Driving Supply Chain Analytics User Adoption with Cross-Departmental Metrics

Logility

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. Executives look at high-level company metrics, while other departments such as Finance, Sales, and Operations work at a more analytical level.

Themes from the 2018 SCM World Leaders Forum

Kinaxis

I just returned from a very inspiring 2018 SCM World Leaders Forum in London. While I attend several supply chain conferences in any given year, SCM World is a favorite of mine for a couple of reasons. In his opening remarks, Kevin O’Marah, Chief Content Officer at SCM World, introduced the event’s theme, “Power of the Profession”. The surprising announcement during the event was that Kevin O’Marah, who has been the public face of SCM World will be leaving the organization.

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Gaining Clarity on Inventory Effectiveness

Supply Chain Shaman

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?

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.

How Integrated WMS and SCM Solves Peak Season Challenges

Veridian Solutions

Poor inventory visibility. Subpar inventory visibility also makes omnichannel fulfillment more difficult. These include: Use metrics to check system performance. Perform a complete inventory using new systems. The post How Integrated WMS and SCM Solves Peak Season Challenges appeared first on Veridian. Supply chain leaders around the globe are working to refine their processes and plan for a successful 2019 peak shopping season.

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Seasoned Leadership in Action! An Interview with Paul Kretz, Head of SCM at Church & Dwight!

Supply Chain Game Changer

Tight timelines, customer escalations, engineering problems, board presentations, inventory variances etc. In SCM I think that the changes have been seismic. The departments were called production and inventory control, warehousing and transportation. How to trade off inventory and transport costs? Have balanced, relevant and valid metrics. Plus, metrics protect you. SCM #SupplyChain #Business #Leadership #Logistics #Distribution #ECommerce #Retail.

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SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. As I sat with the team, and discussed the future of supply chain, they impressed me with their by their use of planning tools and their process diligence on building inventory strategies to enable a customer-segmented supply chain. Platitude: a flat, dull, or trite remark, especially one uttered as if it were fresh or profound.

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.

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!

3 Stages of Hospital Supply Chain Management (SCM) Maturity

Tecsys

With inventories representing 30% of hospital costs, second only to labor costs, there are huge gains in organizational performance that can be had through better supply chain management. The post 3 Stages of Hospital Supply Chain Management (SCM) Maturity appeared first on Tecsys. Analytics Business Intelligence Healthcare Posts Supply Chain balanced metrics benefits realization heathcare performance management measuring patient outcomes

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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.

Understanding Supply Chain Management

SupplyPike

Supply Chain Management (SCM) is a systematic and controlled procurement operation. 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. SCM performance directly impacts an organization’s general performance. Five Key Metrics for Monitoring the Impact of Panic Buying on your Supply Chain. Learn about.

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Double Inventory Turnover In 9 months!

Supply Chain Game Changer

World Class Inventory Turnover Breakthrough Elements! “If we are truly a Supply Chain Services Company, then why is our Inventory Turnover only at 7?”, I had just joined the company and in studying their financial performance it stood out to me that if we were truly a Supply Chain Services company then having only 7 Inventory turns was extremely uninspiring. Could we double inventory turnover? Setting the Target to Double Inventory Turnover.

Double Inventory Turnover In 9 months!

Supply Chain Game Changer

Check out World Class Inventory Turnover Breakthrough Elements! “If we are truly a Supply Chain Services Company, then why is our Inventory Turnover only at 7?”, I had just joined the company and in studying their financial performance it stood out to me that if we were truly a Supply Chain Services company then having only 7 Inventory turns was extremely uninspiring. days of Inventory in the company. Excess and Obsolete (E&O) Inventory .

Announcing the Supply Chains to Admire 2015

Supply Chain Shaman

It is for this reason, that we analyze the patterns of the Metrics That Matter using orbit charts over the period of 2006-2014. The analysis is designed to analyze supply chain leader success on a portfolio of metrics. In our analysis of the 2015 Supply Chains to Admire work, we analyzed 320 companies in 23 industries on growth, operating margin, inventory turns and Return on Invested Capital (ROIC) for the time period of 2006-2014.

Supply Chain KPIs You’ll Want Every Morning

Logility

Never completed ERP/SCM implementation. Failed SCM implementation causes shipping errors. 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.

