My Take: Metrics that Matter

Supply Chain Shaman

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.

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. 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.

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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. Inventory Turns and Sales-to-Inventory Ratio.

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.

Procurement Interview Questions & Answers

Supply Chain Game Changer

Procurement, or Purchasing, is an area of Supply Chain that involves and requires very specific skills and expertise. This is particularly apparent if you are hiring a Procurement professional, you are looking for a Procurement job, you are looking to outsource anything, or you are dealing with Procurement people in the course of conducting business. Check out this list of 25 Procurement and Purchasing questions and answers. Subscribe Here! Email Address.

A New Decade: Give Science A Chance

Supply Chain Shaman

Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns. When compared to pre-recession years, we ended the decade with twenty more days of inventory. Days of Inventory Comparison.

SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

I find that in this world of the global multi-national that procurement processes have become convoluted and increasingly complex. (In In my opinion, we have made procurement increasingly complex without adding value. In my research, I find that the companies with the most progressive procurement processes also have the most advanced customer supply chain process evolution.)Without

The Reorder Point Formula: Everything You Need to Know

Unleashed

A carefully calculated reorder point is therefore critical to good stock control, and keeps your key metrics looking healthy for your next inventory report. Growing product businesses should manage their stock using reliable inventory management software.

4 Reasons to Integrate Order-to-Cash & Procure-to-Pay

OneSCM

The ease of implementing and onboarding supply chain management solutions gives wider visibility in manufacturing, as well as orders and inventory. Bundling order-to-cash and procure-to-pay functions not only gives companies a holistic view of their supply chain operations, but also improves decision-making and business growth. In some instances, sales can become risky; procurement staff maintain higher buffer stock levels as a safety net.

WMS and Cycle Counting: How to Reach Inventory Management KPIs

Veridian Solutions

Greater control and efficiency in modern warehouse management rests on the reliability and accuracy of your inventory management processes. Warehouse Managers need to understand the challenges of cycle counting, how the right KPIs can help, and how to leverage WMS and cycle counting best practices to develop the best inventory management KPIs. Failure to track replenishment and procurement activities. A Guide to the Warehouse Metrics Supply Chain Execs Should Track.

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Which Metrics Matter? Interview with Philippe Lambotte

Supply Chain Shaman

My journey to understand supply chain Metrics That Matter started three years ago. When I sat down to write the book, Bricks Matter, I believed that companies had used supply chain technologies to reduce operating margin and improve inventory turns. We are currently mapping the progress of all public manufacturing, distribution and retail companies on three factors: Strength: Year-over-year improvement on operating margin and inventory turns for the past six years.

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

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. We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups.

The Supply Chain Detective™ and the Inventory Turnover Mystery!

Supply Chain Game Changer

Featuring Our 10 Best Inventory Management Articles! As I settled into the job and started learning, and studying, the various Supply Chain metrics I was surprised when I looked at the Inventory Turnover performance of the company. Looking at recent and historical Inventory performance I could see that turnover always stayed around 5-6 turns with little variation. There was no mentorship given to promote the team and raise visibility to inventory.

Understanding Supply Chain Management

SupplyPike

Supply Chain Management (SCM) is a systematic and controlled procurement operation. Procurement usually comprises a diverse range of suppliers chosen according to a conceived ability to supply merchandise at the right price. These activities can involve storage and transport of inventory or supplies, monitoring of day-to-day activities, the preparation behind these processes, and blending these different components throughout the supply chain. Inventory Map.

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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. 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. Ironically, most companies are very entrapped in measuring and rewarding functional metrics which degrades overall improvement.

Inventory Turnover – A Formula For Achieving Game Changing Results!

Supply Chain Game Changer

As we have discussed in other blog posts we have tackled Inventory Turnover several times, amongst many other challenges. Your challenge may be trying to improve Inventory performance or trying to create a transformational improvement in some other area. There are many, many metrics that are involved in running a business. True change comes from attacking the processes that affect the metric you are looking to improve. Subscribe Here! Email Address.

Excess and Obsolete Inventory: You’re All Responsible for It!

NC State SCRC

The Supply Chain Resource Cooperative held its first ever “Executive Roundtable on Excess and Obsolete Inventory” on the NC State campus on October 25, 2017. In the end, excess and obsolete inventory occurs because of mistakes, mis-aligned decision-making, and lack of consideration of the cost of inventory in countless decisions, including product design, sales forecasting, sales and operations planning, and lack of awareness. Measure life cycle inventory cost.

Days Inventory Outstanding: Definition, Formula, Calculation

EMERGE App

One of the crucial elements of running any business is how effectively one can monitor its inventory. Over the years, numerous tools and ratios have come up to assist managers track their inventory. One such ratio is Days Inventory Outstanding (DIO). Ending Inventory- $1,000,000.

The Beginner's Guide to Inventory Control and Management

Supply Chain Opz

What is Inventory Control? Here we will try to answer most common questions about Inventory Control and also provide additional resources you can use. What is Inventory Control? Inventory Control can be defined as below: “Inventory control is the function responsible for all decisions about all goods and materials in an organization. Inventory control often starts with how to know the demand of particular product. What is Inventory Cost?

What Gets Measured Is What Gets Done!

Supply Chain Game Changer

As with many aspects of your business there can literally be dozens and dozens of different metrics. Results Metrics and Contributing Factor Metrics. This is the high level objective and this is the Results metric. Every other metric is subordinate to the Results metric. Separately there are Contributing Factor metrics. While Contributing Factor metric target attainment is important, it is not the real result you are after. Subscribe Here!

