Logistics Viewpoints

APRIL 10, 2025

First, overreliance on a narrow group of suppliersespecially those in politically sensitive regionsexposes companies to risk when trade relationships shift. When a critical Tier-2 supplier is affected by a tariff policy change or regional shutdown, the ripple effects often catch manufacturers by surprise.

Optimal Sourcing 210

Optimal Sourcing Modeling Cost Reduction Strategies Supply Chain Optimization 210

Supply Chain Shaman

DECEMBER 15, 2022

If you answer the survey, I will gladly give you a custom analysis of your organization against the peer group. The financial teams, and the Information Technology (IT) groups, did not see alignment gaps, but the supply chain teams felt them and viewed them as a critical performance issue. Functional Metrics.

Manufacturing Procurement 398

Manufacturing Procurement Supply Chain Design Software Supply Chain Planning Software Procurement Analytics 398

Supply Chain Shaman

SEPTEMBER 3, 2018

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.

Supply Chain Planning Software 377

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Software 377

Supply Chain Shaman

APRIL 2, 2025

For my long-time readers, you know that fewer than 3% of companies outperform their peer group in our Supply Chains to Admire analysis , and that the Gartner Top 25 is essentially a beauty contest for underperformers. The focus is on unveiling a new, bright, and shiny object. But, as the dust settles, is there value? And what is value?

Optimal Sourcing 195

Optimal Sourcing Supply Chain Planning Software Modeling Supply Chain Design Software 195

Logistics Viewpoints

MARCH 3, 2025

According to a survey by ARC Advisory Group, only 10% of industrial companies are ready to apply artificial intelligence/machine learning. The company has 55 manufacturing sites across the world. The risks associated with chemical manufacturing include the storage and transportation of raw materials, finished products, and waste.

Negotiating Skills 187

Negotiating Skills Supply Chain Design Software Modeling Software Supply Chain Planning Software 187

Supply Chain Shaman

FEBRUARY 18, 2021

Advanced planning evolved with a focus on modeling manufacturing constraints. Watermelon Metrics Don’t Drive The Right Results. I love the metaphor of watermelon metrics. This was a gift from a member of a group that I am facilitating.) What are functional metrics? The Emergence of Logistics as Constraint.

Supply Chain Planning Software 355

Supply Chain Planning Software Supply Chain Design Software Supply and Demand Procurement Analytics 355

Supply Chain Shaman

JANUARY 9, 2024

Nvidia, Northrup Grumman, PACCAR Inc, PCA (Packaging Corporation of America), ResMed, Rockwell Automation, Ross Stores, Taiwan Semiconductor Manufacturing (TSMC) Company, Tempur-Pedic, TJX, Toro, Toyota, West Pharma, United Tractors, and Urban Outfitters. As shown in Figure B, the Company outperforms their peer group but lacks resilience.

Supply Chain Planning Software 388

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Gartner 388

Supply Chain Shaman

NOVEMBER 21, 2023

My client attempted to have a supply chain discussion to improve flow, and his executive group just did not get it. 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. The metrics were not aligned.

Supply Chain Planning Software 407

Supply Chain Planning Software Inventory Reduction Supply Chain Design Software Cost Reduction Strategies 407

Supply Chain Shaman

OCTOBER 5, 2018

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. Based in Paris, L’Oréal is a global personal care manufacturing company.

Case Study 329

Case Study Inventory Reduction Study Agile and Lean Supply Chain 329

Supply Chain Shaman

MARCH 21, 2024

During the 1980s, I was on a management team for a large manufacturer. The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team.

Inventory Reduction 435

Inventory Reduction Supply Chain Planning Software Cost Reduction Strategies Supply Chain Design Software 435

Supply Chain Shaman

JULY 6, 2020

Frank, the line manager for manufacturing, dominated the meetings. Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. Strong manufacturing organizations do not make the most effective manufacturers.

Agile and Lean Supply Chain 363

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Planning Software Supply Chain Strategy 363

Supply Chain Shaman

APRIL 18, 2023

For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. Companies driving digital transformation did not outperform their peer groups during the past three years. The average brand owner outsources 28-35% of manufacturing, but most coordinate using only spreadsheets and email.

Supply Chain Planning Software 418

Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing Supply Chain Software 418

Supply Chain Shaman

DECEMBER 13, 2021

I gently probe with the groups and ask the question, “Why?” – Is it possible to drive digital transformation without asking the group to unlearn and untether themselves from existing norms and processes? Is there a need to redesign metrics to move from a functional and traditional function to drive goal alignment?

Cost Reduction Strategies 415

Cost Reduction Strategies Price Mitigation Strategies Supply Chain Strategy Supply Chain Design Software 415

Supply Chain Shaman

JUNE 19, 2018

It is now our fifth year of analyzing balance sheets to understand which companies are outperforming their peer groups on the metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC) while driving improvement. We group companies by industry sector because the industries are so different in performance.

