The Logistics of Logistics

JUNE 14, 2024

trillion distortion inventory problem. Trillion Inventory Distortion Problem In this podcast, Karl Swensen, CEO and Co-founder of Pull Logic, discusses how their AI-enabled technology helps retailers, brands, and manufacturers reduce lost sales by addressing supply chain and selling process failure points. Summary: Solving the $1.8

Inventory Reduction 264

Inventory Reduction Inventory Inventory Management Software Modeling 264

Supply Chain Shaman

APRIL 2, 2025

The issue is that when companies optimize functional metrics, they throw the supply chain out of balance and sub-optimize value. The third step is to do a data inventory. When I studied at Temple for my DBA, I did an academic search on what is value in the supply chain. Supply chain leaders love bright and shiny objects.

Optimal Sourcing 195

Optimal Sourcing Supply Chain Planning Software Modeling Supply Chain Design Software 195

Supply Chain Shaman

APRIL 27, 2022

After two decades of study, I think because it is a lack of understanding. At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. I term this relationship between metrics and capabilities as the company’s Effective Frontier. A Case Study.

Procurement Analytics 369

Procurement Analytics Manufacturing Procurement Supply Chain Planning Software Supply Chain Design Software 369

Supply Chain Shaman

JUNE 29, 2021

Using balance sheet data from 2011 to 2019, we chart companies’ progress by peer group on rate of improvement and performance in the metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). In the past study, of 600 companies studied, 4% make a list. It seems easy, right?

Supply Chain Planning Software 370

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Design 370

Supply Chain Shaman

AUGUST 11, 2014

We have found that supply chain metrics are gnarly and complicated.During We believe that a supply chain leader is defined by both the level of performance on the Effective Frontier (balance of growth, Return on Invested Capital, Profitability and Inventory Turns) and driving supply chain improvement.

Case Study 305

Case Study Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software 305

RFgen

NOVEMBER 13, 2024

Picture this: You’re a warehouse manager, and with a few taps on your smartphone, you instantly know the exact location and quantity of every item in your inventory. That’s not science fiction—it’s the power of mobile inventory management. Ready to turn your inventory from a headache into a strategic asset?

Inventory Management Software 96

Inventory Management Software Real-time Visibility Inventory Reduction Inventory Management 96

Supply Chain Shaman

MAY 25, 2024

The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. For the past decade, I have been studying these patterns. The second part of the story is that inventory turns for Lenovo are 10.8, Ranking at #13, PepsiCo outperforms on inventory turns, but performance is declining.

Eliminating Excel in Purchasing 384

Eliminating Excel in Purchasing Gartner Supply Chain Design Supply Chain Strategy 384

Supply Chain Shaman

MAY 13, 2024

How aligned do you believe your organization is to drive these metrics? P&G did not appreciate the work Gilette accomplished on form and function of inventory and using market signals. As a result, the company’s performance at the intersection of margin and inventory turns was circular for the past decade.

S&OP 393

S&OP Supply and Demand Inventory Reduction Expense Reduction 393

Supply Chain Shaman

OCTOBER 11, 2012

This year supply chain leaders will celebrate thirty years of progress in supply chain management; but we have not made progress on one of the funamentals: inventory management. I think that it is time for us to take the litmus test and ask the hard questions, “Have our practices impacted days of inventory? I want to believe.

Inventory Reduction 247

Inventory Reduction Vendor Strategies Resource Reduction Cost Reduction Strategies 247

Supply Chain Opz

JUNE 1, 2014

Analysis of case study is certainly one of the most popular methods for people from business management background. In order to accelerate the learning, this article has gathered 20+ most sought-after supply chain case studies, analyzed/categorized them by industry and the findings are presented.

Case Study 239

Case Study Supply Chain Planning Software Supply Chain Design Software Study 239

Supply Chain Shaman

SEPTEMBER 3, 2018

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. ” Hau Lee, October 2014.

Supply Chain Planning Software 377

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Software 377

Supply Chain Shaman

JUNE 21, 2014

In the recent study of the Voice of the Supply Chain Leader , we find that the gaps are large, and growing. I also think that Quintiq’s leadership in concurrent planning to solve new problems is promising, especially in the design of transportation and inventory flows. Service level is our most important metric.

Case Study 282

Case Study Supply Chain Design Software Supply Chain Planning Software Supply Chain Design 282

Supply Chain Shaman

JANUARY 2, 2024

We talk about the move from functional metrics to a balanced scorecard, but we don’t use a balanced scorecard as an objective function. Orbit charts of four companies for the period of 2013-2022 at the intersection of operating margin and inventory turns. We talk about complexity, but do not measure the impact on forecastability.

