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.

How do we Drive Invention to Innovation in Planning?

Supply Chain Shaman

At the event, James Rice, MIT, spoke on innovation, and his reflections on Clayton Christensen’s 1997 classic business book, the Innovators Dilemma. This is disruptive innovation. Christensen’s concept is that businesses will reject innovation based on the fact that the customer cannot currently use the innovation delaying the adoption of great ideas. The spark from Invention to Innovation is slow. Invention into Innovation in Planning.

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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.

Necessity is the Mother of Innovation

Logility

In the midst of the seeming chaos many brilliant minds have been working in overdrive to develop innovative solutions to many of obstacles that lie in our way. These are just a few of the countless and amazing innovations we hear about on a daily basis. In a much broader context, the byproduct of this work will be lasting innovation that informs design, production and distribution excellence for years.

Changing the Production Performance Metric

Logility

Are we looking to grow through innovation? Inside-out to outside-in is starting to turn. Anyone who has worked with asset intensive process manufacturers knows how hard it is to change the thinking about machine capacity utilization. For years asset utilization has been the de facto measurement where running smaller lot sizes was not an option. My have things changed. I see many companies shifting to a more balanced approach as companies strive to become more demand driven.

How Supply Chain Best Practice Metrics Can Predict the NFL Super Bowl

Kinaxis

So, I decided to use supply chain best practice metrics to predict the Super Bowl participants, and the ultimate winner. Okay, not just yet… Let’s consider that best in class supply chains use ‘ Value’ to measure success: Value = [(Service * Quality) / (Cost * Speed)] + Innovation. This is a simple equation, but yet very effective when used as an end-to-end metric. Speed is the metric that pulls all the functional areas together. Innovation. Innovation.

Top 10 Supply Chain Innovations of 2018

Material Handling and Logistics

In that spirit, we’ve combed the MH&L archives for the most innovative supply chain developments of the past year, as reported in our print magazine, on our website, in our e-newsletters, or our various social media channels. We hope you enjoy this salute to the best of 2018, and we look forward to even more innovations in 2019. Top 10 Supply Chain Innovations of 2016 : robot pickers, bridge-inspecting drones, autonomous freight shuttles, and more.

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. Companies use EcoVadis ratings to enhance business relationships, such as in selection for tenders, participation in preferred partner status, or co-innovation programmes.

How to Create Collaborative Innovation with Suppliers!

Supply Chain Game Changer

The complexity of global supply chains – especially in organizations like GM – require hands-on relationship management of suppliers to ensure that supplier collaboration will lead to added value, and innovation. Traditional notions of innovation are often that innovation is to be driven forward by the internal structure of an organization (Olsson 2017). Resources spent/gains made on the road to innovation are, therefore, sustained exclusively by the internal entity.

Break the Internal Process Requirements – Innovate for Success and Survival

Logistics Trends and Insights

For those that do not heed the digitization call or any form of innovation face consequences such as possible bankruptcy. So, our question is, if an industry is being disrupted, evolving, fill in the blank here…why should an organization continue to use traditional processes to determine how and what to measure when it comes to innovation? Innovation is a continuous path, it never ends. For retail businesses of all sizes, embrace innovation and digitization.

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. Semiconductor is poised to consolidate, which will have huge impact on the metrics. With the OEM’s driving down the price, the semiconductor/HDD companies will have to follow (or innovate new products). This will begin to impact the semi/HDD ability to raise capital and innovate/expand. by CJ Wehlage.

The DDAE Model – Metrics, Ranges and Next Steps

DynaSys

Prerequisite #3: Flow-Based Metrics. The DDAE model uses different metric emphases within each of the operational, tactical and strategic relevant ranges to promote and protect flow today and into the future. Operational metrics emphasize reliability, stability and velocity to determine relevant information and materials in the Operational Relevant Range. Strategic metrics emphasize contribution margin, working capital control and customer base control and development.

