Supply Chain Shaman

JUNE 7, 2018

When we study 600 public companies by peer group, at the intersection of inventory turns and operating margin, only 5% drive improvement. To make the argument, let’s look at industry orbit charts in aggregate for the period of 2006-2017 for the apparel and chemical companies. of revenue on IT are we improving inventories.

Supply Chain Planning Software 231

Supply Chain Planning Software Supply Chain Design Software Optimization Software Forecasting Software 231

Supply Chain Shaman

SEPTEMBER 20, 2015

Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. Orbit Chart for SanDisk for 2006-2014. This included monthly reviews between business units and central operations teams and adaptive inventory segmentation policies.

Inventory Reduction 150

Inventory Reduction Cost Reduction Strategies Sourcing Strategies Supply Chain Strategy 150

GlobalTranz

NOVEMBER 22, 2017

As the world moved forward, the basic concept of managing warehouse inventory did not change much. The 1900s to Late 1930s: World War I Witnesses the Introduction of Hand Trucks for Moving Materials and Managing Inventory. The 1980s to 1990s: AS/RS Becomes Obsolete, Replaced by a Shift to Managing Inventory in Smaller Batches.

Supply Chain Design Software 163

Supply Chain Design Software Inventory Management Software Demand Planning Software Supply Chain Software 163

Arkieva

MARCH 24, 2016

2006-2009 I did a PhD on Multi-Echelon Inventory Optimization. Though benefits are clear, multi-echelon inventory adoption has been very slow. Pilots within and across company boundaries have been convincing, but we have not seen a widespread multi-echelon inventory adoption. Trusting multi-echelon inventory adoption.

Inventory Reduction 60

Inventory Reduction Inventory Procurement Analytics Cost Reduction Strategies 60

Supply Chain Shaman

JUNE 15, 2018

My caution is not so fast… 95% of companies are not making progress at the intersection of growth, operating margin, inventory turns and asset strategies. Here I show orbit chart comparisons at the intersection of operating margin and inventory turns for the period of 2006-2017. This is especially true for the Titans.

Sourcing Strategies 150

Sourcing Strategies Supply Chain Planning Software Inventory Reduction Modeling Software 150

Supply Chain View from the Field

AUGUST 28, 2013

Historically, businesses have used one of two extremes for inventory management: push-based or pull-based. Push-based inventory management uses demand forecast to manage inventory and replenish from the supply base. The pull-based method relies on the ability to replenish the “pulled” demand.

Vendor Strategies 76

Vendor Strategies Inventory Reduction Inventory Supply Chain Planning Software 76

SCMDOJO

AUGUST 10, 2024

Postponement: Strategies like Just-in-Time and postponement can reduce inventory and transportation costs. While internet-based transport exchanges offer potential, their effectiveness is still debated due to uncertainties in carrier and shipper participation. McKinnon, A. Journal of Business Logistics, 20(1), 1-17. McKinnon, A. Punakivi, K.,

Sourcing Strategies 98

Sourcing Strategies Cost Reduction Strategies Resource Reduction Inventory Reduction 98

SCMDOJO

JULY 16, 2024

This article explores challenges identified in a research paper by McKinnon (2006) focusing on vehicle utilization and efficiency in the freight industry [1]. Transportation is a complex system, and even minor inefficiencies can have a ripple effect. We’ll delve into each challenge and explore potential solutions: 1. Chen et al.,

Optimal Sourcing 97

Optimal Sourcing Procurement Solutions Supply Chain Design Software Research 97

Supply Chain Shaman

SEPTEMBER 9, 2014

The companies were selected based on performance better than peer group for 2006-2013 and delivering better than average improvement within the peer group as determined by the Supply Chain Index. However, due to a variety of factors, companies are losing ground on driving progress on both inventory turns and operating margin.

Pharmaceutical 275

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 275

Synovos

JANUARY 24, 2024

Founded in 2006, MSDUK is the UK’s leading supplier diversity advocacy organization working for inclusion of non-white ethnic minorities in corporate supply chains. By joining their network, RS Integrated Supply is able to connect with more than 500 procurement professionals, improving its supplier diversity.

Manufacturing Procurement 105

Manufacturing Procurement Procurement Solutions Purchasing Skills Optimal Sourcing 105

Supply Chain Shaman

OCTOBER 29, 2020

Inventory, in this time of uncertainty, is the organization’s most important buffer to protect against variability. However, organizations are not good at managing inventory. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. Inventory. My takeaway?

Optimal Sourcing 237

Optimal Sourcing Supply Chain Design Software Waste Reduction Inventory Reduction 237

Supply Chain Shaman

DECEMBER 10, 2018

It was a strategy day in 2006. In 2006, Clorox was adding businesses through acquisition, expanding globally in both existing and new markets, moving into new distribution channels, and adding customers who required different route-to-market models. I remember the first discussion with Mark and Dave. They built a guiding coalition.

