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Podcast: Rob O’Byrne on Digital Transformation, Sustainability, and Diversification in Sourcing

Requis

Sourcing has probably been the biggest thing over the last decade or two, coupled with that reduction in local manufacturing of course. Sourcing is now predominantly overseas: China is one of the big sourcing countries of course, along with India, Pakistan and Bangladesh, Vietnam and Thailand.

Metrics that Matter: Customer Service

QAD

Inventory accuracy and minimizing stockouts are very important to customer satisfaction, but a few other metrics also impact the ability to meet customer expectations. Companies can use these metrics to help ensure they are doing everything possible to satisfy their customers at a manageable and sustainable cost. It’s easy to meet delivery expectations if you carry excess inventory, but it’s an expensive and impractical solution. Choosing Metrics.

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How to Sustain a Lean Culture in Manufacturing & Supply Chain

Cerasis

Today I will discuss how a company can sustain a lean culture once they have implemented lean practices in order to achieve continuous improvement. Your company has started the lean journey, but how do you sustain it? Let's first talk about first setting the stage, then give you practical practices and tactics to achieve a sustainable lean culture, and then provide core key performance indicators (KPIs) to track your progress. Once implemented, Lean has to be sustained.

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The View from Finance: Freeing Up Cash with Inventory Optimization

ToolsGroup

If you (or your boss) are measured by your company's Return on Invested Capital (ROIC) or a similar metric, then you want to turn assets into cash. Inventory optimization is one proven way to do it. Inventory is an untapped, cash-rich asset. Most companies have some form of supply chain systems to manage inventory from production through delivery. Of course, you need inventory. Inventory is what you make, what you sell. Inventory Optimization

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

Only supply chains that are agile, adaptable, and aligned provide companies with sustainable competitive advantage.” 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. Reward teams for cross-functional metrics. Focus functional metrics to improving reliability.

7 Key Factors that Underpin the Success of your Inventory Optimization Initiative

Supply Chain Opz

From the most basic to the most advanced organization, Inventory Optimization is a critical goal and one which underpins the effectiveness of the supply chain operation. Inventory Optimization requires an organization to sustain and maintain the right mix of cost versus service. In this article we will examine inventory optimization processes as part of a structured sequential journey and examine seven of the key factors in delivering the optimal mix of stock.

Corporate Risk and the Growing Case for Sustainable Chemical Management

UL EHS- Sustainability

Building out an inventory of chemicals is crucial to fully understanding how exposed your business might be – not only to regulatory non-compliance but also to the risk of pollution or breaches of internal health and safety policies. For Kimberly Williams, an inventory services manager for the chemical data management business SiteHawk, an accurate chemical inventory is the foundation for your overall chemical management initiatives and globally harmonized system (GHS) compliance.

How To Ensure Best Practice Use Of Your Business Intelligence Dashboards

Unleashed

Understanding how to use business intelligence tools correctly is essential to ensuring a consistent level of sustainable growth and ongoing business success. Data is sourced in real-time from multiple areas providing a simplified visualisation of otherwise complex raw data, with readers having an at-a-glance overview of current KPIs. This dashboard can deliver sales metrics including costs, revenue, profits and incremental sales.

Quick Start Guide to Using Machine Learning for Demand Planning

ToolsGroup

Without baseline metrics on what you want to improve on and why, how can you be confident your strategy is working? And because machine learning systems get smarter over time, having a consistent method of measurement is even more important to ensure you can accurately track how outcomes and ROI are improving against established metrics. After you’ve established your project objectives, it’s time to build a solid baseline/foundation for a successful and sustainable initiative.

Balancing Cash, Cost and Service: The Supply Chain Triangle

Arkieva

Over the last 5 years I have seen many companies launching inventory reduction programs. When launching an inventory reduction program, companies should be aware that inventory, as a part of Cash, should always be balanced with Cost and Service. They can increase the inventory and as such require more cash. Sourcing in Asia, the leveling of production and rounding to full trucks are measures that lower the cost but they increase inventory.

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SCRC Student Project Lineup Off to a Great Start…

Supply Chain View from the Field

Students will learn core processes around initial exploration and assessment of supply chain relationships, establishing metrics/expectations for the relationship, crafting and managing contracts, and sustaining continuous performance improvement in sourcing, logistics and operations. NC State kicked off classes last week, and as usual our incoming group of MBA students were lined up with projects as part of their entry class into supply chain management, MBA 541.

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Overcoming obstacles to integrating finance with supply chain operations

Kinaxis

IBP helps achieve key performance indicators (KPIs) like sales, customer satisfaction, inventory level and other metrics outlined in the strategic plan. That in turn results in inventory issues, forecast inaccuracies and reduced profits, leading to falling stock prices and reduced shareholder value. Overcoming that challenge means developing meaningful and robust metrics that measure financial performance, and including them in S&OP operations.

