Supply Chain Shaman

JUNE 29, 2021

Using balance sheet data from 2011 to 2019, we chart companies’ progress by peer group on rate of improvement and performance in the metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). In the past study, of 600 companies studied, 4% make a list. It seems easy, right?

Supply Chain Planning Software 370

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Supply Chain Shaman

AUGUST 11, 2014

We have found that supply chain metrics are gnarly and complicated.During In our program, cost avoidance, while desirable, does not count towards the metric. Over the course of the last two years, we at Supply Chain Insight s have worked on a methodology to gauge supply chain improvement. We named it the Supply Chain Index.

Case Study 305

Case Study Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software 305

Supply Chain Shaman

APRIL 27, 2022

After two decades of study, I think because it is a lack of understanding. 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.)

Procurement Analytics 369

Procurement Analytics Manufacturing Procurement Supply Chain Planning Software Supply Chain Design Software 369

Supply Chain Shaman

APRIL 2, 2025

The issue is that when companies optimize functional metrics, they throw the supply chain out of balance and sub-optimize value. When I studied at Temple for my DBA, I did an academic search on what is value in the supply chain. The most efficient supply chain (in terms of lowest cost) is not the most effective. So, What Is Value?

Optimal Sourcing 195

Optimal Sourcing Supply Chain Planning Software Modeling Supply Chain Design Software 195

Supply Chain Shaman

SEPTEMBER 3, 2018

Over the last six years, we studied the connection between business results (growth, operating margin, inventory turns and Return on Invested Capital (ROIC)) and the link to company characteristics. Reward teams for cross-functional metrics. Focus functional metrics to improving reliability. ” Hau Lee, October 2014.

Supply Chain Planning Software 377

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Software 377

Supply Chain Shaman

MAY 25, 2024

The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. For the past decade, I have been studying these patterns. Fortuitously, I hired a bright summer intern named Alex that introduced me to orbit charts. By charting the performance against peer groups, I could see the story.

Eliminating Excel in Purchasing 384

Eliminating Excel in Purchasing Gartner Supply Chain Design Supply Chain Strategy 384

Supply Chain Matters

JANUARY 21, 2025

Two recently published studies identify the top disruptions that impacted industry, business and global supply chains during 2024 and our expected to be present in 2025. Within the report, each risk is assigned a risk score metric to help global supply chain leaders prioritize planning and mitigation efforts this year.

Supply Chain Disruption 59

Supply Chain Disruption Study Supply Chain Planning Software Supply Chain Strategy 59

Supply Chain Shaman

MAY 13, 2024

How aligned do you believe your organization is to drive these metrics? One of my favorite case studies was Campbells in 2014. See the World Kitchen case study in the Agility Report. In assessing the health of the plan, what do you measure? Is your plan feasible? Did past plans prove valuable?) Were they used? Drives Alignment.

S&OP 393

S&OP Supply and Demand Inventory Reduction Expense Reduction 393

DELMIA Quintiq

JUNE 22, 2021

In this final blog on agility and why you should consider becoming an agilist to survive the new completion (of the continuous mention) of the application of enterprise decision management systems (EDMS) from Taylor and Raden cited in the first blog, I turn to the metric of agility and a new ROI metric of decision yield. The Takeaway.

Metrics 156

Metrics Supply Chain Planning Software Agile and Lean Supply Chain Optimization Software 156

Supply Chain Shaman

DECEMBER 15, 2022

But, I want to understand this more, and as a result, I have a new study in the field to gain additional insights, and I would love your input. In 2012, I placed the first alignment study in the field. Functional Metrics. To respond, follow this link. To entice you to participate let’s look at the data more closely.

Manufacturing Procurement 397

Manufacturing Procurement Supply Chain Design Software Supply Chain Planning Software Procurement Analytics 397

Supply Chain Shaman

APRIL 25, 2013

The relationship between corporate financial performance and supply chain metrics was complex; and in my first attempts, I was unable to derive a correlation. I wanted to better understand which metrics truly mattered. The Metrics That Matter Are Different by Industry Sector. However, as many of you know, I am stubborn.

Supply Chain Design Software 310

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Supply Chain Design 310

Supply Chain Shaman

JANUARY 2, 2024

We talk about the move from functional metrics to a balanced scorecard, but we don’t use a balanced scorecard as an objective function. In the event model, companies present case studies and opinions without a factual framework. No one questions if the case study improved the company’s competitiveness in the market.

