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GlobalTranz
JULY 1, 2021
Creating a data-driven supply chain tracking important transportation metrics helps shippers respond and adapt as quickly as possible to known and unknown events. Why Monitor Transportation Metrics. Which Transportation Metrics Should Shippers Track to Manage Transportation.
Kinaxis
JUNE 22, 2015
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.
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Supply Chain Shaman
JANUARY 7, 2015
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. It is for this reason, that I believe that the traditional SCOR Model metrics are problematic. Achieving Balance in Metrics. Last week, I held my new book in my hand.
Unleashed
DECEMBER 15, 2021
Days Sales of Inventory (DSI) is a key measure to help you understand how efficient your inventory management is. Learn more: Inventory Accounting – A Free Video Guide for Accountants & Advisors What is Days Sales of Inventory (DSI)?
QAD
JUNE 25, 2019
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.
GlobalTranz
JULY 13, 2015
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?
Logility
AUGUST 5, 2021
But before you start measuring everything in sight – and a few things not in sight – start with a set of thoughtful intentions and questions that will guide you to the right set of metrics and the right set of expectations.
Logility
MAY 22, 2020
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.
Logility
AUGUST 7, 2017
Ask yourself, “Are your supply chain metrics bogging you down?” ” To manage a supply chain containing complex dependencies between teams, departments and partner companies across international boundaries requires a rich set of metrics. However, companies often have too many independent metrics that can cause conflicts amongst competing supply chain functions. Functionally isolated metrics lead to sub-optimized supply chain performance.
Supply Chain Shaman
OCTOBER 22, 2015
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. Inventory management is a hot issue. Companies invest in project after project, yet inventory levels remain the same. In business there are many drivers of inventory, and the management of inventory levels requires discipline and a cross-functional focus. What Drives Inventory Effectiveness?
GlobalTranz
JUNE 14, 2017
The answer lies using these omnichannel supply chain metrics to carefully track and improve operations continuously. Inventory Accuracy. This is a simple key performance indicator (KPI), another name for metrics, to track. It refers to the in-stock or out-of-stock accuracy of supplier inventory. This KPI should be as high as possible, reflecting accurate inventory available for customers from suppliers. Other Critical OmniChannel Supply Chain Metrics to Track.
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QAD
JULY 1, 2021
Total manufacturing costs showcase how much your company spent to produce its inventory in a given period of time. This is not to be confused with the cost of goods manufactured (COGM), which refers to just the cost of inventory that was finished and prepared for the sale in the period.
Logistics Viewpoints
FEBRUARY 3, 2022
Supply shortages resulting in empty shelves or parking lots of WIP inventory represent a spectre causing supply chain leaders to reconsider supply chain inventory practices. Opinion of just-in-time (JIT) as a practice has taken a battering and inventory is rising.
The Smart Software
MAY 23, 2019
The post Quantum Inventory Theory? Blog Demand Planning Inventory Optimization Operational Analytics demand planning implementations efficient stocking ERP forecasting software inventory modeling inventory optimization kpi metrics overstock probabilistic modeling statistical forecasting supply chain analyticsPhysics at the quantum level is quite weird – not at all like what we experience in our usual macroscopic life.
GlobalTranz
APRIL 25, 2016
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. The goal is to keep inventory levels at a minimum to meet customer needs. Review Inventory turns and Return on Assets. For clarity, in measuring supply chain performance, we should be focusing on: inventory, working capital, and time.
Kinaxis
DECEMBER 3, 2014
Reason #6 Not effectively managing inventory. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Yet, these are similar instructions as what is passed down to the supply chain from executives focused on a specific supply chain metric. One example that I’ve seen several times is around inventory targets. The result is a lower inventory level, but much higher expedited costs and reduced customer service.
Silvon Software
JUNE 23, 2020
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.
Logility
JANUARY 26, 2017
The second part of Drucker’s quote, “if you can't measure it, you can't improve it,” really brings home the importance of having the right set of metrics. In the field of supply chain management, we have created an abundance of metrics and key performance indicators (KPIs). For the past 30 years I have been involved with multiple efforts to build a set of supply chain metrics and have learned a few things along the way.
Supply Chain Shaman
SEPTEMBER 3, 2015
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.
Silvon Software
JUNE 11, 2020
The more challenging part of dashboarding, however, gets down to the actual metrics that should be included as part of a performance management strategy. Today’s post focuses on Sales metrics only. Basic Sales Metrics. More Complex Sales Metrics.
Supply Chain Shaman
MAY 3, 2015
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.
