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In today’s architectures and functional metrics, value optimization does not exist. And, when procurement and tactical planning operate in isolation, there is no decision support framework to guide the trade-offs especially when the functions are tethered to different and conflicting metrics. You are right. What have I learned?
Despite the evolution of technology, none of the 28 industry segments I follow can drive improvement at the intersection of operating margin and inventory turns. Functional Metrics and the Lack of Alignment to Strategy. Change is Hard. Unlearning is Tougher. The industry is full of experts. Guess what? Clarity on Value. Guess what?
The issue is that when companies optimize functional metrics, they throw the supply chain out of balance and sub-optimize value. The third step is to do a data inventory. Over the last two years, I have been involved in a structured program with Georgia Tech. Supply chain leaders love bright and shiny objects.
Yawn and walk on if the answer is i mproving demand error or reducing inventory levels. On December 5th, Supply Chain Insights is hosting a small event at Georgia Tech to share the results of a two-year research effort to connect financial metrics by industry to supply chain performance to drive value.
The research methodology for the Supply Chains to Admire compares the performance of a company against its industry peer group for the metrics of Year-over-Year Revenue Growth, Inventory Turns, Operating Margin, and Return on Capital Employed (ROCE). Today, companies measure too many metrics without a clear definition of value.
Before invading Georgia in 2008, Russia used cyberattacks to paralyze daily life — disabling ATMs, cutting power, interrupting communications. The knock-on effects included delivery delays, inventory shortfalls and price spikes across multiple industries. Worse, we lack a coherent strategy to counter this "long war" already underway.
Background Founded in 2018 and headquartered in Atlanta, Georgia , ketteQ describes itself as redefining how businesses approach supply chain planning and execution with fundamentally different technology approach. Changes in a forecasting performance metric can be attributed to a specific step or action in the forecasting process.
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.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. Error is error, but is it the most important metric?
trillion distortion inventory problem. Trillion Inventory Distortion Problem In this podcast, Karl Swensen, CEO and Co-founder of Pull Logic, discusses how their AI-enabled technology helps retailers, brands, and manufacturers reduce lost sales by addressing supply chain and selling process failure points. Summary: Solving the $1.8
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. The implementation of NoSQL for inventory management gives them an inventory signal with little to no process latency.
No company in either the household non-durable (consumer goods) or the food manufacturing group beat their peer group on the balanced scorecard of growth, inventory turns, operating margin, and Return on Invested Capital (ROIC) for 2013-2022. The supply chain has two important buffers–inventory and capacity. Any takers here?
The ability to administer your cloud supply chain in the real time makes your order processing, warehousing, inventory management, transportation and overall pricing more scalable and thus cheaper. The cloud-based logistics has lots of metric tools. Helen works and lives in Atlanta, Georgia. A Better Cost Mainframe.
To help, we analyze business results each year to understand which companies outperform on the balanced scorecard of growth, inventory turns, operating margin, and Return on Invested Capital (ROIC) over the past ten years. They used the work built together in 2004-2009 to build a course with Georgia Tech for executive training.)
When I refer to supply chain technology, I am talking about software to support the fundamental supply chain business processes — Demand, Supply, Inventory Planning, and Sales and Operations Planning. You inventory is in the wrong place at the wrong time. Excitement. Typically you will act. Consider an incentive plan.
Author Credentials: Dr. Ed Frazelle was an award-winning professor at Georgia Tech Institute of Technology and he is now a consultant. Chapter 2 will introduce you to the on-time, in full metric. Cons: It contains some basic math, but not that hard. However, a chapter about warehouse activity profiling is quite challenging.
Many metrics can be used to determine the top 3PL warehousing companies, such as company revenue, the number of warehouses, total warehouse square footage , etc. This compilation is based on the most currently available company revenue data (between 2018 and 2020) without factoring in any other metric.
Russell Chandler III Chair and Professor at Georgia Institute of Technology. Risk aware was described as more dynamically flexible supply networks, the optimization of specific buffers such as capacity as well as inventory, or flexibility in supply chain network design. Pascal Van Hentenryck , A.
Joe received his undergraduate degree in Electrical Engineering at the Georgia Institute of Technology, and his MBA from Duke’s Fuqua School of Business. As global economies come back to life, there will certainly be inventory imbalances and price dislocations that would otherwise be hidden from view. I have two stories.
Rajeev Dhawan, an economist at Georgia State University, described the current environment as “… less (of) a recession and more of a growth stop”. This flash metric registered at 50.3 Inventory Status: This measure is mixed. Inventory levels are contracting, but costs showing no change. This indicator came in at 48.7,
Inventory requirements for all raw, WIP and finished goods. This latest smart manufacturing wave sees an encompassing integration of GPS technology that allows for the fluid and accurate reportage (or tracking) of employees, assets, inventory and vehicles. Storage needs for all raw, WIP and finished goods.
Companies speak about moving from a functional metric focus to managing corporate metrics, but this does not happen. Of the 114 balance sheet metrics tested in work with the statisticians at Georgia Tech, operating margin improvement has the highest correlation to market capitalization. Hence the Facebook analogy.)
In this period, Clorox was acquiring products with significantly higher margins and lower inventory turns. While retail companies improved inventory, they lost ground on growth and operating margin. And, while household products gained ground on margin, results for inventory turns worsened with the rise of item complexity.
Over the last year, I worked with Georgia Tech to build predictive models by industry using market capitalization by employee as the definition of value. Market capitalization/employee is the value metric used as an objective function for the regression. Industry performance on inventory management and margin declined.
Inventory stock turns in Days. Inventory management. Inventory levels. But in Supply Chain you would normally expect to see the following standard set, along with those that are more specific to your business needs. DIF – Delivery in Full. DOT – Delivery on Time. DIFOT – Delivery In Full on Time. Production/manufacturing.
drop off in spot loads, a metric displaying the heat of the produce season leading up to the 4th of July holiday, aka the “peak of summer peak season”. This year has been a bit different as we saw upticks in import volume in June, leading to the thought of an inventory pull forward ahead of a potential Trump presidency.
It is expected to generate 62,000 megawatt hours annually – reducing approximately 22,000 metric tons of CO2 emissions per year. The manufacturer’s private fleet has deployed a fleet of Einride EVs to haul freight between GE Appliances’ inbound warehouses and manufacturing facilities in Kentucky, Georgia, and Tennessee.
That was primarily due to retailers working on emptying warehouses of older inventory and shippers continuing to move more freight to East Coast ports because of concerns over the slow pace of labor talks between the Pacific Maritime Association and the International Longshore and Warehouse Union. Generating the full 185.6
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