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In 2016, we finished a study on continuous improvement. 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.
This morning, we announced the Supply Chains to Admire Winners and Finalists for 2016. The source data for the analysis is public reporting of balance sheets and income statements. Check out their performance by plotting year-over-year metrics at the intersection of two ratios and look at the patterns. Five months of analysis.
The source of the content is research. In 2016, 45% of companies plan to increase technology spending. The answer is unknown; but what is for sure, the market is going to be far more interesting in 2016. How do you see 2016? Annually we invest 22% of revenues in building content. What do you think?
As product flows rapidly shifted and hard baked assumptions about lead times and sourcing locations were put to test, users across many organizations bypassed their planning systems and turned to excel sheets, internal data science teams or non-traditional supply chain vendors who could deliver AI based solutions at a faster turn.
This morning we announced the Supply Chains to Admire Winners and Finalists for 2016. The source data for the analysis is public reporting of balance sheets and income statements. Check out their performance by plotting year-over-year metrics at the intersection of two ratios and look at the patterns. Five months of analysis.
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.
On the other hand, only 8 percent of companies that were rated by their executives as less than significantly above average on supply chain-related metrics have the same performance. For example, Supply & Chain Executive reported that there were 260 major natural disasters in 2016 that resulted in an economic loss of $211 billion.
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.
In manufacturing-based companies, 70-80% of costs are in the processes of source, make and deliver. While the practices of finance are over 200 years old, in contrast, supply chain as a cross-functional practice (the combination of make, source and deliver) was recently defined in 1982. Is talent a cost or an asset?
Traditionally, the focus has been on building efficient organizational silos for make, source or deliver. 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. A Closer Look at Wal-Mart.
The procurement Summit 2016. Date: 15 November 2016. The Procurement Summit will take place at The Midland Hotel in central Manchester on 15th November 2016 and is FREE to attend for qualifying procurement professionals. Procurement Metrics. Venue: The Midland Hotel, Manchester. Organization: Revolution Events.
Our goal in writing these case studies is to share insights from the Supply Chains to Admire winners from 2016. Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The The composite of metrics includes growth, operating margin, inventory turns and Return on Invested Capital.)
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. The company is one of 15 winners in the 2016 Supply Chains to Admire Research. As a group, these metrics have the highest correlation to market capitalization. (As
On May 7, 2016 we announced a partnership with CorpU for next-generation supply chain learning. Today our first course, Supply Chain Metrics That Matter, is ready for sale. Stop by on September 7, 2016 and test them out in the Digital Showcase.). Improve the metrics that matter on the balance sheet?
The Collaborator has been reviewing respected sources of industry analysis to gain perspective on the trends being predicted to materialize in supply chain logistics for 2016. Gartner suggests the growing emphasis on wringing efficiencies from the supply chain will drive the adoption of more complete, single-source solutions.
That shows The Supply Chains to Admire 2016 analysis of Supply Chain Insights. Which companies have a supply chain to admire in 2016? Based on extensive analysis of publicly available financial figures we have published the “2016 Supply Chains to Admire,” listing 16 companies as winners and 21 companies as finalists.
Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. Orbit Chart of Shell versus Industry Averages of the Oil & Gas Sector for the Period of 20016-2016 for Inventory Turns and Operating Margin. Shell operates as a single-instance of SAP Enterprise Resource Planning (ERP).
Author’s Note: Below is an excerpt from Moving Up the Supply Chain Maturity Curve: The Process Industry Executive Agenda for 2016 and Beyond , a white paper recently published by Elemica with research conducted by Adelante SCM. How do you successfully align goals, metrics, and resources across functional groups?
Much to my chagrin, when I entered into the world of supply chain, the processes of source, make and deliver were usually not designed. Instead, I think that it needs to be holistic to balance the trade-offs of source, make and deliver together. (I know… I am showing my age.). Let me continue with my story.
Source: Adelante SCM poll of MercuryGate clients. The progress here is also mixed: Source: Adelante SCM poll of MercuryGate clients. Source: Adelante SCM poll of MercuryGate clients. Source: Adelante SCM poll of MercuryGate clients. Source: Adelante SCM poll of MercuryGate clients.
The winners drive improvement while posting financial results in the Supply Chain Metrics That Matter ahead of the peer group. Only 5% of public companies meet the definition for the Supply Chains To Admire for 2016. A Supply Chain Leader will make progress on both of these key metrics with a very tight and controlled pattern.
Industry Week, March, 2016). These metrics would, of course, be aligned and are updated every hour. The metrics are also manual as automatic metric systems cannot retrieve the information at an hourly frequency as these metrics are process inputs and not outputs. Flex is eight (8) years into its Lean journey.
Much of that growth has been fueled by acquisitions, including four acquisitions in 2016, with more certainly to come this year. The R&D team delivered about 350 product releases in 2016. getting buy-in from drivers and other stakeholders) and implementing appropriate metrics to measure and drive performance.).
