Vendor-managed inventory and distribution planning in the food and beverage industry – here’s something to chew on

Kinaxis

by Jeswin Philip The Food Packaging Trends and Advances report from PMMI forecasts that the US Food and Beverage industry will experience a 2.9 % CAGR through 2022. The report also mentions that the global growth rate is almost double that of the US food industry. Food for thought: Time for a different kind of supply chain. What is vendor-managed inventory? The benefits of the vendor-managed inventory process include: Enhanced visibility for vendor.

Lora Cecere on Supply Chain Metrics that Matter

AIMMS

Interview with Lora Cecere, Founder and CEO of Supply Chain Insights and Author of Supply Chain Metrics that Matter ( published December 2014 ). Metrics that Matter became a three year research project. I hired a research assistant to look at balance sheets and looked at performance and really tried to figure out which metrics mattered. We interviewed supply chain leaders and in the middle of that I decided that I would write this book, Supply Chain Metrics that Matter.

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Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process

Cerasis

The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ). The definition of this metric is similar to the way it sounds. Quality affects many different parts of the business, so it is critical to establish a comprehensive metric that provides visibility into the most important areas of operations.

Traceability In Food & Beverage Manufacturing is The Cornerstone of Quality

IQMS

Compliance and quality are the foundations all great food & beverage manufacturers rely on to create and strengthen trust with their distribution networks and customers. Traceability Is Key To Excelling At Compliance And Quality for Food & Beverage Manufacturing Companies. Traceability for food & beverage manufacturers isn’t optional anymore.

Measuring Up?

Supply Chain Shaman

The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. In our analysis, only one out of ten companies successfully improves operating margins and inventory turns at the same time. We find that companies can improve one, but not two of the metrics. Teams struggle to drive improvement in both metrics at the same time. Inventory Turns.

What to Look for in a Food Distribution Warehouse Provider

Kanban Logistics

Makers of food products, however, have a host of safety and regulatory requirements to contend with that make selecting the right 3PL even more crucial. In this article, we’ll examine the many things you’ll need to look for in a food distribution warehouse provider to not only optimize your operations – but do so safely as well. A big part of most food logistics operations involves temperature and climate control. Food Safety Plan. Food import services.

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What to Look for in a Food Logistics Services Warehouse

Kanban Logistics

If you’re looking for a warehousing provider to store your food products, you’re looking for more than storage space – you’re looking for an expert that will protect the integrity of your products. To help you find your food logistics services expert, we’ve identified 5 key questions to ask your prospective partners. 5 questions to ask your food logistics services provider. Custom reporting of the metrics important to your business. Food Logistics Outsourcing 3PL

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Why Inventory Revaluation Is Your Next Important Task

Unleashed

All product-based businesses need to track the value of their inventory – and this goes double in a period of dramatic upheaval. The value of your inventory has likely changed thanks to the Covid-19 crisis, and you should consider revaluing it before you make any major business decisions. To help you understand the importance of tracking this metric we’ll illustrate several ways the value of your stock can change. What is inventory revaluation?

Which Metrics Matter? Interview with Philippe Lambotte

Supply Chain Shaman

My journey to understand supply chain Metrics That Matter started three years ago. When I sat down to write the book, Bricks Matter, I believed that companies had used supply chain technologies to reduce operating margin and improve inventory turns. We are currently mapping the progress of all public manufacturing, distribution and retail companies on three factors: Strength: Year-over-year improvement on operating margin and inventory turns for the past six years.

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics. Ironically, most companies are very entrapped in measuring and rewarding functional metrics which degrades overall improvement.

Logistics Metrics You Didn’t Know You Should Be Watching

Supply Chain Collaborator

Its absence is felt when easily avoidable yard-based delays lead to down time for manufacturing operations, product spoilage for food shippers and inventory shortages for retailers as a few examples. The critical metrics managed with YMS for improved resource planning include: Inbound and outbound dock door scheduling. Asset management/inventory controls. The post Logistics Metrics You Didn’t Know You Should Be Watching appeared first on UltraShipTMS.

Announcing the Supply Chains to Admire for 2019

Supply Chain Shaman

Smaller, more agile companies outperform the larger and well-known brands in the retail, beverages, food, and pharmaceutical industry sectors. It is not as simple as trading-off inventory, cost, and customer service. In the Supply Chains to Admire analysis, the focus is to understand the relative performance of a company within a peer group of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). (We I watch the news channels on mute. The reason?

