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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.
The company dynamically positions inventory within its fulfillment network using projected demand heat maps and transportation cost models. Fleet Telematics and Driver Behavior Fleet operators collect telematics data across engine metrics, route adherence, and driver behavior (e.g., acceleration, idling, braking).
The Logistics Data Challenge The logistics sector is awash with data, from shipment volumes and freight rates to sustainability metrics and supplier performance. “You really need to make [data] actionable… use it to manage your suppliers, to drive supplychain improvements. Esch cited a study by a U.S.
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.
Many large organizations have multiple systems for order, warehouse, or transportation management that are barely integrated frequently not at all. This blog is Part 1 in our Optimizing SupplyChainPerformance with Unified Data series, with a focus on optimizing fulfillment.
Data analytics helps you monitor key performance indicators (KPIs), like supplier performance, delivery times, and transportation efficiency — all in real-time. AI also optimizes transportation routes dynamically by looking at factors like weather, traffic, and delivery windows.
To maintain high performance under pressure, food logistics leaders need to adopt modern tools and strategies that enable proactive planning, real-time visibility, and agile execution. In today’s competitive landscape, AI-powered solutions are quickly becoming essential to optimize food supplychainperformance and meet demand with precision.
An efficient supplychain strategy is one that takes every aspect of your supplychain into account, from inventory management and warehouse design to freight tendering and transport optimisation. Let’s look at some of the best ways to make your supplychain more efficient.
Key Takeaways Last-mile transportation refers to the final leg of delivery, from a distribution hub to the end customer, and is the most cost-intensive and operationally complex stage. In logistics, last-mile transportation functions much the same way, it determines whether the delivery promise is kept or broken.
KPIs in SupplyChain The Basics As in any business activity, supplychain operations need to focus doggedly on improvement to compete in the marketplace, but how do you know if your supplychainperformance is satisfactory or getting better or, god forbid, worsening? Thats where KPIs come in.
Key Warehouse Metrics and Performance Indicators Units Per Hour (UPH): A standard productivity metric that tracks how many units an associate or system can pick, pack, or process in one hour. Often used to benchmark performance before and after automation. Frequently re-evaluated in high-SKU or seasonal environments.
The supplychain involves a sizeable amount of transportation costs, covering the expenses that manufacturers, distributors, and retailers pay during handling, storage, and shipping. Efficient packaging can significantly lower transportation costs alongside other product management activities.
What contexts can it be used in and how, as well as the benefits of using cost performance index in supplychain contexts. What is the Cost Performance Index (CPI)? The Cost Performance Index (CPI) is a financial efficiency metric used to measure cost performance in projects and operational activities.
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.
The tradeoff was one of reliance on cheaper and more efficient global wide transportation from global based supply networks. Bob Ferrari Copyright 2025, The Ferrari Consulting and Research Group and the SupplyChain Matters blog. This a period for bold but grounded leadership.
percentage points in inventory levels which were the fastest rate of expansion for this metric since June 2022. The reported overall value of 62.8 for February 2025 was described as the fastest reading of expansion in the overall index June of 2022. Report authors indicated that the February index expansion of 6.3
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. The supplychain is efficient by transit time.
Companies across the globe have taken note of the value of big data analytics in logistics and how tracking key performance indicators (KPIs) and core metrics can dramatically affect supplychainperformance. As explained by Performance Magazine, improvement measurement.read More.
In the first episode of this educational series focused on the link between transportation management and supplychain excellence, Chris Timmer of LeanLogistics (a Talking Logistics sponsor) outlined the attributes of a strong transportation management foundation and how to build it.
Here are five supplychain basics that every manager can analyse on an ongoing basis to keep tabs on the health of their supplychain networks. Do you have the right metrics? Metrics show how your supplychain is performing – providing they are the right ones to do the job.
Today, I spoke at the Chief SupplyChain Officer conference in Chicago at the Eye for Transport event on the results of the research. It will be nice to be home and to have time to write on this second book, Metrics that Matter. The only industry that has made progress in inventory management is consumer electronics.
The second part of Drucker’s quote, “if you can't measure it, you can't improve it,” really brings home the importance of having the right set of metrics. In the field of supplychain management, we have created an abundance of metrics and key performance indicators (KPIs).
