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Solvoyo has a metric they call the user acceptance rate. This metric measures the percentage of time the planners accept replenishment, transportation, or inventory plans as they are without any change in the timing of the delivery or the quantity to be delivered. But when he presents this to many companies, they don’t believe it. “I
However, as carbon taxes and emissions reporting requirements continue increasing, supply chain professionals face mounting pressures from inside and outside their organizations to measure and improve performance against new, nebulous sustainability metrics. Freight transportation makes up over 10% of total global carbon emissions.
The big data architectures are often present in the current “AI offerings.” On December 5th, Supply Chain 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 supply chain performance to drive value.
The modern supply chain is a complex network of suppliers, manufacturers, distributors, and customers, all interconnected and reliant on a shared ecosystem of trust and accountability. Public Reporting: Publishing sustainability reports and ethical compliance metrics to highlight progress and areas of improvement.
Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Why do companies focus on reducing a specific metric? by John Westerveld. Sound ridiculous?
Scaling manufacturing operations is crucial for business growth but presents unique challenges. Balancing increased demand with consistent quality and controlled costs is difficult but essential for manufacturers looking to expand. Successfully scaling manufacturing requires more than just adding resources.
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 supply chain planning and manufacturing, logistics, and sales. These results herald upcoming issues for future manufacturing reporting earnings calls.
Manufacturers have always struggled to know their customers. Unfortunately, this means manufacturers face an even greater challenge, as more customers translate into greater use of customer service. But, how do manufacturers turn their focus to the customer experience? Determine What Customers Want Today.
We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. In our monthly webinar last Wednesday, I presented these results.
Ibrahim Al Syed, the director of digital manufacturing at Celanese, was surprisingly forthcoming about how Celanese developed these capabilities at ARC Advisory Groups 29th Annual ARC Industry Leadership Forum. He also spoke at the ARC forum in 2023, and this article is based on that presentation as well. They must be.
Let me give you an example: Last week, I gave a presentation at a global supply chain team meeting of 175 professionals. As I cleared my throat, and pushed my toes deep into my shoes, I bounded up the stairs to start the presentation. The more content people are, the more important it is to ask the tough questions to drive alignment.
The widespread supply chain disruptions that happened when the global pandemic hit in 2020 highlighted several important lessons regarding manufacturing and supply chain visibility. The app also cannot pinpoint your present location—giving vague and significantly delayed information at best. Why does Industrial Equipment need MCT?
In manufacturing, performance improvement, cost reduction and process optimization are crucial. Manufacturers have adopted innovative solutions and technologies to deal with these issues. There is no question that AI and ML will have important roles in shaping the future of manufacturing ERP. What is AI and ML?
There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Aligned Metrics. I then finished a forty-minute presentation, and prepared for questions. What percentage of retail out-of-stocks could be prevented by the manufacturer in these industries?
Even though things seem to be going well (all of the meeting details are well-executed and the speaker is giving an energized presentation), the room is eerily quiet. The audience listening to these presentations does not have the courage to raise their hands and ask the question, “How do you define demand-driven value networks?”
In manufacturing-based companies, 70-80% of costs are in the processes of source, make and deliver. We analyzed the impact of 150 factors on 493 financial metrics for the period of 2004-2016. With the flurry of M&A, industry consolidation, outsourcing, and downsizing, the gaps for North American manufacturers are increasing.
We’ve already listed the top 10 manufacturing blog posts and the top 10 supply chain blog posts last week. When a manufacturer’s product normally moves through the supply chain network, it is to reach the distributor or customer. Any process or management after the sale of the product involves reverse logistics.
I loved Peggy’s presentation at the Summit. While many employers would have penalized the employees for tablet breakage , Peggy explored the world of wearables to enable her digital manufacturing transformation. .” To solve these problems, AGCO partnered with Proceedix to develop an application for manufacturing.
It is now our fifth year of analyzing balance sheets to understand which companies are outperforming their peer groups on the metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC) while driving improvement. The ploys–lunches, drinks, and presents–became humourous after a while.).
With the purchase of i2 by JDA, and Logictools by IBM, manufacturing companies serious about network design started looking for a company, with a well-established community, that was more serious about network design. I smiled as I began to present the story of the “Metrics that Matter.” The reason?
On Friday, I presented an overview of outside-in planning to a consulting group. I love the questions when I present. Based on the work with Georgia Tech, we are getting clear on which metrics matter by industry. As companies adopt a balanced scorecard, the functional metrics shift to a focus on reliability. The reason?
I am hearing it again in my interviews for the book Metrics That Matter. And, as shown in our prior reports, the variation in contract manufacturing and third-party logistics providers should be a stay-awake issue for companies worried about corporate risk. It has been a two-year research effort, and we are not done. Encompassing.
As with the logistics category where we featured 15 most popular blog posts vs. the 10 we covered in the top manufacturing blog posts and supply chain blog posts , we write so many transportation blog posts in that category, we are going to feature the 16 most viewed transportation blog posts. Read the Full Blog Post. Read the Full Blog Post.
