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Instead, I would like to see us redefine work to improve decisions for the global multi-national. For example, if I improve the cost structure in transportation, procurement, manufacturing and sales independently, what decision support framework decides the right trade-offs? You are right. This is an opportunity.
According to research by Ernst & Young LLP, the global consulting firm, as the Covid crisis recedes, supply chain executives are losing the strategic gains they made with their C-suite counterparts. Ideally, supply chain metrics would also reflect customer satisfaction, revenue growth, and market share.
In today’s interconnected global economy, sustainability within supply chains and logistics has become a necessity rather than an option. Regulatory demands, rising consumer expectations, and global challenges such as climate change and social inequality have made sustainable practices a strategic priority.
The modern supply chain is a complex network of suppliers, manufacturers, distributors, and customers, all interconnected and reliant on a shared ecosystem of trust and accountability. As industries evolve and global markets expand, ethical considerations have become central to supply chain compliance.
However, as carbon taxes and emissions reporting requirements continue increasing, supply chain professionals face mounting pressures from inside and outside their organizations to measure and improve performance against new, nebulous sustainability metrics. Freight transportation makes up over 10% of total global carbon emissions.
Functional Metrics and the Lack of Alignment to Strategy. Process-based companies continue to focus on manufacturing efficiency (OEE) and discrete on procurement (PPV) without designing the supply chain to balance transportation, manufacturing, and procurement to a balanced scorecard. The Lovefest with Shiny Objects. Guess what?
Solvoyo has a metric they call the user acceptance rate. This metric measures the percentage of time the planners accept replenishment, transportation, or inventory plans as they are without any change in the timing of the delivery or the quantity to be delivered. You manufacture stuff. Forecasting is not an actionable item.”
Today, we kick off our annual year end series highlighting the top blog posts in each of our 7 main categories: Manufacturing , Supply Chain , Logistics , 3PL , Business , Transportation , Freight. Top Manufacturing Blog Posts for 2014. Finally, the top 10 list was rounded out safety and metrics. Read Full Post. Read Full Post.
This is amplified across the supply chain into an exponential impact on inventory and planned orders for manufacturing. When we measure the bullwhip impact (in my class on outside-in process thinking), the bullwhip between manufacturing and procurement is 2-3X. With the unabated growth in complexity, the bullwhip effect grew.
April 23, 2025 Blog Today, we’re excited to announce the launch of Freightos Enterprise our comprehensive solution designed specifically for large enterprises that import and export, who need to bring control, visibility, and efficiency to their global logistics operations. Ready to Transform Your Freight Operations?
Not much has changed in the methodology, but a lot has changed in the market–consolidation, technology advancements, and the growth of the global multinational. For 80% of industries, the supply chain metrics represent more than 40% impact on value. Today, companies measure too many metrics without a clear definition of value.
But todays global environment is more unstable than it was a decade ago. More recently, fluctuating trade policies have emerged as a persistent challenge, especially for firms with global footprints. Metrics must reflect the new priorities. For years, supply chains were engineered to be lean.
Once upon a time, the world of manufacturing was a relatively stable place. But then, supply chain disruption became the rule instead of the exception, consumers changed their tastes as often as their socks, and global competition started playing hardball. So how does a manufacturer navigate this rollercoaster?
At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) Supply chain excellence was largely defined as manufacturing excellence.
We are more than six months into the COVID 19 global pandemic. However, Covid as a global crisis has been also called the great enabler: we are discovering many things that we did not know about ourselves. Identify metrics, analytics and projects to drive business improvements. These became coffee break side bars.
The global supply chain is built on three assumptions: rational government policy, availability of reasonably priced logistics, and low variability. In March 2023, the Global Supply Chain Pressure Index fell to the lowest level since November 2008. However, variability and global unrest is rising. Unrest in Sudan.
The first story is about a large regional food manufacturer. The second story is about a regional beverage manufacturer. The companies’ planning was in a vicious cycle where marketing programs were growing increasing error, and the lack of manufacturing modeling made it challenging to see what was feasible. (It The answer?
The Covid-19 pandemic tested the global supply chain. Advanced planning evolved with a focus on modeling manufacturing constraints. Check out some of the work that Blume Global is doing in this area.). Watermelon Metrics Don’t Drive The Right Results. I love the metaphor of watermelon metrics.
manufacturers have spent the last few decades consolidating production at gigantic offshore plants, especially in China. Such a model, based on prioritizing unit economies and production at scale, doesn’t prepare manufacturers and retailers for the waves of disruption that are washing over global supply chains today.
imports, according to Maersk’s container-weighted effective average tariff rate metric,” the company said. “At companies in apparel and fashion have shifted their sourcing, and have reached “single-digit” dependency on Chinese manufacturing, said Maersk Chief Commercial Officer Karsten Kildahl, in the update. “[O]ther
In the supply chain team analysis, note the 21% gap between procurement and manufacturing teams, the 35% gap between sales and operations and the 21% gap between finance and operations. Functional Metrics. The focus on lower costs shifted supply into global trade lanes as demand and supply variability increased.
We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. Reward teams for cross-functional metrics. What did we find?
