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.

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. The source data for the analysis comes from Ycharts.). We selected these metrics based on correlation work with Arizona State University in 2012. The winners drove long-term value (measured by market capitalization) while outperforming on the portfolio of metrics shown in Figure 1 and driving improvement faster than their peer groups.

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

Material Handling and Logistics

For organizations that source products from suppliers in remote regions, blockchain can provide clarity in an otherwise murky journey from harvest to retail. 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.

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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. 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. In our recent analysis of supply chains that are “working well” , we find higher performance when companies have source, make and deliver reporting to the supply chain organization.

Q: Food vs Fuel? A: Wrong question…We need more efficient markets!

Supply Chain View from the Field

I have been working with Jay Golden at Duke University on the biobased forecasting project for the USDA, seeking to understand the current scope of the biobased product market ( focused on non-fuel, non-food products). He has been working in the industry for over 25 years, and we had an opportunity to share thoughts on the “food vs. fuel” debate. There is hunger in the market, but it is not caused by a shortage of food.

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Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

Financial reengineering focuses on the optimization of short-term results that are usually based on a functional analysis of source, make, or deliver. Few consultants understand the interrelationships between source, make and deliver. Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. Ironically, most companies are very entrapped in measuring and rewarding functional metrics which degrades overall improvement.

Offering Prayers While Looking Down the Barrel of a Gun

Supply Chain Shaman

This confession comes seven years after selling of contaminated food. The food recall is the largest in US history. …never before has a corporate executive been convicted of federal felony charges in a food safety violation. Parnell, is now charged and convicted for selling adulterated and mis-branded food into interstate commerce with the intent to defraud or mislead. Food and Drug Administration and the U.S.

What Is the True Cost of Eating Meat?

Supply Chain Brain

Food and farming is one of the biggest economic sectors in the world. In 2016, the world’s meat production was estimated at 317m metric tons, and that is expected to continue to grow. the food chain now includes the agribusiness companies, the retailers, and the entertainment sector. Department for Environment, Food and Rural Affairs, in 2014 the food and drink manufacturing sector contributed £27bn to the economy, and employed 3.8

Why Large Companies Increasingly Opt for 4PL Services

Logistics Bureau

The market is also growing across a wide range of commercial sectors, including the following: 1) Food and Perishables. Transporting and storing perishable food requires advanced logistics that is beyond the reach of many companies.

Ensuring Workers’ Rights in Global Supply Chains

Supply Chain Brain

Often it’s those deeper levels that are the source of violations or inadequate working conditions. At the moment, most factories using the training tool are in China and Bangladesh, although QuizRR is also pursuing contracts in Mauritius and Thailand, the latter in collaboration with 10 Nordic food brands. Regulation and Compliance Quality & Metrics All Technology Supply Chain Visibility Sourcing/Procurement/SRM

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. Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. The research, now in its sixth year, is an analysis of peer group performance and relative rate of improvement on four metrics (growth, operating margin, inventory turns, and Return on Invested Capital (ROIC)).

Supply Chains to Admire: 2016 Results

Supply Chain Shaman

The source data for the analysis is public reporting of balance sheets and income statements. Unfortunately, we find most companies are moving backwards on the Supply Chain Metrics That Matter™ or making progress on singular metrics versus driving performance improvement on a balanced portfolio of supply chain metrics that correlate to market capitalization. (If In the analysis of the Supply Chains to Admire, we use PTBV as a proxy metric of value.

[PODCAST] Why Shippers Looking for Capacity & High Service Levels Need the Right Carrier Mix & Logistics Fundamentals Focus

Cerasis

On today’s episode we welcome Andrew Lynch, Co-Founder & President of Zipline Logistics, an award-winning logistics service provider that specializes exclusively in the transportation of retail consumer goods and food and beverage products. Capacity & Carrier Metrics Resources to Download. Transportation Metrics that Matter the Most for Shippers to Track to Improve Performance. Hello and welcome back to another episode of “The Freight Project Podcast!”

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

ToolsGroup

Examples are: customer experience metrics, feedback on new product features and pricing, customer satisfaction and loyalty, and competitive intelligence. Other sources: 1 [link]. Have you noticed how the clock speed of just about everything has sped up considerably in just a few years?