Inventory Reduction 170

Inventory Reduction Cost Reduction Strategies Waste Reduction Material Savings 170

GlobalTranz

MARCH 1, 2018

In 2003, Walmart announced that all of its suppliers would need to have Radio frequency identification (RFID) tags on all pallets and cases by 2006. Instantaneous inventory cycling reduces delays and speeds SCM. For many reasons, that transformation did not happen and RFID was put on the industry’s back-burner.

Supply Chain Design Software 165

Supply Chain Design Software Supply Chain Software SCM Analytics Software 165

Supply Chain Shaman

JANUARY 28, 2015

In our work on the Supply Chains to Admire report , we tracked the progress of manufacturing, retailing and distribution companies for the period of 2006 to 2013 and 2009-2013. We then rated companies on their ability to manage and improve a portfolio of metrics: operating margin, inventory turns and Return on Invested Capital (ROIC).

Supply Chain Design Software 150

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Cost Reduction Strategies 150

Supply Chain Shaman

SEPTEMBER 9, 2015

It is for this reason, that we analyze the patterns of the Metrics That Matter using orbit charts over the period of 2006-2014. In this analysis, we evaluate relative performance and improvement of a company on the supply chain metrics of growth, operating margin, inventory turns and ROIC within its peer group.

Supply Chain Design Software 150

Supply Chain Design Software Supply Chain Design Supply Chain Software Supply Chain 150

Supply Chain Shaman

JULY 18, 2017

As shown in Figure 1, the company has been unable to maintain balance on the portfolio of cost and inventory. Note that recent inventory progress is slipping against the improvements during the recession). Orbit Chart of Dow Chemical and BASF for the Period of 2006-2016 and Performance Data for the Chemical Industry.

Supply Chain Planning Software 204

Supply Chain Planning Software Chemicals Supply Chain Design Software Sourcing Strategies 204

Supply Chain Shaman

AUGUST 11, 2014

We believe that a supply chain leader is defined by both the level of performance on the Effective Frontier (balance of growth, Return on Invested Capital, Profitability and Inventory Turns) and driving supply chain improvement. During the period of 2006-2012, Campbell Soup Company outperformed its peer group on the Supply Chain Index.

Case Study 286

Case Study Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software 286

Supply Chain Shaman

JUNE 7, 2021

Companies entered the pandemic with twenty more days of inventory than at the beginning of the great recession. A balance sheet analysis shows that 95% of publicly traded manufacturers are stuck (when compared to peer group) at the intersection of growth and margin, margin and inventory turns, and Return on Invested Capital (ROIC) and growth.

Gartner 198

Gartner Supply Chain Design Software Supply Chain Planning Software Eliminating Excel in Purchasing 198

Supply Chain Insights

SEPTEMBER 9, 2014

The companies were selected based on performance better than peer group for 2006-2013 and delivering better than average improvement within the peer group as determined by the Supply Chain Index. However, due to a variety of factors, companies are losing ground on driving progress on both inventory turns and operating margin.

Pharmaceutical 179

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 179

Supply Chain Shaman

DECEMBER 15, 2015

For the discrete industries we contrast the industry averages for growth, operating margins, inventory turns, cash-to-cash cycle, revenue per employee, and SG&A ratio for the periods of 2006-2014 and 2011-2014. Inventory Turns. Progress on inventory turns is declining due to business complexity. What can we learn?

Industrial 150

Industrial Industry Inventory Reduction Metrics 150

Supply Chain Shaman

DECEMBER 15, 2015

For the discrete industries, we contrast the industry averages for growth, operating margins, inventory turns, cash-to-cash cycle, revenue per employee and SG&A ratio for the periods of 2006-2014 and 2011-2014. Inventory Turns. Progress on inventory turns is declining due to business complexity. What can we learn?

Industrial 150

Industrial Industry Inventory Reduction Metrics 150

Supply Chain Insights

SEPTEMBER 2, 2014

Today, 90% of publicly-traded companies are stuck at the intersection of operating margin and inventory turns. While most companies have been able to make progress in one of these two critical metrics in the period of 2006-2013, they have not been able to make progress on both together. It is needed.

Supply Chain Design Software 253

Supply Chain Design Software Supply Chain Software Agile and Lean Supply Chain Supply Chain Design 253

Supply Chain Shaman

OCTOBER 5, 2018

The award, based on beating the industry peer group on rate of improvement on the key metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) while outperforming their peer group, is tough to achieve. Orbit Chart for L’Oréal at the Intersection of Inventory Turns and Operating Margin.

Case Study 263

Case Study Inventory Reduction Agile and Lean Supply Chain Study 263

Operations and Supply Chain Management

AUGUST 24, 2020

One landmark in the lean revolution for retailers was Walmart ’s decision in 2006 to thin out inventory by $6.5 Companies that adopted the lean-inventory approach largely omitted tenets of the system that called for having extensive backup plans in case of an event that interrupted plant operations or caused a sudden demand surge.

Agile and Lean Supply Chain 52

Agile and Lean Supply Chain Lean Inventory Reduction Supply Chain Planning Software 52

Supply Chain Shaman

AUGUST 5, 2015

The report analyzes supply chain performance and improvement by the Consumer Products Leaders in the period of 2006-2014. In the selection of time frames to analyze, we look at the long-term view including the recessionary period of 2006-2009, the post recessionary period of 2009-2014 and the more recent time period of 2011-2014.

