Which Supply Chain Metrics Matter the Most?

Talking Logistics

Assuming you can start with a clean slate, are there any guiding principles to selecting the “right” metrics? Usually, there are three things that companies do wrong when trying to measure the performance of their organization,” said Jason Minghini, VP Best Practices at Kenco Group in a recent episode of Talking Logistics. One is they have way too many metrics. Which supply chain metrics matter the most? Do you have too many or too few metrics in your organization?

So Many Metrics, Which Ones Matter the Most?

Talking Logistics

When it comes to supply chain and logistics metrics, companies are either tracking too many of them or they have so many metrics to choose from that figuring out the right approach to performance measurement is a challenge. Are there any guiding principles to selecting the “right” metrics? What metric categories beyond cost and service are also important? The post So Many Metrics, Which Ones Matter the Most? Live Episode: Thursday, July 28, 2016 at 12:00 pm ET.

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Editor’s Pick: Just How Valuable are Supply Chain Metrics?

Talking Logistics

Today’s post is by Joel Holt at Kenco Group , where he discusses several ways that supply chain metrics bring value to your organization. Supply chain metrics require the same observations, only instead of driving a car purchase, they speak to something far more important: efficiency and a host of abilities that your supply chain needs to survive, such as… Read more at Kenco’s blog. Editor's Pick Kenco Group logistics supply chain metrics

Supply Chain Metrics that Matter

Supply Chain Movement

Supply Chain Metrics That Matter makes this truth clear enough with its thorough analysis of recent multi-industry performance trends. Supply Chain Metrics That Matter was written to guide businesses through the change process with a measurementbased outlook that will help any organization stand the test of time. Peppered with real-world examples from across industries, Supply Chain Metrics That Matter reinforces ideas with evidence.

Driving Supply Chain Analytics User Adoption with Cross-Departmental Metrics

Logility

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. Executives look at high-level company metrics, while other departments such as Finance, Sales, and Operations work at a more analytical level.

Lora Cecere on Supply Chain Metrics that Matter

AIMMS

Interview with Lora Cecere, Founder and CEO of Supply Chain Insights and Author of Supply Chain Metrics that Matter ( published December 2014 ). Her supply chain experience includes specialist roles at AMR Research, Clorox, Gartner Group, Kraft, and Procter & Gamble. Metrics that Matter became a three year research project. I hired a research assistant to look at balance sheets and looked at performance and really tried to figure out which metrics mattered.

Your supply chain is costing you money – Reason #9: Relentless pursuit of one metric at the expense of other metrics.

Kinaxis

Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Yet, these are similar instructions as what is passed down to the supply chain from executives focused on a specific supply chain metric. Why do companies focus on reducing a specific metric? Some of the more likely are; A metric (like inventory performance) is monitored by financial analysts and therefore tied to stock valuation. by John Westerveld.

Supply Chain Metrics - Gaining Visibility in a Data-rich World

Logility

The second part of Drucker’s quote, “if you can't measure it, you can't improve it,” really brings home the importance of having the right set of metrics. In the field of supply chain management, we have created an abundance of metrics and key performance indicators (KPIs). For the past 30 years I have been involved with multiple efforts to build a set of supply chain metrics and have learned a few things along the way.

Sales Dashboards: 16 Metrics For Manufacturers

Silvon Software

The more challenging part of dashboarding, however, gets down to the actual metrics that should be included as part of a performance management strategy. As a place to start, I thought I’d provide a shortlist of both simple and more complex metrics that our manufacturing and distribution clients are using in their dashboards today. Today’s post focuses on Sales metrics only. By product or customer groupings – Brands, Categories, Type, Geography. Basic Sales Metrics.

6 metrics tips and tools to benchmark P2P Digital Transformation

ivalua

Here’s a look at some of the Procure- to-Pay metrics procurement leaders should watch in order to better understand their digital progress. This metric closely aligns with digital transformation progress. This metric also impacts others like speed, visibility, and cost savings. . #2 Digital sourcing tools can help make this a more manageable metric. #3 Success in this metric also contributes to long-term vendor relationship management. #4

Metrics and Issues to Consider in SQM (Supplier Quality Management) By 5 Big Industries

Cerasis

In the first post our long tme guest blogger, Chuck Intrieri of The Lean Supply Chai n, gave us 5 core metrics to evaluate supplier performance using supplier quality management and a 4 step process to execute. In today’s post, Chuck will take it a step further and break down metrics and issues to look out for by 5 main industries: Pharmaceuticals. Review of SQM Metrics and Issues Across 5 Core Industries. #1: Trend Metrics Collected per Site.

