Supply Chain Shaman

SEPTEMBER 3, 2018

We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. Reward teams for cross-functional metrics. Cost-to-Serve Analysis.

Supply Chain Planning Software 317

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Software 317

Supply Chain Shaman

JULY 19, 2020

The supply chain is complex non-linear system that is easily thrown out of balance through a focus on functional metrics. They rock back and forth in improving singular metrics but struggle to improve a portfolio of growth, margin, inventory performance, and asset utilization. Stop the Focus on Functional Metrics.

Supply Chain Design Software 415

Supply Chain Design Software Supply Chain Planning Software Supply Chain Design Agile and Lean Supply Chain 415

Supply Chain Shaman

DECEMBER 28, 2020

My goal is to convince you to ground supply chain processes and technology implementations in data analysis while tying the results to the improvement in corporate performance. As a result, the need for measurement, data analysis and clear understanding of supply chain strategy increases. What do I mean by science? The So What?

Supply Chain Planning Software 418

Supply Chain Planning Software Forecasting Forecasting Software Modeling 418

Supply Chain Shaman

OCTOBER 16, 2023

A shift from functional metrics to a balanced scorecard. I like the use of growth, margin, inventory turns, Return on Invested Capital, customer service and ESG metrics. The focus on functional metrics sub-optimizes balance sheet results. Instead, focus on Forecast Value Added analysis. Funny, isn’t it? The reason?

S&OP 333

S&OP Supply and Demand Forecasting Supply Chain Design Software 333

Supply Chain Shaman

JULY 25, 2021

In fact, in our Supply Chains to Admire analysis, we find that this is true in twenty-five of twenty-eight industry sectors studied. Few companies measured the impact on error and bias through the rigor of Forecast Value Added (FVA) analysis. The Focus Inside-out Supported by Functional Metrics. The reason?

Procurement Analytics 370

Procurement Analytics Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Planning Software 370

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). A focus on functional metrics throws the supply chain out of balance.)

Supply Chain Planning Software 370

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Design 370

Supply Chain Shaman

NOVEMBER 21, 2024

Think about the building of listening posts of rating & review data, continuous listening of call center transcripts, analysis of contracts, or the continuous analysis of supplier certificates for digital passport/Scope 3 emissions. Did you know that improvement in the supply chain drives 50-70% of this value metric?

Supply Chain Planning Software 367

Supply Chain Planning Software Modeling Software Modeling Supply Chain Network Software 367

Logility

AUGUST 5, 2021

IBP is long-range strategic business planning that combines volumetric and financial data into a single, highly visual, comprehensive planning platform that delivers greater global visibility, more powerful multi-scenario analysis over longer planning horizons, tighter collaborative workflows, and a wider spectrum of alerts.

Metrics 130

Metrics Modeling Supply Chain Planning Software Supply Chain Design Software 130

Supply Chain Shaman

JANUARY 9, 2024

For a more detailed analysis, check out the Power point summary.) I find in the orbit chart analysis that 45% of companies in the report are unconsciously incompetent. The group’s response is, “Are these supply chain metrics?” Today, we published The Supply Chains to Admire for 2023. be careful.

Supply Chain Planning Software 299

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Gartner 299

Supply Chain Shaman

FEBRUARY 18, 2021

Need For What-If Analysis. Watermelon Metrics Don’t Drive The Right Results. I love the metaphor of watermelon metrics. In most organizations, there is a dashboard of functional metrics that shows all of the functions operating in the “Green” or acceptable levels until it comes to customer service.

Supply Chain Planning Software 285

Supply Chain Planning Software Supply Chain Design Software Supply and Demand Procurement Analytics 285

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. The analysis covers the period from 2010 to 2019. The analysis covers the period from 2010 to 2019. The analysis includes over 700 companies across 28 industry sectors.

Agile and Lean Supply Chain 297

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Planning Software Supply Chain Strategy 297

Supply Chain Shaman

JULY 22, 2019

Over the last month, I have been working on the 2019 Supply Chains to Admire analysis. The source data for the analysis comes from Ycharts.). We selected these metrics based on correlation work with Arizona State University in 2012. The Supply Chains to Admire analysis is six-years-old. Click the link to see the detail.)

Supply Chain Design Software 254

Supply Chain Design Software Supply Chain Planning Software Gartner Supply Chain Software 254

Supply Chain Shaman

AUGUST 12, 2020

The methodology did not include a peer group analysis, and I strongly felt that chemical, retail, and telecommunications companies should not be compared in the same analysis. As a research leader at AMR Research when I voiced the concern for a more rigorous peer group analysis in prior meetings, I hoped for a better outcome.

