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My Take: Metrics that Matter

Supply Chain Shaman

Dialogue with global supply chain teams energizes me. Tomorrow, I have a call with a manufacturing company to answer the question, “ What is the most important concept in the book?” While Joe is trying to balance the feedback from Filipe and Frank, he is often asked to change his metric targets by his CFO named Lou. It is for this reason, that I believe that the traditional SCOR Model metrics are problematic. Achieving Balance in Metrics.

3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance

Cerasis

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. Inventory measurement is critical and it is money after all in that it took a capital expense to procure. The goal is to keep inventory levels at a minimum to meet customer needs. Review Inventory turns and Return on Assets. For clarity, in measuring supply chain performance, we should be focusing on: inventory, working capital, and time.

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Efficiency vs. Productivity: Metrics that Matter…Until They Don’t

synchrono

I keep seeing the word efficiency in the manufacturing media. When we look at the organizations of today, words like efficiency and productivity get thrown around with little understanding of what is required to improve one of these measurements (metrics). Let’s discuss why an efficiency metric is usually not the right metric and what a Lean manufacturing expert does when measuring true value in the supply chain.

Gaining Clarity on Inventory Effectiveness

Supply Chain Shaman

I was moving from a position where I led a manufacturing operation to being a part of a team to design supply chain software to improve planning decisions. I was moving from the world of manufacturing to a new world of software. The technology world moves at a quicker pace than the world of manufacturing and distribution. The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study.

Seven Misconceptions on Managing Inventory in a Market-Driven World

Supply Chain Shaman

When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” ” I have been studying the evolution of inventory technologies as an industry analyst since 2002. Inventory is the culmination of many business decisions. The Inventory Management Journey.

6 Benefits of Effective a Reverse Logistics System & The 9 Core RevLog Metrics to Track

Cerasis

For instance, a growing number of cell phone manufacturers have established procedures in place for consumers who wish to return an older model and ensure that the device is refurbished or recycled rather than dumped into the local landfill. Importance of Metrics in Reverse Logistics Management. To monitor progress against its reverse logistics management plan, a company needs metrics that measure the financial impact of returns on the firm and on other members of the supply chain.

Elephant in the Room: Thoughts on Metrics That Matter in Semiconductor and Hard Disk Drives

Kinaxis

Supply Chain Insights recently published a Metrics That Matter report covering both the Semiconductor and Hard Disk Drive (HDD) industries. Semiconductor is poised to consolidate, which will have huge impact on the metrics. Global pressure. Understanding inventory planning will take on a new dynamic. Of course, like any industry, Semiconductor and HDD manufactures are faced with a set of unique challenges in their space that puts their supply chain at risk.

Is Inventory Waste or an Asset?

Supply Chain Shaman

Next week is the annual Supply Chain Insights Global Summit , and summit preparation is on my agenda for the weekend. We were discussing the results of the planning benchmarking work that we have just finished, and I was sharing some insights on inventory management when one of the panelists emphatically stated, “Inventory is a waste to manage. We feel so strongly about this that we do not have an inventory planning role.” Inventory is both.

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

Cerasis

When you choose a company to transport your freight or to supply you with the materials you need to manufacture a product, you are putting your hard work and reputation in their hands. 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 ).

SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

I find that in this world of the global multi-national that procurement processes have become convoluted and increasingly complex. (In Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. SanDisk Corporation designs, develops and manufactures flash memory storage devices and software. The company is the third-largest manufacturer of flash memory in the world.

Lean Manufacturing: Is it Really Worth It? 16 Big Benefits Say, “Yes.”

Cerasis

Customer expectations of reliable quality and rapid delivery forces today’s manufacturers to either shorten cycle times or lose business. There are multiple good models for lean manufacturing operations. Who Needs Lean Manufacturing? A company in need of lean manufacturing practices tends to be easy to identify, typically displaying multiple of the following symptoms of operational deficiency: Inventory amasses in buffer stocks. cuts inventory costs.

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Supply Chain Leaders Rearranging Deck Chairs? Yes, I Think So.

Supply Chain Shaman

In the review of my first book, Bricks Matter , Keith Harrison, former Global Director of Product Supply at P&G asked me, “You mention the need for supply chains to shift from a focus on cost to value. Aggregate Results for Apparel Manufacturers for the Period of 2010-2019.

Supply Chain Metrics: Make Sure They Are Aligned with Your Strategy!