One Man’s Trash: How Blockchain Can Target Food Waste to Help End World Hunger

Material Handling and Logistics

According to the United Nations, one in nine people today—or 815 million globally—lack access to the food necessary to lead a healthy lifestyle. Every year, one third of the food produced in the world for human consumption—or 1.3 billion metric tons—gets lost or wasted. What’s more, net food losses in developed countries (222 million metric tons) equate to nearly all of the food produced in Sub-Saharan Africa yearly (223 million metric tons).

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Using Analytics to Manage Inventory

Silvon Software

It’s true that inventory management is a challenge for both manufacturers and distributors. For example, excess inventory can cause a decrease in product turnover and a loss of profits, while stock-outs can cause backorders, unhappy customers and lost sales. Optimizing inventory can ensure that the right product is available in the right quantities, at the right time and the right locations, to meet supply and demand. Inventory Surplus.

Why Inventory Revaluation Is Your Next Important Task

Unleashed

All product-based businesses need to track the value of their inventory – and this goes double in a period of dramatic upheaval. The value of your inventory has likely changed thanks to the Covid-19 crisis, and you should consider revaluing it before you make any major business decisions. To help you understand the importance of tracking this metric we’ll illustrate several ways the value of your stock can change. What is inventory revaluation?

Don’t Perpetuate the Hoax of the Gartner Top 25

Supply Chain Shaman

Inventory Turns (15%) (based on 2014 results). As a result, when the spreadsheet is sorted, a chemical company is stack-ranked against a retail player, and a high-tech company against a food distributor. Supply chain leaders manage a complex system of non-linear, but very inter-connected metrics. Leaders need to balance a portfolio of metrics. Year-over-year Improvement at the Intersections of the Metrics.

How Supply Chain Efficiency Can Cut Costs for Food Ingredient Shippers

Zipline Logistics

Controlling costs in the supply chain is an excellent way for businesses in any sector to find increased profitability, but it is especially true for food ingredient shippers. Pragmatic analysis can uncover opportunities to make improvements that can help control inventory and manage costs. By having enhanced visibility into crucial logistics processes, ingredient shippers can increase efficiencies, reduce cost, shorten time to market, and improve inventory management.

Why I No Longer Believe in the Gartner Supply Chain Top 25

Supply Chain Shaman

The research tries to establish “ who did supply chain best ” by looking at a weighted formula of Year-over-Year Growth, Return on Assets (ROA), and Inventory Turns for the Fortune 500 companies. Inventory Turns values are based on an average of quarterly reporting for the past year. The AMR Top 25 was the first methodology that tried to connect financial metrics with supply chain excellence. See how different the progress is on this metric by industry?

History Repeats Itself Without Supply Chain Leadership

Supply Chain Shaman

I started to work at General Foods’ largest plant in Dover, DE, in the summer of 1982 at the age of 24. Tom, the colorful warehouse manager, constantly heckled Frank for the increasing inventory levels while Ed, the quiet material/logistics manager, constantly questioned if there was a better way. He felt that inventory was no problem, he would just cut it at the end of each quarter to make the balance sheet goals. The second step is to align metrics to the strategy.

Food Recalls and WMS: Benefits of Recall Functionality in a Warehouse Execution System

Veridian Solutions

The threat of food-borne illness marred the 2018 Thanksgiving holiday. Two days before the day of thanks, the Centers for Disease Control and Prevention (CDC) issued a food safety alert advising people to avoid all types of romaine lettuce due to an E. Before problems arise, companies must properly select and implement the right systems in order to manage food recalls, including warehouse management system (WMS) and potentially warehouse execution system (WES).

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Food Recalls and WMS: Benefits of Recall Functionality in a Warehouse Execution System

Veridian Solutions

The threat of food-borne illness marred the 2018 Thanksgiving holiday. Two days before the day of thanks, the Centers for Disease Control and Prevention (CDC) issued a food safety alert advising people to avoid all types of romaine lettuce due to an E. Before problems arise, companies must properly select and implement the right systems in order to manage food recalls, including warehouse management system (WMS) and potentially warehouse execution system (WES).

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Novo Nordisk: A Story of a Supply Chain Leader

Supply Chain Shaman

Note that neither company is making progress at the intersection of operating margin and inventory turns. Performance of BMS and Merck at the Intersection of Inventory Turns and Operating Margin. Orbit Chart for Novo Nordisk at the Intersection of Operating Margin and Inventory Turns for the period of 2006-2015. As shown in Table 1, based on continued improvement initiatives, the Novo Nordisk company outperforms their peer group in all areas except inventory turns.

New Bookends: The Tale of Supply Chain Global Leaders in Consumer Products

Supply Chain Shaman

Overall Results on the Supply Chain Metrics That Matter. In the last five years, consumer products and food/beverage leaders faced different challenges. Overall, in the industry, there is more forward momentum in consumer products sector than the food/beverage peer groups. These giants drove slight improvements in operating margin, inventory turns and Return on Invested Capital (ROIC) despite a slowing economy. Definition.

