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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. Did you know that improvement in the supplychain drives 50-70% of this value metric?
And how can consumer goods companies learn from their performance in this pandemic to prepare for the future? A study by E2open – the 2021 Forecasting and Inventory Benchmark Study: SupplyChainPerformance During the Covid-19 Pandemic – provides the answers. I look forward to this study every year.
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?
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?
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.
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.
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.
The formula for OTIF is: Measuring a supplychain against OTIF metrics is a key strategy that helps decision makers attach a tangible value to the success of their fulfillment and allows them to determine key strategies. The ability to meet fulfillment goals is impeded by several issues.
” 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.
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. Our latest e-book, “ Is Manufacturing Missing Out On Procurement’s Value Add? Here are some key insights from the e-book.
The rise in complexity happened faster than supplychain leaders could improve supplychainperformance.) I am hearing it again in my interviews for the book Metrics That Matter. I think that the marked resiliency between Samsung and LG Electronics is due to supplychain excellence.
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.
Data analytics helps you monitor key performance indicators (KPIs), like supplier performance, delivery times, and transportation efficiency — all in real-time. Analyzing performance trends helps you find areas to improve across your supplychain.
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.
Faced with continuing inflation, manufacturers are seeking strategies to contain per-unit costs while maintaining margins. But geopolitical rivalries and an emerging wave of tariffs are introducing new levels of supplychain uncertainty. Create an index of 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.
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?”
We continue our series on the top 5 blogs in our 4 main categories ( Freight , Manufacturing , Logistics , and SupplyChain ). Our last post covered the Top 5 Manufacturing blogs of 2016. Today's post will cover the top 5 supplychain blogs from 2016 so far. What are your top SupplyChain blogs to read?
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.
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.
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.
It is hard work to maintain the status quo in metricsperformance. A balanced portfolio of metrics delivers the greatest value. The supplychain is a complex, non-linear system. In the setting of strategy goals, executive teams often set unrealistic goals because they are not aligned with supplychain potential.
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.
Over my next few articles, I’ll share some tips on the kinds of resolutions you can put in place to get your supplychainperformance back on track in 2015. Of course, if your supplychain is already humming, then these tips can help you achieve even greater levels of performance.
In the process, I discovered that the average process manufacturing company has reached a plateau in supplychainperformance. I believe that we have reached a plateau and that supplychainperformance is declining. Growth has stalled. ” I think that this is true.
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.
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.
The symmetry of technology and purpose is why we love working in SupplyChain. I was talking with a practitioner last week who was the internal champion that brought Logility Voyager Solutions into a leading flooring manufacturer. At the time this wasn’t a company on the bleeding edge of supplychain best practices.
The symmetry of technology and purpose is why we love working in SupplyChain. I was talking with a practitioner last week who was the internal champion that brought Logility Voyager Solutions into a leading flooring manufacturer. At the time this wasn’t a company on the bleeding edge of supplychain best practices.
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.
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.
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.
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”
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.
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.
Over the last decade, supplychainperformance regressed. Currently, supplychainperformance is a barrier to economic recovery. We don’t have a clear industry definition of supplychain excellence. So, when Gartner bought AMR Research, I left and started SupplyChain Insights.
What contexts can it be used in and how, as well as the benefits of using cost performance index in supplychain contexts. What is the Cost Performance Index (CPI)? The Cost Performance Index (CPI) is a financial efficiency metric used to measure cost performance in projects and operational activities.
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?
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. Traditional technology approaches failed.
and Trading Partner Alliance outline some of the key considerations that should go into developing and using the on-time and in-full delivery metric. Supplychain complexity is increasing as customers demand a wider selection of products, a broader choice of channels, and more promotional offers. Reduce supplychain complexity.
The current focus is on store-by-store productivity and the design of the supplychain from the outside-in. In the SupplyChainMetrics that Matter table, we can clearly see that “operating margin” and “inventory turns” matter to public financial performance. Why it Matters.
Packaged Analytics, KPIs & Reports Ready-to-use reports, metrics, and dashboards that accelerate time-to-insight. These pre-packaged analytics typically span across all major functional areas: Sales & Customer Insights Track sales performance by region, product, rep, or customer.
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