Supply Chain Shaman

MAY 15, 2023

Use of Supply Chain Descriptors Most organizations are locked into functional silos driven by functional metrics. Stuck in a rut, supply chain leaders try to punch their way through a set of conflicting metrics and priorities each day. The metrics defining success in manufacturing and procurement do not align.

Manufacturing Procurement 468

Manufacturing Procurement Optimal Sourcing Agile and Lean Supply Chain Supply Chain Planning 468

Supply Chain Shaman

MAY 25, 2024

The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. By charting the performance against peer groups, I could see the story. The first step was to find a reliable data set and establish the peer groups. The second step of establishing peer groups was trickier.

Eliminating Excel in Purchasing 384

Eliminating Excel in Purchasing Gartner Supply Chain Design Supply Chain Strategy 384

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. ” I am not sure that I convinced the group, but I got them to think.

Supply Chain Planning Software 377

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

Logistics Viewpoints

NOVEMBER 11, 2024

According to Colin Masson, a director of research at ARC Advisory Group, the opportunity to mine these vast quantities of data to achieve business value is “NOW.” Not all the transactional data, just the data required to calculate a metric or make a decision. So, we deploy an agent on an SAP environment.

Supply Chain Planning Software 290

Supply Chain Planning Software Modeling Software Analytics Software Forecasting Software 290

Supply Chain Shaman

APRIL 27, 2022

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.) I never calculated and accounted for the inter-dependencies between metrics.

Procurement Analytics 369

Procurement Analytics Manufacturing Procurement Supply Chain Planning Software Supply Chain Design Software 369

Supply Chain Shaman

DECEMBER 28, 2020

Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns. Both companies outperformed their peer groups. Henkel is underperforming its peer group. When compared to pre-recession years, we ended the decade with twenty more days of inventory.

Supply Chain Planning Software 418

Supply Chain Planning Software Forecasting Forecasting Software Modeling 418

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

Supply Chain Shaman

JANUARY 9, 2024

They are unconscious that they are underperforming their peer group and have not driven industry improvement. Sanofi Performance Versus Peer Group for 2013-2022 Similarly, I find 35% of companies following the pack not able to drive resilience in the face of market shifts. The group is pragmatic. Challenge this paradigm.)

Supply Chain Planning Software 387

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Gartner 387

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 397

Manufacturing Procurement Supply Chain Design Software Supply Chain Planning Software Procurement Analytics 397

Supply Chain Shaman

JUNE 29, 2021

Using balance sheet data from 2011 to 2019, we chart companies’ progress by peer group on rate of improvement and performance in the metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). A focus on functional metrics throws the supply chain out of balance.)

Supply Chain Planning Software 370

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Design 370

Logility

MAY 22, 2020

The obvious danger of this is that business rules and data governance often don’t exist from department to department or user to user, leaving an overall picture into the health of the business that is foggy because KPIs and metrics do not correlate across the organization. A great example of this comes from a Logility customer.

Analytics Software 148

Analytics Software Metrics Supply Chain Design Software Supply Chain Software 148

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. Metrics must reflect the new priorities. This isnt about abandoning efficiencycost still mattersbut it is about balancing efficiency with adaptability.

Optimal Sourcing 214

Optimal Sourcing Modeling Cost Reduction Strategies Supply Chain Optimization 214

Supply Chain Shaman

JANUARY 2, 2024

We talk about the move from functional metrics to a balanced scorecard, but we don’t use a balanced scorecard as an objective function. They underperform in their peer groups against companies weaker in planning. Gartner Comparison to the Industry Peer Group For more on the methodology, check out the powerpoint summary online.

Gartner 368

Gartner Supply Chain Planning Software Supply Chain Design Software Case Study 368

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 413

Cost Reduction Strategies Price Mitigation Strategies Supply Chain Strategy Supply Chain Design Software 413

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

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 383

Gartner Supply Chain Planning Software Supply Chain Strategy Supply Chain Software 383

Supply Chain Shaman

SEPTEMBER 9, 2014

It is the end of a two-year research project, and identifies which publicly held companies outperformed their peer group on balance sheet results. We built peer groups based on like industries. How did you define peer groups? As a result, we report their results along with their pharmaceutical peer group.

Pharmaceutical 308

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 308

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

FEBRUARY 18, 2021

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.) The issue is that traditional functional metrics drive underperformance—the greater the variability, the larger the gap. What are functional metrics?

Supply Chain Planning Software 355

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

Logility

AUGUST 5, 2021

But before you start measuring everything in sight – and a few things not in sight – start with a set of thoughtful intentions and questions that will guide you to the right set of metrics and the right set of expectations. Cash-Cash Cycle Time; Return on SC Fixed Assets; Return on Working Capital ASCM SCOR Metrics, Supply Chain Council.

