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

Cerasis

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. Inventory measurement is critical and it is money after all in that it took a capital expense to procure. 10 Soft Metric Considerations in Measuring Supply Chain Performance. However, these technologies are poised to give benefits throughout the industry in several other ways as well. Risk Management methods : Supply chain risk management and resiliency are hot-button topics in the industry.

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. EcoVadis sustainability ratings and scorecards help procurement teams monitor supply chain Corporate Social Responsibility (CSR)/ESG practices across 190 sectors and 150 countries.

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Collaboration? When It Comes to Cash-to-Cash, We Don’t Know How to Walk the Talk

Supply Chain Shaman

Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. The impact of the elongation of payables on receivables varies by industry, but on average across the industries increased eighteen days when comparing the past five years to the pre-recession years. It is worse in some industries. Days of Receivables by Industry. Days of Inventory by Industry.

The procurement Summit 2016

Supply Chain Movement

The procurement Summit 2016. Launched in 2014 and brought to you by the eWorld Procurement & Supply team, The Procurement Summit will provide senior purchasing, sourcing and supply chain executives across the North of England with an unmissable opportunity to keep up-to-date with the latest industry innovations, best practice and new technology solutions. The Procurement Summit will provide: Educational seminars on the latest industry issues.

MRO Spend Metrics Procurement Needs to Focus On

ProcurePort

No matter the business, and no matter the industry, money is what keeps the gears grinding and the wheels turning. The post MRO Spend Metrics Procurement Needs to Focus On appeared first on ProcurePort Blog.

Why Agile Procurement is Essential for CPOs in 2020

Jaggaer

His insights are numerous, and can all be heard in his full podcast episode, but among them is his main focus in 2020, the opportunity presented by agile procurement. Bartolini’s view of modern procurement is one of an industry at a crossroads. While digitalization has dramatically increased procurement performance over the last decade, the function is beginning to approach a plateau. “We’re way that procurement organizations are?organizing

Electronics Industry: Top 3 Steps to Keep in Mind When Implementing a Sustainable Procurement Program

EcoVadis

With the supply chain representing 50 to 70 percent of a company’s sustainable footprint , implementing sustainable procurement practices is the most effective method for making real progress toward sustainability. Sustainable procurement offers benefits for all parties – it delivers customers safe, ethically sourced products, and reduces overall supply chain risk. There are a few steps to keep in mind when implementing a sustainable procurement program.

Sustainable procurement: a platform to rebuild

Proxima

Out of 502 participants from business owners to Directors, 86% said that they currently use sustainability as a metric to help shape decision making within their business. Promoting local collaboration and innovation throughout your supply chain and the UK as a whole can help kick-start your cash flows and benefit the economy and broader industry ecosystem. The post Sustainable procurement: a platform to rebuild appeared first on Proxima

SIG Webinar on Procurement Analytics and Innovative Data Leveraging

Supply Chain View from the Field

The webinar will also include Howard Richman, a colleague I have known for many years, first at Merck, and now working at Citrix as their Chief Procurement Officer. Also joining us will be Michael O’Leary, Director of Procurement Solutions at IBM. I emphasied to Alex that I had seen a similar trend – that purchasing executives seek to drive procurement value transformation, many find themselves struggling to make progress in these three areas of change.

The Future of Procurement Is Upon Us. Are You Ready?

ivalua

Niul Burton wrote a great article in Industry Week titled “Procurement 2025: 10 Challenges that Will Transform Global Sourcing”. For those of you who are executives in Supply Chain, Procurement or New Product Introduction/Development, this is a must read. Burton predicts a further evolution of what we are seeing already in the market—Chief Procurement Officer’s (CPO) roles are changing rapidly. We are not your father’s traditional Procure-to-Pay solution.

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.

A Diverse Supply Base Isn’t About Procurement…It’s A Leadership Issue!

Supply Chain View from the Field

An example of a metric captured in the form several key measures of commitment towards supplier diversity. I conducted benchmarking across a subsample of firms in the utility industry, to identify how supplier diversity is captured for this report. First, a Community metric identifies the percent of spend that goes to diverse suppliers, while the Financial metric assesses the volume of spend (in absolute dollars) diverse supplier contracts.

Seeking Evidence of Procurement’s Impact and Momentum

ivalua

Much has been made in 2019 about the gap between the findings of procurement self-assessments and where each organization stands when they are evaluated against their peers using objective measures. Just as procurement’s impact on the organization is quantitatively captured using metrics such as savings and spend under management, the maturity and digital readiness of the function can be objectively tracked and benchmarked (check out Forresters Digital Procurement Maturity Assessment ).

