article thumbnail

When the Rubber Hits the Road

Supply Chain Shaman

In this volatile world, efficient procurement led by a CFO is not the answer. The company needs to focus on the design of flows, building outside-in processes, creating an effective supplier development group, reducing complexity, and driving bi-directional orchestration to a balanced scorecard. What is the issue?

article thumbnail

Supply Chain Normalcy? Think Again.

Supply Chain Shaman

For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. In the face of variability, this is two-to-six weeks too long to make allocation or procurement decisions. I continue to hope that organizations will get more serious on building networks. Tougher than most understand.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

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. Reward teams for cross-functional metrics. Network Design Analysis.

article thumbnail

How We Stubbed Our Toe in The Evolution of S&OP

Supply Chain Shaman

Organizations can align to drive value despite the allegiance to functional metrics. As long as companies are motivated by functional metrics, inventory management will be an enigma. When companies reward OEE in manufacturing and POV in procurement, companies will systemically make the wrong stuff. Mistake #5. Measurement.

S&OP 195
article thumbnail

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics. The Effective Frontier.

article thumbnail

How Do You Define a Mature Supply Chain Planning Organization? (Part 1)

Supply Chain Shaman

Management and planning of the entire network against a value network strategy. Integration of corporate social responsibility metrics in planning. Supply Chain Design. Ad hoc design planning often focused on a function of the supply chain. There is a lack of clarity on what drives value and metrics are functional.

article thumbnail

Go Horizontal!

Supply Chain Shaman

The metrics reward functional thinking. The focus of APICS is manufacturing, CSCMP’s foundation is in logistics, and ISM serves the procurement organization. The use of network design technologies along with simulation through a center of excellence can greatly improve the gap between finance and the supply chain organization.