Customer Experience Driving Innovation for High-Performing Companies

Talking Logistics

Editor’s Note: The following is an excerpt of a research report published last week , “Competing on Customer Experience: The Driving Force Behind Supply Chain Innovation.” The research, produced by Adelante SCM and presented by BluJay Solutions (a Talking Logistics sponsor), was conducted to explore the links between supply chain management innovation, customer experience, technology adoption, and company performance. Logistics Service Providers Focus on Delivering Innovation.

[PODCAST] Shippers Who Excel at Recruiting Talent Improve Innovation, Culture, & Service

Cerasis

Listen to “Shippers Who Excel at Recruiting Talent Have More Innovation & Improve Customer Service” on Spreaker. Innovation & Strategy Resources for Shippers. The Ultimate Guide to Manufacturing, Supply Chain, Logistics, Transportation, & Freight Metrics & KPIs. The post [PODCAST] Shippers Who Excel at Recruiting Talent Improve Innovation, Culture, & Service appeared first on Transportation Management Company | Cerasis.

6 Warehouse Metrics You Can’t Afford to Ignore

PINC

Using drones, automation, robotics, and artificial intelligence, companies are leveraging these important warehouse metrics to better serve their customers while improving their own bottom lines. technology logistics innovation warehouse KPIs

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. innovation perspective).

Announcing the Supply Chains to Admire for 2019

Supply Chain Shaman

In the research, I’m trying to understand the impact of choices—technology, process innovation, and leadership– on balance sheet performance. Companies performing the best have three characteristics: Business Model Innovation. We selected these metrics based on correlation work with Arizona State University in 2012. The companies I work with struggle to set metrics targets. Technology change is moving faster than process innovation.

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.). C2C is a compound metric of receivables plus inventory minus payables.

Partnership is More Important than Digital Innovation when it comes to Complex Construction Projects

NC State SCRC

Continued dialogue around performance metrics allowed both parties to produce an amazingly successful project outcome. Across all industries, construction management has perhaps been the slowest to adopt digital technologies, and many opportunities exist to drive out inefficiencies.

SIG Webinar on Procurement Analytics and Innovative Data Leveraging

Supply Chain View from the Field

In particular, there is a noticeable gap between procurement executives’ explicit intentions of driving value for the business, and documented results as they pertain to improved engagement with internal business groups, ability to drive innovative analytical tools, and the resulting gap in alignment with business strategy. Such gaps are often attributed to a lack of data documenting historical spending, contracts, and supplier life cycle performance metrics.

Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

Instead of pushing innovation forward, I see companies using the term “digital” as a path for IT spending. 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. Three Paths for Innovation. First let me state, that I would welcome any level of innovation at JDA. They are a barrier to true innovation. Definitions: Provocateur.

Manufacturing Labor Productivity: A Vital Metric to Spur for American Manufacturing to Compete

Cerasis

With these reforms, the United States would have a chance to make up ground and remain competitive internationally in the global race for innovation. Author information Adams Nager Economic Research Analyst at Information Technology and Innovation Foundation Adams Nager is an economic research analyst at the Information Technology and Innovation Foundation.

Do Companies Really Expect Their Suppliers to Be Innovative?

Tompkins Blog

This headline raises an interesting question that Tompkins Supply Chain Consortium tackled recently in a published survey on supplier scorecards for innovation. I wasn’t surprised by this data until I saw the percentage of companies who measure innovation. More than 38% of surveyed companies—or more than a third of the 155 companies across all industries—measured innovation on their scorecards. have been measuring innovation for more than three years. Bruce Tompkins.

Procurement Leaders ’17: Supplier enabled innovation is a foundation for procurement’s strategic repositioning

NC State SCRC

year over year savings – and 25% are reporting revenue metrics – but 97% stick to cost savings. He elaborated further on the theme, “Conquering the Next Frontier” – which focused on thinking about the strategic positioning of the function, through collaboration and supplier-enabled innovation, as well as using technology as a disruptor. What is a culture of innovation? J&J’s Credo encourages everyone to innovate.

Emerald Citation of Excellence 2013 for supply chain innovation article

Supply Chain View from the Field

The article published in question, Knowledge sharing in interorganizational product development teams: the effect of formal and informal socialization mechanisms , was published in the Journal of Production Innovation Management in 2009. Professor Anne-Wil Harzing, a recognized authority on journal quality and citation metrics, comments: “I am happy Emerald is using Publish or Perish to make their first selection for the Citation of Excellence Awards.