Reimagine Supply Chain of the Future – agile, resilient, and balanced – LogiSYM July 2020

The Logistics & Supply Chain Management Society

Current Initiatives such as Coca Cola’s “World Without Waste” and Unilever’s “Sustainable Living Plans” are first steps toward a circular economy. To improve your capability to manage demand shifts and customer expectations it is mandatory to have dual sourcing.

2020 Requires Big Wings and Feet

Supply Chain Shaman

Granular data by volume is a must to be able to manage replenishment, network design, and inventory targets. Companies that directly connect financial data to supply chain data without creating a feasible plan at an item/location level rate themselves significantly lower on S&OP effectiveness creating higher costs, levels of inventory and order short shipments. A simplistic view is that supply chain excellence is the trade-off of cost, inventory and customer service.

Carter’s: A Story of Supply Chain Leadership

Supply Chain Shaman

The company leverages globally sourcing strategies to buy products at a lower cost and then deploys some unique process logic to drive mass customization for retailers. In this role he supported the different businesses (12 in Europe and 11 in Asia) for all aspects of the Supply Chain; but Peter did not have direct Asia Sourcing/manufacturing accountability. Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As

Tell Me Why

Supply Chain Shaman

Traditionally, the focus has been on building efficient organizational silos for make, source or deliver. As a result, tor most companies, the goals are unclear and the financial metrics are not well-understood. We believe that the test of a true leader is the ability to not only drive higher levels of performance, but to sustain competitive advantage over time. This year-over-year comparison, enables visualization of performance on two metrics.

Supply Chain Management Services

LeanCor

When sourcing supply chain management services, think about the provider’s approach to people and processes. Focus on total logistics cost reduction (transportation, warehousing, and inventory). Building the lean culture to drive and sustain continuous improvement. Choosing the right target means defining your metrics, such as measuring carrier performance. References: www.manufacturing.net , 12/06/2013 Sustainability: A 3PL’s Role in Your Green Supply Chain.

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10 Ways Effective Transportation Management Drives Competitive Advantage

Cerasis

Controlling Inventory Flow & Driving Warehouse Efficiency. Additionally, some level of predictability helps in the carrier sourcing aspect of the business too. Creating an Effective Transportation Management Program Run by Metrics. Speaking of metrics.Utilizing the right metrics to monitor the health of your transportation footprint and network are critical. It’s also important to have flexibility in generating metrics.

BASF: A Story of a Supply Chain Leader

Supply Chain Shaman

Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The The Supply Chain Metrics That Matter are a portfolio of metrics which correlate to higher market capitalization. The composite of metrics includes growth, operating margin, inventory turns and Return on Invested Capital.) While most companies make improvements in single metrics, pushing the whole portfolio forward is tougher.

Top 10 Supply Chain Innovations of 2018

Material Handling and Logistics

Top 10 Supply Chain Innovations of 2014 : hybrid DCs, 3-D prototypes, location-based inventory system, and more. Source ID. Source ID. Sustainability. Source ID. The retail giant plans to take out 50 million metric tons (MMT) by 2030, which is equivalent to the emissions associated with the average annual electricity consumption of 40 million Chinese households. Source ID. Source ID. Source ID. Source ID. Source ID.

Stories of Supply Chain Leadership: An Interview with Joan Motsinger of Seagate

Supply Chain Shaman

We then rated companies on their ability to manage and improve a portfolio of metrics: operating margin, inventory turns and Return on Invested Capital (ROIC). To make the Supply Chains to Admire list, a company had to score above average of their peer group for supply chain improvement as measured by the Index, and drive performance above average in the portfolio of metrics for operating margin, inventory turns and Return on Invested Capital (ROIC).

Green Logistics: How to deliver efficiently while minimizing carbon footprint

Abivin

Source The process and involvement of logistics department in every organization have become an essential part to the economic development for a long time now. Consequently, the agenda and recent focus of the industries is to minimize the carbon footprint and to adapt the logistics activities that promote more sustainability along with long-term impact reduction schemes.

What Qualities Make the Best Supply Chain Leaders?

Kinaxis

The findings were generated from multiple sources, including surveys of APICS members, articles, and external research. Connecting strategic supply chain imperatives—that align with overall company objectives—to a tactical management system necessitates the establishment of meticulous metrics. A supply chain leader must be able to continuously monitor these metrics to determine if productivity, quality, inventory, and other tactical objectives are being met, exceeded, or missed.