Three Lies and a Truth

Supply Chain Shaman

Here is the list: Supply chain technology implementations have reduced inventory. Here they are: The Lie of Inventory Reduction. Repeatedly, I heard that supply chain applications have saved costs, reduced inventory and improved customer service. We are trying to understand how supply chain leaders have raised the bar at the intersection of these four sets of metrics on the supply chain effective frontier.

Three Reasons Why SAP Supply Chain Planning Is a Risk to Your Business

Supply Chain Shaman

I then recommend that the business augment the SAP SCM functionality using best-of-breed, industry-specific optimization. Why I Believe SAP SCM Is a Risk to Your Business. The SAP solution is better than the Oracle SCM solution for planning. So, why do I not believe in SAP SCM 7? Why am I so bold as to pen an article to state that the investment in SAP SCM 7, and the migration from SAP APO, is a risk to your business?

Three Reasons Why SAP Supply Chain Planning Is a Risk to Your Business

Supply Chain Shaman

I then recommend that the business augment the SAP SCM functionality using best-of-breed, industry-specific optimization. Why I Believe SAP SCM Is a Risk to Your Business. So, it is in their best interest to support the implementation of SAP SCM software.). The SAP solution is better than the Oracle SCM solution for planning. So, why do I not believe in SAP SCM 7? 1) SAP SCM 7 Is a Poor Supply Chain Planning and Optimization Technology.

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

OneSCM

inventory turns, while the rest achieve only 3.8 These metrics directly affect the bottom line: the leaders in the survey enjoy average earnings before interest and taxes of 15.6% Automation TSC Blog AP AP automation automation average earnings inventory turns mid-market procurement scm supply chain leaders supply chain solutions supply chains working capital

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Why a network model makes sense for today’s automotive suppliers

The Network Effect

Identification and measurement of key trending metrics on a weekly or monthly basis, with an emphasis on corrective action planning to address metrics that don’t meet goals. From a measurement perspective the key trending metrics at a high level include: Supplier on time delivery. Auto Many-to-Many Network SCM cloud many-to-many network

Is Your Supply Chain A Cost Centre or a Value Creator?

Supply Chain Game Changer

From planning to negotiating to buying, from moving goods to processing goods, and from managing data to managing inventory. Whatever your Industry you should be able to make comparisons to competitors, do benchmarking, and even compare yourself on key metrics across industries. The Cash Cycle is a function of the days of Accounts Receivable, Accounts Payable, Inventory and Capital Expenditures. Brand #IoT #ECommerce #SupplyChain #SCM #Leadership #Finance #brandprotection.

And I thought last year’s Top 25 Supply Chain was a surprise

Kinaxis

I am bolder on Samsung, simply because they had the highest 2016 Inventory Turns aside from McDonalds. The new trend to be sustainable is part of the current category: Revenue Growth, so why add another category like CSR when we should be moving towards the core supply chain metrics of total delivered cost and customer service. This, my friends, is why we need to get back to CORE supply chain metrics when measuring the Top 25.

What is a Supply Chain Planning System of Record (SCP SOR), and Do You Actually Need One?

Kinaxis

Stage 3 is characterized by the integration and synchronization of individual functions, like demand planning, supply planning, and inventory management. It also sees supply chain processes begin to align with overall business goals and metrics. Gartner Supply Chain Managment Miscellanea Supply chain management Collaboration demand Demand planning Inventory management maturity Planning SCM scp sor Supply chain Supply Chain Planning System of Record supply planning

Gartner’s 2018 Top 25 Supply Chains List! Is it Still Relevant?

Supply Chain Game Changer

Inventory Turns 3. (10%). Return on Assets (ROA) and Inventory turns are also a part of the scoring process. There is no question that the Supply Chain of any business usually has a significant impact on ROA and certainly on Inventory turns. Further an Inventory turn of 1.0 combined with an Inventory turn of 1.2 Gartner Survey Metric Notes: 1. Inventory Turns: 2017 cost of goods sold/2017 quarterly average inventory. Subscribe Here!