Agile and Lean Supply Chain 150

Agile and Lean Supply Chain Supply Chain Strategy Global Supply Chain 150

Supply Chain Shaman

MARCH 18, 2018

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. The cash-to-cash definition is: Cash-to-cash= Days of Receivables+ Days of Inventory-Days of Payables.

Optimal Sourcing 173

Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software Supply Chain Optimization 173

Herlitz Inventory Management

JULY 7, 2021

Growing up with a father who developed inventory management software for a living spawned some interesting conversations around the dinner table. It hasn’t been lost here at Herlitz Inventory Management! Since 2009, when Herlitz Inventory Management was founded, annual inflation has been below 3 percent in the US. War on Terror.

Pricing Training 52

Pricing Training Purchasing Training Negotiating Skills Inventory Management Software 52

Supply Chain Shaman

SEPTEMBER 4, 2017

They all sound alike and each company makes similar claims of how the implementation of supply chain planning improves costs, lowers inventory and improves the return on assets. Note that there is an inverse relationship between inventory turns and inventory targets. So, you might be saying, “ WOAH!”

Supply Chain Planning Software 173

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Supply Chain Software 173

Supply Chain Shaman

FEBRUARY 12, 2017

Note that neither company is making progress at the intersection of operating margin and inventory turns. The level of performance in 2015 is the same as 2006. Performance of BMS and Merck at the Intersection of Inventory Turns and Operating Margin. The patterns are circular.

Pharmaceutical 150

Pharmaceutical Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Design 150

Supply Chain Shaman

JANUARY 19, 2014

In short, they have been able to drive improvements in one or two metrics; but, they are struggling to improve a portfolio of metrics that includes customer service, cost, inventory turns, and growth. In 2006, I met a man by the name of Dick Clark that traveled the world working on role definition of planners for Procter & Gamble.

Supply Chain Planning Software 278

Supply Chain Planning Software Supply Chain Design Software Price Mitigation Strategies Inventory Reduction 278

AIMMS

MAY 6, 2019

In December 2006, I published an article titled “ S&OP or just good supply chain planning ?” Excess inventories, expediting, poor order fulfillment, overtime and poor resource utilization are a fact of life. . Lower inventory levels . I wondered: is S& OP just too hard to implement ? Reduced operating costs .

S&OP 279

S&OP Supply and Demand Modeling Supply Chain Planning Software 279

SCMDOJO

JANUARY 23, 2023

List of Top 10 Supply Chain Analytics Books 1) Supply Chain Metrics that Matter (Wiley Corporate F&A) 1st Edition This book offers an in-depth guide to understanding the link between corporate financials and supply chain maturity, evaluating the progress of over a hundred companies from 2006-2013.

Prescriptive Analytics Software 132

Prescriptive Analytics Software Analytics Software Supply Chain Planning Software Predictive Analytics 132

Resilinc

OCTOBER 2, 2023

Opened in 2006, this plant is responsible for building the Buick Enclave and the Chevrolet Traverse. While companies do have some excess inventory available, the automotive supply chain is experiencing layoffs, furloughs, auto parts shortages, and idling operations. GM’s Lancing Delta Township, conversely, is GM’s newest US plant.

Automotive 75

Automotive Negotiate Pricing Negotiating Skills Supply Chain Planning 75

Supply Chain Shaman

MAY 29, 2014

I just don’t think the comparison of very different industries in a spreadsheet based on growth, inventory values, and Return on Assets (ROA) is meaningful. The metrics of growth, Return on Invested Capital, Inventory Turns and Operating Margin have the highest correlation to market capitalization.

Gartner 304

Gartner Inventory Reduction Supply Chain Planning Software Pharmaceutical 304

Supply Chain Shaman

NOVEMBER 14, 2016

I followed his journey during the period of 2006-2011, and wanted to check in with him to gain his insights on the selection of VTech as a finalist in the Supply Chains to Admire research. Inventory Turns. Better performance in inventory turns than the peer group average for the period studied. Operating Margin. About VTech.

Supply Chain Planning Software 150

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Supply and Demand 150

Supply Chain Shaman

MARCH 3, 2013

It was called multi-enterprise inventory optimization. In the beginning, the inventory management solutions of LogicTools , Optiant and SmartOps pushed to take operations research to a new level through supply chain optimization. SmartOps entered the supply chain optimization market in 2000 and became an SAP partner in 2006.

Supply Chain Planning Software 218

Supply Chain Planning Software Modeling Optimization Software SAP 218

Supply Chain Shaman

SEPTEMBER 17, 2014

While the performance rankings were based on comparisons of inventory turns, operating margin and Return on Invested Capital (ROIC) for the periods of 2006-2013 and 2009-2013, the concept is that to be a supply chain leader you must outperform and drive improvement. We find that this is true of too few companies. Supply Chain Design.

Optimal Sourcing 303

Optimal Sourcing Supply Chain Design Software Supply Chain Planning Software Manufacturing Procurement 303