Inventory Metrics: From Insight to Action

Kinaxis

by Andrew Dunbar Over the last several weeks, this blog series on Inventory Management has explored the objectives and roles of inventory managers and outlined several of the improvement levers available to them. Each metric requires context.

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. It’s easy to meet delivery expectations if you carry excess inventory, but it’s an expensive and impractical solution.

Lora Cecere on Supply Chain Metrics that Matter

AIMMS

Interview with Lora Cecere, Founder and CEO of Supply Chain Insights and Author of Supply Chain Metrics that Matter ( published December 2014 ). Metrics that Matter became a three year research project. I realized that many organizations are very confused about metrics.

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.

Omnichannel Supply Chain Metrics: What Should Supply Chain Leaders Measure?

Cerasis

The answer lies using these omnichannel supply chain metrics to carefully track and improve operations continuously. Inventory Accuracy. This is a simple key performance indicator (KPI), another name for metrics, to track. It refers to the in-stock or out-of-stock accuracy of supplier inventory. This KPI should be as high as possible, reflecting accurate inventory available for customers from suppliers. Other Critical OmniChannel Supply Chain Metrics to Track.

Inventory Management: Technology Enablers

Kinaxis

by Andrew Dunbar The modern day inventory manager described in this series is the backbone of your company’s inventory planning process. It should be up-to-date (daily at a minimum), and include all the input data required to make your inventory planning decisions.

Measuring Up?

Supply Chain Shaman

The first step in the journey is to analyze balance sheet results and understand industry trends. The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. Inventory Turns.

6 Signs Your Business is Achieving Efficient Inventory Management

Unleashed

Did you know that better inventory management and control is one of the biggest parts of running a successful business and yet it is one that is often put on the back burner for misconceptions of that it is not a major profitable pursuit? Business owners know that holding inventory stock ties up a lot of cash, that’s why good inventory management is crucial for all businesses. When your inventory stock dips below the pre-set levels, you know it is time to order more.

Excess Inventory? No Problem. You Have Trailers In the Yard.­­

Talking Logistics

With the national warehouse vacancy rate hovering at record lows and warehouses bloated with inventory pulled in from China during 2018 to get ahead of impending tariffs, companies can combine flexible storage options with advanced technology to create an end-to-end supply chain solution that works. This trend gathered steam last year thanks to a warehouse vacancy rate of 4.3% per square foot—the highest level since it began tracking the metric in 1989.

Trends 2019: Retail

Enterra Insights

Retail trends. Omnichannel may not be one of the sexiest digital transformation trends in retail — but it is definitely the most necessary.”[3]. Omnichannel operations only succeed when inventory amounts and locations are known. Cognitive computing platforms, like the Enterra Enterprise Cognitive System (AILA ), can help companies with inventory management as well as myriad other challenges facing today’s retailers.

Trends 100

Elephant in the Room: Thoughts on Metrics That Matter in Semiconductor and Hard Disk Drives

Kinaxis

Supply Chain Insights recently published a Metrics That Matter report covering both the Semiconductor and Hard Disk Drive (HDD) industries. Semiconductor is poised to consolidate, which will have huge impact on the metrics. Understanding inventory planning will take on a new dynamic.

Inventory Management Levers – Success Through Collaboration

Kinaxis

by Andrew Dunbar So you’re an inventory manager, and your CFO just asked you to reduce inventory by 10% before year end to free up some capital for next year’s big investment in R&D. Figure 1: The theoretical on hand inventory level of a single item.

Vendor-managed inventory and distribution planning in the food and beverage industry – here’s something to chew on

Kinaxis

by Jeswin Philip The Food Packaging Trends and Advances report from PMMI forecasts that the US Food and Beverage industry will experience a 2.9 % CAGR through 2022. What is vendor-managed inventory? Let’s take a closer look at a vendor-managed inventory case study.

Looking Beyond Red Arrows

Supply Chain Shaman

It is hard work to maintain the status quo in metrics performance. A balanced portfolio of metrics delivers the greatest value. As a result, supply chain leaders focus on unrealistic goals of inventory or costs, they will throw the system out of balance.

Creating an Actionable Plan for Unlocking Working Capital with Inventory Optimization

Arkieva

For many companies, the term “inventory optimization” has become more of a catch phrase than an actual reality. The idea of cutting inventory costs while maintaining the same level of customer service is rather elusive. Hence, reducing the need for an excess in inventory.

26 logistics professionals reveal the biggest trends in logistics technology

6 River Systems

To learn more about the biggest trends shaping the logistics industry today, we reached out to a panel of logistics professionals and asked them to answer this question: “What are the biggest trends in logistics technology?”

2016: Building a Balanced Scorecard for Discrete Industries

Supply Chain Shaman

To help, in this blog post I share industry trends. For the discrete industries we contrast the industry averages for growth, operating margins, inventory turns, cash-to-cash cycle, revenue per employee, and SG&A ratio for the periods of 2006-2014 and 2011-2014. Inventory Turns.