How Gen Z's Consumer Expectations Drive New Supply Chain Trends

AFFLINK

They also expect more of their retailers, in terms of sustainability and ethical production. Ethical and Sustainable Spending. Generation Z is more likely to purchase items based on how ethical, environmentally-friendly, and sustainable the company is. Many products are being shipped in more sustainable ways, with some products being shipped without an exterior box, and companies such as Amazon trying to reduce the amount of packaging materials that they use.

Supply Chain Planning in Emerging Markets: Four Points to Remember

ToolsGroup

And while each market can be unique, we found a few repeating themes in our own experience and from sources including Gartner and our customers Procter and Gamble (P&G) and Cipla Medpro. Not knowing how much inventory is at each location. These large distances between demand centers increase the inventory exposure to maintain a consistent service level. For P&G serving smaller, under-harvested GDM countries represents a sustainable volume growth opportunity.

Lean Transportation: Are you Using Lean Thinking for Transportation Management? If not, Why?

Cerasis

The are the 8 Rights of Lean Transportation thinking: Right Materials, Right Quantity, Right time, Right Place, Right Source, Right Price, Right Quantity, and. The need to transport parts also drives inventory up, creates a need for space to store those parts, and uses energy for more forklift time and warehouse heating. Transportation strategy and tactics must support Lean inventory strategies.

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Ecommerce Venture Capital Trends: Which VCs & Seed Investors are Investing in Ecommerce?

ShipBob

VC spending is rising, but they want sustainable growth now. Ecommerce VCs are becoming increasingly wary of investing in companies that burn through cash so fast and can’t build a profitable and sustainable business model. Product sourcing. Sustainable growth.

Using Modeling and Analytics to Design a Resilient Supply Chain

Talking Logistics

You can use network design models, company KPIs and other metrics to get a holistic look at your supply chain. Examples: moving inventory to alternate locations, changing supplier relationships. This provides high-level metrics for evaluating risk in the supply chain. This data can be viewed in time-series reports showing missed orders, inventory levels, total cost and more, as a critical way to evaluate resiliency.

Top 25 Supply Chains of 2018

Material Handling and Logistics

The rankings are based on a composite score based on the opinions of Gartner’s analysts; a group of peer voters (mostly supply chain practitioners, professionals and experts; in the interests of full disclosure, I myself am part of the peer panel); some metrics, including return on assets, inventory growth and revenue growth; and a corporate social responsibility (CSR) component score. So the CSR score too is more of a popularity contest than a consistent metric. Source ID.

Top Four Most Vital S&OP Technology Capabilities

Kinaxis

Evaluate different scenarios simultaneously, and against multiple operational and financial metrics. What if we run a promotion to clear out inventory of the older model? This means balancing factors like go-to-market strategies, new product launches, sustainability, and all kinds of risks. However, a mature S&OP system is capable of generating a graphical dashboard showing the KPIs of most interest: sales, profits, ROI, inventory turns, customer satisfaction, and so on.

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The emerging shape of recovery

SupplyShift

Rethinking inventory and origination – Consumer goods companies are questioning the wisdom of maintaining lean inventories and sourcing from suppliers in distant locations. More sustainable investing – Impact investing was on the rise before COVID-19 and the recent racial justice protests. Similarly, this Forbes contributor says 70% of the S&P 100 are now publicly highlighting ESG metrics to shareholders.

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26 supply chain pros reveal the single most effective way to create a winning supply chain strategy

6 River Systems

In my experience, companies find themselves in difficulties with suppliers by either taking the cheapest quote looking for the one-off score (when that approach is not the best solution for the sourcing at hand) or by treating that supplier business as a subservient partner (in name only) even when the rhetoric espoused is we partner with our supply base. Cut inventory costs Be it a brick and mortar store or an online business, inventory is always present and it costs money.

Time for a Mea Culpa?

Supply Chain Shaman

I have taken myself off the road to write the book Metrics That Matter. On the 2nd of April, I sat before a board discussing how a company could exceed expectations in the delivery of Return on Invested Capital (ROIC) and superior operating margins and fail at the delivery of customer service and inventory. Because he had reduced his buffers—both inventory and manufacturing—and had built a push-based supply chain using a forecasted demand signal, he was failing in many markets.

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

6 River Systems

As such, an effective logistics strategy must be flexible enough to adapt to the ever-evolving supply chain to sustain optimal service levels. Inventory requirements for all raw, WIP and finished goods.

5 Crucial Software Every 3PL Company Needs To Have

Abivin

When a new order is received, the vehicle route planning schedule is sourced in real time to reallocate mobile fleet resources to optimize operating efficiency, deliver priority service to the most profitable accounts and routes, and also maintain overall customer service objectives. Monitoring inventory well can prevent wasted costs and time as small business owners spend 30% more operating excess inventory.

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