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Inventory Metrics: From Insight to Action

Kinaxis

by Andrew Dunbar Over the last several weeks, this blog series on Inventory Management has explored the objectives and roles of inventory managers and outlined several of the improvement levers available to them. This post will discuss some of the metrics and analysis tools that an inventory manager needs to identify risk and opportunities and to make intelligent decisions to optimize the performance of their inventory. Each metric requires context.

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

Supply Chain Shaman

After finishing the Supply Chains to Admire report and the Youtube series (to be released this week), this is my feeling. What Is Supply Chain Excellence? The seven years of work on the Supply Chains to Admire is part of my quest to answer Keith’s question.

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Metrics that Matter: Inventory Effectiveness

QAD

The effective use of a manufacturer’s inventory investment is an important determinant of the company’s success. Excess and obsolete inventory is a drain on resources, as is excessive safety stock. Managing an Inventory Investment. Inventory effectiveness measures the process that delivers the right part to the right place at the right time, while minimizing investment and meeting customer requirements. Using Metrics to Measure the Health of the Business.

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

Cerasis

The average Supply Chain management professional measures their Supply Chain by reviewing cost reduction. Is cost reduction all that there is in measuring Supply Chain performance? Sure, supply chain cost reduction is important in reducing the cost of goods sold (COGS) and increasing profit, but there are other measurements which should not be forgotten. 3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction.

Driving Supply Chain Analytics User Adoption with Cross-Departmental Metrics

Logility

User adoption is a challenge that often arises during the rollout of supply chain analytics solutions. 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.

Time for a Supply Chain Metrics Cleaning

Logility

Wait, it’s not spring; but does that mean you have to wait another eight months to review your supply chain? Often, it becomes necessary to reevaluate how supply chain performance is measured to ensure healthy operations. Ask yourself, “Are your supply chain metrics bogging you down?” However, companies often have too many independent metrics that can cause conflicts amongst competing supply chain functions.

The Most Important Distribution Center Metrics to Track and Understand

Cerasis

Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. Additionally, the use of metrics fosters positive relationships with coworkers and adherence to rulesets and best practices for the respective third-party logistics provider (3PL). What Distribution Center Metrics Need Tracking?

Announcing the Supply Chains to Admire for 2019

Supply Chain Shaman

I feel that topic of supply chain management is analogous to the downward cycle of the news channels. What Drives Supply Chain Excellence? I analyze supply chain management. Smaller, more agile companies outperform the larger and well-known brands in the retail, beverages, food, and pharmaceutical industry sectors. The broader the definition of end-to-end strategy and the alignment of supply chain processes drives value.

Wanted: Supply Chain Architects!

Supply Chain Shaman

When I moved into industry, and the real world, I managed engineering teams. Manufacturing is the foundation of my interest in supply chain management. Supply Chain and Design. This was the beginning of my journey from manufacturing to understanding larger supply chain concepts. I knew nothing about the world of logistics, inventory management and order optimization. Figure 1: Definition of the Supply Chain Organization.

Five Reflections From Supply Chain Planning Benchmarking

Supply Chain Shaman

In my work with Supply Chain Insights , I immerse myself in learning. I continually question my long-held beliefs on supply chain excellence. . When readers finish a Supply Chain Shaman blog, I want to drive a set of unique takeaways. As a result, in each post, I try to take a new angle and hopefully propel industry thinking forward. Today, I am going to share five insights that I have gleaned from our work on Supply Chain Planning Benchmarking.

Modern Metrics

synchrono

While digital content and automated technologies gave birth to the modern marketer, a more real-time, digitally connected enterprise is driving modern manufacturing strategies like the Factory of the Future, Smart Manufacturing and Industry 4.0 – all of which are grounded in Demand-Driven Manufacturing methods. As mentioned earlier, modern manufacturing concepts like The Factory of the Future, Smart Manufacturing and Industry 4.0 The post Modern Metrics appeared first on Synchrono.

Announcing the Supply Chains to Admire 2015

Supply Chain Shaman

Tomorrow, I present the Supply Chains To Admire 2015 Analysis at the Supply Chain Insights Global Summit in Scottsdale, AZ. The theme is “Imagine the Supply Chain of 2025.” At the event, we will also announce the winners of the Supply Chains to Admire methodology for 2015. Today, supply chain excellence is easier to say than define. Sharing of the Supply Chains to Admire Work.

Supply Chain Leadership Driving Industry 4.0 & Resilience During Crisis – LogiSYM July 2020

The Logistics & Supply Chain Management Society

Whilst the COVID-19 pandemic spreads across the world, it is vital for organisations to ensure a reliable supply of products and services. Lockdown of cities and manufacturing plants have significantly impacted many industriessupply chains. Leadership in 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. The tension I felt reading the brochure on the plane is what I believe every supply chain leader feels every day. That is one of my primary drivers at Supply Chain Insights. As a team we conduct quantitative research of supply chain leaders to help gain clarity of the answers.

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.

Public Markets Reward Supply Chain Alignment

Supply Chain Shaman

Today, I am proud to launch the Supply Chain Index. It is my hope that the readers of this blog will take time to either join us today to listen to the launch of the Supply Chain Index on our webinar or listen to the replay. (We The Supply Chain Index has been two years in the making. As I sat at my kitchen table, I reviewed spreadsheet after spreadsheet of corporate performance data on supply chain financial ratios.

Supply Chain: The True Game of Risk

Supply Chain Shaman

For the supply chain leader it is not a game… The stake is business continuity. Gamers do well in the world of supply chain. Designing value networks and managing what-if conditions is fundamental to managing supply chain risks. The move from global to regional supply chains increased risks. Geopolitical shifts, economic uncertainty and demand/supply volatility are rising. In my life time, supply chains changed.