Rating Sustainability Performance: An Essential Business Metric

EcoVadis

Read on for more details about EcoVadis ratings in this interview (first published on the ING Wholesale Banking site): Rating Sustainability Performance: An Essential Business Metric. Larger groups use EcoVadis Ratings as a global standard to align their sustainability performance across many subsidiary entities around the world (such as Toyota MHE and Belron ).

Supply Chain Agenda of Pierre Mille, VP Group Planning & Customer Service Excellence at Carlsberg Group

Supply Chain Movement

Pierre Mille, VP Group Planning & Customer Service Excellence, Carlsberg Group. For Pierre Mille, VP Group Planning & Customer Service Excellence, this was an opportunity to unleash its untapped value. We realise that no one size fits all and so we have to understand the rhythm of our customers and which metrics matter to them.”. “We are evolving towards a more customer centric supply chain”.

Metrics that Matter: Manufacturing Performance Benchmarking

QAD

According to Business Benefits Group (BBG) , benchmarking in business is a way of comparing best industry practices against your organization’s processes to identify performance gaps and achieve a competitive advantage. Using Benchmarking Metrics to Measure Manufacturing Performance.

Metrics that Matter: Manufacturing Performance Benchmarking

QAD

According to Business Benefits Group (BBG) , benchmarking in business is a way of comparing best industry practices against your organization’s processes to identify performance gaps and achieve a competitive advantage. Using Benchmarking Metrics to Measure Manufacturing Performance.

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.

Are Your Manufacturing Metrics Meaningless?

synchrono

In any manufacturing environment, delivering what you promised when you promised is good business, so measuring this metric makes sense. However, as simple as this metric should be to measure, it can get complicated. Making Manufacturing Metrics Meaningful Again. Creating a common definition for key metrics and then letting a system, such as SyncView from Synchrono, serve that KPI up in a dashboard helps ensure everyone is working from the same version of the truth.

Common Sense Warehouse Performance Metrics for Supply Chain Benchmarking

Logistics Bureau

Some Common-sense Warehouse Benchmarking Metrics. In this post, you can discover some common-sense warehouse metrics that should probably be included in your project, regardless of whether you are benchmarking internally or externally. These KPIs will help you evaluate performance , choose an appropriate benchmarking comparison group, set targets, and stay on course to attain them. Other Warehouse Performance Benchmarking Metrics. Group Managing Director.

Which Metrics Matter? Interview with Philippe Lambotte

Supply Chain Shaman

My journey to understand supply chain Metrics That Matter started three years ago. Balance: The ability to balance a portfolio of metrics to maximize market capitalization and free cash flow. The early results from the ASU study will be featured in the book Metrics that Matter and it will be the core of the upcoming Supply Chain Global Summit on September 10-11, 2014 in Scottsdale AZ at the Phoenician. (We How do you balance metrics ? .

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

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. The technology group wanted to implement SAP IBP, and the business leaders were resistant. So I asked, “Why would you want to automate a process when the groups are not aligned?”

Structuring Your Demand Planning Group to Make its Greatest Contribution

Supply Chain Nation

Whether you are contemplating creating a demand planning group within your company, or questioning whether your current demand planning is as functional as possible, Part 2 of this 4-part series is aimed to help you navigate the hurdles of structuring your organization and its supported processes, so as to ensure your demand planning group is established and organized for its greatest chance of success. This can be overcome, however, with proper focus and metrics.

Amazon Is Being Blasted by a Watchdog Group Over China Echo Factory Conditions

Supply Chain Brain

High-Tech/Electronics Global Supply Chain Management HR & Labor Management Quality & Metrics Retail E-Commerce/Omni-Channel Supply Chain Security & Risk Mgmt. The New York-based China Labor Watch released a report at the weekend following a nine-month investigation of working conditions at a factory in the city of Hengyang owned by Hon Hai Precision Industry Co., the company known as Foxconn, which manufactures products for Amazon.

Announcing the Supply Chains to Admire for 2019

Supply Chain Shaman

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. The Supply Chains to Admire analysis is a data-driven discovery by peer group. The companies I work with struggle to set metrics targets.

Measuring Up?

Supply Chain Shaman

The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. We find that companies can improve one, but not two of the metrics. Teams struggle to drive improvement in both metrics at the same time. We term these the Supply Chain Metrics That Matter because they have a higher correlation to market capitalization.). The analysis is within peer groups as defined by NAICS codes.

