This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
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?
According to Deloitte Insights , 83% of digitally maturing companies use cross-functional teams to improve supplychainperformance. Of course, the right training is key to the success of such initiatives, and can have a measurable impact on supplychainperformance.
Supplychain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. This post delves into the core drivers of supplychain efficiency.
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.
In today’s dynamic market, procurement is far more than just a buying and purchasing center. Our latest e-book, “ Is Manufacturing Missing Out On Procurement’s Value Add? Our latest e-book, “ Is Manufacturing Missing Out On Procurement’s Value Add? Here are some key insights from the e-book.
” 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.
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.
Collaborate across departments: Engage stakeholders from different departments within the organization – not just supplychain management including logistics and procurement but sales, marketing, and finance.
Supplychain optimization software tracks items as they move through your supplychain and generate alerts at important points to improves decision-making and enhance visibility across the supplychain by integrating various capabilities like procurement, inventory, and customer relationship management.
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.
Strong vendor relationships are critical for business success, especially when it comes to managing inventory and procurement. Vendor Relationship Management (VRM) helps businesses manage supplier interactions, track performance, and ensure smooth procurement processes.
To monitor supplychainperformance, stakeholders of successful companies typically define supplychainmetrics that are relevant to the given business and track these KPIs regularly. By setting benchmarks for metrics, analysts can recognize unsettling trends and take preventive measures on time.
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.
Snow fell last night as I worked on my last SupplyChainMetrics 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.
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.
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?
Supplychain certification equips companies and teams with the knowledge, tools, and techniques they need to design, manage, and optimize complex supplychains. Explore more about how cross-functional training boosts 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. Quality Metrics Defining the Future of Manufacturing.
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.
Identification and measurement of key trending metrics on a weekly or monthly basis, with an emphasis on corrective action planning to address metrics that don’t meet goals. From a measurement perspective the key trending metrics at a high level include: Supplier on time delivery. Supplier shipment information accuracy.
But how do you know if you are using the right KPIs, including both stakeholder and supplychainperformance measures? Ideally, your S&OP KPIs should consist of a mix of strategic, tactical, and operational metrics. The KPIs here highlight procurement, production, logistics, and customer fulfillment.
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. The focus needs to move from functional metrics to balanced scorecard outcomes. For example, a “buy plan” for procurement.
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.
Let’s Get into the Specifics Think about this: 79 percent of companies with high-performingsupplychains (these are often referred to as SupplyChain Leaders (SCLs)), have revenue growth that is significantly above their industry average, according to this report by Deloitte.
Leveraging advanced analytics : You can use analytics to identify top-performing suppliers as well as address any issues based on supplier performancemetrics. The Role of Communication in SupplyChain Collaboration Communication puts collaboration in motion.
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. These metrics allow you to assess whether your suppliers are meeting their commitments and contributing to your business objectives.
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). As a B2B company, procurement management is essential.
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
The Purpose of the SupplyChain Department The supplychain department plays a crucial role in ensuring the smooth flow of goods and services from the point of origin to the point of consumption. Watch What is Marketing Procurement? Why do you need a structured SupplyChain Department?
SupplyChain KPIs article and permission to publish here provided by Harkirat Ahluwalia. Supplychain key performance indicators and metrics are ways in which someone can quantify the performance of their company’s supplychain to gain a better understanding of its strengths and weaknesses.
According to E2open’s latest SupplyChain Innovation Report, the top action that organisations foresee to create a more resilient supplychain is diversifying their supplier base (40%). BE READY FOR THE NEW NORMAL.
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. I like Kehat’s story.
This assessment identifies the most important capabilities for which the newly divested company needs to account, which may include functions such as Procurement, Purchasing, Accounting and SupplyChain Operations itself. To learn more on this topic, read “Whitepaper: Divestures and the Threat to SupplyChainPerformance.”.
For most companies, greater economy of scale is possible through the global management of procurement and transportation and local management of sales, manufacturing and customer service. We reviewed the orbit charts and progress of the recent SupplyChains to Admire Analysis for 2016.
Benefits of Collaborative Supplier Relationships Increasingly, organizations are realizing the benefits of tightening relationships with suppliers to better manage the sourcing and procurement of goods and lower supply costs. So, we can not truly say that the sourcing process begins with supplier management.
Today, in this world of rising commodity prices, and scarce resources, supplychainperformance matters more than ever. Supplychain capabilities disappoint. In our research for the book SupplyChainMetrics That Matter , we find that this is the case for 90% of companies. You are not alone.
Why have we not improved our use of channel data in supplychain processes?” ” (The use of the term “basics” is usually code for the implementation of Enterprise Resource Planning (ERP) to improve order-to-cash and procure-to-pay.). In the last decade, supplychainperformance declined.
With the right supplychain tools at your disposal, you can streamline operations, boost productivity, and save valuable time. Many professionals rely on MS Excel as the go-to software for supplychain and procurement tasks but creating detailed dashboards can be time-consuming and exhausting.
Administration are becoming either a noted concern or inventory hedging opportunity area for global based manufacturers and materials procurement teams. percentage points in inventory levels which were the fastest rate of expansion for this metric since June 2022. import tariffs, including likely retaliatory tariffs.
The AI-driven BOM also helps businesses monitor the environmental footprint of products , ensuring that even in cases where suppliers are unable to provide complete data, companies can still report accurate lifecycle and sustainability metrics. This not only ensures compliance but also strengthens supplychain resilience and performance.
I’ve had direct experience with several of these projects both as a vendor and as an operations/supplychain practitioner and I wanted to discuss the benefits I’d seen, some of the key success factors in these types of projects and how disruptive technology is fitting into the picture.
Who would have thought that measuring the performance of supplychain processes like warehousing, procurement, or logistics could be so troublesome? Well, we know a few supplychain managers who, having made some of the mistakes covered by this article, would attest to the potential for difficulty.
The first element are the comprehensive set of strategies covering all the functional elements of your supplychain, including supply management, procurement, demand management, production, inventory management, distribution, customer service, and reverse logistics.
The supplychain activities involved in the procurement process , from sourcing the right suppliers to taking delivery of materials and products, are vital to the overall health of any business. But how can supplier performance be measured? The importance of supplier KPIs. Availability. Order accuracy.
We organize all of the trending information in your field so you don't have to. Join 102,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content