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Supply Chain Management (SCM) involves orchestrating a product’s or service’s entire lifecycle, from sourcing and production to delivery. 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.
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.
Everything about Apple Inc is the talk of the town, for example, the new Ipad, Iphone, Apple Map or even the environmental and labor issues at its suppliers facilities. Supply Chain Planning at Apple Inc is the classic example of New Product Development Process (NPD). SCM-Operations is now SupplyChainOpz. Case Studies.
Never completed ERP/SCM implementation. Failed SCM implementation causes shipping errors. Maybe, but what is certainly clear from the examples is that the complexity of modern supply chains requires better visibility into every phase of production and distribution. 100M in lost sales and 20% drop in stock price in one year.
At that time, SCM was a pretty new term so this article did the excellent job to explain the important supply chain management principles in one shot. For example, in 2011 Amazon initiated a program called Amazon Prime (free 2-day shipping and discounted 1-day shipping). 7) Adopt Both Service and Financial Metrics.
For example, an application like SAP SNC, while functioning across supply chain tiers, is an enterprise data model that is inside-out, not outside-in. Supply chain management (SCM) is now in its fourth decade. The conventional supply chain planning systems are designed for the enterprise. I have never been in Africa.
TMS is most important for increased capability When asked what features were needed to increase SCM capability, 92 percent of respondents named transportation management as either critical or important. TMS software keeps track of metrics better attuned to the industry, such as fuel trends, number of late shipments, transit times and more.
On the other hand, only 8 percent of companies that were rated by their executives as less than significantly above average on supply chain-related metrics have the same performance. To know the most difficult challenges as perceived by supply chain professionals, we turn to the SCM World’s 2017 Future of Supply Chain survey.
Many SCM researchers feel that the ABS list undervalues the journals of our discipline. I am very curious whether AJG 2018 will finally give SCM journals the ranks they deserve. AJG 2015 has thus become a self-fulfilling prophecy. AJG 2015 has thus become a self-fulfilling prophecy. It contains more than 1,500 entries.
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.
In Part 1: An S&OP Q&A with SCM World’s Kevin O’Marah we discussed the drivers impacting S&OP, the value of the process and the changing rhythm of S&OP meetings. Total cost of supply chain is another metric that does not move as quickly as many would think. Kevin: Shared metrics make sense.
We are trying to understand how supply chain leaders have raised the bar at the intersection of these four sets of metrics on the supply chain effective frontier. I also believe that it is because the organization is not incented to manage cash-to-cash metrics. The results have been eye-opening. I really want to believe.
Leveraging different models of thinking, representing key metrics using data aggregation, exposing real anomalies, and recommending a course of action based on operating models will make businesses smarter. He is an industry thought leader in SCM who enjoys exploring the impact of advanced and emerging tech on supply chains.
The Cost Performance Index (CPI) is a financial efficiency metric used to measure cost performance in projects and operational activities. Example: If a company planned to procure materials worth $100,000 but ended up spending $120,000. Example: A supplier was expected to deliver components worth $500,000. A CPI of 0.83
The MMOC for example includes a graduated severity index, F1 through F3, which define a set of processes and interactions within a supply chain relationship which must be adhered to with frequent measurement and reporting. From a measurement perspective the key trending metrics at a high level include: Supplier on time delivery.
This is an example of a classic supply chain problem, which was affecting Ampacet from both the supplier and provider sides of their business. Our biggest headaches were very basic – we couldn’t easily switch between metric and imperial measures, and currency conversions were a nightmare.
An accomplishment-based resume provides metrics and quantifiable info about a candidate’s accomplishments. For example, if your Supply Chain work has reduced inventory turns or resulted in savings, you want to make sure your resume spells that out loud and clear. Functional resumes tend to list prior experience in terms of “duties.”
Source: Adelante SCM poll of MercuryGate clients. The progress here is also mixed: Source: Adelante SCM poll of MercuryGate clients. Source: Adelante SCM poll of MercuryGate clients. Source: Adelante SCM poll of MercuryGate clients. Source: Adelante SCM poll of MercuryGate clients.
It is typical expressed through a single initiative that can later be held up as an example of supply chain adding more value than just cost reduction. Intel’s initiative “Just say yes” is a prime example of using trade-off analytics to move from an enabler to an equal-partner role. You’re told a customer wants same-day service?
Executives know that clear performance metrics are the starting point for supplier management. For example, displaying On Time In Full rates over time as spend increases, via a trend chart, is more effective for understanding how well a supplier will scale to your needs. Yet many companies find data management and sharing a roadblock.
Supply Chain Management (SCM) is a systematic and controlled procurement operation. SCM performance directly impacts an organization’s general performance. Also, as offshoring makes modern supply chains more complicated, multi-channel distribution and global marketplace emphasize on the importance of SCM.
Source: “The Case for Less Silos, More Intelligence in Supply Chain Management,” webcast presentation by Adrian Gonzalez, Adelante SCM. Source: “The Case for Less Silos, More Intelligence in Supply Chain Management,” webcast presentation by Adrian Gonzalez, Adelante SCM.
Factors such as on-time delivery, freight cost per unit shipped, and transit time are assigned metrics and weighted averages to help users determine how well carriers are performing overall. Take freight rates, for example. appeared first on Supply Chain Management Software (SCM Software) by Logility. Dashboarding.
