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My Take: Metrics that Matter

Supply Chain Shaman

Tomorrow, I have a call with a manufacturing company to answer the question, “ What is the most important concept in the book?” While Joe is trying to balance the feedback from Filipe and Frank, he is often asked to change his metric targets by his CFO named Lou. After two years of research, I think that we throw the supply chain out of balance and limit its potential through the use of traditional and functional metrics. Achieving Balance in Metrics.

Modern Metrics

synchrono

The two areas of my working world are embracing technology like never before: Marketing and manufacturing. 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. How Technology Has Changed What We Measure.

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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? What distribution center metrics are you tracking or are not listed here?

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. Basic Sales Metrics. More Complex Sales Metrics.

Supply Chain Dashboards – Key Metrics For Manufacturers

Silvon Software

As I mentioned in my previous post, Sales Dashboards – 16 Metrics for Manufacturers , a strategy for measuring business performance should also incorporate metrics that focus on the supply chain and other operational areas of the enterprise. Supply chain metrics and key performance indicators (KPIs) are sometimes a bit tougher to compile than sales metrics. Nevertheless, measuring supply chain performance is critical for a manufacturing concern.

SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

When I hear companies discussing the implementation of a customer segmentation strategy, I ask a series of questions: Who is your customer? What are you trying to accomplish through the execution of a customer segmentation strategy? Today, there is not a well-defined template on how to build and operate a supply chain defined by customer policy and segmentation strategy. SanDisk’s Journey to Build a Supply Chain Customer Segmentation Strategy.

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.

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. I was moving from the world of manufacturing to a new world of software. The technology world moves at a quicker pace than the world of manufacturing and distribution. The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study.

6 Benefits of Effective a Reverse Logistics System & The 9 Core RevLog Metrics to Track

Cerasis

For instance, a growing number of cell phone manufacturers have established procedures in place for consumers who wish to return an older model and ensure that the device is refurbished or recycled rather than dumped into the local landfill. Importance of Metrics in Reverse Logistics Management. To monitor progress against its reverse logistics management plan, a company needs metrics that measure the financial impact of returns on the firm and on other members of the supply chain.

Take Advantage of Digital Manufacturing to Improve Workforce Productivity

DELMIA Quintiq

Much has been done to improve manufacturing efficiency. Supply chains have been optimized; warehouse inventory tracking has reached new levels of precision; production lines can operate with virtually no downtime. As the common linchpin that brings together all manufacturing activities, has this metric improved along with all the investment in new technologies? As a result, this metric is often downplayed or not referenced in the discussion.

Is Inventory Waste or an Asset?

Supply Chain Shaman

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.” His feeling was that inventory is an asset to manage. Inventory is both. Inventory management is a complex subject.

Changing the Production Performance Metric

Logility

Anyone who has worked with asset intensive process manufacturers knows how hard it is to change the thinking about machine capacity utilization. The production efficiency is one of several measures across the supply chain including inventory and customer service and profitability. And finally the fourth phase is to align the production accountability more meaningfully with company strategy. Now, they care about how much inventory they are holding.

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. Inventory is the culmination of many business decisions. The Inventory Management Journey.

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

Cerasis

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. 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 ). 2: Audit Strategy.

Changing the Production Performance Metric

Logility

Anyone who has worked with asset intensive process manufacturers knows how hard it is to change the thinking about machine capacity utilization. The production efficiency is one of several measures across the supply chain including inventory and customer service and profitability. And finally the fourth phase is to align the production accountability more meaningfully with company strategy. Now, they care about how much inventory they are holding.

Take Advantage of Digital Manufacturing to Improve Workforce Productivity

DELMIA Quintiq

Much has been done to improve manufacturing efficiency. Supply chains have been optimized; warehouse inventory tracking has reached new levels of precision; production lines can operate with virtually no downtime. As the common linchpin that brings together all manufacturing activities, has this metric improved along with all the investment in new technologies? As a result, this metric is often downplayed or not referenced in the discussion.

