, marketing materials, and training to effectively introduce your products to the market. Utilize inventory management tools and techniques to optimize stock levels.

Inventory Reduction 263

Inventory Reduction Supply Chain Planning Software Material Savings Price Mitigation Strategies 263

Supply Chain Shaman

OCTOBER 22, 2015

The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study. Inventory management is a hot issue. Companies invest in project after project, yet inventory levels remain the same. The Business Problem. The analogy is weight loss.

Inventory Reduction 150

Inventory Reduction Supply Chain Design Software Inventory Supply Chain Planning Software 150

ShipBob

APRIL 9, 2025

From receiving and storing inventory to picking, packing, and shipping orders, there are critical functions that occur within the warehouse that keep your supply chain running smoothly. Ecommerce businesses must navigate a complex web of processes, from receiving and storing inventory to picking, packing, and shipping orders.

Warehousing 52

Warehousing Supply Chain Design Software Optimization Software Supply Chain Planning Software 52

Precoro

JUNE 3, 2025

How to establish a category management system Examples of categories and strategies Why category management in procurement matters How Precoro can help you establish a category management system Frequently asked questions about category management services What is category management? Read on to learn: What is category management?

Manufacturing Procurement 45

Manufacturing Procurement Procurement Analytics Procurement Solutions Material Savings 45

Logistics Viewpoints

APRIL 7, 2025

Static workflows based on outdated assumptions are no match for todays rapidly shifting inventory demands. Network Design: Strategy Without Simulation Designing a modern supply network is a balancing act between service level, inventory positioning, and total landed cost. Heres how the concept plays out in real-world logistics: 1.

Sourcing Strategies 218

Sourcing Strategies Modeling Supply Chain Design Software Supply Chain Planning Software 218

Logistics Viewpoints

JULY 10, 2024

Supply chain resilience refers to planning for things that could go wrong and then creating inventory buffers or contingency plans. SCP solutions provide a solid ROI based on hitting targeted service levels with less raw material, work-in-process, or finished goods inventory. This would be a three-way tradeoff.

Supply Chain Planning Software 316

Supply Chain Planning Software Supply Chain Planning Scenario Planning Modeling 316

Supply Chain Shaman

FEBRUARY 1, 2024

Optimization engines to improve functional metric performance resulted in an exploding number of planners. Let’s take a couple of examples: Retail Available to Promise (ATP). Rolling up a perpetual inventory signal takes eleven hours. days to get a perpetual inventory signal and 2.2 On average, it takes 2.8

Supply Chain Planning Software 392

Supply Chain Planning Software Optimal Sourcing Manufacturing Procurement Waste Reduction 392

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?

Supply Chain Performance 284

Supply Chain Performance Inventory Reduction Supply and Demand Cost Reduction Strategies 284