When it comes to effective store-level planning and allocation, experts have argued that it’s easier for some retail sectors than others – for example, grocery stores are able to make appropriate adjustments for demographic differences across geographic areas. A quick example from the fashion world illustrates this. Frequent Shopper.
Koganti gave the example of the Greeks’ response to the news that the Persians were on their way to invade in the fifth century BCE: Athenian politician and general Themistocles’ response was to urge the building of a navy (which turned out to be devastatingly effective ).
List of Top 10 Supply Chain Analytics Books 1) Supply Chain Metrics that Matter (Wiley Corporate F&A) 1st Edition This book offers an in-depth guide to understanding the link between corporate financials and supply chain maturity, evaluating the progress of over a hundred companies from 2006-2013.
Here lies a classic example of ‘garbage in, garbage out’. Finally, the models are created, tested, validated, and then evaluated to ensure that they will meet the project metrics and goals. The post How to Get Started with Value-add Forecasting (Part 2) appeared first on Supply Chain Management Software (SCM Software) by Logility.
5) Ongoing Assessment of Key Supplier Site Metrics to Ensure Business Continuity with Companies' Requirement and Proactively Identify Potential Risk Factors. Every business has their set of metric which they want to focus on. Here are few examples which I used: Focus Supplier improvement results (DPPM and/or OTD with min.
With the growing reliance on digital technologies and reliable data, Oracle Fusion Cloud SCM has emerged as a powerful platform, enabling organizations to optimize their inventory control practices. One such solution is mobile barcoding, which extends the power of Oracle Fusion Cloud SCM to point-of-scan.
For example: Optimizing a distribution network not only reduces logistics costs but, in most cases, reduces carbon emissions through fewer transportation miles and/or less inventory holding costs. For example, maximizing plant efficiencies often leads to larger inventory holdings and less efficient distribution.
The beverage industry offers a valuable example. Establishing baselines, tracking reductions, or meeting compliance requirements without having accurate, standardized data becomes nearly impossible. It’s resource-intensive by nature, with emissions stemming from agriculture, water use, packaging and outsourced production.
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. To meet the criteria for The Supply Chains to Admire for 2016, companies needed to score better than their peer group average for performance metrics, while driving a higher level of improvement than 2/3 of their industry peer group.
Bryan Ball highlighted the top disruptive supply chain trends including the increasing speed of business, talent and training, and measurement and metric alignment. A few notable examples: American Hotel Register revealed an aggressive attitude toward continuous improvement of its demand and supply planning system.
Most of us, for example, look first at the upper-right hand portion of a screen before glancing at other sections. Putting them in line with raw numbers to show the direction of trends can make scanning a set of metrics and choosing a course of action much simpler. Think of something as simple as the judicious use of icons.
One solution is never going to address every challenge an SCM executive will face, so it is important to determine the best approach for your supply chain through segmentation. To accurately judge one approach versus another, the primary metric for evaluation purposes may need to be established at a different level.
It’s 2022, and there is software on the market for every situation—including software that meets the needs of supply chain management (SCM). Let’s explore the definition of SCM and some additional tools you should consider using. SCM is commonly confused with supply chain logistics , but they’re two different things.
The folks in the trenches want a definitive answer – give me a simple metric that I can use in all cases that provides guidance. These “key tools” balance a need for simple with a need to handle the complexity of SCM – following the IBM adage – complexity exists whether you ignore it or not, best not to ignore it.
It is coming from shop floor systems such as Equipment, Machines, Sensors, Test Stations, Data Historian as well as from business applications such as ERP, SCM, HCM, CRM, MES, Quality etc. Manage downstream orchestration by subscribing to REST services for predictive alerts (for example, put job on hold, create quality non-conformance, etc.)
Within the supply chain discipline, many roles can require extra effort and long hours, especially if you are working to meet a deadline, process a shipment, or stay on a production schedule, for example. What are some things you can do to increase your organization’s employee engagement within supply chain?
Anyway, the author shows you in great detail how you can identify the scope of assessment, the sources of secondary data you need, how to conduct an interview, example of SWOT Analysis, Five Pillar Analysis and the list of interview questions at the end of the chapter. SCM-Operations is now SupplyChainOpz. best of supplychainopz.
by Carol McIntosh Insight #4 – Embracing Supply Chain Technology as a way to change SCM. Measurements can be user login time, use of analysis, metrics improvement (inventory, service, manufacturing releases). Lead by example. Set an example. Bristol, England leads by example in climate change. Skepticism.
Pekar, the VP of Roland DG’s Global SCM Division, gave some interesting insights on the changing role of IT in supply chain. Restaurant mega chain McDonald’s is an example easily identified by most. In case the term is new to you, glocal, in a supply chain context, is the blending of global integration with local responsiveness.
The teams feel good because cash-to-cash metrics improve; but in many cases, in the joyous celebrations, companies do not realize that they have reduced capabilities with suppliers and not made improvements in inventory. To help, we are sharing all the work we have done on maturity models and supply chain performance metrics.
One of these concepts that I hear a lot; but see few tangible examples, is the idea of “customer-segmented supply chain.” While I do not consider this case study as a good example of demand-driven processes, I do believe that they have done some great work on implementing a customer segmented supply chain based on postponement.
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