” CFO of a major manufacturer. It is in presentation after presentation. Ownership of Inventory as a Metric. In High-tech, there is greater ownership of the “inventory metric” across the organization. A decade ago, the supply chain had two buffers: inventory and manufacturing.
Last week in the middle of a presentation, a supply chain leader made the statement, “We have solved the issues in supply through better optimization and use of data. Currently, we at Supply Chain Insights are working on presentations for our upcoming Supply Chain Insights Global Summit. Every time that it happens, I smile.
I have heard presentation after presentation on supply chain excellence, and I have heard industry leaders wax eloquently on how their supply chain objectives have improved value. However, we have found that only a few companies are improving the potential of their supply chain to balance supply chain metrics.
When I finished my presentation on “past practices,” that I cannot call “best practices,” and outlined the methodology for the upcoming Supply Chain Index, a woman who had listened intently in the audience told me that I had thrown “cold water” on the audience. My message in the presentation was simple.
Pete Bennett, and his co-presenter, Mary Byrne, the vice president of supply and demand planning, spoke during a presentation at Kinaxis’ user conference Kinexions. Cardinal Health, a global manufacturer and distributor of medical, surgical and laboratory products, is focused on continuous improvement of service.
The final session of the day, ‘Driving Sustainable Procurement’ was presented by Stephen Carter. The symposium emphasized the importance of data management to track ESG metrics and ensure compliance with regulations.
For example, we seldom outsource manufacturing. We take pride in our innovations in manufacturing. Today 95% of manufacturing is directly managed by the Colgate team and we have taken steps to vertically integrate some of the operations. We manage supply chain metrics. For example, we make the tubes for our toothpaste.
Over the course of the last decade, I have carefully recorded and reported presentation after presentation from conference after conference and interview after interview with supply chain leaders. I also believe that it is because the organization is not incented to manage cash-to-cash metrics. He gave a great presentation.
I recently presented this slide to a group of consultants, and a person that I love in the audience raised his hand and said, “Lora, let’s just face it. One of my favorite interviews on this topic, that I recently completed for my upcoming book Metrics That Matter , was with Amway’s Chief Supply Chain Officer George Calvert.
These are mainly North American-based manufacturers, distributors and retailers.) 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. Correlations Between Survey Factors and Financial Metrics. I hand-pick the presentations.
A pound of apples costs about the same as a pound of steel, yet steel is a complex product produced using high-tech metallurgical and manufacturing processes. IBP is a multifunctional planning process that includes sales, marketing, demand planners, manufacturing, and finance. A ton of steel can cost as little as $700.
I shake my head at most of the presentation materials that I see strategic consultants present on supply chain best practices. Consider the case of food manufacturing. The only metric that we have improved through ten years of IT investments is the revenue/employee number. I am tired of buzzword bingo.
My first digital supply chain presentation was in Milan at an SAP Insider conference in 2012.) The fear is the readiness of adoption of a laggard industry where only 3% of manufacturers are early adopters. Traditional planning taxonomies focus on the optimization of functional metrics. What Will Be the Value?
Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Some companies prevent access to data to prevent trade secrets (or in the case of US military manufacturers ITAR regulations prevent foreign nationals from accessing manufacturing data).
The 2022 Inflation Reduction Act (IRA) is a package of measures, including tax incentives for clean energy and manufacturing. This approach often involves using standalone or point solutions that focus specifically on sustainability metrics and reporting. .: The U.S.
Workforce shortages and other challenges abound throughout all transportation sectors, and while this may revitalize investments in localized manufacturing, expanded warehousing to hold more inventory, and other efforts, these changes do not solve today’s issues. Manufacturers also adjusted.
Enhancing Collaboration Capabilities Supply chain management is inherently collaborative, often requiring coordination between suppliers, manufacturers, distributors, and retailers. Similarly, performance metrics courses can guide learners in establishing key performance indicators (KPIs) to monitor and improve supply chain efficiency.
Today, is day two of our annual year-end series highlighting the top blog posts in each of our 5 main categories: Manufacturing , Supply Chain , Logistics , Transportation Management , Freight. Download: The Impact of Big Data in the Supply Chain & Transportation Management Industry Webinar Replay, Transcript & Presentation.
Noting that supply chain pressures are a key driver of inflation, the bank said in a press release that the new indexes “present a new gauge to measure how widespread supply disruptions are, understand if availability is improving, and track inflationary pressures and the impact on local firms.” And now on to this week’s logistics news.
The presentations from the Summit are posted now on the Supply Chain Insights You Tube Channel. The number one question that I am asked today by manufacturers across all industries is “How can I improve customer service?” To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability. . #4
In this way, supply chains can identify a list of products that can present managerial problems. Manufacturing flow simplifications. By implementing the above actions, supply chain managers can use the Tracking Ratio (TKR) metric during the introduction phase to measure the rate between the variety manufactured and customer orders.
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