Gartner 243

Gartner Supply Chain Software Procurement Analytics Manufacturing Procurement 243

Supply Chain Shaman

DECEMBER 7, 2022

” So, I started work with Arizona State University to take balance sheet data from 2003-2007 to analyze which combination of metrics drove the highest market capitalization. As a result of the research with ASU, I settled on the combination of growth, margin, inventory turns, and ROIC for the Supply Chains to Admire analysis.

Inventory Reduction 55

Inventory Reduction Material Savings Supply Chain Strategy Price Mitigation Strategies 55

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. Our analysis shows that 67% of the Gartner Top 25 companies underperform their peer group on growth, 44% on operating margin, and 41% on inventory turns.

Gartner 284

Gartner Supply Chain Planning Software Supply Chain Design Software Case Study 284

DELMIA Quintiq

DECEMBER 28, 2020

Ultimately, what KPIs, as metrics and indicators derived from the set of plans are taken into account and prepared for each scenario. This also considers elements of predictive and prescriptive analysis and in-memory processing. Technology for Effective Planning.

Supply Chain Planning Software 296

Supply Chain Planning Software Scenario Planning Modeling Prescriptive Analytics Software 296

Supply Chain Shaman

MAY 25, 2024

Pattern recognition is the ability to discern patterns in data and use the insights for further analysis. The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. Wikipedia In 2014, I was exploring methods to publish what is now the Supply Chains To Admire report.

Eliminating Excel in Purchasing 318

Eliminating Excel in Purchasing Gartner Supply Chain Design Supply Chain Strategy 318

Supply Chain Shaman

APRIL 18, 2023

For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. I don’t care what you call it, but network design, what-if analysis, simulation and digital twin approaches grow in importance.) Tougher than most understand. Steps to Take Here are three steps to take: Adaptive Modeling.

Supply Chain Planning Software 388

Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing Supply Chain Software 388

Logistics Viewpoints

FEBRUARY 16, 2021

Agility relies on having this kind transparency at your fingertips, through concurrent planning, so you aren’t waiting on analysis and a report from a link up or down the chain. Scenario analysis allows you to weigh alternatives by calculating the effects of possible changes.

Supply Chain Visibility 316

Supply Chain Visibility Agile and Lean Supply Chain Supply Chain Planning Software Scenario Planning 316

Supply Chain Shaman

JANUARY 8, 2024

An analysis of improvement, performance, and value of over 500 public companies in 28 industries over a decade. (I 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.

Supply Chain Design Software 243

Supply Chain Design Software Supply Chain Planning Software Modeling Software Supply Chain Network Software 243

Supply Chain Shaman

FEBRUARY 13, 2020

I am delving into COV (coefficient of variation) analysis. It is for this reason, that I use COV analysis to type logical supply chain flows. 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.

Optimal Sourcing 234

Optimal Sourcing Modeling Forecasting Supply and Demand 234

GlobalTranz

JULY 28, 2021

That means identifying areas of waste, overlap and large volumes and enabling continuous improvement through the use of transportation metrics to track performance. True optimization applies data to ensure all decisions and processes are carried out to their fullest potential.

Optimal Sourcing 317

Optimal Sourcing Optimization Software Network Optimization Supply Chain Optimization 317

SCMDOJO

SEPTEMBER 8, 2023

This blog explains The Key MRP Metrics in Supply Chain whcih every supply chain professional in Manufacturing or Distribution Businesses. The metrics that underpin MRP could be described as the balls in this juggling act. This article takes an in-depth look at the crucial metrics every supply chain professional needs to know.

Procurement Analytics 95

Procurement Analytics Supply Chain Planning Software Supply Chain Design Software Metrics 95

Supply Chain Shaman

JUNE 19, 2018

It is now our fifth year of analyzing balance sheets to understand which companies are outperforming their peer groups on the metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC) while driving improvement. It takes us three months and two full-time research assistants to finish the analysis.

Gartner 211

Gartner Supply Chain Design Software Supply Chain Design Supply Chain Strategy 211

Supply Chain Shaman

MARCH 5, 2019

The focus is on functional metrics, but are unable to get to overall supply chain metrics. Listening posts use sentiment analysis based on unstructured text mining. Example of Social Sentiment Analysis. Companies are drowning in data, but struggle to get insights. These are all great candidates for listening.

Supply Chain Design Software 294

Supply Chain Design Software Real-time Visibility Prescriptive Analytics Software Supply Chain Planning Software 294

Supply Chain Shaman

AUGUST 7, 2019

Lab work testing follows vital sign analysis. When I asked for an analysis of the customer service data with a root cause analysis, it was not available. Six months later based on the work of four hard-working employees, we were able to get the analysis to start to roll-up our sleeves. Long Tail Analysis.