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Sage Advice? Only for Turkeys.

Supply Chain Shaman

While companies have increased Revenue per Employee across the healthcare value chain, the Days of Inventory have increased for suppliers, and there is a shift in power to the healthcare provider. I also see that we are not decreasing the total inventory levels in the network or accelerating time to value. When I evaluate companies at an enterprise level, I see that growth has flattened, inventories are growing and we are losing operating margin.

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Renegade Riposte

Supply Chain Shaman

The more that I work on supply chain metrics, the more that I believe that both the SCOR model and the Gartner Hierarchy of Supply Chain Metrics (which I worked on for the period of 2006-2010) reward functional, not end-to-end supply chain behavior. I responded, by saying that I believe that the SCOR model and the Gartner Hierarchy of Metrics reward functional behavior and improve functional outcomes. What CEO does not like the concept of reducing inventory?

Service Foods Set for Global Expansion with Scalable Analytics

Halo

Service Foods Set for Global Expansion with Scalable Analytics. With Halo, Service Foods is set to expand globally with the support of a modern, scalable analytics platform. inventory balances as orders ebbed. Key sales metrics consolidated in a single, comprehensive view. Aneil Balar, Managing Director, Service Foods. The post Service Foods Set for Global Expansion with Scalable Analytics appeared first on Halo.

Why Large Companies Increasingly Opt for 4PL Services

Logistics Bureau

Even slight delays or inventory shortages can have a severe impact on a company’s bottom line. The market is also growing across a wide range of commercial sectors, including the following: 1) Food and Perishables.

A Better Approach to Supply Chain Segmentation?

ToolsGroup

Most companies segment their supply chain by breaking it down according to operational and logistical metrics. In a 2015 SupplyChainBrain interview she says this allows companies to give their customers a differentiated experience – she compares it to the difference between fine dining and fast food. This approach of focusing on the customer for supply chain segmentation can also be applied to inventory segmentation. Supply Chain Planning Inventory Optimization

The Story Continues…. Let’s Don’t Sugar Coat the Real Issue

Supply Chain Shaman

Today, this is not a valid assumption, and most manufacturers lack the inventory buffers for inconsistent flows. On March 16th-18th, I will be on a book tour in Europe discussing the concepts of Supply Chain Metrics That Matter. Uncategorized cargo global trade inventory ports supply chain visibility

Don’t Make These 8 Horrible Inventory Management Mistakes Before Halloween

EMERGE App

Not cleaning up the inventory skeletons in your closet can mean a difference between a ho-hum year and a bumper year. Here we’re going to cover some common inventory management mistakes that businesses make while winding up the year. Inventory Management Mistakes – 8 Horrors of Inventory Management. Let’s face off with these inventory management mistakes that may be lurking in your business right now. Horror 3: Disappearing Metrics.

Who Should Be In The Winner’s Circle?

Supply Chain Shaman

The first step was to charter a research project with the Arizona State University statistics department to analyze which combination of metrics drives the highest market capitalization. Mondelez Performance Against the Food Group for 2010-2019.

Supply Chains to Admire: 2016 Results

Supply Chain Shaman

We determine which companies have driven higher levels of improvement (based on Supply Chain Index calculations) and shareholder value (as defined by Price to Tangible Book Value) while outperforming their peer group on growth, operating margin, inventory turns and Return on Invested Capital (ROIC). Check out their performance by plotting year-over-year metrics at the intersection of two ratios and look at the patterns. Five months of analysis. Lots of heated debates.

How Machine Learning Is Redefining Supply Chain Management

IQMS

Key factors influencing inventory levels, supplier quality, demand forecasting, procure-to-pay, order-to-cash, production planning, transportation management and more are becoming known for the first time. Gaining greater contextual intelligence using machine learning combined with related technologies across supply chain operations translates into lower inventory and operations costs and quicker response times to customers.

What does ‘on-time, in-full’ (OTIF) mean in the consumer sector?

PINC

and Trading Partner Alliance outline some of the key considerations that should go into developing and using the on-time and in-full delivery metric. To fill these gaps, a growing number of companies operating in the consumer sector have adopted the “on-time in-full” (OTIF) delivery metric.

Is Your Supply Chain Ready for Social Media-Fueled Demand Volatility?

ToolsGroup

That means there are many companies out there struggling to make sense of constantly shifting demand data and to make smart inventory optimization decisions. There are all sorts of data to tap into, such as social sentiment, point-of-sale (POS), inventory, on-shelf availability and more.