Assessing the True Return of Procurement Transformation on Total Shareholder Return: A Tough Proposition

NC State SCRC

In my earlier book with Gerard Chick on “ The Procurement Value Proposition “, we advance the notion that buildoing a business case for investing in people, process, and technology improvement in procurement is key. Many procurement assessments developed by consultants seek to provide an answer to the question “how far along are you relative to your peers in your procurement transformation journey”, and “which processes are lagging compared to your peers?”

KPI 40

Procurement Fact File

Claritum

Claritum Article - Procurement Blog. We’ve read through some of the best analyst reports and surveys to bring you this procurement fact file containing some of the most interesting findings, statistics and quotes. Click here to download a printable pdf version of the procurement fact file. Procurement. source: (1 page infographic) AccentureOperations , High Performance Procurement (2015). Outsourcing of non-core procurement activities.

Five Predictions (About Prediction) that Every Procurement Professional Should Consider

Supply Chain View from the Field

As part of the conference, I’m delivering a talk on five predictions that every procurement professional should consider. These aren’t so much “predictions”, as opportunities that procurement professionals should become aware of, and educate themselves on. In addition, it will require simple, holistic metrics that capture all areas of business risk for contract factories, and which encompass both current and future risks.

Procurement needs to follow in the steps of marketing

Supply Chain View from the Field

A recent interview I conducted with a former Chief Procurement Officer who has worked for over 25 years in procurement in various industries captures what I believe is the true opportunity that exists for supply management executives. “The space occupied by procurement is not well understood by the CEO or the CFO in most companies, and in many cases is not well understood by the CPO themselves! Marketing and IT see this to some extent, but not like procurement.

Manufacturing Gains From Machine Learning

IQMS

McKinsey also found that AI-enhanced predictive maintenance of industrial equipment will generate a 10% reduction in annual maintenance costs, up to a 20% downtime reduction and 25% reduction in inspection costs. Source: Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? (52 Source: Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? (52

Blockchain’s Coming to the Supply Chain - Eventually

Supply Chain Brain

Show notes: A previous podcast episode about blockchain in the freight industry. Sourcing/Procurement/SRM All Technology EDI Communication (XML/EDI) Global Trade Management SC Planning & Optimization Supply Chain Visibility Quality & Metrics Supply Chain Security & Risk Mgmt. When it comes to the deployment of blockchain in the supply chain, or anywhere else for that matter, these are still early days.

Off to another exciting year of student-industry engagement at NC State on cutting-edge supply chain projects

NC State SCRC

In a prior post on 2018 supply chain predictions, I shared how NC State’s Poole College of Management engages directly with industry through student-led projects. Duke Energy Sourcing Automation through AI: Sourcing Optimization through technology and artificial intelligence are becoming more readily available within the Supply Chain industry. MUFG Union Bank Strategic Performance Metrics.

Effectively Manage Foodservice Supply Chains During Disruptions

CH Robinson Transportfolio

Even as doors start to reopen, it’s still unclear what the future holds for the restaurant industry. Today, many in the restaurant industry take advantage of outsourcing to lower resource costs, increase efficiency, and gain greater expertise.

Supply Chain KPIs You’ll Want Every Morning

Logility

Every company today runs on data – the key to using your data is choosing the right metrics for visibility into your supply chain. Management must be cognizant of issues of procurement, manufacturing, inventory, and distribution that impact satisfaction and loyalty. Metrics.

Where Will Companies Find Their Future I.T. Expertise?

Supply Chain Brain

I would say that there’s a greater awareness in the education industry of the need for I.T. Quality & Metrics All Technology Sourcing/Procurement/SRM SC Planning & Optimization Home Page Latest NewsThe need for tech expertise is greater than it has ever been — and growing.

What is MRO and Why is it Important?

Supply Chain Game Changer

Indirect Procurement – It’s Time to Rise and Shine! In the world of Procurement and Operations one of the phrases that you will frequently come across is “MRO” But many people throw around the term without truly understanding what it means, and how important it truly is for the ongoing, and successful, operation of any company. First and foremost you need to have a dedicated, experienced Procurement person, or people, in charge of MRO. Subscribe Here!

Supply Chain Movement 17 – S&OP

Supply Chain Movement

Over the past 30 years, the publicly listed company has grown into the most important producer of steppers and scanners for the semiconductor industry. His task – together with his colleagues from procurement, production and logistics – is to simplify the global supply chain while acknowledging that consumers are often very emotionally attached to a particular beer brand. Contents Supply Chain Movement 17 – 2015 Q2. Publishing date: 15 May 2015. 7 | News & Background.