Gartner 368

Gartner Supply Chain Planning Software Supply Chain Design Software Case Study 368

Logistics Viewpoints

OCTOBER 4, 2021

A study by E2open – the 2021 Forecasting and Inventory Benchmark Study: Supply Chain Performance During the Covid-19 Pandemic – provides the answers. I look forward to this study every year. The company provides demand and inventory planning solutions based on a public cloud architecture.

Supply Chain Performance 290

Supply Chain Performance Inventory Reduction Cost Reduction Strategies Supply and Demand 290

Supply Chain Shaman

SEPTEMBER 9, 2014

Which companies were considered in the study? They had to be publicly traded, we had to have a nearly complete data set for the years studied, and they had to have a peer group of at least six companies to be able to draw the comparisons. Yes, we will do this study yearly in the preparation for our annual conference.

Pharmaceutical 307

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 307

Supply Chain Shaman

JUNE 24, 2022

The future inventory fire sale. We are living in a world of rich supply chain case studies. One of my stark realizations this year is that smaller companies are beating larger and often more established companies on growth metrics, inventory turns, operating margin, and Return on Invested Capital (ROIC). (In Toilet Paper.

Supply Chain Planning Software 397

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Software 397

Supply Chain Shaman

JULY 6, 2020

Tom, the colorful warehouse manager, constantly heckled Frank for the increasing inventory levels while Ed, the quiet material/logistics manager, constantly questioned if there was a better way. He felt that inventory was no problem, he would just cut it at the end of each quarter to make the balance sheet goals. The So What?

Agile and Lean Supply Chain 362

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Planning Software Supply Chain Strategy 362

Supply Chain Shaman

JUNE 6, 2013

In research study after study, we see that the greatest challenge to achieving supply chain excellence is the understanding of the supply chain by the leadership team. Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. Metrics Alignment. They lack cohesion.

Supply Chain Planning Software 330

Supply Chain Planning Software Supply Chain Planning Optimal Sourcing Scenario Planning 330

Supply Chain Shaman

MARCH 21, 2024

In my forty years of studying supply chain planning, the groups became larger, but with questionable results. We explore the concept of holistic inventory strategies focused on the form and function of inventory. 85% of inventory decisions are not managed in Advanced Planning Solutions. Lack of aligned metrics.

Inventory Reduction 434

Inventory Reduction Supply Chain Planning Software Cost Reduction Strategies Supply Chain Design Software 434

Supply Chain Shaman

JULY 12, 2013

Last month, we finished a study of organizational alignment with over 200 respondents. In prior studies, the lack of understanding by the executive team is a major barrier. We have completed two studies now that show Sales and Operations planning improves both agility and alignment. The supply chain view is listed in figure 1.

Supply Chain Design Software 322

Supply Chain Design Software Supply Chain Planning Software Modeling Modeling Software 322

Supply Chain Shaman

APRIL 25, 2013

The relationship between corporate financial performance and supply chain metrics was complex; and in my first attempts, I was unable to derive a correlation. I wanted to better understand which metrics truly mattered. The Metrics That Matter Are Different by Industry Sector. However, as many of you know, I am stubborn.

Supply Chain Design Software 310

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Supply Chain Design 310

Supply Chain Shaman

OCTOBER 25, 2013

It is a quest and the subject of my next book, Metrics That Matter , that will publish in September, 2014. We have found that nine out of ten organizations are stuck on their ability to make improvements on both operating margin and inventory turns in the same year. .” As I shuffle along, I am not sure. I shake my head.

Gartner 258

Gartner Supply Chain Strategy Supply Chain Software Supply Chain 258

Supply Chain Shaman

JUNE 16, 2014

Despite two decades of advancement in supply chain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear.

Supply Chain Design Software 319

Supply Chain Design Software Network Design Software Supply Chain Planning Software Supply Chain Network Software 319

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. The Business Problem.

Inventory Reduction 150

Inventory Reduction Supply Chain Design Software Inventory Supply Chain Planning Software 150

Supply Chain Shaman

DECEMBER 10, 2014

If you ask companies if they would like better inventory and global supply chain visibility, you will get an overwhelming answer of, “Yes!” In our recent report on defining supply chain visibility in B2B networks, we provide a definition based on a research study of over seventy participants. ” The answer is simple.