Supply Chain View from the Field

Many people are talking about Key Performance Indicators, Metrics, Analytics, and other indicators of performance. The importance of selecting the right metrics or “measures” as I prefer to call them, is critical as we all know that metrics drive behaviors. Rather then selecting a plethora of meaningless metrics, it is always better to focus on a critical few, and select them wisely. Step 2 – Develop Metrics and Data Sources. Inventory Goal.

Six Ways Warehouse Inventory Management Software Optimizes Efficiency

IQMS

The Warehouse Inventory Management Software market grew to $1.4B between 2017 and 2025 with the global market reaching $4.6B Warehouse Inventory Management software and systems help reduce infrastructure costs and enable the reallocation of existing IT resources to drive productivity improvements, according to IDC. How Warehouse Inventory Management Software improves efficiency. in 2016 and is projected to attain a Compound Annual Growth Rate (CAGR) of 14.1%

How Can We Heal the Global Supply Chain?

Supply Chain Shaman

I strongly feel that if I am going to cover the global supply chain that I need to experience it. Connectivity enabled the growth of the global supply chain opening up markets driving opportunity. However, globalization comes with responsibility. The traditional manufacturing job defined the middle class. As we have driven improvements in globalization, jobs shifted as companies chased lower costs of labor. ” Entertainment and fast food globalized fast.

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

Kinaxis

The report also mentions that the global growth rate is almost double that of the US food industry. Among the many supply chain initiatives taking place today, vendor-managed inventory (VMI) has become an increasingly effective process and business model to help organizations share risk and information between vendors and customers — while benefitting from lower stockouts, reduced uncertainty and lower costs. craft going global in the alcoholic beverages industry).

How to Sustain a Lean Culture in Manufacturing & Supply Chain

Cerasis

At Flextronics in Milpitas, CA, judges from outside of the Flextronics organization also contribute to the nature of Flex’s global lean competition. These metrics would, of course, be aligned and are updated every hour. The metrics are also manual as automatic metric systems cannot retrieve the information at an hourly frequency as these metrics are process inputs and not outputs. Specific metrics: process metrics and outcome metrics.

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Measuring Up?

Supply Chain Shaman

The average manufacturing company’s supply chain organization is 15 years old. 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. Inventory Turns.

Guest Post: Ignoring this Performance Metric is Risky

TMC

Companies can then prioritize their mitigation efforts based on parameters such as value-at-risk, customer importance, and field inventory. When Cisco saw news of wildfires in Colorado in 2012, it wasn’t concerned, because it had no manufacturing or suppliers in the area. The post Guest Post: Ignoring this Performance Metric is Risky appeared first on Connect Blog by TMC, a division of C.H.

Creating an Actionable Plan for Unlocking Working Capital with Inventory Optimization

Arkieva

For many companies, the term “inventory optimization” has become more of a catch phrase than an actual reality. The idea of cutting inventory costs while maintaining the same level of customer service is rather elusive. Yet, almost all manufacturing businesses would agree that unlocking inventory costs could mean unlocking working capital that could be used in other areas of the business or even as a direct profit margin driver. Inventory Optimization Goals.

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.

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

At Supply Chain Insights , as we combed through over 9000 quantitative responses on supply chain management from business leaders to understand what drives supply chain excellence in preparation for the Supply Chain Insights Global Summit , in the process, we proved Hau Lee’s theorem in the Famous Harvard Business Review Article, “Triple A Supply Chains.” Reward teams for cross-functional metrics. Focus functional metrics to improving reliability.

Understanding Supply Chain Management

SupplyPike

These activities can involve storage and transport of inventory or supplies, monitoring of day-to-day activities, the preparation behind these processes, and blending these different components throughout the supply chain. In terms of cost-effectiveness, estimates show that businesses with extended global supply chains have between 80% and 90% of their costs involved in their supply chains. Most manufacturers depend on just-in-time (JIT) manufacturing policies.

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Real-Time Monitoring Fuels IoT Growth In Manufacturing

IQMS

72% of manufacturers say real-time monitoring is essential for streamlining and making inventory reconciliation more efficient. Manufacturers in the high-performance cohort captured in our latest survey are using real-time monitoring to aggregate metrics and gain a 360-degree view of manufacturing operations accessible from any mobile or handheld device. The post Real-Time Monitoring Fuels IoT Growth In Manufacturing appeared first on IQMS Manufacturing Blog.

How Microsoft & ThroughPut are helping Global Manufacturers increase Output during the COVID-19 Pandemic, and how every Operations Professional can help

ThroughPut

Automotive manufacturers are remobilizing to produce ventilators. While the Tokyo Olympics are being postponed, but heroes of a different calling are assembling together daily to achieve medal-worthy feats in keeping the base-line global supply chain operating. This is what we already enable every day at ThroughPut for our global industrial customers. Our constraint is not our ability to help global manufacturing at scale, but to help global manufacturing in time.

