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Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. There has to be an enlightened leader that understands that the supplychain is a complex system with increasing complexity. The average supplychain leader has five distinct supplychains.
of revenue on supplychain applications, the promise of an agile, flexible supplychain that can respond as the business changes seems like an illusion. This week, at SupplyChain Insights LLC, we published our 11th report in the series titled SupplyChainMetrics That Matter.
Natural disasters like the Japan earthquake, product shortages due to quality issues, the impact of currency rates on product costs and demand, and disruptions caused by IT service failures or security breaches are just a few examples of the risks supplychainexecutives face every day. The same is true for CEOs.
This blog is based on an article that recently ran in the Journal of SupplyChain Management, Logistics & Procurement, “ Supplychain agility: An imperative in an unpredictable world.”. The Improved Way. The Role of Trading Partners. Available at [link]. [6]
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 supplychain planning and manufacturing, logistics, and sales. Functional metrics need to be abandoned to focus on balanced scorecard outputs.
Procurement has never played such an important role in the increasingly globalised economy. Has procurement fundamentally changed itself in the past 10 years? Strategic Procurement can mean totally different things in different industries and sectors. The time when Procurement was almost a synonym to Purchasing has long gone.
We are trying to understand how supplychain leaders have raised the bar at the intersection of these four sets of metrics on the supplychain effective frontier. Silos in the organization do not know how they align because over 85% of companies are not clear on supplychain strategy.
To achieve these goals, corporate leadership must focus on two key areas: shift from internally focused supplychains to collaborative supply networks and actively design their supplychains. Metrics such as lead-times, forecast accuracy, inventory levels, and service are used to measure operational risks.
Focused on outcomes, a competitive supplychain capability not only assures the on-time delivery of component material, but also the execution of inbound supply to ensure the shipment of quality finished goods at a competitive price while delivering on-target margins for the manufacturers.
Many skilled SupplyChain Professionals still use “Functional” resumes—it’s an out of date format reads too much like a job description and leaves a lot of value on the table. An accomplishment-based resume provides metrics and quantifiable info about a candidate’s accomplishments. Procurement? Materials Management?
The procurement Summit 2016. Building on the huge success of eWorld Procurement & Supply – which has been running bi-annually in London since 2001 – the new Procurement Summit will bring together 150 purchasing and finance professionals from across the commercial, public and third sectors. Procurement Automation.
Transportation planners can dynamically access the best freight rates across both contracted and non-contracted carriers, enabling them to procure additional capacity during peak demand periods. By seeing real-time prices — which reflect current demand-and-supply effects — they can make better informed, more profitable tendering decisions.
The reality is that supplychain management is not just about managing orders and transportation and inventory — it’s about doing all those things while also navigating through the many risks that could disrupt your supplychain or bring it to a halt. Do we have the right Service Level Agreement metrics in place?
A recent interview I conducted with a former Chief Procurement Officer who has worked for over 25 years in procurement in various industries captures what I believe is the true opportunity that exists for supply management executives. Marketing and IT see this to some extent, but not like procurement.
For those procurement or SupplyChainexecutives in suitable organizations, there is an increasing number of uncertainties to manage, especially in today’s tough economic environment. Is there any definitive boundaries for procurement not to step across? If you think so, you are probably too conservative.
AI in retail supplychain is fueling this shift through: Hyper-Personalized Customer Journeys: AI captures behavioral signals and translates them into tailored offers, personalized recommendations, and dynamic pricing strategies. Align AI KPIs with Revenue, Working Capital & Customer Metrics: Track business impact from day one.
Key Responsibilities: Oversee the entire supplychain to maximize efficiency and avoid cost overruns. Develop and execute operational strategies that align with corporate objectives. Integrate logistics, procurement, manufacturing, and distribution for seamless delivery.
Natural disasters, product shortages due to quality issues, the impact of currency rates on product costs and demand, and disruptions caused by IT service failures or security breaches are just a few examples of the risks supplychainexecutives face every day. CFOs rarely know anything about supplychain management.
I recently spoke at the National Contract Management Association on the subject of human capital in supplychains , and the need for building leadership skills in our procurement and supplychain professionals. work with those using the products and services to develop these metrics.
Covid-19’s Impact on the SupplyChain Crisis. Following the outbreak of Covid-19, 93% of senior supply-chainexecutives reported their intent to make their supplychains more flexible, agile, and resilient. COVID-19 caused supplychain disruptions/delays for 38.8% McKinsey ). McKinsey ).
A CPO in the financial services industry also noted that a need to redefine procurement’s role in the enterprise is happening, driven by the recognition that a new type of procurement capability is needed: Prior to our transformation, the ONLY metric by which our performance was measured is how much money we saved for the organization.
One of the SupplyChain Management trends apparent at the Gartner SupplyChainExecutive Conference in May was highlighted by several vendor/customer presentations focused on the value of Collaboration and Visibility projects. Tom McDonough , Sr. Director Product Marketing.
Cycle stock is the management of stock required to cycle through production runs and procurement buys effectively. ” Executive Understanding. One of the surprises for me in the benchmark data is the gap in understanding of inventory strategies by the supplychainexecutive team. It takes training.
