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Beware the Swinging Pendulum on Supply Chain Inventory Practices

Logistics Viewpoints

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?

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L’Oréal: A Case Study in Supply Chain Excellence

Supply Chain Shaman

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.

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This Week in Logistics News (October 1 – 7)

Logistics Viewpoints

For those unaware of the term, shrink is an accounting term used to describe when a store has fewer items in stock than in its recorded book inventory. The goal is to reduce or avoid one billion metric tons (a gigaton) of greenhouse gasses from the global value chain by 2030. Financial terms of the deal were not disclosed.

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Avoid “Lost in Translation”. Monetize S&OP to Include Finance.

ToolsGroup

Gartner recommends multiplying the planned unit volume: by price to generate monetized revenue plans, by cost to generate monetized inventory plans, by margin to generate monetized profit plans. 4-9% decrease in the value of obsolete inventory as a percentage of total stocked goods (product costs).

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The Ultimate Guide to Contract Logistics: What You Need to Know

SCMDOJO

It involves outsourcing logistics activities, such as warehousing, transportation, distribution, inventory management, and order fulfillment, to a dedicated logistics service provider. Additionally, its strategic location in proximity to Germany, France, and the UK adds to its appeal.

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Roundtable Series: Scaling in a Compromised Supply Chain

Unleashed

Go back to their inventory and stock build and factor in this sort of possibility – alongside all the other supply challenges they’re facing these days. I think Sam’s really right,” Ben says, “in that the tendency in a lot of scale-ups is to chase sales metrics, and often supply can be a secondary thought. Three Spirits’ solution?

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L’Oreal: A Beautiful Supply Chain

Supply Chain Shaman

We wanted to see which companies were driving the fastest rate of improvement on the supply chain metrics that matter. Note that they are pushing progress faster than their peer group and outperforming in all areas except inventory turns. We studied this pre and post-recession. Table 1: Supply Chain Results Beauty Category.