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Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. On December 5th, SupplyChain Insights is hosting a small event at Georgia Tech to share the results of a two-year research effort to connect financial metrics by industry to supplychainperformance to drive value.
Once upon a time, the world of manufacturing was a relatively stable place. But then, supplychain disruption became the rule instead of the exception, consumers changed their tastes as often as their socks, and global competition started playing hardball. So how does a manufacturer navigate this rollercoaster?
In today’s dynamic market, procurement is far more than just a buying and purchasing center. Forward-thinking organizations have transformed the department into an untapped gold mine that creates value for the entire end-to-end manufacturing process—from design and sourcing to production and delivery.
At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) Supplychain excellence was largely defined as manufacturing excellence.
Supplychain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times.
Optimizing fulfillment requires a series of steps to get a shipment from its source to the end customer. These steps include sourcing and receiving inventory, storing inventory, order processing, picking and packing an order, shipping the order, and returns management. The ability to meet fulfillment goals is impeded by several issues.
Is cost reduction all that there is in measuring SupplyChainperformance? Sure, supplychain cost reduction is important in reducing the cost of goods sold (COGS) and increasing profit, but there are other measurements which should not be forgotten. Isn’t time important? What kinds of "time" measurements exist?
A Hard Look at Corporate Performance. Strangely, in the last decade, while companies had the opportunity to use technology better, supplychainperformance declined. Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns.
” SupplyChain Leader. Interview for Metrics That Matter. My kitchen table is piled high with interviews for the upcoming book, Metrics That Matter. As background, Peter Gibbons is the Executive Vice President, Global SupplyChain for Mattel, Inc. I am behind. The heat is on. No backing out.
As I mentioned in my previous post, Sales Dashboards – 16 Metrics for Manufacturers , a strategy for measuring business performance should also incorporate metrics that focus on the supplychain and other operational areas of the enterprise. You can refine as you go! DSO – Days Sales Outstanding.
It’s the key to transforming your supplychain from a source of frustration into a well-oiled, profit-generating machine. Modern supplychains thrive on real-time data, execution-focused applications, and dynamic decision-making. That’s where data analytics comes in. The result?
Commerce is global and regional at the same time, the world is getting smaller and more interconnected, and Consumer Packaged Goods (CPG) manufacturers operate in this build-anywhere and sell-anywhere market. End-to-end supplychain visibility, planning, and execution support software are critical in agile supplychainperformance.
Bottom Line: Manufacturers are reaching a new level of results in 2018 because they have clearer, more actionable insights based on real-time manufacturing and quality metrics than ever before. Quality Metrics Enable Customer-Driven Manufacturing Networks. What Success Looks Like In A Customer-Driven Manufacturer.
Nvidia, Northrup Grumman, PACCAR Inc, PCA (Packaging Corporation of America), ResMed, Rockwell Automation, Ross Stores, Taiwan Semiconductor Manufacturing (TSMC) Company, Tempur-Pedic, TJX, Toro, Toyota, West Pharma, United Tractors, and Urban Outfitters. The group’s response is, “Are these supplychainmetrics?”
Supplychainperformance KPIs are invaluable measurements that support the growth and success of a company’s supply, fulfillment and delivery efforts. Fortunately, applying metrics to multi-source operational information that’s stored and managed in a data hubs greatly minimizes these issues.
The ideal goal is to have IBP – and the right supplychain planning platform to support it – bringing the right people to the table consistently to create a single, integrated plan for the business. It’s logical that a machined parts manufacturer and a grocery chain would review different KPIs in their IBP processes.
I have taken myself off the road to write the book Metrics That Matter. On the 9th of April, I went to see a supplychain leader that spoke of how a “tightly integrated” global supplychain was making things worse for him. It is a slow week. Most of my friends are on vacation. It is tedious.
Still, it can be just as disruptive to supplychainperformance. Companies that invest in leadership development, mentorship, and training will see better retention, improved operational outcomes, and stronger supplychainperformance. Josh Turley is CEO of RTA.
by Iman Niroomand Supplychainperformance depends on the matching of product features with supplychain features. When a new product hits the market, the existing supplychain that is optimal for a given set of product lines will not stay optimal. Manufacturing flow simplifications.
Often, it becomes necessary to reevaluate how supplychainperformance is measured to ensure healthy operations. Ask yourself, “Are your supplychainmetrics bogging you down?” Functionally isolated metrics lead to sub-optimized supplychainperformance.
While CPI is normally used within project management and earned value analysis, it has significant application and importance within supplychain contexts, particularly in procurement, logistics and warehousing. What is the Cost Performance Index (CPI)? Struggling to develop an appropriate procurement strategy?
For the past five years, the team at SupplyChain Insights identified SupplyChains 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). He is currently the vice president of global supplychain.
Automated & synchronised : Future supplychains will be e2e automated, connected & synchronised. Most of the current repetitive processes like (forecasting, reports, purchase orders & Invoicing) will be automated using various technologies. Case Study Resilience: CISCO.
by John Westerveld When things happen in supplychain, knowing sooner and acting faster can mean the difference between a major catastrophe and a minor hiccup in your supplychainperformance. Imagine this scenario; you are a supplychain executive for a major U.S.-based This is bad…. Acting Faster.