Gartner 278

Gartner Supply Chain Design Software Supply Chain Design Supply Chain Strategy 278

GlobalTranz

JUNE 30, 2017

Manufacturers have always struggled to know their customers. Unfortunately, this means manufacturers face an even greater challenge, as more customers translate into greater use of customer service. But, how do manufacturers turn their focus to the customer experience? Determine What Customers Want Today.

Manufacturing Procurement 205

Manufacturing Procurement Manufacturing Procurement Analytics Price Reduction 205

Supply Chain Shaman

MAY 22, 2013

The data is also shared with industry peers and the peer group vote represents 25% of the score. The AMR Top 25 was the first methodology that tried to connect financial metrics with supply chain excellence. It elevated the discussion on supply chain excellence and drove more discipline and rigor in the use of financial metrics.

Gartner 304

Gartner Pharmaceutical Supply Chain Chemicals 304

Supply Chain Shaman

MARCH 19, 2014

As an analyst in the market for the past ten years (first with Gartner, then with AMR Research, followed by my work at Altimeter Group and now with my own firm Supply Chain Insights), I have stood in front of clients doing strategy days advocating “best practices” and I wanted to set the record straight. We have stubbed our toes.

Gartner 382

Gartner Supply Chain Planning Software Supply Chain Strategy Supply Chain Software 382

Logistics Viewpoints

DECEMBER 15, 2022

The idea is that data points within a group share similar properties, and each group is different (statistically speaking) from another. Retailers can apply cluster analysis techniques in different ways to find groups of customers, products, stores, or suppliers that behave similarly. The retail industry is rich with data.

Optimal Sourcing 263

Optimal Sourcing Analysis Procurement Analytics Purchasing Skills 263

Logistics Viewpoints

JULY 7, 2022

These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. From product design, sourcing and operations planning, to manufacturing, logistics and warehousing, there are many opportunities for improved efficiency at each stage of the process.

Material Savings 320

Material Savings Waste Reduction Resource Reduction Supply Chain Design Software 320

Supply Chain Shaman

MARCH 5, 2019

Groups throw-out concepts. 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. It looks like this. They sound good.

Supply Chain Design Software 340

Supply Chain Design Software Real-time Visibility Prescriptive Analytics Software Supply Chain Planning Software 340

Supply Chain Shaman

OCTOBER 29, 2014

Groupthink is a psychological phenomenon that occurs within a group of people in which there is a desire for harmony within the group, but the result is an irrational or dysfunctional outcome. I feel that the industry is engaged in ‘Group Think’ No one in this meetings is going to ask tough questions.

Supply Chain Planning Software 379

Supply Chain Planning Software Modeling Demand Planning Software Optimization Software 379

Supply Chain Shaman

NOVEMBER 9, 2014

It was my first time working with this group. The group laughed. ” The group was quiet as we discussed the fact in the traditional organization that functional silos are not designed to work together. Proudly, I had led my division to have the lowest manufacturing costs with the highest Return on Assets.

Manufacturing Procurement 318

Manufacturing Procurement Optimal Sourcing Benchmarking Supply Chain Design Software 318

Jaggaer

NOVEMBER 14, 2024

Forward-thinking organizations have transformed the department into an untapped gold mine that creates value for the entire end-to-end manufacturing process—from design and sourcing to production and delivery. Our latest e-book, “ Is Manufacturing Missing Out On Procurement’s Value Add? Here are some key insights from the e-book.

Manufacturing Procurement 52

Manufacturing Procurement Optimal Sourcing Procurement Solutions Procurement Analytics 52

Logility

AUGUST 5, 2021

This means routinely bringing together the C-suite, finance, supply chain, manufacturing, sales and marketing teams so everyone is seeing, working from and agreeing to an aligned plan that achieves optimal business outcomes. It’s logical that a machined parts manufacturer and a grocery chain would review different KPIs in their IBP processes.

Metrics 130

Metrics Modeling Supply Chain Planning Software Supply Chain Design Software 130

Supply Chain Shaman

SEPTEMBER 17, 2014

This report, Supply Chains to Admire , compares the progress of 200 companies within their respective peer groups on both performance and improvement. There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Aligned Metrics. ” Yes, I said.

Optimal Sourcing 365

Optimal Sourcing Supply Chain Design Software Supply Chain Planning Software Manufacturing Procurement 365

Supply Chain Shaman

APRIL 14, 2013

I have worked for Gartner Group, AMR Research, Altimeter Group and now my own company, Supply Chain Insights. However, we have found that only a few companies are improving the potential of their supply chain to balance supply chain metrics. A value network is a group of companies that trade together to satisfy a market need.