Cash Is King! Creating a Culture Focused on Money Management

Supply Chain Game Changer

We talked about many ways to impact your Culture, regardless of what improvements you are trying to accomplish, in our Blog post Inventory Turnover Breakthrough (Part 4) – Creating the Culture to Break Barriers! Metrics. In the situation I was in there were obviously no metrics that were being reviewed and used. There are many metrics that are very helpful including: Cash dollars and days of supply. Cash #SupplyChain #Business #Money #Finance #SCM.

Farmville – It’s Really a Supply Chain Game!

Supply Chain Game Changer

But I also found that the ability to grow your Farm by adding capabilities and features, by controlling the way in which you buy and sell things, and managing your inventory levels of all of the materials was both fun and interesting. Inventory Management. You are able to hold inventory at many stages in the game. It is almost always better to keep your inventory at the raw material level and only use them to create finished goods as actual demand materializes.

S&OP Effectiveness: Recommendations to Make the Leap

Supply Chain Shaman

While many consultants argue on the name–the debate rages with strong arguments of “Should it be Integrated Business Planning (IBP), Sales Inventory and Operations Planning (SIOP), or consensus planning?”–the Lora wrote the books Supply Chain Metrics That Matter and Bricks Matter , and is working on her third book, Leadership Matters. It is a beautiful fall day in Philadelphia.

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5 Seismic Shifts in Supply Chain Technology!

Supply Chain Game Changer

For example, some companies are exploring how drones using machine learning can perform real-time inventory counts in warehouses, and others are considering how self-driving vehicles can be used for deliveries. What we have are historical practices and stalled progress on metrics. Supply Chain Insights has found that 90 percent of companies are not making progress on key supply chain metrics, such as cost, inventory, growth, and return on invested capital (ROIC).

Change Leadership – Attack on all Fronts for Success!

Supply Chain Game Changer

Metrics. If your project involves some or all of this level of complexity then you are likely best served by taking a holistic approach (See my post Inventory Turnover Breakthrough (Part 1) … Go Back To The Basics! ). You have only ONE overarching target or metric that you are trying to improve, which you must keep everyone focussed on. All business processes and organizations and paradigms and metrics are the result of prior decisions and actions.

Executive Advisor Michael Massetti on Supply Chain’s Image, Workforce Automation, and Supply Chain Challenges

Kinaxis

Procurement might have hit their cost savings metrics, but if it meant purchasing more than needed, and that might hurt your warehouse inventories. As much as we like to make jokes about Supply Chain metrics with each other, if we aren’t understood by the outside world and our executives, they won’t know we exist. Supply chain management argentus automation challenges Gartner SCM Supply chain

What If You Could Take The Guesswork Out Of Forecast Planning? Guest Post from Osgood Vogler

Kinaxis

Persistent planning biases can tie up cash by driving excess inventory. One solution is never going to address every challenge an SCM executive will face, so it is important to determine the best approach for your supply chain through segmentation. For example, to answer the first question about whether planning is necessary, SCM executives need to determine if supply is constrained and how quickly customers expect their order to be fulfilled.

Supply Chain Collaboration – The New Way to Drive Value!

Supply Chain Game Changer

Supply chain collaboration is a hot topic today and no wonder: companies that collaborate effectively across the supply chain have enjoyed dramatic reductions in inventories and costs, together with improvements in speed, service levels, and customer satisfaction. By building common metrics and targets and jointly monitoring progress – companies avoid the misaligned incentives that damage so many collaboration efforts. Improved customer service metrics. Subscribe Here!

The Supply Chain Detective™! In Search of Broken Supply Chain Clues!

Supply Chain Game Changer

You know the people, the processes and the metrics. Most companies have a Procurement function, Distribution, Logistics, Planning, Inventory Management, Product Data Management, and Operations. In the area of Inventory Management they also did a lot of benchmarking and highlighted deficiencies in our processes. Cash constraints, and borrowing money to fund operations and finance inventory. Poor metric performance (eg. Too many metrics, no targets, and no focus.

Supply Chain Personified! The Link Between Your Company Silos!

Supply Chain Game Changer

The responsibilities, metrics, skills, strategies and mandates for each function can cause people to put their functional focus ahead of the greater company objectives. The procurement of materials and goods and services, and the timing of this procurement, payment terms with suppliers, and the buildup and disposition of inventory all dramatically impact the amount of cash that a company has and uses. Procurement #SCM #SupplyChain #HumanResources #Business #Leadership.