Gartner 368

Gartner Supply Chain Planning Software Supply Chain Design Software Case Study 368

Logistics Viewpoints

OCTOBER 4, 2021

A study by E2open – the 2021 Forecasting and Inventory Benchmark Study: Supply Chain Performance During the Covid-19 Pandemic – provides the answers. I look forward to this study every year. The study shows delivering good service to grocery chains has never been harder. Forecasting Accuracy Was Terrible .

Supply Chain Performance 290

Supply Chain Performance Inventory Reduction Cost Reduction Strategies Supply and Demand 290

Supply Chain Shaman

APRIL 18, 2023

For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. Currently, I am working on a study to understand the value of synchronizing contract manufacturing with in-house manufacturing and procurement. Tougher than most understand. What Is the Value of A Network? Interested?

Supply Chain Planning Software 417

Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing Supply Chain Software 417

Supply Chain Shaman

MAY 6, 2014

The studies for the VMI and the Retail Scorecard surveys are still open. The book, Metrics That Matter , is almost finished. People cannot get enough on metrics. Too much dependency on trade promotions and deep discounts is an addiction and disruptive for some relationships. We would love your input.

Supply Chain Software 353

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Logistics Viewpoints

MARCH 27, 2025

A disruption at any point in the global logistics network including the average of 12 touch points from shipment packaging to final delivery can prove disastrous for profits, service levels, customer loyalty, and other key metrics. With the global e-commerce market predicted to reach $8.1

Supply Chain Planning Software 333

Supply Chain Planning Software Supply Chain Network Software Logistics Network Optimization Software Predictive Analytics Software 333

Supply Chain Shaman

FEBRUARY 18, 2021

I am currently working on a couple of case studies for this blog on how business leaders used digital twin modeling during the pandemic. Watermelon Metrics Don’t Drive The Right Results. I love the metaphor of watermelon metrics. What are functional metrics? It Is Even Worse in the Pandemic. Customer service is red.

Supply Chain Planning Software 355

Supply Chain Planning Software Supply Chain Design Software Supply and Demand Procurement Analytics 355

ToolsGroup

JANUARY 4, 2018

The annual Gartner Supply Chain Technology User Wants and Needs Study is one of the most comprehensive studies of supply chain users. The most recent survey included more than 473 people spanning the globe.

Gartner 168

Gartner Supply Chain Planning Software Supply Chain Software Study 168

Supply Chain Shaman

JUNE 13, 2017

If the arrow is red, the industry is moving backwards on a metric. Some of the strongest case studies of supply chain leadership are in this value chain. This analysis is a study of improvement, value and performance of companies against an industry peer group. Companies, based on culture, tend to focus on singular metrics.

Supply Chain Planning Software 0

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Supply Chain 0

Supply Chain Shaman

JULY 12, 2013

Last month, we finished a study of organizational alignment with over 200 respondents. In prior studies, the lack of understanding by the executive team is a major barrier. We have completed two studies now that show Sales and Operations planning improves both agility and alignment. The supply chain view is listed in figure 1.

Supply Chain Design Software 322

Supply Chain Design Software Supply Chain Planning Software Modeling Modeling Software 322

Supply Chain Shaman

SEPTEMBER 9, 2014

Which companies were considered in the study? They had to be publicly traded, we had to have a nearly complete data set for the years studied, and they had to have a peer group of at least six companies to be able to draw the comparisons. Yes, we will do this study yearly in the preparation for our annual conference.

Pharmaceutical 307

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 307

Supply Chain Opz

JUNE 1, 2014

Under this study, 74 million events from from 1.6 Related Metrics There are 3 other metrics dedicated to the measurement of social media influence as below, 1) Klout develops Klout Score, the number between 1-100 that represent influence (the ability to drive action). million Twitter users were analyzed.

Supply Chain 277

Supply Chain Metrics Michigan SCM 277

Supply Chain Shaman

JULY 22, 2019

History will also include case studies of mergers and acquisitions. The study of improvement and performance for the 535 companies in 26 industries took two months. We selected these metrics based on correlation work with Arizona State University in 2012. The companies I work with struggle to set metrics targets.

Supply Chain Design Software 304

Supply Chain Design Software Supply Chain Planning Software Gartner Supply Chain Software 304

Supply Chain Shaman

DECEMBER 10, 2014

In our recent report on defining supply chain visibility in B2B networks, we provide a definition based on a research study of over seventy participants. I am working on the plot… Let me know what you think happens to Joe (the character in Metrics that Matter that does not want to be the average Joe) in the next edition.