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. The supply chain is a complex system with increasing complexity. Race for Supply Chain 2020.

History Repeats Itself Without Supply Chain Leadership

Supply Chain Shaman

This is a story for the Eds, Franks, and Toms working together in supply chains across the globe. It is also a story for a young supply chain manager attempting to make a difference, but feeling stymied. Tom, the colorful warehouse manager, constantly heckled Frank for the increasing inventory levels while Ed, the quiet material/logistics manager, constantly questioned if there was a better way. Efficient supply chains may not be the most effective.

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

The traditional supply chain leader focused only on cost reduction. 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. Ironically, most companies are very entrapped in measuring and rewarding functional metrics which degrades overall improvement.

Congratulating the Supply Chains to Admire Winners

Supply Chain Shaman

This afternoon, I poured myself a cup of tea to pen congratulation emails to the Supply Chains to Admire award winners. 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. Each year, based on feedback from supply chain leaders, we refine the methodology.

Supply Chain Diagnostic: A Four-Step Process

Supply Chain Shaman

Time For A Supply Chain Check-Up? When a company contacts me to help them with their supply chain, the pain is usually a gap in customer service. They tend to have many pretty PowerPoint slide decks–full of acronyms, pretty pictures and E2E commitments–but they lack a common definition of supply chain excellence. To complete a supply chain diagnostic, I take these four steps: Step One. Understand Industry 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. Inventory Goal.

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. Despite being hit hard by the recent recession, overall the research shows that these two industries have fared well over the last decade and are positioned to continue that success. Notice in the Supply Chain Insights report, there are only two HDD companies. Supply Chain Length. by CJ Wehlage.

Mining Supply Chain Data for Insights

Supply Chain Shaman

At Supply Chain Insights, we have been actively working in our own mine sweeping project. 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 analysis was industry-specific. The company was then assigned to one of 37 peer groups based on the Supply Chains to Admire methodology. Does Supply Chain Planning Drive Value?

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How to Get a Job in the Supply Chain Sector

Logistics Bureau

So, you are thinking about a career in supply chain? While this article is intended as an evergreen resource, to help you navigate in your search for a supply chain job, and is not a COVID-19-specific guide, the pandemic has galvanized attention on the industry and its criticality.

Supply Chains to Admire: 2016 Results

Supply Chain Shaman

This morning, we announced the Supply Chains to Admire Winners and Finalists for 2016. The research starts in April and stretches over many weeks as we analyze the different elements and understand the patterns of each industry. Selfishly, we need standard for our research, but we also want to help supply chain leaders gain new insights from a deep data-driven analysis. There is no agreed standard for supply chain excellence.

Supply Chain KPIs You’ll Want Every Morning

Logility

A quick scan of the Internet will yield a long list of “the biggest-ever supply chain disasters”. in inventory write-down and 20% drop in stock value. Would access to better supply chain and IT performance information have helped avert or mitigate these failures?

L’Oréal: A Case Study in Supply Chain Excellence

Supply Chain Shaman

At the Supply Chain Global Summit 2018 , Francois discussed the impact of digitalization, Industry 4.0, and L’Oréal’s approach to business that has allowed the company to continuously rank as a Supply Chains to Admire winner for four consecutive years. Read more to understand the details on the Supply Chain Index ,). Supply Chains to Admire Methodology. Our supply chain and operations teams are customer-oriented entrepreneurs.

Reflections on Integrated Supply Chain Planning

Supply Chain Shaman

In the presentation, I shared data on the evolution of supply chain planning and the results on user satisfaction. As shown in Figure 1, users are more satisfied, the implementations are shorter and there is greater Return on Investment of solutions from Best-of-Breed solution providers—especially if the best-of-breed solution providers used are industry-specific. Summary Data of User Satisfaction with Supply Chain Planning Applications.

Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

Putting a stick in the eye of the industry is hard work. Or agreement on the definition of supply chain excellence. Sometimes, even the definition of a supply chain is not clear. I define digital as the rethinking the atoms and electrons of the supply chain. In contrast, the digital supply chain transformation solves problems and defines opportunities based on the confluence of technologies shown in Figure 1.

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

Cerasis

Editor’s Note: This is the first in a three-part series on Supplier Quality Management processes and how to evaluate your suppliers from Chuck Intrieri of The Lean Supply Chain. 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. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ).

Carter’s: A Story of Supply Chain Leadership

Supply Chain Shaman

To drive global scale, companies need to design the supply chain to buy globally and execute locally. The design of the supply chain is fundamental to making this happen. In our interview of the Supply Chains to Admire Winners, we found a unique approach at Carter’s. For this case study we interviewed Peter Smith, currently the EVP of Supply Chain for Carter’s. The company is one of 15 winners in the 2016 Supply Chains to Admire Research.

2016: Building a Balanced Scorecard for Discrete Industries

Supply Chain Shaman

For the supply chain leader it is time to reflect and build budget targets. To help, in this blog post I share industry trends. For the discrete industries we contrast the industry averages for growth, operating margins, inventory turns, cash-to-cash cycle, revenue per employee, and SG&A ratio for the periods of 2006-2014 and 2011-2014. For each metric we show the averages and the percent change from the beginning and end of the period.

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

Kinaxis

by Jeswin Philip The Food Packaging Trends and Advances report from PMMI forecasts that the US Food and Beverage industry will experience a 2.9 % CAGR through 2022. The report also mentions that the global growth rate is almost double that of the US food industry. Food for thought: Time for a different kind of supply chain. craft going global in the alcoholic beverages industry). What is vendor-managed inventory? Maintaining optimum inventory levels.