They need visibility across multiple internal systemslike ERP, CRM, and financial platformsand even external sources shared with suppliers, partners, and customers. Modern platforms pull data from a wide array of sources: ERPs, relational databases, Excel files, cloud apps, third-party providers, and beyond. Why does that matter?
The following are the insights gained from my discussion with Sunil Roy , who leads Blue Yonder’s Industrial Manufacturing Industry Strategy, during a recent Blue Yonder Live and executive customer events that we prepared for jointly. Sunil: It’s important to start with metrics. And how should they be solving for them?
Today I want to talk about the challenges faced by today’s automotive suppliers, and why a network model for their supplychain can help. Today, in order to accomplish these goals, continuous improvement in global supplychain execution has become a core supply capability required by most automotive OEM’s.
The second part of Drucker’s quote, “if you can't measure it, you can't improve it,” really brings home the importance of having the right set of metrics. In the field of supplychain management, we have created an abundance of metrics and key performance indicators (KPIs). Accessibility.
KPIs in SupplyChain The Basics As in any business activity, supplychain operations need to focus doggedly on improvement to compete in the marketplace, but how do you know if your supplychainperformance is satisfactory or getting better or, god forbid, worsening? Thats where KPIs come in.
The average manufacturing company’s supplychain organization is 15 years old. Historically, the traditional supplychain focused on improving costs. Today, more mature supplychain teams focus on delivering value. We find that companies can improve one, but not two of the metrics.
However, two decades later, there is still no technology solution to enable demand visibility or help companies use channel data to translate demand into an inventory, replenishment, or manufacturing strategy. Why have we not improved our use of channel data in supplychain processes?” My question is, “Why?”
Gartner purchased the firm in 2010.) Driving Improvements in SupplyChain Excellence. Over the last decade, supplychainperformance regressed. Currently, supplychainperformance is a barrier to economic recovery. AMR Research was an industry analyst firm in Boston. Reflection.
Every company today runs on data – the key to using your data is choosing the right metrics for visibility into your supplychain. Their supplychains must be flexible and responsive to customer and market needs. COGS, Total SupplyChain Cost, Productivity, Returns Rates, Carry Cost of Inventory.
Our days of chasing shiny objects and making supplychains more efficient, but more brittle need to be behind us. In the last decade, supplychainperformance regressed. To make the point, let us start with a discussion on Consumer Products manufacturing. For example, a “buy plan” for procurement.
Over the course of the last two years, we at SupplyChain Insight s have worked on a methodology to gauge supplychain improvement. We named it the SupplyChain Index. We have found that supplychainmetrics are gnarly and complicated.During Our aim was to maintain a 3 to 3.5
Subscribe to SupplyChain Game Changer. Featuring Our 12 Best Procurement Articles! Procurement’s North Star article and permission to publish here provided by Sam Jenks. What exactly are you and your procurement team working towards? What is Procurement’s North Star Metric? Email Address.
The Art of Supplier Collaboration: Best Practices to Build Lasting Partnerships Dynamic market changes and global events seem to create newer demands and greater pressure on procurement professionals. This is especially important for manufacturers of luxury goods, for example.
Manufacturers typically perform planning, sourcing (finding suppliers), making (manufacturing), delivering and returns. Supplychain efficiency, therefore, is the measure of getting the right product to the right place at the right time — and at the least cost.
Over the period of 2009-2015 only 88% of companies made improvement on the “SupplyChainMetrics That Matter.” (The The SupplyChainMetrics That Matter are a portfolio of metrics which correlate to higher market capitalization. To continue this work, BASF started an initiative called “BASF 4.0”
We aim to move companies from a cost-based agenda to drive value in their supplychains. The selection of metrics is based on prior work with Arizona State University to understand which metrics, in combination, correlate to market capitalization and price to book value. Why do we spend four months doing this?
Brand loyalty is no longer the driver for consumer purchasing decisions. People simply want to purchase products from businesses which provide a more transparent and streamlined service, and who deliver on their customer promise, even if it means inflated prices to obtain it. BE READY FOR THE NEW NORMAL.
In our work on the SupplyChains to Admire report , we tracked the progress of manufacturing, retailing and distribution companies for the period of 2006 to 2013 and 2009-2013. Performance of High Tech and Electronics SupplyChains for the Periods of 2006-2013 and 2009-2013. 2015 SupplyChains to Admire.
SupplyChain Matters highlights indications providing added evidence that manufacturers and retailers are front loading inventory management actions in attempts to initially hedge against added U.S. These are already signs of increased costs and supplychain inflationary pressures. tariff strategies.
Source: Dictionary.com. Most supplychain planning teams do not know their customers. I find that in this world of the global multi-national that procurement processes have become convoluted and increasingly complex. (In In my opinion, we have made procurement increasingly complex without adding value.
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