Supply Chain Design Software 253

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Supply Chain Design 253

Supply Chain Shaman

NOVEMBER 21, 2023

The analysis, based on network optimization assumed average loading, and did not account for the swings. The metrics were not aligned. Map the different metrics and incentives in the organization to behavior. They were not aligned on the role of the distribution as it tied to supply chain excellence. You have to do so.

Supply Chain Planning Software 339

Supply Chain Planning Software Inventory Reduction Supply Chain Design Software Cost Reduction Strategies 339

Supply Chain Shaman

OCTOBER 11, 2023

We speak about the need to move from a functional understanding to a global, holistic capabilities, but the traditional supply chain leader defines bonus incentives and process performance goals based on functional metrics. Measurement. Organizations speak of the bullwhip, but don’t measure it or monitor the effects.

Supply Chain Planning Software 392

Supply Chain Planning Software Supply Chain Software Forecasting Software Supply Chain Network Software 392

Supply Chain Shaman

FEBRUARY 26, 2024

Based on the work with Georgia Tech, we are getting clear on which metrics matter by industry. As companies adopt a balanced scorecard, the functional metrics shift to a focus on reliability. In today’s training class, we focused on determining the balanced scorecard. What does an outside-in batch job look like?

Modeling 207

Modeling Supply and Demand Optimal Sourcing Supply Chain Planning Software 207

Supply Chain Shaman

MAY 1, 2023

The use of descriptive analytics along with agile planning techniques (what-if analysis, discrete event simulation, and network design) helped. Strategic View of Time: M&A, market analysis, and positioning. Budget-driven discussions and analysis for quarter-to-quarter and year-to-year considerations. Inventory as a Buffer.

Inventory Reduction 246

Inventory Reduction Cost Reduction Strategies Waste Reduction Resource Reduction 246

Supply Chain Shaman

SEPTEMBER 17, 2014

Aligned Metrics. To ensure the management of the complex system, the metrics of operating margin, inventory turns, ROIC, customer service, revenue, and forecast accuracy need to be managed together as a non-linear system. Supply Chain Design. Active, and intentional, design of the supply chain.

Optimal Sourcing 302

Optimal Sourcing Supply Chain Design Software Supply Chain Planning Software Manufacturing Procurement 302

Logistics Viewpoints

DECEMBER 17, 2024

However, as carbon taxes and emissions reporting requirements continue increasing, supply chain professionals face mounting pressures from inside and outside their organizations to measure and improve performance against new, nebulous sustainability metrics. Freight transportation makes up over 10% of total global carbon emissions.

Supply Chain Planning Software 161

Supply Chain Planning Software Procurement Solutions Supply Chain Software Cost Reduction Strategies 161

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. We complete the analysis each year. In this analysis, patterns matter.

Case Study 261

Case Study Inventory Reduction Agile and Lean Supply Chain Study 261

Logility

MARCH 12, 2021

Forecasting and demand planning can be a challenge because they require a significant amount of quantitative analysis and subjective management judgment. Descriptive analytics are the summary measures and metrics that provide insight. Why are our error metrics (MAPE, MAE, etc.) Here’s where they help.

Supply and Demand 189

Supply and Demand Prescriptive Analytics Software Demand Planning Modeling 189

Logistics Viewpoints

SEPTEMBER 13, 2022

Thus, organizations must make sure that data are complete, accurate, timely, and consistent as well as capture the required metrics. Understanding the data, metrics and benchmarks can help the organization collaborate with suppliers to set meaningful, actionable and quantifiable goals. Next, the enterprise can set targets.

Cost Reduction Strategies 237

Cost Reduction Strategies Supply Chain Planning Software GEP Supply Chain Network Software 237

Supply Chain Shaman

FEBRUARY 5, 2020

Below the line is the work of model building, maintenance and what-if analysis. build alignment (driving goal congruence), building reward systems (defining a cross-functional set of metrics to align to the strategy) and defining the right reporting relationships (the S&OP process needs to report to the profit center manager).

S&OP 323

S&OP Supply and Demand Forecasting Supply Chain Planning Software 323

Supply Chain Shaman

MARCH 21, 2024

In the process, we learn that only 15-20% of inventories are safety stock and that the current APS frameworks do not enable a holistic analysis of the form and function of inventory. Lack of aligned metrics. We explore the concept of holistic inventory strategies focused on the form and function of inventory. Lack of executive buy-in.

Inventory Reduction 403

Inventory Reduction Supply Chain Planning Software Cost Reduction Strategies Supply Chain Design Software 403