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Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. There has to be an enlightened leader that understands that the supplychain is a complex system with increasing complexity. Metrics Alignment. They lack cohesion.
An average margin of 21% with inventory turns of 1.58 Yet, you will find the past executives from Sanofi speak openly on event stages about their journey on supplychain excellence as winning performance. The group’s response is, “Are these supplychainmetrics?”
Supplychainexecution is required to distinguish between the high runner purchases and the slower-moving products customers are willing to wait for. Strategic product segmentation, sourcing and inventory management. Optimize supplychainexecution and minimize both delivery time and costs.
As I sat at my kitchen table, I reviewed spreadsheet after spreadsheet of corporate performance data on supplychain financial ratios. The relationship between corporate financial performance and supplychainmetrics was complex; and in my first attempts, I was unable to derive a correlation. Definitions.
Built as a unified suite rather than integrated point solutions, the platform includes end-to-end functionality across supplychainexecution, commerce, and planning. Recent examples included the rollout of a new inventory planning application and the introduction of a hybrid AI-powered demand forecasting engine.
Static workflows based on outdated assumptions are no match for todays rapidly shifting inventory demands. Network Design: Strategy Without Simulation Designing a modern supply network is a balancing act between service level, inventory positioning, and total landed cost.
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.”
of revenue on supplychain applications, the promise of an agile, flexible supplychain that can respond as the business changes seems like an illusion. This week, at SupplyChain Insights LLC, we published our 11th report in the series titled SupplyChainMetrics That Matter.
On September 9–11, 2014, 110 supplychain visionaries will gather in the desert at the Phoenician Hotel in Scottsdale, Arizona to think differently and define the future of supplychain. Today, 90% of publicly-traded companies are stuck at the intersection of operating margin and inventory turns. It is needed.
Natural disasters like the Japan earthquake, product shortages due to quality issues, the impact of currency rates on product costs and demand, and disruptions caused by IT service failures or security breaches are just a few examples of the risks supplychainexecutives face every day. The same is true for CEOs.
Here is the list: Supplychain technology implementations have reduced inventory. Companies should implement supplychain best practices. Companies that have focused on collaboration in the supplychain have built competitive advantage. Supplychain excellence matters. The reason?
The larger the organization, the more tension with conflicting functional metrics making decisions more difficult. Note in Figure 1 the gaps from recent research between supplychain planning and manufacturing, logistics, and sales. Inventories increased by 44% due to supplychain volatility.
While companies have increased Revenue per Employee across the healthcare value chain, the Days of Inventory have increased for suppliers, and there is a shift in power to the healthcare provider. I also see that we are not decreasing the total inventory levels in the network or accelerating time to value. Progress is stalled.
The Reward: Top Benefits of Modern Systems Are Key to Business Survival When it comes time to garnering support to investing in a modern warehouse management system, supplychainexecutives should focus on the key benefits that will be provided by the system. Improving network-wide inventory visibility.
This blog is based on an article that recently ran in the Journal of SupplyChain Management, Logistics & Procurement, “ Supplychain agility: An imperative in an unpredictable world.”. These companies did not realize that profitable agility relies on a bag of capabilities, not simply “visibility.”
In 2025, the Chief Operating Officer (COO) is no longer just the steward of operationsthey are the architect of resilience, agility, and growth in a world where supplychain disruption is the norm. Nearly 47% of global supplychainexecutives see their organizations as vulnerable to disruption.
So why are so many still falling short of OTIF targets (and other key metrics)? But to verify the “in full” part, your real-time transportation solution needs to be connected to warehousing, inventory, fulfillment and order management. That covers “on-time.”
Companies typically expect that inventory levels will drop and service levels improve at the end of the first month. Planner Metrics – They implemented adoption metrics on how often planners were using the planning application or if they were experiencing any pain points in the system. This was a bold and risky move.
In fact, supplychainexecutives put demand forecasting and supplychain planning at the top of the list of how they initially plan to use AI. Without baseline metrics on what you want to improve on and why, how can you be confident your strategy is working? Increased inventory turns by 25%.
Supplychainexecution is required to distinguish between the high runner purchases and the slower-moving products customers are willing to wait for. Strategic product segmentation, sourcing and inventory management. Optimize supplychainexecution and minimize both delivery time and costs.
Here’s the supplychain conferences we love and will be attending. Gartner SupplyChainExecutive Conference. Kinaxis is pleased to be a Premier Sponsor and participate in panel discussion of the 2014 EMEA Gartner SupplyChainExecutive Conference. Hope to see you in the coming weeks!
However, the conditions were more complex; the average company, over the last ten years, experienced a decline of 1% in operating margin, and an increase in the days of inventory of 5%. I believe that we have reached a plateau and that supplychain performance is declining. ” I think that this is true.
Resiliency, which is the ability to withstand supplychain shocks and bounce back quickly, has become the most important requirement for supplychains. Balancing supply and demand by orchestrating the flow of materials and information is a key requirement for managing operational risks.