I also learned that there are a lot of similarities between the Heavy Building Materials supplychain and the Domino’s Pizza supplychain. Streamline, automate, and compress Order-to-Cash and Procure-to-Pay processes. Overall, the Leadership Roundtable was a highly productive and informative session.
Some of our clients with very complex supplychains, for example, are leveraging demand classification, inventory optimization, and simulation technologies that can incorporate large data sets and include end-to-end modeling of flows down to the SKU-level to understand inventory stocking levels.
On the supply side, however, there is less and less room for manufacturers to absorb additional costs as volatile input prices put the squeeze on margins and the marketing investment required to differentiate branded products from private-label competitors continues to rise. Improved customer service metrics. Lower out-of-stock levels.
Instead of diverting more resources to returns management, supplychain managers should focus more on increasing the perfect order percentage, getting it right the first time, not the second or third time to be heroes. Sustainable Practices Will Be a Leading Focus of SupplyChainExecutives.
It also offers Logistics Procurement apps to negotiate competitive contracts in a network as well as the JDA Transportation Manager, Modeler and Planner which syncs up planning and execution stages, models experimental transport networks and maximizes use of assets. S yncreon Transportation Management System.
Instead of diverting more resources to returns management, supplychain managers should focus more on increasing the perfect order percentage, getting it right the first time, not the second or third time. Sustainable Practices Will Be a Leading Focus of SupplyChainExecutives.
Impact: This is resulting in procurement teams scrambling to find new supply sources, while engineers are looking for substitutions alternatives, and other company leaders are figuring out how to bring more in-house for a vertical integrated approach.
Creating Informative Content Tailored to SupplyChain Professionals’ Interests Creating and distributing high-quality content relevant to professional interests is critical. The success of the emails can be tracked through metrics such as bounce, click-through, and conversion rates.
Warehouse Managers and SupplyChainExecutives Often View WMS Implementation as a Cost of Doing Business Part of the problem and challenge in understanding the ROI in a WMS implementation is simple. A Guide to the Warehouse MetricsSupplyChain Execs Should Track. Refinement of procurement strategies.
Ultimately, supplychainexecutives need to understand the challenges of a traditional WMS, and why a Warehouse Management System in the cloud is a viable solution with key benefits. A Guide to the Warehouse MetricsSupplyChain Execs Should Track. Accessible across all warehouses and supplychain partners.
Charlie Wilgus @Lucas_Group Charlie Wilgus is the General Manager of the Manufacturing & SupplyChainExecutive Search Division at Lucas , North America’s premier executive search firm. Perhaps one of the biggest dilemmas in cost control is dealing with the new tariffs that have been imposed.
Ultimately, supplychainexecutives need to understand the challenges of a traditional WMS, and why a Warehouse Management System in the cloud is a viable solution with key benefits. A Guide to the Warehouse MetricsSupplyChain Execs Should Track. Accessible across all warehouses and supplychain partners.
She is a global executive with a wealth of experience in leading procurement operations, business outsourcing, transformation and technology across industries. “The most effective way to create a winning supplychain strategy is to address one of the most critical risks…” Data and cyber security.
Many companies focus solely on their tier one suppliers when it comes to supplychain sustainability. Yet to holistically tackle ESG performance, procurement teams must evaluate their operations at tier two, three, and beyond, as each level of the supplychain carries different risks. Cotton is a great example.
Many companies focus solely on their tier one suppliers when it comes to supplychain sustainability. Yet to holistically tackle ESG performance, procurement teams must evaluate their operations at tier two, three, and beyond, as each level of the supplychain carries different risks. Cotton is a great example.
Not only does warehouse optimization result in a healthier bottom line, but it also improves key warehouse metrics like accurate orders and on-time delivery. There are about 10+ measurements on evaluating the efficiency, but all those get consolidated to a single metric called the ‘LPMH’ (lines per man hour).
A 2022 survey by EY revealed that eight in ten supplychainexecutives are increasing their efforts toward sustainable supplychain operations. This way, companies can build more sustainable supplychains, demonstrate their ESG credentials, strengthen brand loyalty, and maintain or improve their competitive edge.
Interestingly, the downshifts we observed in transportation metrics were much more muted in the last week of July, leaving open a possibility for a bit of recovery as we move towards peak season. Warehousing and Inventory metrics continue to buoy the logistics sector. that we have not seen since April of 2019.
Collaborative planning, forecasting, and replenishment (CPFR) is the method of coordinating various supplychain tasks between multiple parties (i.e., It requires strategic supplychain planning and seamless communication to facilitate accurate forecasting and replenishment as well as efficient supplychainexecution.
Applying Lessons, Actions and Learning Once again we reiterate that global supplychain management teams instill the learning, lessons and successful actions garnered from the pandemic years, namely: Broader material and finished goods supplier sourcing options across multiple regions.
In their 2021 State of SupplyChainExecution Report, Blue Yonder and Reuters Events found that 63% of retailers and manufacturers have been affected by the availability of labor over the past year. This dramatically cuts down on the physical and analytical demands placed on supplychain professionals every day.
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