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By harnessing the growing power of AI to not only sense demand at a very fine-grain, real-time level, but also to govern decisions about pricing and inventory. In terms of inventory strategy, First Insight assigns each SKU a unique “Value Score” based on a range of factors, including pricing, likeability and consumers’ likelihood of purchase.
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. In our monthly webinar last Wednesday, I presented these results. Reward teams for cross-functional metrics. What did we find?
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.
The research tries to establish “ who did supply chain best ” by looking at a weighted formula of Year-over-Year Growth, Return on Assets (ROA), and Inventory Turns for the Fortune 500 companies. Inventory Turns values are based on an average of quarterly reporting for the past year. Inventory Turns is only part of the story.
It is my hope that the readers of this blog will take time to either join us today to listen to the launch of the Supply Chain Index on our webinar or listen to the replay. (We The relationship between corporate financial performance and supply chain metrics was complex; and in my first attempts, I was unable to derive a correlation.
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). Last week, I shared a preview of the results through a webinar broadcast.
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Integration of corporate social responsibility metrics in planning. There is a lack of clarity on what drives value and metrics are functional. Monthly design of the supply chain including form and function of inventory and inventory placement. Focus on the level of inventory. Functional metric orientation.
Instead, what I observed when I looked at the data, was that most companies that I had worked with (in my role as an industry analyst, I had worked with over 300) were going backwards on margin and inventory turns. Resiliency is the pattern at the intersection of operating margin and inventory turns. “Ugh,” I said.
Today, 90% of publicly-traded companies are stuck at the intersection of operating margin and inventory turns. While most companies have been able to make progress in one of these two critical metrics in the period of 2006-2013, they have not been able to make progress on both together. It is needed. Think differently.
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.
Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. More advanced supply chain leaders model the role of complexity (product and customer), the impact of risk, and opportunity of innovation as well as product shipping and manufacturing locations, and inventory policies.
The Ultimate Guide for Effective LTL Freight Management : we put on a 60 minute webinar entitled, “Best Practices for Effective LTL Freight Management and Shipping.” We had a great turnout with over 250 logistics managers, supply chain officers, and those in the transportation world registering and attending the webinar.
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SPECIAL REPORT AI: Real or Hype? Image: iStock/koto_feja July 9, 2025 Sponsored by DELMIA No other technology in recent history has received as much attention as artificial intelligence.
This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. When companies look at singular metrics (labor costs or inventory), they have moved backwards. Aligning metrics matters. Functional metrics in isolation degrade value.
Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. What Distribution Center Metrics Need Tracking? However, the most important metrics can be categorized into the following eight areas. On-Time Shipping.
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. Join us next week for our webinar on Supply Chain 2020. In addition, I am now done with the page proofs for my new book, Metrics that Matter. The book is a story.
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. It is a slow week.
In sectors where product assortments shift throughout the year, for example, AS/RS may require different bin sizes to accommodate new inventory, while P2G operates independently of bin structures, allowing for seamless transitions. Risk Mitigation and Financial Stability The same flexibility helps mitigate longer-term financial risk.
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. The analogy is weight loss.
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I also believed that this company would have the best inventory and customer service. It is one of the primary reasons why nine out of ten manufacturing companies are stuck at the intersection of operati ng margins and inventory turns.” My favorites are customer service, operating margin, inventory turns, and ROIC.
He has published numerous thought leadership articles, whitepapers, blogs and delivered dozens of webinars during his career. Here is a summary of the key supply chain characteristics of each of the manufacturing strategy and how it impacts collaboration with suppliers.
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. ” I played three lies and a truth with the group. The reason? They did not.
Cereal Icon Kellogg Italy’s Ferrero to Buy U.S. Cereal Icon Kellogg Photo: iStock.com/radub85 July 11, 2025 SupplyChainBrain Ferrero , the Italian candy maker, has agreed to acquire WK Kellogg , the giant of American, in a deal valued at $3.1 billion , the companies announced on July 10.