Gartner 286

Gartner S&OP Pharmaceutical Supply Chain Planning Software 286

Supply Chain Shaman

SEPTEMBER 24, 2017

In manufacturing-based companies, 70-80% of costs are in the processes of source, make and deliver. We analyzed the impact of 150 factors on 493 financial metrics for the period of 2004-2016. As shown in Figure 1, we find companies managing talent better than their peer group have a cost advantage. Is talent a cost or an asset?

Cost Reduction Strategies 263

Cost Reduction Strategies Inventory Reduction Resource Reduction Manufacturing Procurement 263

The Logistics of Logistics

JUNE 14, 2024

Karl is the CEO and Co-founder of Pull Logic , an AI-enabled tech company focused on reducing lost sales for retailers, brands, and manufacturers due failure points in the supply chain and selling processes. trillion problem of “Inventory Distortion” as defined by the retail advisory firm, IHL Group. Summary: Solving the $1.8

Inventory Reduction 264

Inventory Reduction Inventory Inventory Management Software Modeling 264

Logistics Viewpoints

FEBRUARY 16, 2021

In a survey of 150 global manufacturing executives, 47% committed to improving supply chain visibility and tracking. Supply chain visibility often means “where’s my stuff,” or the ability to trace parts in transit from the manufacturer to the final destination. What is supply chain visibility?

Supply Chain Visibility 331

Supply Chain Visibility Agile and Lean Supply Chain Supply Chain Planning Software Scenario Planning 331

Supply Chain Shaman

JUNE 3, 2013

It was funded by 50 large consumer products manufacturing companies (CPG). In the dawn of e-commerce, conservative manufacturers, anteed up $240 million in four months. the company is owned today by 20 organizations representing manufacturers, distributors, hospitals and group purchasing organizations (GPOs).

Supply Chain Design Software 322

Supply Chain Design Software Supply Chain Planning Software Procurement Analytics Manufacturing Procurement 322

Supply Chain Shaman

JANUARY 8, 2024

When compared to the peer group performance, smaller and regional players outperform larger companies. Intuitive Surgical, L’Oreal, and Sleep Number drove excellence through product and service innovation to outperform their peer groups. The gaps widened in the past five years. This happened pre-pandemic. Any takers here?

Supply Chain Design Software 244

Supply Chain Design Software Supply Chain Planning Software Modeling Software Supply Chain Network Software 244

Supply Chain Shaman

MAY 29, 2014

To be valid, I believe that companies must be compared within a peer group. As a result, the metrics have to be viewed together as a pattern over time. In the journey, the supply chain leader needs to improve the potential of a portfolio of metrics. I find value in looking at these metrics together.

Gartner 366

Gartner Inventory Reduction Supply Chain Planning Software Pharmaceutical 366

Supply Chain Shaman

OCTOBER 10, 2017

While many employers would have penalized the employees for tablet breakage , Peggy explored the world of wearables to enable her digital manufacturing transformation. AGCO’s culture of innovation policy deployment enabled employees to pioneer a technology solution for manufacturing. Improvement in Digital Manufacturing.

Supply Chain Design Software 170

Supply Chain Design Software Manufacturing Material Savings Supply Chain Software 170

Supply Chain Shaman

OCTOBER 1, 2013

As I work with companies, I often contrast the strategies, approaches and outcomes within a peer group. Both companies provide packaging materials to the food manufacturing industry. Food manufacturers, over the course of the last decade, have pushed costs and waste backwards in the supply chain. Owens Illinois (OI), a $6.3

Illinois 253

Illinois Waste Reduction S&OP Supply Chain Planning Software 253

Supply Chain Shaman

JANUARY 14, 2013

Year after year, well intentioned people toiled against improving metrics that reduced, not improved, the effectiveness of the supply chain. The example that I give in the first post is the focus of manufacturing strategies to drive strong results to improve Return on Assets (ROA) that have actually caused a deterioration in operating margin.

Supply Chain Planning Software 260

Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing Modeling 260

Logistics Viewpoints

DECEMBER 7, 2021

Workforce shortages and other challenges abound throughout all transportation sectors, and while this may revitalize investments in localized manufacturing, expanded warehousing to hold more inventory, and other efforts, these changes do not solve today’s issues. Based on this context, a shipper will send a parcel to Group A, Group B, etc.,

Capacity 275

Capacity Price Reduction Cost Reduction Strategies Inventory Reduction 275

Supply Chain Shaman

APRIL 26, 2013

To do this, six years ago, we built a support group of supply chain finance to support our decisions. It is a parallel group to our corporate finance group that reports directly to me. For example, we seldom outsource manufacturing. We take pride in our innovations in manufacturing. We manage supply chain metrics.

Supply Chain Planning Software 303

Supply Chain Planning Software Supply Chain Planning Supply Chain Scenario Planning 303