Metrics 130

Metrics Modeling Supply Chain Planning Software Supply Chain Design Software 130

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

Supply Chain Shaman

JULY 22, 2019

In the Supply Chains to Admire analysis, the focus is to understand the relative performance of a company within a peer group of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). (We We selected these metrics based on correlation work with Arizona State University in 2012. Target Setting.

Supply Chain Design Software 305

Supply Chain Design Software Supply Chain Planning Software Gartner Supply Chain Software 305

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. The orbit chart below illustrates L’Oréal’s performance at the intersection of two metrics.

Case Study 329

Case Study Inventory Reduction Study Agile and Lean Supply Chain 329

Supply Chain Shaman

JUNE 13, 2017

If the arrow is red, the industry is moving backwards on a metric. While we agree that each of these companies are leaders with significant contributions to the industry, we do not find these companies outperforming when compared against their peer groups on a balanced portfolio of metrics. BASF cannot be compared to P&G.

Supply Chain Planning Software 0

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Supply Chain 0

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. The metrics were not aligned. Map the different metrics and incentives in the organization to behavior. Map influence groups and gain an understanding of social connections. His view was very transactional.

Supply Chain Planning Software 406

Supply Chain Planning Software Inventory Reduction Supply Chain Design Software Cost Reduction Strategies 406

Supply Chain Shaman

JUNE 24, 2022

One of my stark realizations this year is that smaller companies are beating larger and often more established companies on growth metrics, inventory turns, operating margin, and Return on Invested Capital (ROIC). (In The metrics selection resulted from work with Arizona State University in 2013.) Look for the full report next week.).

Supply Chain Planning Software 397

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Software 397

Supply Chain Shaman

MARCH 21, 2024

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. In my forty years of studying supply chain planning, the groups became larger, but with questionable results.

Inventory Reduction 434

Inventory Reduction Supply Chain Planning Software Cost Reduction Strategies Supply Chain Design Software 434

Logistics Viewpoints

NOVEMBER 3, 2022

The latter refers to a single variable standard (SVS), by which one metric, such as cases per hour, is expected to tell all. What’s more, because an SVS approach only accounts for one metric at a time, a host of other equally if not more important metrics are bypassed, leaving you largely in the dark. Ad infinitum.

Supply Chain Design Software 264

Supply Chain Design Software Optimization Software System Logistics Network Optimization Software 264

Supply Chain Shaman

JULY 6, 2020

Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. The second step is to align metrics to the strategy. A focus on cross-functional metrics improves supply chain resiliency. (I The So What? ” I share it because it is real life.

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

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 243

Supply Chain Design Software Supply Chain Planning Software Modeling Software Supply Chain Network Software 243

Supply Chain Shaman

JULY 12, 2013

For the supply chain team, the largest area of misalignment is between the supply chain and the sales group. Supply teams are being pressured to reduce costs while demand groups are feeling the squeeze to get the “ demand plan right.” Next week, I will be writing on my new book Metrics That Matter.

Supply Chain Design Software 323

Supply Chain Design Software Supply Chain Planning Software Modeling Modeling Software 323

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. Tougher than most understand. United States Inflation Rates and GDP Inflation is the highest in forty years. The reason?

Supply Chain Planning Software 417

Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing Supply Chain Software 417

Supply Chain Shaman

MARCH 5, 2019

Groups throw-out concepts. The focus is on functional metrics, but are unable to get to overall supply chain metrics. Groups rally around the concept of real-time. Here I smile, and I hope that groups take pause.). It looks like this. They sound good. As a result, people have a false sense of agreement. My caution?

Supply Chain Design Software 339

Supply Chain Design Software Real-time Visibility Prescriptive Analytics Software Supply Chain Planning Software 339

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. They prepare equipment for maintenance, do isolation (disconnect a piece of equipment from the flow of chemicals by closing valves), look at quality or reliability metrics, and do rounds.

Negotiating Skills 188

Negotiating Skills Supply Chain Design Software Modeling Software Supply Chain Planning Software 188

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 367

Gartner Inventory Reduction Supply Chain Planning Software Pharmaceutical 367

Supply Chain Shaman

APRIL 16, 2014

I have taken myself off the road to write the book Metrics That Matter. Before the session, ask a small group to chart your progress on the Effective Frontier using orbit charts. You just do not see the patterns of the interrelationships of metrics in an Excel spreadsheet. Then give the group an innovation fund.

Supply Chain Design Software 299

Supply Chain Design Software Agile and Lean Supply Chain Modeling Supply Chain Planning Software 299

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. When all functions are jointly focused on improving these metrics, then we can have one team. What do you think?

Manufacturing Procurement 319

Manufacturing Procurement Optimal Sourcing Benchmarking Supply Chain Design Software 319