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Background Most of the clients that I am working with are working on two large supply chain initiatives: Implementation of SAP RISE and Compliance with the EU Digital Product Passport initiative. In today’s architectures and functional metrics, value optimization does not exist. You are right. This work was expensive.
Aligned Metrics. To ensure the management of the complex system, the metrics of operating margin, inventory turns, ROIC, customer service, revenue, and forecast accuracy need to be managed together as a non-linear system. What does an investment in SAP mean for a company? SAP means many different things for different people.
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Do Invest in Distributor Capability Building : Provide training, digital tools, and performance incentives. A well-equipped distributor is an extension of your brand and a key to market penetration.
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. Let me give you example.
Driving decarbonization with technology In 2023, the SAP CPO Think Tank community has been closely examining how companies can accelerate supply chain decarbonization. This approach often involves using standalone or point solutions that focus specifically on sustainability metrics and reporting.
Shell operates as a single-instance of SAP Enterprise Resource Planning (ERP). Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. What can often look like compliance in APO could actually be numbers calculated in Excel and posted into the SAP system.
Financial reengineering focuses on the optimization of short-term results that are usually based on a functional analysis of source, make, or deliver. Few consultants understand the interrelationships between source, make and deliver. Snow fell last night as I worked on my last Supply Chain Metrics That Matter report.
My first digital supply chain presentation was in Milan at an SAP Insider conference in 2012.) The investments in new approaches and deploying outside-in processes enables quicker sensing and bi-directional orchestration across source, make, and deliver. Traditional planning taxonomies focus on the optimization of functional metrics.
Last week, after booking an additional $1B in unexpected supplier costs in the third quarter, the CFO led the company’s focus on restructuring to “support efficient and reliable sourcing of components and internal development of key technologies and capabilities.” These capabilities do not exist at Ford. Conclusion.
The most interesting thing that Blue Yonder is doing from an OMS standpoint is driving promising and pre-sourcing to retailers. The data is all anonymous, but retailers can look at metrics such as time to fulfill, pack time, conversions, and ship versus pick-up, to name a few, across hundreds of Active Omni customers.
This research was the backbone of the Supply Chain Metrics that Matter series of reports. Instead, they have measured functional metrics or focused on projects. I believe that customer service is a critical metric and a key element of managing a complex supply chain system. The Building of the Index. Check them out!
For the past five years, the team at Supply Chain Insights identified Supply Chains 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). The project included the centralization of SAP ERP and the augmentation with other software.
Demand sensing involves the use of the external data sources – particularly the latest sales and market data – to improve short-term forecasting and then be able to use that improved understanding of consumer behavior to improve their supply planning. These codes were put into SAP after an order cut had occurred.
For the past five years, the team at Supply Chain Insights identified Supply Chains 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). The project included the centralization of SAP ERP and the augmentation with other software.
SAP Announces Second Quarter and First Half Results 2013. Here are some additional details from the press release: Data Services data sets will include mode-specific transportation costs and transit times, facilities cost estimates, demographics, risk metrics, duties and taxes, sustainability metrics and others.
The winners drive improvement while posting financial results in the Supply Chain Metrics That Matter ahead of the peer group. A Supply Chain Leader will make progress on both of these key metrics with a very tight and controlled pattern. In my research, Colgate is the consummate example of adherence to IT standardization on SAP.
Source Merriam-Webster Dictionary. The definition is: An adaptive network focused on a value-based outcome that senses and translates market changes (buy- and sell-side markets) bidirectionally with near real-time data latency to align sell, deliver, make and sourcing operations. The acronyms keep coming…. The cadence does not stop.
While ToolsGroup and SAP (with the acquisition of SmartOps) are the nearest competitors, Terra prided itself on delivering better decisions through better math. The Terra solution complimented the functionality of the traditional APS vendors, i.e. Adexa, JDA, Logility, Kinaxis, SAP APO and Steelwedge.
No metric should be measured in isolation, and functional metrics should be replaced with the balanced scorecard metrics shown in Figure 2. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance.
The source of the content is research. In the market there is a clearer understanding that the software planning functionality by Oracle and SAP does not meet today’s business requirements. Oracle and SAP have not been able to bring enough domain expertise to solution development to stay current with the market requirements.
Procurement leaders are increasingly turning to SAP S/4HANA as their solution of choice. In October, SAP launched SAP S/4HANA 2020, and while there are numerous features that make S/4HANA stand out from other ERP solutions, what truly differentiates this latest release for procurement is its compelling offering of: Procurement Analytics.
I think that IBM, HP, Microsoft, Oracle, SAP and Teradata are victims today in the information technology sector. Today, 32% of companies have source, make and deliver reporting to the same organization, and the gaps in alignment between operations and commercial teams are large. I would use SAP APO only as a system of record.
While, in 2012, SAP acquired Ariba. While it is too early to judge the impact of the acquisition strategy on E2open and GT Nexus, it is clear that SAP’s acquisition of Ariba slowed development and innovation. The technology market for B2B supply chain is consolidating. This announcement is consistent with this trend.