Lean Manufacturing: Is it Really Worth It? 16 Big Benefits Say, “Yes.”

Cerasis

Customer expectations of reliable quality and rapid delivery forces today’s manufacturers to either shorten cycle times or lose business. Lean systems have provided a formidable operating strategy for leaders determined to achieve and maintain optimal operational systems and customer satisfaction levels. There are multiple good models for lean manufacturing operations. Who Needs Lean Manufacturing? Holding areas are maintained for excess inventory.

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Defining and Implementing an Effective Transportation Strategy

Talking Logistics

An important component of that foundation is defining and implementing an effective transportation strategy – a topic that I discussed with Eric Meister, LeanLogistics’ former COO, in a follow-up episode. Here are some of the valuable insights that Eric shared regarding the path to building an effective transportation strategy: Q: An important component of that foundation is defining and implementing an effective transportation strategy.

Executing Customer-Centric Supply Chain Strategies

Supply Chain Shaman

I want to understand why some companies outperform on the Supply Chain Metrics That Matter while others do not. About twice a month, companies ask me to review their strategy documents. Frequently, I see the goal of “build a customer-centric strategy” or define an “end-to-end vision to deliver on the customer promise.” It requires a careful execution of strategy and the connection of strategy to execution.” Customer-Centric Strategies.

Are you getting the most out of your inventory management process?

Kinaxis

by Andrew Dunbar Inventory is often the single largest asset on a company’s balance sheet and your inventory management process can have a huge impact on your organization’s bottom line. Understandably, the inventory management process is getting a lot of attention by organizations looking to squeeze out some extra profit in a challenging marketplace. When you think about the priorities of your inventory management process, what’s the first thing that comes to mind?

Six Ways Warehouse Inventory Management Software Optimizes Efficiency

IQMS

The Warehouse Inventory Management Software market grew to $1.4B Warehouse Inventory Management software and systems help reduce infrastructure costs and enable the reallocation of existing IT resources to drive productivity improvements, according to IDC. Warehouse Inventory Management Software is seeing increased adoption as manufacturers expand globally through mergers, acquisitions, and regionally-focused manufacturing strategies.

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

Kinaxis

Among the many supply chain initiatives taking place today, vendor-managed inventory (VMI) has become an increasingly effective process and business model to help organizations share risk and information between vendors and customers — while benefitting from lower stockouts, reduced uncertainty and lower costs. As with any industry, food and beverage faces its own unique set of supply chain challenges, including: Expiring ingredients, manufactured product and packaged goods.

How to Sustain a Lean Culture in Manufacturing & Supply Chain

Cerasis

These metrics would, of course, be aligned and are updated every hour. The metrics are also manual as automatic metric systems cannot retrieve the information at an hourly frequency as these metrics are process inputs and not outputs. For example, if your strategy is to improve Quality, the people in the value stream would own a control chart of heat applied to the product. Specific metrics: process metrics and outcome metrics.

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21 logistics experts share the most important ingredients in developing an effective logistics strategy

6 River Systems

There are several elements in an effective logistics strategy, with the ultimate goal of identifying the most cost-effective service levels and developing plans and processes that enable the company to operate as close to those optimal service levels as possible.

The Go-To List of Ways to Improve Inventory Management

Veridian Solutions

Today’s warehouse managers need better inventory management strategies. This is nothing new, but as the world has evolved, the ability to improve inventory management has evolved in stride. Supply chain leaders should follow these key strategies for ways to improve inventory management. Implement Waveless Picking Strategies. Of course, implementing a waveless strategy will require a reevaluation of your current systems and planning processes.