Supply Chain Network Software 312

Supply Chain Network Software Pharmaceutical Supply Chain Software Supply and Demand 312

Supply Chain Shaman

JUNE 13, 2017

If the arrow is red, the industry is moving backwards on a metric. The industry made progress on revenue/employee, but struggled on growth, margin, inventory turns. Some of the strongest case studies of supply chain leadership are in this value chain. Companies, based on culture, tend to focus on singular metrics.

Supply Chain Planning Software 0

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Supply Chain 0

Supply Chain Shaman

JULY 22, 2019

History will also include case studies of mergers and acquisitions. The study of improvement and performance for the 535 companies in 26 industries took two months. It is not as simple as trading-off inventory, cost, and customer service. We selected these metrics based on correlation work with Arizona State University in 2012.

Supply Chain Design Software 304

Supply Chain Design Software Supply Chain Planning Software Gartner Supply Chain Software 304

Supply Chain Shaman

NOVEMBER 9, 2014

“I study supply chains. In our work, we tie research from quantitative and qualitative studies to financial results to drive new insights. I also believed that this company would have the best inventory and customer service. My favorites are customer service, operating margin, inventory turns, and ROIC. I was wrong.

Manufacturing Procurement 318

Manufacturing Procurement Optimal Sourcing Benchmarking Supply Chain Design Software 318

Supply Chain Shaman

MAY 29, 2014

I just don’t think the comparison of very different industries in a spreadsheet based on growth, inventory values, and Return on Assets (ROA) is meaningful. As a result, the metrics have to be viewed together as a pattern over time. In the journey, the supply chain leader needs to improve the potential of a portfolio of metrics.

Gartner 366

Gartner Inventory Reduction Supply Chain Planning Software Pharmaceutical 366

Supply Chain Shaman

JUNE 30, 2018

Companies with the lower score on the Index are driving faster rates of metrics improvement. Energizer and Unilever are driving the fastest rates of improvement and Clorox and P&G improvement rates are the slowest on the Metrics That Matter of Growth, Operating Margin, Inventory Turns, and Return on Invested Capital (ROIC)).

Supply Chain Design Software 218

Supply Chain Design Software Inventory Reduction Supply Chain Planning Software Price Reduction 218

Supply Chain Shaman

OCTOBER 1, 2013

As I write my new book, Metrics That Matter, I am studying the patterns of corporate performance based on choices in supply chain program execution. A company that is effectively working a supply chain strategy will have a nice, neat pattern at the intersection of operating margin and inventory turns. So, what can we learn?

Illinois 253

Illinois Waste Reduction S&OP Supply Chain Planning Software 253

Supply Chain Shaman

DECEMBER 4, 2018

For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). In 2018, Rockwell Automation won the Supply Chains to Admire Award. Meet Ernest.

Supply Chain Software 30

Supply Chain Software Case Study Supply Chain Planning Software Supply Chain Design Software 30

Supply Chain Shaman

SEPTEMBER 24, 2017

In a recent study, our goal was to understand the impact of process and technology choices on balance sheet performance. We analyzed the impact of 150 factors on 493 financial metrics for the period of 2004-2016. This included responses to 3604 questions by 1063 individual respondents in 40 studies representing 756 unique companies.

Cost Reduction Strategies 262

Cost Reduction Strategies Inventory Reduction Resource Reduction Manufacturing Procurement 262

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.”

Waste Reduction 150

Waste Reduction Inventory Reduction Inventory Optimal Sourcing 150

Supply Chain Shaman

OCTOBER 29, 2014

In the study, the respondents were asked to rate time to Return on Investment, and satisfaction. It is tough for me to see that nine out of ten companies are stuck, and not making progress, at the intersection of operating margin and inventory turns. In addition, I am now done with the page proofs for my new book, Metrics that Matter.

Supply Chain Planning Software 379

Supply Chain Planning Software Modeling Demand Planning Software Optimization Software 379

Logistics Viewpoints

NOVEMBER 3, 2022

The latter refers to a single variable standard (SVS), by which one metric, such as cases per hour, is expected to tell all. What’s more, because an SVS approach only accounts for one metric at a time, a host of other equally if not more important metrics are bypassed, leaving you largely in the dark. Inventory mix.

Supply Chain Design Software 264

Supply Chain Design Software Optimization Software System Logistics Network Optimization Software 264

Supply Chain Shaman

MARCH 18, 2018

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.

Optimal Sourcing 191

Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software Supply Chain Optimization 191