The Magic Bullet for Real-Time Supply Chain Collaboration? Cloud Visibility.

synchrono

Jessica Twentyman reported in the Financial Times , that for many manufacturers, supply chain collaboration is stuck in the dark ages. When it comes to ordering materials and components, managing inventory levels, or organizing the delivery of finished goods to customers, companies are forced continually to chase business partners – mostly suppliers, logistics companies, and retailers – via a messy stream of emails, phone calls, and even faxes.

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Increase Throughput by Replacing Manufacturing Productivity and Efficiency Metrics with These Two KPIs

synchrono

Manufacturing productivity is a useful metric for measuring the health of manufacturing at a national or global level because it tells us something about whether our factories, in general, are working or sitting idle. But at the level of the individual factory, productivity as a performance metric can be problematic. Before we travel too far down that path, however, perhaps we should start by defining what we mean by manufacturing productivity.

Looking Beyond Red Arrows

Supply Chain Shaman

It is hard work to maintain the status quo in metrics performance. A balanced portfolio of metrics delivers the greatest value. As a result, supply chain leaders focus on unrealistic goals of inventory or costs, they will throw the system out of balance. However, the stories of success are largely project improvements or improvements in vertical supply chain efficiency in manufacturing or transportation. 2) Focus on a balanced portfolio of metrics.

Warehouse Management Software – A Blueprint for Warehouse Excellence & Inventory Management

ThroughPut

A Warehouse Management Software (WMS) is one that helps plan, control, and manage the day-to-day manufacturing operations in a warehouse along with the guidance of inventory movement, optimizing order picking, and shipping of customer orders. It helps manufacturers effectively control and administer warehouse operations right from the entry of goods or materials into the warehouse until they move out. How can a Warehouse Management Software help manufacturers?

Warehouse Management Software – A Blueprint for Warehouse Excellence & Inventory Management

ThroughPut

A Warehouse Management Software (WMS) is one that helps plan, control, and manage the day-to-day manufacturing operations in a warehouse along with the guidance of inventory movement, optimizing order picking, and shipping of customer orders. It helps manufacturers effectively control and administer warehouse operations right from the entry of goods or materials into the warehouse until they move out. How can a Warehouse Management Software help manufacturers?

Control Towers: If Only There Was A Clear Definition

Supply Chain Shaman

Contract manufacturing or 3PL data often will have a 24-hour latency due to batch integration. When they built the project, they did not realize that they did not have access to daily data daily for their third-party warehouses and contract manufacturing locations. The focus is on functional metrics, but are unable to get to overall supply chain metrics. We finished dinner. I pressed my neatly folded napkin to my lips.

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Double Inventory Turnover In 9 months!

Supply Chain Game Changer

World Class Inventory Turnover Breakthrough Elements! “If we are truly a Supply Chain Services Company, then why is our Inventory Turnover only at 7?”, I had just joined the company and in studying their financial performance it stood out to me that if we were truly a Supply Chain Services company then having only 7 Inventory turns was extremely uninspiring. Could we double inventory turnover? Setting the Target to Double Inventory Turnover.

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

Supply Chain Shaman

These consumer products global leaders paved the road for supply chain excellence by defining new supply chain practices. Over the last decade, each company took a different path to power global growth. Overall Results on the Supply Chain Metrics That Matter. These giants drove slight improvements in operating margin, inventory turns and Return on Invested Capital (ROIC) despite a slowing economy. Unilever, for the first time, announced a global supply chain director.

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13 Reasons Why You Need a Global Transportation Management System (TMS)

3rdwave

In today’s turbulent trading environment, strong global transportation management capabilities deliver exceptional benefits and value. From optimizing freight movements and controlling freight costs, to supply chain SKU transparency and optimal inventory management, the value proposition for global transportation management is substantial and significant. Complexity in the global supply chain has increased dramatically since that time.

OverStocksis. A Dangerous Infectious Disease

The Supply Chainer Report

Manage Excess Inventory is the panacea for every Supply Chain professional. Acording to McKinsey Global Survey of challenges ahead for supply chain; Reducing Operating costs and Inventory levels , are the main goals for Supply Chain Top Management. Despite using leading-edge technology -the increasing number of complexities and the exponential growth of demand – makes Inventory control one of the top priorities for Drug’s manufacturers. Metrics.