S&OP 76

What is Supplier Relationship Management (SRM)?

Supply Chain Game Changer

Regardless of what industry your company is in you are dependent on suppliers to operate your company. He spent his entire career in Purchasing and Procurement. The scorecard included most of the standard metrics: on time delivery, quality, cost competitiveness, terms and conditions, etc. The scorecard format, metrics, and objectives were shared openly with suppliers. supplierrelationshipmanagement #procurement #purchasing. Subscribe Here! Email Address.

How Many Slaves Are in Your Supply Chain?

Talking Logistics

The company is also stopping production in Ecuador, Venezuela, Belarus and Pakistan by April 2014 (these countries scored low in a World Bank report that assessed countries on accountability, corruption, violence, and other metrics). The collapse of the garment factory in Bangladesh last week , which killed at least 705 workers and injured thousands of others, has put a spotlight on a problem that plagues many supply chains: the use of slave labor.

How to Create Collaborative Innovation with Suppliers!

Supply Chain Game Changer

But, unlocking collaborative supplier innovation requires clearly defined strategies and operations by a sourcing, procurement and/or purchasing team to ensure that suppliers’ competencies are being leveraged to their fullest potential. In relation to collaborative supplier innovation, it is important that procurement and sourcing teams remember that the supplier is an equal party/partner in the collaboration. innovation #supplychainmanagement #procurement #purchasing.

Is Your Supply Chain A Cost Centre or a Value Creator?

Supply Chain Game Changer

Whatever your Industry you should be able to make comparisons to competitors, do benchmarking, and even compare yourself on key metrics across industries. Now the role of Supply Chain is certainly different from one industry to the next. From the inbound perspective he Supply Chain team typically procures raw materials, expedites their delivery. The exponential growth of E-Commerce, the Internet of Things (IoT), Industry 4.0 Subscribe Here! Email Address.

Seasoned Leadership in Action? ? An Interview with Joe Carson, CEO Spend Strategies, LLC!

Supply Chain Game Changer

At Supply Chain Game Changer we believe in sharing experiences and expertise from people in every industry and from across the globe. Here is our interview with a true Global Industry leader, Joe Carson: Tell our readers a little about your background and experience? As an experienced business professional, he has served in diverse roles ranging from Marketing and Strategy, to Procurement and Supply Chain. leadershipadvice #procurement #supplychainmanagement.

Spectra Energy Supplier Forum: Driving Collaborative Project Management

Supply Chain View from the Field

In this paper, my coauthors and I explored some of the key ingredients that make up the “secret sauce” for successful vs. unsuccessful complex projects in the oil and gas industry. Some of the important points that came out of the meeting included the following: RIGHT METRICS: In general, the right metrics include not just dollar measures of dollars spent, but true measures of Earned Value that involves measures of value that are meaningful to project stakeholders.

The Supply Chain Team’s Impact on Capital Projects

NC State SCRC

In industries that are going through a lot of Capital Expenditure investments, including construction of pipelines, LNG facilities, and mining operations, the role of procurement on the success of the organization is somewhat different. Here are some of the areas where procurement has the opportunity to make an impact. This metric assesses the responsiveness of supply chains to convert purchases into paid for customer requirements.

SCM 57

Strategic Supplier Relationship Management – Do’s and Don’ts

Supply Chain Game Changer

Shortly after I joined the Commodity/Category Management Procurement organization I was invited to attend the annual Strategic Supplier Awards event. Prior to joining the Procurement team I had neither understood nor appreciated the importance of Supplier Relationship management. From one company to the next, from one industry to the next, and certainly from one individual to the next, Suppliers are viewed and managed differently. suppliermanagement #procurement #purchasing.

Changing SRM Behaviors in a Period of $70/bbl Oil

Supply Chain View from the Field

I was in Houston yesterday evening, speaking to a large group of procurement executives at a roundtable held by KPMG’s Procurement Advisory Group, at the fabulous Brennan’s restaurant on Smith Street. One of the opinions expressed (which I heard from several people) is that the Saudis are in effect hoping to drive out the “bottom feeders” in the industry, referring to the startups that have come out of the fracking craze.

Supply Chain Management:Demand Planning in CPG industry.

Infosys Supply Chain Management

Industries. Industries. Industrial Manufacturing. Publishing Resources Industries. Sourcing & Procurement. Sourcing & Procurement. ProcureEdge – Sourcing & Procurement. « The Upcoming 2011 Holiday Buying Season will again Test Retailer MCO and Supply Chain Capabilities | Main | Factors Influencing Delivery Address Amendment » Demand Planning in CPG industry - Practising the Best Practices. Procurement Blog.