Metrics that Matter: Inventory Effectiveness

QAD

It is critical to monitor inventory effectiveness using five key metrics: Expedited orders, inventory turns, obsolete inventory, safety stock and stockouts. Many organizations publish turns data by industry or SIC code to help gauge where you stand against others in your industry. Using Metrics to Measure the Health of the Business. Companies use these metrics to minimize their investment in inventory without adversely affecting customer service levels.

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

Cerasis

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 10 Soft Metric Considerations in Measuring Supply Chain Performance. Customer Service Levels : When it comes to how a shipper defines the value of a logistics provider or 3PL to the bottom line, there are often several Key Performance Indicators (KPIs) and Logistics Metrics taken into consideration.

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

Cerasis

The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ). The definition of this metric is similar to the way it sounds. This is a critical metric in regulated industries such as medical devices, pharmaceutical, biotechnology, and food and beverages.

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. Corporate social responsibility (CSR), which is often referred to as environmental, social and governance (ESG) in the finance industry, is becoming an essential criteria for measuring business performance.

Midstream Transportation Trends: The Future of Oil and Gas Industry

PLS Logistics

Despite the 2014 oil and gas price drop crisis and the rush around alternative fuel sources, the future of the oil and gas industry remains bright and has a steady pace of growth and increasing demand. More than four billion metric tons of oil and produced every day worldwide, with oilfield companies still generating the […].

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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. That industry has already gone through consolidations. Semiconductor is poised to consolidate, which will have huge impact on the metrics.

Podcast: Rob O’Byrne on Digital Transformation, Sustainability, and Diversification in Sourcing

Requis

Sourcing has probably been the biggest thing over the last decade or two, coupled with that reduction in local manufacturing of course. Sourcing is now predominantly overseas: China is one of the big sourcing countries of course, along with India, Pakistan and Bangladesh, Vietnam and Thailand.

Data, Cognitive Technology, and Industry 4.0

Enterra Insights

There is continued buzz about Industry 4.0 — the nickname adopted for the ongoing fourth industrial revolution. Anant Kale ( @anantkale ), Co-Founder and CEO of AppZen, explains, “The first industrial revolution mechanized production using steam power, the second gave us the assembly line for mass production, and the third industrial revolution gave us advanced automation using IT and electronics. 1] One element of Industry 4.0

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Industry 4.0: The Emergence of Cognitive Manufacturing

Enterra Insights

Industry 4.0 is the popular name given to the fourth industrial revolution ushered in by the digital age. They write, “Industrial production was transformed by steam power in the nineteenth century, electricity in the early twentieth century, and automation in the 1970s.”[1] ” Some pundits believe Industry 4.0 is more evolutionary than revolutionary since computers were the foundation of the last revolution and remain the foundation of Industry 4.0.

Measuring Up?

Supply Chain Shaman

The first step in the journey is to analyze balance sheet results and understand industry trends. 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. Analysis of Performance and Improvement by Industry on the Supply Chain Metrics That Matter.

Announcing the Supply Chains to Admire for 2019

Supply Chain Shaman

Smaller, more agile companies outperform the larger and well-known brands in the retail, beverages, food, and pharmaceutical industry sectors. Industry-by-industry, I compiled data for the period of 2010-2018. The study of improvement and performance for the 535 companies in 26 industries took two months. The source data for the analysis comes from Ycharts.). We selected these metrics based on correlation work with Arizona State University in 2012.

Industry 4.0’s Potential Needs To Be Proven On The Shop Floor

IQMS

99% of mid-market manufacturing executives are familiar with Industry 4.0, yet only 5% are currently implementing or have implemented an Industry 4.0 Mid-market manufacturers getting the most value out of Industry 4.0 Demystifying Industry 4.0 Delving into the specifics of Industry 4.0 Those factors are what makes the latest BDO study, Industry 4.0: Early Indicators of Industry 4.0 Key Takeaways from BDO’s Industry 4.0 Source: Industry 4.0:

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

Financial reengineering focuses on the optimization of short-term results that are usually based on a functional analysis of source, make, or deliver. Few consultants understand the interrelationships between source, make and deliver. 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.

Selling on Shopify for Beginners: Sourcing, Designing, and More

ShipBob

The platform is held at a very high standard in the ecommerce industry. Source your products. Before you build an online store, you need to source your products. Make sure you have Google Analytics set up so you can track website traffic and other online store metrics.

Public Markets Reward Supply Chain Alignment

Supply Chain Shaman

The relationship between corporate financial performance and supply chain metrics was complex; and in my first attempts, I was unable to derive a correlation. The year 2012 marked the 30th anniversary of the use of supply chain management as a cross-functional process for source, make and deliver in the commercial sector. I believed that supply chain excellence could not be generalized from industry to industry. Today, I am proud to launch the Supply Chain Index.

Getting Bangladesh’s Apparel Industry on the Map

Supply Chain Brain

Bangladesh’s apparel industry is huge, employing some 4 million people in dye houses, fabric mills, cutting and sewing operations, embellishments and print locations. Illegal subcontracting at Rana Plaza resulted in many foreign brands losing faith in the country as a legitimate source of offshore production. In theory, factories should be eager to be identified as legitimate sources of production, as a means of securing more business.

Wanted: Supply Chain Architects!