Supply Chain Network Software 312

Supply Chain Network Software Pharmaceutical Supply Chain Software Supply and Demand 312

Supply Chain Shaman

JUNE 24, 2022

We are living in a world of rich supply chain case studies. One of my stark realizations this year is that smaller companies are beating larger and often more established companies on growth metrics, inventory turns, operating margin, and Return on Invested Capital (ROIC). (In In the report, we study twenty-eight sectors.

Supply Chain Planning Software 397

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Software 397

Supply Chain Shaman

JUNE 6, 2013

In research study after study, we see that the greatest challenge to achieving supply chain excellence is the understanding of the supply chain by the leadership team. Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. Metrics Alignment. They lack cohesion.

Supply Chain Planning Software 330

Supply Chain Planning Software Supply Chain Planning Optimal Sourcing Scenario Planning 330

ToolsGroup

APRIL 7, 2025

Check out our library of videos, case studies, and other helpful resources here Component 2: Multi-Echelon Approach to Dynamic Inventory Replenishment Optimization Multi-Echelon Inventory Optimization (MEIO) identifies the most efficient and cost-effective points throughout the supply chain against variable demand levels.

Inventory Reduction 156

Inventory Reduction Modeling Optimization Software Supply Chain Optimization 156

Supply Chain Shaman

FEBRUARY 13, 2020

Most supply chain leaders cannot get their groove on because they generalize–the use of the same metric targets and tactics for the supply chain without paying attention to the flows. In Figure 1, I share data from the risk management study of 2015. The Role of Demand Variability in Risk Mitigation from the 2015 Study.

Optimal Sourcing 300

Optimal Sourcing Modeling Forecasting Supply and Demand 300

Supply Chain Shaman

DECEMBER 4, 2018

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). In 2018, Rockwell Automation won the Supply Chains to Admire Award.

Supply Chain Software 30

Supply Chain Software Case Study Supply Chain Planning Software Supply Chain Design Software 30

Supply Chain Shaman

JULY 6, 2020

Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. Most supply chain leaders speak out of both sides of their mouths… In my case study, Ed’s approach was brilliant, but the organization did not value agility. (I The So What?

Agile and Lean Supply Chain 362

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Logistics Viewpoints

JANUARY 17, 2022

I can recall a case study when I was in business school where a profitable, fast-growing manufacturer nonetheless went out of business. The Rule of 40 was popularized by venture capitalists in recent years as a key performance metric for SaaS firms. on this metric. The Rule of 40. The problem? They report that Coupa is at 58.2%

Logistics Network Optimization Software 305

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Logistics Viewpoints

NOVEMBER 3, 2022

The latter refers to a single variable standard (SVS), by which one metric, such as cases per hour, is expected to tell all. What’s more, because an SVS approach only accounts for one metric at a time, a host of other equally if not more important metrics are bypassed, leaving you largely in the dark. Ad infinitum.

Supply Chain Design Software 264

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Supply Chain Shaman

JUNE 16, 2014

I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. Along the way, I will be doing more work on network design case studies. And, in our Digital Manufacturing Study. It takes more than one or two respondents from a company.

Supply Chain Design Software 319

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Supply Chain Shaman

MAY 29, 2014

As a result, the metrics have to be viewed together as a pattern over time. In the journey, the supply chain leader needs to improve the potential of a portfolio of metrics. The metrics of growth, Return on Invested Capital, Inventory Turns and Operating Margin have the highest correlation to market capitalization.

Gartner 366

Gartner Inventory Reduction Supply Chain Planning Software Pharmaceutical 366

Supply Chain Shaman

NOVEMBER 9, 2014

“I study supply chains. In our work, we tie research from quantitative and qualitative studies to financial results to drive new insights. This starts by clearly defining the roles of each function, and then focusing the cross-functional teams on the same metrics. I am passionate about it. What do you think?

Manufacturing Procurement 318

Manufacturing Procurement Optimal Sourcing Benchmarking Supply Chain Design Software 318

Supply Chain Shaman

SEPTEMBER 24, 2017

In a recent study, our goal was to understand the impact of process and technology choices on balance sheet performance. We analyzed the impact of 150 factors on 493 financial metrics for the period of 2004-2016. This included responses to 3604 questions by 1063 individual respondents in 40 studies representing 756 unique companies.

Cost Reduction Strategies 262

Cost Reduction Strategies Inventory Reduction Resource Reduction Manufacturing Procurement 262