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. To meet the criteria for The Supply Chains to Admire for 2016, companies needed to score better than their peer group average for performance metrics, while driving a higher level of improvement than 2/3 of their industry peer group.
With the advanced analytics spending predicted to grow from $136B in 2016 to $232B in 2021 , attaining an 11.3% Many manufacturing supply chains will evolve into intelligent networks with real-time track-and-trace, legacy systems integration and greater delivery accuracy and quality metrics than ever before.
Many supply chain, sourcing & procurement teams have been asked to row upstream without a paddle during this time of crisis. Many trusted sources accredit global GDP growth during the last 15–20 years, widely to the spread of globalization. Localization: Localization is the act of adapting a product or service to local markets.
Source: Google. This was not a trivial transition because the software industry, until relatively recently, was long fixated on measuring its health and success by new license revenue (sales of products) instead of customer-centric metrics, such as realization of ROI and payback objectives. Where is Descartes today?
On September 3, 2016 China and the US agreed to ratify the Paris Agreement on climate change. Supply chain network and transportation optimization can help make better sourcing and multi-stop route decisions that ultimately result in route design that balances low costs with higher service.
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. Thoma Bravo purchased Elemica in June 2016. Market-driven Value Networks: An adaptive network focused on a value-based outcomes.
Use our Metrics That Matter methodology to look at improvement and performance. At each round, employees gain an understanding of the value of supply chain decisions through the sharing on the Supply Chain Metrics That Matter. The seven on-line classes are: Supply Chain Metrics That Matter. How does it help? Training.
Move over, 1982, it’s 2016. Often, departments take a vertical approach to reporting, whereby individual, functional metrics are tracked, instead of taking a horizontal view that gives insight into the health of the supply chain network and interdependencies of the individual functions.
As we head into 2016, we are featuring our most read articles of 2015 in our five main categories: Manufacturing, Supply Chain, Logistics, Transportation Management, and Freight. Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process. Read the full article here. .
The manufacturers sourced the peanut butter primarily on cost. Safe and secure and the redesign of the supply chain to protect the consumer is a part of the 2016 Supply Chain Insights Global Summit focused on Imaging Supply Chain 2025. The 2016 event will be held on September 7th-9th, 2016 at the Phoenician in Scottsdale, AZ.
In Figure 1, we share insights from a recent study on the overall focus of 2016 spending. Figure 1: Expected Changes in IT Spending in 2016. As a result, the architecture for the EACH and chain of custody of products for eCommerce requires HADOOP and non-relational open source technologies like Apache Spark.
The concept of ethical sourcing has risen in popularity during the past four years.” . Two Foxconn Technology workers died in 2016 in work-related incidents at the company’s Zhengzhou, China plant, which produces Apple iPhones. However, earlier in the year Hershey was named in a lawsuit regarding child labor abuses in Cote D’Ivoire.
Niul Burton wrote a great article in Industry Week titled “Procurement 2025: 10 Challenges that Will Transform Global Sourcing”. Embracing sustainability as a goal and metric that you scorecard suppliers on is a good place to start to get ready for this trend that will become a staple in how successful companies do business.
The network senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time data to align sell, deliver, make and sourcing organizations outside-in. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is writing her third book, Leadership Matters.
Top 10 Supply Chain Innovations of 2016 : robot pickers, bridge-inspecting drones, autonomous freight shuttles, and more. The retail giant plans to take out 50 million metric tons (MMT) by 2030, which is equivalent to the emissions associated with the average annual electricity consumption of 40 million Chinese households. Media Type.
source: (1 page infographic) AccentureOperations , High Performance Procurement (2015). In Deloitte’s Global CPO Survey 2016 the top 4 priorities for CPO’s were found to be cost reduction, new product development, increasing cash flow and organic expansion. source: (p2) Deloitte – The Deloitte Global CPO Survey 2016.
Check out the highlights and photos from our 2016 , 2017 , and 2018 rides. Source: “Competing on Customer Experience: The Driving Force Behind Supply Chain Innovation,” Adelante SCM & BluJay Solutions, 2018. Therefore, it’s not surprising to see the continued investments and developments in this area.
This is expected to result in the reduction of over 26 million metric tons of greenhouse gas emissions — the equivalent of taking five million-plus cars off the road for a full year. 8] Richard Evans and Jim Gao, “ DeepMind AI Reduces Google Data Centre Cooling Bill by 40% ,” DeepMind Blog, 20 July 2016. Footnotes. [1]
Organizations need to be able to tap into multiple sources of information from both structured and unstructured, internal and external sources, to provide greater insights into key research insights into business strategy questions. Social media holds a lot of promise here.
While traditional supply chain processes evolved from functional excellence definitions for source, make and deliver from the inside-out; to make the digital pivot and become more market-driven, companies need to define new supply chain processes outside-in. This outside-in orientation needs a definition to make it actionable.
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