Here “near real-time” is defined as a refresh of key metrics every five minutes. And I have heard supplychainexecutives say that while they used to be “fast followers,” they now believe competitive differentiation depends on being an early adopter. The real-time reporting of work was weaker than expected.”.
In my work tonight, I carefully studied 2006-2015 financial results to select the SupplyChains to Admire winners. The winners drive improvement while posting financial results in the SupplyChainMetrics That Matter ahead of the peer group. Inventory Turns. Operating Margin. IT Standardization.
Poor Warehouse Utilization Increases Expenses Poor warehouse utilization has been a key concern for supply-chainexecutives over the last decade. Big Data can analyze picking performance and identify best practices to increase performance, effectively reducing the amount of on-hand inventory needed at any given time.
At a recent conference, I was asked how to deal with corporate power dynamics when supplychain is not an equal-partner organisation. This made me think: “What superpowers would supplychainexecutives love to have?”. The Power of Yes is activated when a supplychainexecutive can say “Yes, but…”.
Focused on outcomes, a competitive supplychain capability not only assures the on-time delivery of component material, but also the execution of inbound supply to ensure the shipment of quality finished goods at a competitive price while delivering on-target margins for the manufacturers.
An accomplishment-based resume provides metrics and quantifiable info about a candidate’s accomplishments. For example, if your SupplyChain work has reduced inventory turns or resulted in savings, you want to make sure your resume spells that out loud and clear. Beyond that, make it quantifiable wherever possible.
AI in retail supplychain is fueling this shift through: Hyper-Personalized Customer Journeys: AI captures behavioral signals and translates them into tailored offers, personalized recommendations, and dynamic pricing strategies. Smart In-Transit Inventory Redistribution: Redirects shipments mid-route based on updated demand forecasts.
According to executives who have benefited from this combination of advanced technologies, one of the greatest benefits is gaining real-time visibility across the extended logistics network. “We We wanted to see inventory positions around the world compared to our forecast, compared to our actual demand.
However, this year promises a significant paradigm shift where traditional performance metrics are replaced by technology-driven frameworks, as recent breakthroughs with Generative AI in supplychains have demonstrated. The same holds for the supplychain organization.
Industry professionals have put in tireless hours and taken strategic measures to keep the supplychain moving and meet customer demand. Such measures include communicating with suppliers and customers , using demand shaping to overcome inventory shortages, seeking additional suppliers, and building more onshore facilities.
Companies across all industries are dealing with rising transportation costs and a key question many CEOs, CFOs, and supplychainexecutives are asking is, “What can we do to better manage and control our freight spend in today’s market?” Big data drives everything,” Michael says. The Impact of Omnichannel.
PINC’s platform is currently utilized by an array of Fortune 1000 enterprises and gives companies a cost-effective way to move inventory faster and optimize their supplychain. Granato was vetted and selected by a review committee based on the depth and diversity of his experience. ABOUT PINC.
If you were to add a subtitle to every supplychain professional’s job description it would be Risk Manager or Risk Mitigator. What are some of the biggest supplychain risks companies face today? Do we have the right Service Level Agreement metrics in place? At what cost?
These capabilities can be combined with cloud platform-based inventory visibility and order promising services to provide very differentiated fulfillment services that directly link customer expectations to supplychainexecution realities. The key here is choosing the right kind of cloud platform.
In a previous blog post , I discussed some highlights from Blue Yonder’s 2024 SupplyChainExecutive Survey. In talking with 600 C-suite and senior executives around the world, we discovered that they share three primary challenges: ongoing supplychain disruptions, rising operating costs, and growing sustainability pressures.
The correlation between accurate forecasting and successful inventory management was a recurrent theme, emphasizing the need for reliable AI applications. One of the insights from Gartner SupplyChain Symposium/Xpo™ 2024 was a clear consensus on the need for companies to substantiate sustainability claims with concrete data.
For a long time, C-level executives viewed supplychain management, especially the logistics function, as a cost center. As a result, cutting and controlling costs became the top priority for supplychainexecutives. Therefore, how do you differentiate and make a larger impact on the organization?
Natural disasters, product shortages due to quality issues, the impact of currency rates on product costs and demand, and disruptions caused by IT service failures or security breaches are just a few examples of the risks supplychainexecutives face every day. CFOs rarely know anything about supplychain management.
This, together with lack of visibility, poor planning capability and outdated assets due to high cost of capital, results in ad hoc decisions made in functional silos that are more focused on cost and inventory risk avoidance and less on service, thereby contributing to inefficient (and often, inflexible) supplychain processes.”
That was the question Michael Uskert, managing vice president, Gartner, asked at the end of the day 1 keynote at Gartner’s 2012 SupplyChainExecutive Conference. The supplychain is hard and you need the right, enabling technology in place. What is your moon?
That was the question Michael Uskert, managing vice president, Gartner, asked at the end of the day 1 keynote at Gartner’s 2012 SupplyChainExecutive Conference. The supplychain is hard and you need the right, enabling technology in place. What is your moon?
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