April 23, 2025 Blog Today, we’re excited to announce the launch of Freightos Enterprise our comprehensive solution designed specifically for large enterprises that import and export, who need to bring control, visibility, and efficiency to their global logistics operations. Ready to Transform Your Freight Operations?
Ibrahim Al Syed, the director of digital manufacturing at Celanese, was surprisingly forthcoming about how Celanese developed these capabilities at ARC Advisory Groups 29th Annual ARC Industry Leadership Forum. The company has 55 manufacturing sites across the world. Can I have an industrial Google at a manufacturing facility?
DEALING WITH UNCERTAINTY IN THE MODERN SUPPLY CHAIN In today’s global economy, manufacturers are navigating a landscape riddled with uncertainty. Tariff unpredictability remains a major concern for manufacturers. Manufacturers can retain control over their product information and keep processes running smoothly.
Oracle’s recent global survey, No Planet B: How Can Businesses and Technology Help Save the World? These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. Complexities integrating data from across global supply chains.
At the Supply Chain Global Summit 2018 , Francois discussed the impact of digitalization, Industry 4.0, 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.
From retail and food and beverage to manufacturing and life sciences, companies from a wide variety of industries are realizing the benefits of the technology, revolutionizing how they operate, collaborate, and generate value. Manufacturers use cloud technology for predictive maintenance, production planning, and supplier collaboration.
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Do Invest in Distributor Capability Building : Provide training, digital tools, and performance incentives. A well-equipped distributor is an extension of your brand and a key to market penetration.
Measuring and Improving Procurement Strategy Performance A successful procurement strategy is data-driven andsupports continuous improvement across key metrics such as cost savings, supplier performance, delivery reliability, and ESG compliance. Platforms should support structured collaboration from intake management to invoice automation.
In a survey of 150 globalmanufacturing executives, 47% committed to improving supply chain visibility and tracking. According to the Global Supply Chain Disruption and Future Strategies Survey Report, this goal was the top-ranked planned tool investment. What is supply chain visibility?
Measuring and Improving Procurement Strategy Performance A successful procurement strategy is data-driven andsupports continuous improvement across key metrics such as cost savings, supplier performance, delivery reliability, and ESG compliance. Platforms should support structured collaboration from intake management to invoice automation.
The formula for OTIF is: Measuring a supply chain against OTIF metrics is a key strategy that helps decision makers attach a tangible value to the success of their fulfillment and allows them to determine key strategies. He holds a BA in Communications from Stonehill College and an MA in Global Marketing Communications from Emerson College.
How do we design work systems to align organizations and ensure that there is the right balance of reward systems with metrics? Is there a need to redesign metrics to move from a functional and traditional function to drive goal alignment? In the design of the digital program, spend time on metrics and reward systems.
The widespread supply chain disruptions that happened when the global pandemic hit in 2020 highlighted several important lessons regarding manufacturing and supply chain visibility. The use of IIoT in manufacturing here is critical to enriching the 3D context of the Virtual Twin Experience for significantly improved visualization.
Last week was the Supply Chain Insights Global Summit. There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Aligned Metrics. What percentage of retail out-of-stocks could be prevented by the manufacturer in these industries?
I worked three layers down in the organization for a well-established leader in manufacturing named Dan. Dan had a very manufacturing view and Fred focused on logistics. His goal was to separate manufacturing and distribution inventories to improve his bonus incentives. The metrics were not aligned. You have to do so.
There can be surprises that potentially offer a better upside: demand is higher than expected, it is possible to raise prices without affecting demand based on what is happening with competitor products, technology has allowed manufacturing capacity to ramp up faster than expected, etc. E2open acquired BluJay Solutions in May of 2021 for $1.7
Building the Effective Global Supply Chain. We speak about the need to move from a functional understanding to a global, holistic capabilities, but the traditional supply chain leader defines bonus incentives and process performance goals based on functional metrics. Innovation.
I now have a working manuscript for the entire book of Metrics That Matter. Shellie Molina, now VP of Global Supply Chain at First Solar, told the story of learning how to receive feedback. I refuse to not enjoy this last part of my journey and I hope that you will join us at the upcoming Supply Chain Global Summit. Lots to do.
.” His narrative centers on the evolution of the global supply chain evolving with a focus on labor arbitration ignoring geographic distance and shipping issues. His belief is that the internet, container shipping, and global banking shrunk the supply chain. Supply-centric or Manufacturing Thinking. Let me explain.
by Jay Muelhoefer Today’s global supply chain leaders know to expect the unexpected. The recent outbreak of coronavirus has shaken communities and put companies that rely on manufacturing from facilities in Wuhan, China at risk. As soon as the factory closes, your entire global network knows about its effects the same day.
They can then use the data to provide an apples-to-apples benchmark on a variety of innovative supply chain metrics applicable to the grocery supply chain. In other words, if manufacturers cannot deliver everything that retailers are ordering, then there is a service failure. Forecasting Accuracy Was Terrible . 2020 was different.
They offer a cloud-based platform that connects their customers with more than seven million suppliers globally. I can recall a case study when I was in business school where a profitable, fast-growing manufacturer nonetheless went out of business. on this metric. The problem? Their cash flow did not keep pace with their sales.
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