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Aligning Supply Chain Metrics to Improve Value

Supply Chain Shaman

In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. Error is error, but is it the most important metric? My answer is no.

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Uh-Oh! Insights On How P&G Failed And What This Means For You

Supply Chain Shaman

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.) I never calculated and accounted for the inter-dependencies between metrics.

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Embracing the Supply Chain as A Complex Non-linear System

Supply Chain Shaman

Note to the reader: we selected these metrics for the balanced scorecard for the analysis after work with Arizona State University to understand which metrics, in combination, most closely correlated with market capitalization. Consider the role of functional metrics and the lack of alignment with the corporate scorecard.)

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How We Stubbed Our Toe in The Evolution of S&OP

Supply Chain Shaman

I wrote my first report on Sales and Operations Planning (S&OP) while sitting on the floor in the Atlanta airport in 2005 when I was an AMR Research analyst. Sales and Operations Maturity Model from 2005-2008. Organizations can align to drive value despite the allegiance to functional metrics. Let me explain. Mistake #5.

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Measuring Up?

Supply Chain Shaman

The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. We find that companies can improve one, but not two of the metrics. Teams struggle to drive improvement in both metrics at the same time. A Look at History. Resiliency.

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How Supply Chain Lost Its Mojo

Supply Chain Shaman

Improvement on the key metrics of growth, inventory turns, operating margin and Return on Invested Capital (ROIC) is elusive. Then as a software executive (1991-2001 and then 2003-2005) and finally as an analyst (2001-2003 and 2005-present). Here I want to share a perspective of “Why.” Yes, I am an old gal.).

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Tell Me Why

Supply Chain Shaman

As a result, tor most companies, the goals are unclear and the financial metrics are not well-understood. This year-over-year comparison, enables visualization of performance on two metrics. In addition, they rank last in their ability to drive metrics improvement. Metric balance is difficult for supply chain teams.