Sustainable Purchasing & Supply Summit 2015

Supply Chain Movement

The Latest Thinking on Metrics, Reporting & Compliance. The Hackett Group. Events Accenture aviva bt CIPS compliance ecovadis greenstone GSK kingkisher KPMG London metrics oliver marketing PepsiCo QEII Centre reporting revolution events spss spss masterclasses supply summit sustainable purchasing the hackett group whitbread willmott dixonSustainable Purchasing & Supply Summit 2015. Date: 22 September 2015. Venue: QEII Centre, London.

UK’s Largest Independent Buying Group & Top N. Ireland Wholesaler Both Sign With RELEX Solutions

RELEX Solutions

Today’s Group and Savage & Whitten Optimize Operations with RELEX Space Planning. With a buying power in excess of £5.7Bn, and the largest network of independent cash and carry wholesalers in the UK, Today’s Group chose RELEX Solutions’ space planning solution to improve its visualisation and reporting. Today’s Group selected RELEX because it offers best-of-breed solutions and an unrivalled depth of industry expertise. Read PDF.

Announcing the Supply Chains to Admire 2015

Supply Chain Shaman

It is for this reason, that we analyze the patterns of the Metrics That Matter using orbit charts over the period of 2006-2014. The analysis is designed to analyze supply chain leader success on a portfolio of metrics. Nine out of ten are stuck unable to make improvements in these Supply Chain Metrics That Matter. The twenty-six companies are outperforming their peer group are listed in Figure 1. Sustaining Performance Above Peer Group is Difficult.

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. This is number 15 in a series that looks critically, industry by industry, to understand relative improvement of peer groups on the Effective Frontier. The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics.

Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

When we study 600 public companies by peer group, at the intersection of inventory turns and operating margin, only 5% drive improvement. An orbit chart is a plotting of data at the intersection of two metrics. In this case, the metrics are operating margin and inventory turns. market-driven value chains metrics that matter New technologies apparel chemical digital transformation incrementality JDA Oracle SAP transformationDefinitions: Provocateur.

Don’t Perpetuate the Hoax of the Gartner Top 25

Supply Chain Shaman

It is now owned by Gartner Group and used as a commercial tool to drive client engagements. There is no consideration of relative performance against peer group or evaluation of year-over-year improvement. Supply chain leaders manage a complex system of non-linear, but very inter-connected metrics. Leaders need to balance a portfolio of metrics. Year-over-year Improvement at the Intersections of the Metrics.

Wanted: Supply Chain Architects!

Supply Chain Shaman

The focus in supply chain groups was not on how to design the operations so that they were more effective; instead it was about the use of best practices to maximize the value of what we had. Today, three out of four companies greater than 10B$ have a network design group that averages seven people. The design efforts are usually coordinated by a central group like a Center of Excellence.

Structuring Your Demand Planning Group to Make its Greatest Contribution – Part 2 of 4

Supply Chain Nation

Whether you are contemplating creating a demand planning group within your company, or questioning whether your current demand planning is as functional as possible, Part 2 of this 4-part series is aimed to help you navigate the hurdles of structuring your organization and its supported processes, so as to ensure your demand planning group is established and organized for its greatest chance of success. This can be overcome, however, with proper focus and metrics.

Mining Supply Chain Data for Insights

Supply Chain Shaman

We loaded 493 financial metrics from balance sheets and income statements for each company into the data lake for the period of 2004-2016 using YCharts data. The company was then assigned to one of 37 peer groups based on the Supply Chains to Admire methodology. While it would be great to compare J&J to multiple peer groups by division, this data is not available. Correlations Between Survey Factors and Financial Metrics. Mine sweeping is essential to warfare.

Data 169

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. Companies balance supply chain metrics better in good times than bad. Reader’s note, the way to reach this chart is to first identify the average value for the metric for the period of 2010-2016. Then identify, if the peer group is making progress. 2) Focus on a balanced portfolio of metrics.

No Trash Talk Allowed

Supply Chain Shaman

While all leaders can agree that they want more assets and less trash, there is confusion about the best metric. It can vary substantially across industries and should only be used to compare a company within an industry peer group. ROIC: Colgate and other consumer products companies swear by the Return on Invested Capital (ROIC) metric. The more work that I do on metrics, the more I become a fan of ROIC. Definition of Asset.