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. While companies need ERP as a system of record for transactional processing, it is not the future of supply chain analytics or innovation. In each case, note that the greatest improvement is happening in industries like contract manufacturing where innovation is a necessity due low margins. 2) Focus on a balanced portfolio of metrics.

5 Easy-to-Use Ways to Monitor Supply Chain Health

Talking Logistics

Do you have the right metrics? Metrics show how your supply chain is performing – providing they are the right ones to do the job. Inappropriate metrics can give a false or incomplete picture of supply chain performance. Second, what metrics are the best indicators of performance in terms of these goals? These are examples of metrics that may or may not support your goals. Benchmark your operation using the selected metrics.

The Impact of Innovative Supply Chain Management Tools on Working Capital

Savi

Traditional metrics for managing working capital such as Days Sales Outstanding (DSO), Days Inventory On-hand (DIO) and Days Payables Outstanding (DPO) all provide insight but are backward-looking. Innovative supply chain management technology will spur the next leap forward. The post The Impact of Innovative Supply Chain Management Tools on Working Capital appeared first on Savi Technology.

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What does ‘on-time, in-full’ (OTIF) mean in the consumer sector?

PINC

and Trading Partner Alliance outline some of the key considerations that should go into developing and using the on-time and in-full delivery metric. To fill these gaps, a growing number of companies operating in the consumer sector have adopted the “on-time in-full” (OTIF) delivery metric.

Novo Nordisk: A Story of a Supply Chain Leader

Supply Chain Shaman

With more than 90 years of innovation in diabetes care, Novo Nordisk is a global pharmaceutical leader. The sessions are open to all innovators. The Summit on September 5-8, 2017 will challenge teams to think out of the box, and is designed to build a guiding coalition between business innovators and technology visionaries. . Supply chain excellence Supply Chain Talent Supply Chains to Admire cold chain healthcare Metrics That Matter Novo Nordisk

Navigating the Supply Chain Management Fault Line

Supply Chain Shaman

Innovative startups. Artificial Intelligence innovators. Here is what I hear on calls: Having the digital innovation team in the IT organization is like drilling a hole in bedrock. Innovation will never come from application consolidation. Stalled progress on metrics: 90% of companies find themselves stuck on key supply chain metrics (cost, inventory, growth, ROIC). Innovators are looking for buyers. They are seeking business innovators.

Manufacturing Gains From Machine Learning

IQMS

Source: Technology and Innovation for the Future of Production: Accelerating Value Creation (38 pp., PDF, no opt-in) Youichi Nonaka, Senior Chief Researcher, Hitachi R&D Group and Sudhanshu Gaur Director, Global Center for Social Innovation Hitachi America R&D. OEE is a pervasively used metric in manufacturing as it combines availability, performance, and quality, defining production effectiveness.

E-commerce spurring drive for innovation in third-party logistics industry

EFT

Third-party logistics professionals looking to take advantage of these developing channels will need a partner to help provide the ultimate customer experience, shipping needs, reporting metrics, and more. With both the rise of e-commerce and the increasing expectations of a consumer-like experience for B2B, 3PLs are experiencing pressure to evolve regardless of their customers says the Third Party Logistics Report.

The 7 Habits of Highly Effective 3PLs

The Logistics of Logistics

Innovation and new technology are obviously important, but when evaluating a 3PL, go with the one that excels at blocking and tackling. A KPI is an indicator (a metric) that you have chosen, and agreed with your partners and or customers, that will determine whether you are meeting your critical success factors. White Paper: The Essential Guide to LTL Shipping Improvement: Action Plan and Metrics for Rapid Transformation.

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SCRC Innovation and Social Responsibility Supply Index: A Critical Input to “Drucker Management Top 250 List”

NC State SCRC

Data for two of the categories used in the ranking – Innovation and Social Responsibility – are based on processes developed by Handfield and Huang. In the innovation category, metrics related to spending management, category management, strategic sourcing and supplier relationship management.