5 Procurement Strategies For Small Medium Enterprises

CormSquare

staffing, financing, inventory management, customer service, marketing etc. Subsequently, procurement tends to be an afterthought, when it should be approached strategically! Small businesses spend between 40% – 65% of sales revenue on procurement of inputs. Following are the 5 strategies that can help SMEs in nearly any phase of their procurement efforts. Improved Internal Procurement Processes. Outsource Procurement Needs.

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?”

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How Does Procurement Create Value? Insights from CPO Speakers at Zycus Horizons Conference

Supply Chain View from the Field

In addition to the procurement executives, I also got to meet Captain Dick Phillips, the captain of note in the film “Captain Phillips” We had a chance to talk about his experience, and he also presented to the group about the incredible experience he went through. Chris Sawchuck from the Hackett Group interviewed three heads of procurement from three large companies, and asked an important question. Does procurement add to top line revenue.

Patrick Hopkins at Coupa: Coca Cola’s four truths of procurement to pay in action

Supply Chain View from the Field

At the Coupa INSPIRE procurement conference in San Francisco this week, the Chief Procurement Officer of Coca Cola Consolidated, Patrick Hopkins, shared his views on the “4 Truths of Procurement”, and how he has operationalized his views through the deployment of Coupa procure to pay software. When it comes to “procurement truths”, Patrick shared what he believes are critical issues that procurement needs to think about when deploying a procure to pay system.

Writing: Working on My Book

Supply Chain Shaman

Interview for Metrics That Matter. My kitchen table is piled high with interviews for the upcoming book, Metrics That Matter. He is responsible for manufacturing, procurement, supply chain planning, logistics, quality, social responsibility and final product engineering. I recently interviewed him for my upcoming book, Metrics that Matter, that publishes in August 2014. Which metrics do you think matter to supply chain excellence?

Manufacturing Gains From Machine Learning

IQMS

Asset Management, Supply Chain Management, and Inventory Management are the hottest areas of artificial intelligence, machine learning and IoT adoption in manufacturing today. Kearney’s recent study of the future of production find that manufacturers are evaluating how combining emerging technologies including IoT, AI, and machine learning can improve asset tracking accuracy, supply chain visibility, and inventory optimization.

Purchase Price Variance (PPV)! A Profit or Loss Opportunity?

Supply Chain Game Changer

Featuring Our 12 Best Procurement Articles! Purchase Price Variance, or PPV, is a common term in the realm of Purchasing/Procurement and Finance. For some, PPV is a mechanical metric only, measured and reported on but without any further attention paid to it. Inventory levels.

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Supply Chain Scams and Fraud!

Supply Chain Game Changer

Finance Freight and Logistics Inventory Management Procurement Risk Management Supply Chain ManagementSubscribe Here! Email Address. Subscribe to Supply Chain Game Changer. 3 Most Common Freight Forwarding Scams (and How to Avoid Them)! Infographic). GET our EBOOK HERE.

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Why Most Supply Chains Need an Upgrade and What to Look for in a Solution

OneSCM

For mid-market companies still using manual supply chains, especially in Procurement/AP operations, now is a fantastic time to consider automating these time-consuming and error-prone practices. For example, a recent Deloitte study , “Charting the course: Why procurement must transform by 2020,” shows that procurement organizations are experiencing a dramatic shift that the study calls “eye-opening.” inventory turns, while the rest achieve only 3.8

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Five Steps to Launch a Supplier Scorecard

Logility

3 Get the metrics right. Supplier metrics should be captured about monthly. Building a new supplier scorecard program can have a major impact on the costs and value of your procurement and purchasing functions. Check out this white paper, Leveraging Inventory for Profitable Growth. Demand Planning Inventory Optimization Supply PlanningSupplier scorecards are globally accepted as a key tool for managing a more profitable supply chain.

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What Supply Chain Data Should I Track in 2020?

Veridian Solutions

With the implementation of API- and web-connected supply chain systems, businesses can manage their inventory and follow up on stock movement more easily and automatically. Inventory r econciliation r esults Labor p roductivity Average o rder size and s hipment d ata Use of BOPIS f ulfillment r ates Customer experience and satisfaction measures. Metrics and KPIs Supply Chain Supply Chain Data

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Supply Chain KPIs You’ll Want Every Morning

Logility

in inventory write-down and 20% drop in stock value. Every company today runs on data – the key to using your data is choosing the right metrics for visibility into your supply chain. Metrics. COGS, Total Supply Chain Cost, Productivity, Returns Rates, Carry Cost of Inventory.

Healthcare Supply Chain Software: Features You Need

Hybrent

Electronic Procurement. Inventory Management. Healthcare supply chain management software takes the guess work out of inventory because it is directly tied to ordering. That means inventory is updated in real time to reflect when items are ordered, in stock, or on back-order. This allows you to access metrics and detailed spend analysis quickly and easily, allowing you to gain insights and make decisions to optimize your business.

Effectively Manage Foodservice Supply Chains During Disruptions

CH Robinson Transportfolio

Every decision becomes more impactful based on these metrics. Moving and storing product inventory at warehouses close to restaurant locations can reduce transit time and ensure that as business ramps up, your supply management will be aligned to increasing volume needs.

Supply Chain: The True Game of Risk

Supply Chain Shaman

Procurement focus shifted from traditional programs focused on solely on contract management, price and term negotiations, and supplier scorecards to include the evolution of supplier development to manage product quality and multi-tier supplier relationships in and across value chain relationships. Focus on Multi-Tier Inventory Management. The management of the forms and function of inventory and the design of the network are paramount to buffer risk.