A Great Wall and China – Trump Trade Plans Impact Food, Retail Shippers

Supply Chain Collaborator

These changes will impact calculations of such critical transportation and logistics metrics as lead times, delivery schedules, routes, mileage and a host of others. For food shippers, the calculus is equally daunting as an exit from NAFTA is likely to spur increases in the prices of certain produce and other agricultural products currently imported from Mexico into the US. The sourcing of goods may shift quickly away from Pacific Rim manufacturers.

Help Supply Chain Planners Be More Successful In These Uncertain Times

Supply Chain Shaman

Before boarding the plane, I watched a traveler pull a diet Coke from the bin and thought about the struggle to source sweetener with the rise of COV-19. As I poured the dog food into the bowl for my pups, I wondered if I was going to have to switch kibble due to the looming issues of sourcing taurine—a health additive in many pet foods. The answer is to increase modeling, evaluate sourcing strategies, and build the right push/pull decoupling points.

Supply Chains to Admire – 2016 Results

Supply Chain Insights

The source data for the analysis is public reporting of balance sheets and income statements. Unfortunately, we find most companies are moving backwards on the Supply Chain Metrics That Matter™ or making progress on singular metrics versus driving performance improvement on a balanced portfolio of supply chain metrics that correlate to market capitalization. (If In the analysis of the Supply Chains to Admire, we use PTBV as a proxy metric of value.

Renegade Riposte

Supply Chain Shaman

After, I explained this, I granted Peter permission for the council to use the Index (the use of the Supply Chain Insights content follows the principles of open source), I then said to Peter, “I am glad that you called. 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.

Stories of Supply Chain Leadership: An Interview with Joan Motsinger of Seagate

Supply Chain Shaman

We then rated companies on their ability to manage and improve a portfolio of metrics: operating margin, inventory turns and Return on Invested Capital (ROIC). To make the Supply Chains to Admire list, a company had to score above average of their peer group for supply chain improvement as measured by the Index, and drive performance above average in the portfolio of metrics for operating margin, inventory turns and Return on Invested Capital (ROIC).

Top 10 Supply Chain Innovations of 2018

Material Handling and Logistics

Supply Chain Innovators of 2013 : paperless food chain, VLMs, cold chain fleet management, and more. Source ID. Source ID. Source ID. The retail giant plans to take out 50 million metric tons (MMT) by 2030, which is equivalent to the emissions associated with the average annual electricity consumption of 40 million Chinese households. Source ID. Source ID. Source ID. Source ID. Source ID. Source ID. Source ID.

Let the Qs Begin

Supply Chain Shaman

Attending the conference was Alexia Howard, Senior Research Analyst – US Foods for Sanford C. The script will be distributed to CFOs of apparel, consumer packaged goods, and food/beverage companies next week. Aligned Metrics. To ensure the management of the complex system, the metrics of operating margin, inventory turns, ROIC, customer service, revenue, and forecast accuracy need to be managed together as a non-linear system.

Partnering with Farm-Trace to monitor sustainability and impact

Provenance

“66% of consumers are willing to pay more for sustainable products but most organizations don’t know the farmers they source from, let alone their impact.” – Kahlil Baker, CEO and Founder, Farm-Trace. This platform is now helping food organisations shine a light on their sustainability initiatives, from no deforestation and even fair farmer payments, by revealing the origin of the commodities they purchase and their impacts.

Say Customer Service and Mean It

Supply Chain Shaman

Many of my clients talk about a customer-centric supply chain but rely on useless metrics from an annual survey or a net promoter score. Food Drive-Thru Experiences. Starbucks redesigned their cups for the Grande product, and the flimsy cups were a source of constant spills and burns.

Welcome Puff, The Magic Dragon, to Your Team

Supply Chain Shaman

I think one of the huge problems is that US-centric food companies (Kellogg, General Mills, Smucker’s, Conagra etc.) are working on a“if all you have is a hammer, all you see is nails” problem – they have been making boxed, canned and otherwise shelf-stable packaged food for well over a century but now consumers and retailers are looking for fresh foods and they don’t know how to adapt. Open Source analytics. open-source analytics.

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The Great Gap Year of 2020

Bristlecone

Someone still has to produce cars; develop real estate and build homes; manufacture carpets, faucets and tile; process food items; produce movies; etc. Last Node of the Supply Network: Gain visibility into the last level of the supply node in the case of single or multi-sourcing.