Three New Ways Retailers Can Improve Inventory Performance

ToolsGroup

The ability to serve this demand is foundational to the success or failure of a retailer, but the challenge doesn’t hinge on the strategy leadership sets. Here are three things that retailers can do to align strategy and execution. By using data to stock items with higher forecasted demand, they can reallocate cash that would normally be tied up in poorly performing inventory, avoid margin erosion from markdowns and dead stock, and increase overall on-shelf availability metrics.

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Why Inventory Revaluation Is Your Next Important Task

Unleashed

All product-based businesses need to track the value of their inventory – and this goes double in a period of dramatic upheaval. The value of your inventory has likely changed thanks to the Covid-19 crisis, and you should consider revaluing it before you make any major business decisions. To help you understand the importance of tracking this metric we’ll illustrate several ways the value of your stock can change. What is inventory revaluation?

Digital transformation in manufacturing – The accelerators and roadmap for manufacturers

ThroughPut

The relevance of digital transformation in manufacturing. PWC predicts that out of every 2,000 manufacturers, 86% will benefit from cost reductions and revenue gains from their digitization efforts over the next five years. Fortunately, manufacturing is one industry that can easily harness new-age digital technology to deliver greater supply chain efficiency and productivity using smarter, better and safer operations methodologies. Blog manufacturing

Digital transformation in manufacturing – The accelerators and roadmap for manufacturers

ThroughPut

The relevance of digital transformation in manufacturing. PWC predicts that out of every 2,000 manufacturers, 86% will benefit from cost reductions and revenue gains from their digitization efforts over the next five years. Fortunately, manufacturing is one industry that can easily harness new-age digital technology to deliver greater supply chain efficiency and productivity using smarter, better and safer operations methodologies. Blog manufacturing

Digital transformation in manufacturing – The accelerators and roadmap for manufacturers

ThroughPut

The relevance of digital transformation in manufacturing. PWC predicts that out of every 2,000 manufacturers, 86% will benefit from cost reductions and revenue gains from their digitization efforts over the next five years. Fortunately, manufacturing is one industry that can easily harness new-age digital technology to deliver greater supply chain efficiency and productivity using smarter, better and safer operations methodologies. Blog manufacturing

Seeing Further: Using Manufacturing Execution Systems (MES) to Improve Visibility

IQMS

With a focus on business process improvement, our consultants are regularly out in the field guiding manufacturers and distributors that are challenged with managing the complexity of their operations. No matter the sector – industrial equipment manufacturers, metal fabricators, distributors – companies are hungry for real-time visibility into their entire operation to clearly see bottlenecks, adjust and improve productivity.

10 Best Inventory Book for All Experience Levels

Supply Chain Opz

What inventory book can help you to cut inventory costs? In this article, we will show you 10 best inventory book that readers at all levels can learn from. Inventory Management Overview Many people think inventory management is a clerical task but they're absolutely wrong. Effective control of inventory requires a broad spectrum of knowledge.

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

Second, they adapt over time as market structures and strategies evolve. Over the last six years, we studied the connection between business results (growth, operating margin, inventory turns and Return on Invested Capital (ROIC)) and the link to company characteristics. The delivery against goals starts with leadership and a clear strategy. Reward teams for cross-functional metrics. Focus functional metrics to improving reliability. Buffer strategies.

Why Inventory Revaluation Is Your Next Important Task

Unleashed

All product-based businesses need to track the value of their inventory – and this goes double in a period of dramatic upheaval. The value of your inventory has likely changed thanks to the Covid-19 crisis, and you should consider revaluing it before you make any major business decisions. To help you understand the importance of tracking this metric we’ll illustrate several ways the value of your stock can change. What is inventory revaluation?

Let’s Fail Forward….

Supply Chain Shaman

While I will know more when I finish the research than I do now, I want to encourage all readers in manufacturing and retail to participate. The Center of Excellence is driving supply chain evolution against an operating strategy. Clarity of the Operating Strategy. They deliver on the operating strategy. I expect to see that where there is clarity in the operating strategy, the Supply Chain Center of Excellence is aligned to deliver on success. Metrics Matter.