The group’s response is, “Are these supplychainmetrics?” The sad reality is that is a focus on functional metrics throws the supplychain out-of-balance reducing balance sheet performance. This focus aligns the organization and reduces political internal strife.
We kick off today a month-long focus on trends in the following categories: Manufacturing, Manufacturing Technology, SupplyChain, Logistics, and Transportation Management. Let’s take a closer look at the current state of today’s supplychain. Read More About the Metrics for SupplyChain Here.
The teams feel good because cash-to-cash metrics improve; but in many cases, in the joyous celebrations, companies do not realize that they have reduced capabilities with suppliers and not made improvements in inventory. We launched a new supplychain community, BeetFusion , this month. Progress on Research.
Warehouse Management and Transportation Management were in their infancy. I think that supplychain design is at the center of a great supplychain, and the best processes are deliberate and intentional. It should not be functional, with a narrow focus on a singular function like manufacturing or transportation.
At SupplyChain Insights, we published a report card yesterday. The report analyzes supplychainperformance and improvement by the Consumer Products Leaders in the period of 2006-2014. Supplychain leaders make progress in three-to-five years. Overall Results on the SupplyChainMetrics That Matter.
All companies need to employ a performance measurement system to organize and manage their supplychainmetrics. The appropriate metrics to manage and measure the success of a company’s operation vary significantly by industry, by individual company, and by the scale of the business.
It is hard work to maintain the status quo in metricsperformance. A balanced portfolio of metrics delivers the greatest value. The supplychain is a complex, non-linear system. In the setting of strategy goals, executive teams often set unrealistic goals because they are not aligned with supplychain potential.
This is especially prevalent in organizations that have experienced growth through mergers and acquisitions and now need to reconcile multiple ERP, WMS, shipping, and transportation systems. According to Gartner , these issues can lead to missed manufacturing deadlines and wasted capital. How do they achieve this?
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.
You will learn how you can significantly boost your supplychainperformance—and in the process identify numerous cost-saving opportunities. What would be the key number, or metric that you would need to know? You might start to measure the same metrics and see which one is performing better.
For this case study we interviewed Ralf Busche, Senior Vice President of Global SupplyChain Strategy and Performance. He is an industrial engineer with a diploma in transportation and logistics from the University of Applied Sciences in Bremerhaven. Leading a supplychain requires outstanding competencies.
2023 call: Global supplychains will be slightly less busy, congested and chaotic, but cheaper – at least the transportation part. 2023 call: 2023 will be a “learning” year for machine learning in supplychain and logistics operations. What are your key themes for 2023? Let me know.
Every company today runs on data – the key to using your data is choosing the right metrics for visibility into your supplychain. Daily, Product Excellence companies are primarily concerned with the supplychain’s flow, its reliability, and its cost. Supplychain cost per unit sold. SCOR Attribute.
Autonomous SupplyChains In this competitive environment, a CPG manufacturer needs to fight to get space on retailer shelves in each region, keep those shelves stocked, compete and collaborate simultaneously with e-commerce, and maintain its operating margins. each with discrete plans generated typically in sequential batch runs.
However, traditional enterprise measures of performance do not work for supplychains. To paraphrase a saying, the road to supplychain hell is paved with good intentions and bad metrics. Shortcomings of Traditional Performance Measures. Financial metrics to indicate profitability.
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.
For years, supplychain leaders have struggled to achieve a sophisticated level of supplychain visibility that would drive continuous improvement, optimize spend and reduce risk. Managed analytics is an integrated information process that’s been field-tested and proven to drive improved supplychainperformance.
Looming transportation shortages in the United States with the adoption of AB5 and the redefinition of the owner-operator are risks. 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.
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 most important aspect to remember is that KPIs should align with your business strategy.
Amazon’s because of their breath in physical and digital supplychain, innovation in material handling, transportation, etc and their vision completely disrupting the industry. However, we know from our research that efficient silos do not deliver the highest levels of balance sheet performance. A Closer Look at P&G.
So it is important to have several mechanisms in place to track performance, including: key performancemetrics, regular reviews and processes for making adjustments. To learn more on this topic, read “Whitepaper: Divestures and the Threat to SupplyChainPerformance.”.
Technically, Free Time is not free; you pay for it in your transportation costs. How do you account for Free Time across your global supplychain? This is where metrics can get a little fuzzy. For example, I worked with a customer recently who budgeted demurrage at 4% of their transportation spend.
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