Advertise Contact Us Supplier Directory SCB YouTube About Us Login Subscribe Logout My Profile LOGISTICS Air Cargo All Logistics Facility Location Planning Freight Forwarding/Customs Brokerage Global Gateways Global Logistics Last Mile Delivery Logistics Outsourcing LTL/Truckload Services Ocean Transportation Parcel & Express Rail & Intermodal (..)
This year, most were interesting in supply chain optimization - from distribution to inventory management - and Key Performance Indicators. Download: The Impact of Big Data in the Supply Chain & Transportation Management Industry Webinar Replay, Transcript & Presentation. The Many Types of Inventory Management Technology.
Last week, at Supply Chain Insights , as part of our monthly webinar series, I hosted a panel discussion on the current state of the healthcare value network. Hosting this webinar series is one of the favorite parts of my job as the Founder of Supply Chain Insights. It is rising inventory levels. Current State: Costs are rising.
Regulators are seeking “to put pressure on fashion brands to make sure they’ve got better inventory control in terms of not over-ordering.” Time to Start Preparing for the Digital Product Passport SCB FEATURE Selling Into the EU? In the EU, “a heck of a lot” of new fashion apparel goes straight to landfill at the end of its life, he says.
Companies entered the pandemic with twenty more days of inventory than at the beginning of the great recession. A balance sheet analysis shows that 95% of publicly traded manufacturers are stuck (when compared to peer group) at the intersection of growth and margin, margin and inventory turns, and Return on Invested Capital (ROIC) and growth.
As I picked it up , I saw a twitter alert welcoming people to the APICS webinar with @lcecere on Agility that afternoon. As we went live with the webinar, I laughed. In this blog post, I publically answer the questions from the webinar. I had gotten to bed late. It was 6:00 AM. This was before my wake-up call. Defining Agility.
Spinnaker Management Group asked me to co-present on a demand-driven webinar with SanDisk. Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. When I heard their story, I scratched my head. In fact, the teams ignore the forecast.
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Importance of Metrics in Reverse Logistics Management. To monitor progress against its reverse logistics management plan, a company needs metrics that measure the financial impact of returns on the firm and on other members of the supply chain. Energy used in handling returns : This metric is used in sustainability programs.
It also requires detailed inventories of hazardous materials; To support developing countries, IMO has organized various workshops on ship recycling to raise awareness of the Convention internationally.
for example, used predictive analytics to make changes in their inventory processes and have since seen an increase in their production and purchase orders. Trust can be built through a closed-loop change management effort that is centered on performance metrics that accurately reflect the current state of the supply chain system.”
Inside the company, Amazon has used AI tools for inventory placement, customer service and product listings. Jassy, in his letter, rattled off some of those initiatives, including the Alexa+ voice software, a shopping assistant, and tools for developers and businesses sold by the Amazon Web Services cloud unit. employer after Walmart Inc.,
UNFI ), one of the U.S.’s s largest organic food distributor has led to empty shelves at Whole Foods stores across the country, reports NBC News. UNFI ), one of the U.S.’s s largest organic food distributor has led to empty shelves at Whole Foods stores across the country, reports NBC News. UNFI ), one of the U.S.’s
The knock-on effects included delivery delays, inventory shortfalls and price spikes across multiple industries. That detour added up to 12 days of transit time and increased shipping costs by approximately $1 million per voyage, according to reporting from Bloomberg and Maersk’s own advisories.
Obviously, shippers cannot track what consumers use their personal devices for all the time, but they can use metrics and Big Data to track what consumers are doing on their respective e-commerce sites. This includes the driver, the shipment, the trucks, the technologies used to track such shipments, online platforms and consumer devices.
Growth agendas with the spiraling demand require cash, supplier shortages necessitate the shortening of payables, and the longer/more variable transport lead times decrease inventory turns increasing the need for cash. The Dollar stores are struggling with higher inventory levels, but are outperforming the sector. The answer?
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