Study Shows Two-Thirds of Companies Yet to Execute Digital Transformation in Supply Chain Planning

ToolsGroup

A North American-based survey of nearly 200 supply chain professionals from top CPG, distribution/wholesale, food and beverage, manufacturing, and retail companies found that 58% of respondents are still in the exploring or evaluating phases of digital transformation. PRESS RELEASE. New survey finds that most companies are still formulating and gaining support for a digital strategy, with fear of change and data challenges as leading roadblocks. . BOSTON, Mass. and HOUSTON, Tex.

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Counterfeit products are exploding on Amazon

NC State SCRC

The Journal identified at least 157 items for sale that Amazon had said it banned, including sleeping mats the Food and Drug Administration warns can suffocate infants. Production levels equivalent to an entire factory’s monthly production are coming in container loads through the Los Angeles port, including food, liquor, and cigarettes. They recognized the need to find new ways to deceive and disguise the content, as law enforcement was not an effective source of protection.

Defining Your Own Logistics Competitive Weapon

Talking Logistics

Source: “Tech in Asia” – https://www.techinasia.com. Another example: A few years ago I met with a supply chain executive at a leading food manufacturer who was working closely with the sales team to educate them on how to position the company’s supply chain and logistics capabilities as a competitive differentiator with their clients. For a long time, C-level executives viewed supply chain management, especially the logistics function, as a cost center.

Transportation Network Modeling: A Powerful Tool in Greenhouse Gas Emissions Reduction Strategy

Talking Logistics

Supply chain network and transportation optimization can help make better sourcing and multi-stop route decisions that ultimately result in route design that balances low costs with higher service. In 2010, Walmart announced its goal to eliminate 20 million metric tons of GHG emissions from its global supply chain by the end of 2015. million metric tons to date, saying that some measures had led to a doubling of fleet efficiency.

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A Better Approach to Supply Chain Segmentation?

ToolsGroup

Most companies segment their supply chain by breaking it down according to operational and logistical metrics. Gartner research director Jennifer Loveland calls it end-to-end segmentation, where you determine first what your customers want, then create end-to-end models—from sales through sourcing, delivery, and customer service—to serve them. Editor's Note: There will be no blog post next week.

Supply Chain Talent: Our Take on Deloitte’s Survey Report (part 1)

Demand Solutions

“In times of change, when experimentation tends to be rampant and results are still far from conclusive, one source of guidance can be to look at the companies who are succeeding, and discover what they are doing differently.”. The report is packed with good food for thought. Their approach was quite simple: ask executives to share their companies’ metrics in inventory turnover and percentage of deliveries that are on-time and in-full. Two metrics.

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Winners in business: Supply Chains to Admire 2016

Supply Chain Movement

And in retail the winners of 2016 are Carter’s, CVS, Dollar Tree, Target, Whole Foods and Walmart. Unfortunately, we find most companies are moving backwards on the Supply Chain Metrics That Matter (growth, operating margin, inventory turns and Return on Invested Capital) or are making progress on singular metrics instead of driving performance improvement on a balanced portfolio of supply chain metrics that correlate to market capitalization.

Supply Chain Diagnostic: A Four-Step Process

Supply Chain Shaman

” Or alternatively, “Is there data that could be sourced to help?” The company is a food and beverage company. In Figure 1, we show the aggregate trend of the chemical industry in an orbit chart format showing year-over-year results at the intersection of two metrics operating margin and inventory turns. July is my birthday month. In the middle of busy travel, I made time for the annual physical. The reason?

Top 25 Supply Chains of 2018

Material Handling and Logistics

The rankings are based on a composite score based on the opinions of Gartner’s analysts; a group of peer voters (mostly supply chain practitioners, professionals and experts; in the interests of full disclosure, I myself am part of the peer panel); some metrics, including return on assets, inventory growth and revenue growth; and a corporate social responsibility (CSR) component score. So the CSR score too is more of a popularity contest than a consistent metric. Source ID.

The End of a Fairy Tale. Part 2.

Supply Chain Shaman

Year after year, well intentioned people toiled against improving metrics that reduced, not improved, the effectiveness of the supply chain. Ten-year averages – food manufacturing companies. Metrics comparison of Kellogg Co. In table 1, I compare ten-year averages (2001-2011) for food manufacturing companies. Usually in a fairy tale there is a big, bad wolf… or a hairy monster. One that is going to eat you up!