Supply Chain Shaman

When I moved into industry, and the real world, I managed engineering teams. Much to my chagrin, when I entered into the world of supply chain, the processes of source, make and deliver were usually not designed. Instead, I think that it needs to be holistic to balance the trade-offs of source, make and deliver together. Figure 3 is a good overview of the current state of network design in the industry.

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: Technology and Innovation for the Future of Production: Accelerating Value Creation (38 pp.,

Syndicated Data for CPGs

SupplyPike

Regardless of whether you are a distributor, supplier, or retailer, if you want to step up the sales of your goods, leveraging syndicated data may be one of the most proven ways to take industry trends and apply them to your business. Category Consistency: Application of OVT does away with almost 20% discrepancy between a category advisor’s custom hierarchy metrics and Walmart’s parameters of performance. Walmart has selected Nielsen for its source of POS data.

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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.

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

EcoVadis

Sustainable procurement offers benefits for all parties – it delivers customers safe, ethically sourced products, and reduces overall supply chain risk. The complexity of the electronics supply chain leads to a variety of sustainability issues, including unfair labor practices, presence of harmful chemicals and conflict minerals.

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.

Summary of Development and Manufacture Contracts in the Aerospace and Defense Industries

NC State SCRC

The type of contract of interest in this report is for Development and Manufacture contracts in the Aerospace and Defense industries. Risk in Aerospace and Defense Industries. The major sources of risk in Development and Manufacture contracts in the Aerospace and Defense industries start at the top, where the contracts are awarded, and flow downwards to the subcontracting suppliers. The contract may also include metrics and resulting consequences (late fees, etc.).

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

Supply Chain Brain

It’s the model under which companies draw on talent from multiple sources, including in-house staff, outsourced services providers, and freelancers. Talent today comes from the source that meets a company’s needs of the moment. As with any supply chain, it all begins with the source. I would say that there’s a greater awareness in the education industry of the need for I.T. The need for tech expertise is greater than it has ever been — and growing.

The Magic Bullet for Real-Time Supply Chain Collaboration? Cloud Visibility.

synchrono

Worse still, much of the data that could give manufacturers a complete, end-to-end view of their supply chain already resides within the systems of these partners; as much as 80 percent of it, according to some industry estimates. Modern Demand-Driven Manufacturers are leveraging real-time Cloud-based visualization and collaboration systems to view data from multiple, disparate sources while keeping the data in its original, host environment.

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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.

Digital transformation in the life sciences supply chain – show me the data

Kinaxis

Is there a more challenging industry than life sciences? Although getting a new drug to market has its unique challenges compared to the source, make and deliver part of the life sciences supply chain equation, there is one thing those of us in supply chain have in common with our R&D counterparts, we all need clean data. by Bill DuBois The life sciences supply chain starts with a miracle.

Why Large Companies Increasingly Opt for 4PL Services

Logistics Bureau

The concept of fourth-party logistics has existed for some time but only truly began evolving with the arrival of Industry 4.0—the 4) Industry.

Global Sourcing and Human Rights Go Hand in Hand

NC State SCRC

Low-cost country (LCC) sourcing is now a commonplace strategy for shrinking bottom line labor and material costs in most consumer products industries, including apparel, footwear, toys, and other manufactured products. The on-going tariffs levied by the Trump administration in 2018 against China has also made this option significantly more expensive for sourcing. Dow searches for suppliers that are green, according to industry standards.

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

Supply Chain View from the Field

The most important and common method for driving diversity objectives in the survey (in 73% of firms) involves explicitly building in diversity as an objective into sourcing processes. It is not uncommon to find that sourcing managers do not view diversity as a priority. An example of a metric captured in the form several key measures of commitment towards supplier diversity. I was recently involved in a survey of best practices in establishing a diverse supply base.

Sustainable Logistics Practices Can Serve as a Differentiator for CPG Brands

Zipline Logistics

Sustainability is an often-discussed concept that can be a reliable source of differentiation for CPG manufacturers. Now, when most think of sustainability, they think of ethical sourcing or environmentally friendly packaging. Tracking Key Metrics to Drive Performance Improvement .

How Can Manufacturers Manage Disruption and Improve Productivity?

Logility

Thanks to the power of the cloud and advanced analytics, manufacturers can put data to work, gathering information from multiple data sources and taking advantage of machine learning models and visualization platforms to uncover new ways to streamline processes from sourcing to sales.

SIG Webinar on Procurement Analytics and Innovative Data Leveraging

Supply Chain View from the Field

I will be leading a webinar with the Sourcing Interest Group next Nov. Such gaps are often attributed to a lack of data documenting historical spending, contracts, and supplier life cycle performance metrics. This question formed the basis for our study, in which we conducted lengthy interviews with 23 senior procurement executives across a broad range of industries. 12 at 2 PM, based on a study I have been working on with some folks at IBM.

How to prepare for a transparent supply chain in 2021

SupplyShift

To reuse the Kraft Heinz example, something like: Procure most electricity from renewable sources by 2025 and decrease energy usage by 15 percent. Decrease water usage by 20 percent at high-risk sites and 15 percent overall by 2025 (per metric ton of product made).

Food Trends That Could Have an Impact in 2021

Zipline Logistics

Personalized nutrition is an interesting trend emerging in the food and beverage industry. Those cutting-edge technologies are enabling companies to create personalized nutrition plans for users based on biological metrics. Increased Sourcing Transparency .