Remove Chemicals Remove Eliminating Excel in Purchasing Remove Metrics
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L’Oréal: A Case Study in Supply Chain Excellence

Supply Chain Shaman

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. The orbit chart below illustrates L’Oréal’s performance at the intersection of two metrics.

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Holding Ourselves Accountable for Business Results

Supply Chain Shaman

The Focus Inside-out Supported by Functional Metrics. Functional excellence drove regional supply chain performance in the 1990s, but a focus on functional metrics in large, global and complex supply chains over the last two decades threw the supply chain out of balance. Supply Chain Maturity Progression. Winners Over Time.

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Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

Or agreement on the definition of supply chain excellence. As a result, functional excellence anchors action. The focus is on digitization—automating today’s processes—versus rethinking process excellence based on the art of the possible. An orbit chart is a plotting of data at the intersection of two metrics.

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Who Should Be In The Winner’s Circle?

Supply Chain Shaman

When Gartner purchased AMR Research in December 2009, the methodology became the Gartner Supply Chain Top 25. 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. The result? The reason? Is this leadership?

Gartner 243
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Collaboration? When It Comes to Cash-to-Cash, We Don’t Know How to Walk the Talk

Supply Chain Shaman

Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. Note the elongation of the cash-to-cash cycle in the chemical industry of 38 additional days when comparing the 2014-2019 averages to the pre-recession period of 2004-2006. My takeaway?

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Writing: Working on My Book

Supply Chain Shaman

Interview for Metrics That Matter. My kitchen table is piled high with interviews for the upcoming book, Metrics That Matter. Prior to joining Starbucks, he worked at the executive leadership level in Europe, Latin America and North America at ICI, a global chemical company. How do you define the metrics that matter?

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Insights from Elemica reveal 2014 Frankfurt

Talking Logistics

Several customers addressed those questions in excellent case study presentations: Dr. Bernhard Herzog, Oxea GmbH – “Business Impact of a Supply Chain Operating Network”. Herman Woltjes, Shell Chemicals – “Logistics Execution”. Ralf Kahre and Patrick Gött, BASF – “End-to-End Business Process Management”. Fast and effective roll out.