Three Mega Trends Driving Supply Chain Transformations

TMC

We see three mega trends that are driving both growth and interest in the industry. The post Three Mega Trends Driving Supply Chain Transformations appeared first on Connect Blog by TMC, a division of C.H. Market Trends Technology

Mining Supply Chain Data for Insights

Supply Chain Shaman

We loaded 493 financial metrics from balance sheets and income statements for each company into the data lake for the period of 2004-2016 using YCharts data. In addition, we enriched the data lake with 20 market indexes on cost, growth and market trends. Shifting Trends.

Data 229

2016: Building a Balanced Scorecard for Discrete Industries

Supply Chain Shaman

To help, in this blog post, I share industry trends. For the discrete industries, we contrast the industry averages for growth, operating margins, inventory turns, cash-to-cash cycle, revenue per employee and SG&A ratio for the periods of 2006-2014 and 2011-2014. Inventory Turns.

Public Markets Reward Supply Chain Alignment

Supply Chain Shaman

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.

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 often starts with how to know the demand of particular product.

Let’s Fail Forward….

Supply Chain Shaman

So, while I have not heard the responses from the voices on the phone responding to the results from the survey about centers of excellence (I love connecting with supply chain leaders on these types of trends), nor having finished the quantitative research, here are some trends that I am expecting.

4 Ways Big Data is Changing Inventory Management

EazyStock

The real value businesses receive from big data is the ability to analyze data trends in real-time and accordingly extract critical data for management and operations. The value of big data is how quickly patterns and trends can be identified.

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. I recently interviewed him for my upcoming book, Metrics that Matter, that publishes in August 2014. How do you define the metrics that matter?

Let’s Fail Forward….

Supply Chain Shaman

So, while I have not heard the responses from the voices on the phone responding to the results from the survey about centers of excellence (I love connecting with supply chain leaders on these types of trends), nor having finished the quantitative research, here are some trends that I am expecting.

The 6 Trends Third Party Logistics Service Providers Will Drive to Empower Shipper Success in 2017

Cerasis

Take a moment to think about how these remaining six trends will impact the shipping and freight industry as a new administration takes control. Online sales grew 12 percent in 2016, and growth is forecasted for 2017, reports Ludger Schuh of the Inventory and Supply Chain Blog. Furthermore, Big Data will transform how companies view operations through a combination of internal and external metrics, merging all processes from procurement logistics with last-mile delivery.

Household Products Industry Stuck in Neutral and Going Backwards

Supply Chain Shaman

Both Kimberly-Clark and P&G are going backwards on operating margin while making progress on inventory turns. P&G’s rate of improvement on the Metrics That Matter was lower than the peer group. As the company spiraled in the updraft of the market, it built inventory.

Five Reflections From Supply Chain Planning Benchmarking

Supply Chain Shaman

However, for elements like forecast error, customer service and slow-moving inventory self-reported data is not sufficient. 4) Best Forecasters do not Have the Best Inventory Results. Debra built the Gartner Hierarchy of supply chain metrics. This is one element of inventory.

Sage Advice? Only for Turkeys.

Supply Chain Shaman

I am trying to find good news; but over and over again, I see the same trend. 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.

Turkey 263

5 Easy Tips to Reduce Your Inventory Shrinkage

Unleashed

When your physical stock in the warehouse doesn’t agree with the inventory on record, you’ll have a problem on your hands. You now have the onerous task of figuring out where the rouge inventory went so you can reconcile the numbers. This is what we call inventory shrinkage. It occurs where inventory disappears or cannot be sold and creates a mismatch between physical stock counts and what is showing in the inventory management software.

Supply Chain Talk: Do Numbers Tell the Full Story?

Arkieva

At first glance, supply chain metrics may seem to tell you a lot about your current supply chain operations. percent, and it was trending down. For those that have worked in the supply chain, the situation is similar to reducing inventory and increasing receivables at the same time.

Greater Inventory Control Begins with Demand Forecasting

Unleashed

Effective inventory control. Maintaining inventory control is a mammoth task and healthy inventory levels are a necessary part of matching inventory stock with anticipated demand. Effective inventory control can be achieved by consolidating inventory processes into a single integrated system. A great inventory management system will be transparent and be able to count, track and record inventory data and movement in real time.

Editor’s Pick: Top Operational Challenges Solved Through Supply Chain Visibility Solutions

Talking Logistics

Supply chain visibility enables proactive decision-making and effective risk management by providing a clear, end-to-end view of the movement of inventory. Specifically, it provides the data and metrics necessary to improve and control up and downstream processes. Without addressing the underlying data problem, operational challenges around inventory, partner relationships, risk management, and cash flow are difficult to solve for.

Supply Chain Scope: New Study Shows Rise in US Inventories; California Estimated to Improve Freight Efficiency by 25% in 2030

Arkieva

A new study by the SupplyChainDigest analyzing the main components of working capital: Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payables Outstanding (DPO) revealed an uptick in DIO. New Study Shows a Rise in US Company Inventories.