Kinaxis
JUNE 29, 2015
by Andrew Dunbar The modern day inventory manager described in this series is the backbone of your company’s inventory planning process. She has a strong understanding of supply chain fundamentals and is an expert at controlling the key levers impacting the inventory company’s investment in inventory. If you leave her to build reports and metrics that she needs in excel then she’ll spend all her time crunching numbers instead of planning your company’s largest asset.
Valogix
NOVEMBER 6, 2018
Achieving a well-balanced, efficient inventory is no small task as supply chain complexity is ever increasing. Understanding and using some basic financial and accounting methods along with an advanced inventory optimization solution will help get you there and keep you there How do you get there and how do you know when you have arrived?
Unleashed
MAY 2, 2022
There are a lot of inventory performance measures you could track. These are the 10 most crucial metrics for SMEs – so you can get started on reducing inefficiencies and cutting costs. Explore our live inventory calculators and formulas page.
Silvon Software
APRIL 29, 2022
Inventory can be a manufacturer’s most important asset. But a large inventory has its own liabilities such as cost to store and insure it, along with the risk of spoilage, theft and damage. The Basics of Inventory Management KPIs.
Unleashed
MARCH 9, 2021
This is often managed with the help of supplier management software or inventory management software. That’s where Procurement Metrics and Key Performance Indicators (KPIs) come into play. In this post, we’ll unpack ten top procurement metrics and why they matter.
synchrono
JANUARY 31, 2017
LNS Research blogger Mark Davidson said, “When it comes to metrics, it’s often said that what gets measured gets done.”. Mark also writes: “Metrics that have the attention of business and manufacturing leaders tend to be those that get measured and improved upon by their employee teams.”. But are employees being rewarded for metrics that do not in turn reward demand-driven flow and the customer signal (both real and imagined)? Metrics for Action.
synchrono
MARCH 6, 2017
When we look at the organizations of today, words like efficiency and productivity get thrown around with little understanding of what is required to improve one of these measurements (metrics). Let’s discuss why an efficiency metric is usually not the right metric and what a Lean manufacturing expert does when measuring true value in the supply chain. This “lost opportunity metric” is now something that Lean manufacturing experts try to keep at the top of the list.
The Smart Software
APRIL 11, 2019
An inventory professional who is responsible for 10,000 items has 10,000 things to stress over every day. The post Stop Leaking Money with Manual Inventory Controls appeared first on Smart Software. Blog Business Policy Demand Planning Excellence in Forecasting Inventory Optimization Operational Analytics demand planning implementations ERP inventory modeling inventory optimization kpi metrics probabilistic modeling statistical forecasting supply chain analytics
ToolsGroup
FEBRUARY 6, 2018
Financial executives measure inventory health with metrics like inventory turns because they view the firm from a financial viewpoint - such as how much working capital is being tied up. But from an operational supply chain planning perspective, turns is a crude metric because it doesn’t recognize the difference between “good” and “bad” inventory. Gartner delved into this issue in a recent report, Build the Capability for Inventory Health Assessment.
Kinaxis
JULY 23, 2015
by Andrew Dunbar This post concludes my inventory management blog series. Throughout this series I’ve proposed an elevated role for the inventory manager that challenges the assumption that an inventory manager is a victim of his colleagues’ business decisions and plays only a limited role in formulating inventory results. Inventory management is not a stand-alone business process that occurs after other processes are complete. General News Inventory managemen
Logility
NOVEMBER 15, 2013
The production efficiency is one of several measures across the supply chain including inventory and customer service and profitability. Now, they care about how much inventory they are holding. 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.
Kinaxis
MARCH 22, 2017
But the sheer complexity of supply chain networks, and the impact design decisions have on operational performance, makes supply chain inventory management aligning inventory investments with on-time customer delivery and margins a major challenge. The equivalent of 7% of America’s GDP is tied up in inventory, and accounts receivable and payable. Implementing inventory optimization. The challenges of inventory optimization can be immense.
Supply Chain Opz
AUGUST 3, 2014
Supply Chain Metrics are one of the most important best practices in supply chain management because " You can''t manage what you can''t measure ". However, under certain circumstances, metrics are not used or implemented properly. This article will explain to you 7 kind of supply chain metrics that you should pay special attention to. 2) Utilization Metrics : machine utilization is a classic example of this kind of metric. It''s the inventory metric).
GlobalTranz
JULY 20, 2015
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. Measures such as amount of product to be reclaimed and resold as is, or percentage of material recycled, are examples of such metrics. Energy used in handling returns : This metric is used in sustainability programs.
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