At the time, DuPont, now acquired by DOW, boasted externally on internal adherence to SAP standardization for decision support. Orchestration enables companies to effectively manage trade-offs between source, make, deliver and sell.) Organizations can align to drive value despite the allegiance to functional metrics. Mistake #5.
It senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time latency to align sell, deliver, make and sourcing functions. When this happens, there is greater balance between metric trade-offs and resiliency in year-over-year improvements in corporate performance.
” At the other end of the continuum is the argument that “ Forecast error is the most important metric to improve.” Test new solutions against the traditional demand sensing providers of E2open (Terra Technology), SAP and ToolsGroup. Three Reasons Why SAP Planning Is a Risk To Your Business.
Progress on the key performance metrics of cost, customer service, inventory, and Return on Invested Capital (ROIC) are going backward; not forwards, for most companies. I also do not know a team that has been successful implementing a solution across make, source and deliver processes without clearly defined goals and process workflows.
The company leverages globally sourcing strategies to buy products at a lower cost and then deploys some unique process logic to drive mass customization for retailers. Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As Performance on the Supply Chain Metrics That Matter.
Is it a coincidence that process industry leaders have standardized on SAP and blindly followed the SAP IT-centric definition of supply chain automation without holding SAP accountable to build effective supply chain solutions for the extended value network? I will let you draw your own conclusions.
Progress on the key performance metrics of cost, customer service, inventory, and Return on Invested Capital (ROIC) are going backward; not forwards, for most companies. I also do not know a team that has been successful implementing a solution across make, source and deliver processes without clearly defined goals and process workflows.
Despite the fact that the cost of memory decreased a million-fold in 55 years, the majority of supply chain solutions use relational databases from vendors like Oracle, SAP or Teradata. Hadoop is an open-source software framework written in Java for distributed storage and processing of large data sets on computer clusters.
Therefore, traditional sourcing is often reactive: a procurement manager reviews a purchase request , finds a supplier, negotiates terms, and moves on. Then, create and carry out a specific category strategy through sourcing and contract management. Procurement should act as a translator between business needs and sourcing options.
In a similar vein, SAP Hana has a huge marketing machine behind its launch, but I question if the price is worth the value. While the manufacturing clients that I work with have strong IT relationships with SAP, and HANA is more and more a discussion, I think that we are missing several basic discussions. Priced in RFPs as 1.6M
When Coke first started looking at 3-procurement systems, they questioned why they should go out of the current SAP system that was already deployed. The decision was to keep the front end of the system in SAP, and use Coupa for a procure to order part of the P2P process. Deployment occurred December 1, 2012.
The network senses, translates, and orchestrates market changes (buy and sell-side markets) bi-directionally with near-real time data to align sell, deliver, make and sourcing organizations outside-in. Don’t expect Oracle and SAP to stand on the sidelines twiddling their thumbs. It will take us awhile to figure it out.
Supply Chain Matters provides highlights of B2B, and ERP Cloud based software provider SAP SE’s formal reporting of Q4 and fiscal full year 2023 financial performance. SAP CEO Christien Klein noted in the company’s reporting that: “ SAP has delivered: We met or exceeded our outlook for 2023 in all key metrics.”
In short, Descartes is among the largest supply chain and logistics software companies in the market today (behind SAP, Oracle, Manhattan Associates, and JDA Software), and one of the first to embrace the network/software-as-a-service model (services revenues represented 97 percent of total revenues in FY 2017).
With Infor’s acquisition of GT Nexus, SAP’s acquisition of Ariba and E2open’s acquisition of Terra Technology, it has grown more confusing for the business user. ” Some data needs to move quickly and with high velocity using streaming data architectures, while other data sources can move in batch processes.
And while each market can be unique, we found a few repeating themes in our own experience and from sources including Gartner and our customers Procter and Gamble (P&G) and Cipla Medpro. It included an advanced planning algorithm, a self-tuning forecasting engine, SAP ERP connectors, and S&OP capabilities.
It matters not what your metric is, you get the same results: too much of our trade spend goes down the drain, doesn’t it? And we’re off to the races to identify the source and promotion involved. Bang…deduction!
Businesses need to: Drive planning processes that strive to reduce emissions and satisfy demand with sustainable, ethically-sourced supply. 3] Richard Howells, “ Sustainable Supply Chains: Balancing the Bottom Line and the Green Line ,” SAP News, 17 May 2021. [4] ’ This is true of a sustainability initiative.
The DRL is a rigorous metrics-based assessment of the value of data in various states of readiness. The aggregate change in DRL associated with a piece of data from raw input signal to finished product will contribute to the characterization of a given analytic flow in terms of accuracy, efficiency, and other performance metrics.
If you’re looking into ERPs, you’re likely to come across providers like SAP, Sage, Infor, Netsuite and Microsoft Dynamics 365. Include metrics to measure success, like the accuracy of demand forecasting, revenue growth, and customer experience. Instead, Target chose to use a new system (from SAP) to speed things up.
The only real problems they had outside of vying with their competitors were helping their accounting folks in the home office locate the source of deductions that were not obviously linked to the promotion plans; and heck, that wasn’t their problem anyway, right? It was a tedious effort, but, overall, rather easy. Ah, those were the days!
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