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Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Why do companies focus on reducing a specific metric? by John Westerveld. Sound ridiculous?
Procurement and Supply Chain Management are essential functions that can help companies navigate these challenges, but they are often siloed and operate in separate departments. Their metrics are often misaligned as well – supply chain focuses on service and procurement focuses on the cost of acquiring materials and services.
Manufacturers have always struggled to know their customers. Unfortunately, this means manufacturers face an even greater challenge, as more customers translate into greater use of customer service. But, how do manufacturers turn their focus to the customer experience? Determine What Customers Want Today.
Interview for Metrics That Matter. My kitchen table is piled high with interviews for the upcoming book, Metrics That Matter. He is responsible for manufacturing, procurement, supply chain planning, logistics, quality, social responsibility and final product engineering. ” Supply Chain Leader. I am behind.
Over the course of the last decade, his story is the same. Optimization engines to improve functional metric performance resulted in an exploding number of planners. Contract Manufacturing Signal Latency. In my last blog post, I shared insights on data synchronization between brand owners and contract manufacturing.
Conversely, a student who quickly grasps procurement strategies can be challenged with advanced case studies and leadership projects. For example, a student might work on a project that involves analyzing sales data to predict future product demand, thereby learning how to adjust procurement strategies accordingly.
It senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time latency to align sell, deliver, make and sourcing functions. When this happens, there is greater balance between metric trade-offs and resiliency in year-over-year improvements in corporate performance.
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. To change course, learn from history, to unlearn to rethink outcomes.
Over the course of the last week, I had a Linkedin comment from Dubai, questions from a team from the Philippines, and an inquiry from Switzerland. Tomorrow, I have a call with a manufacturing company to answer the question, “ What is the most important concept in the book? Achieving Balance in Metrics. 3) Outside in.
Manufacturing is designed and planned in isolation. Integration of corporate social responsibility metrics in planning. Comprehensive view of source, make and deliver. Most often the focus is on transportation or logistics, but does not take into consideration the trade-offs between make, source and deliver.
Supply Chain Insights recently published a Metrics That Matter report covering both the Semiconductor and Hard Disk Drive (HDD) industries. Semiconductor is poised to consolidate, which will have huge impact on the metrics. – as information moves down the supply chain to the manufacturer. by CJ Wehlage.
Both companies provide packaging materials to the food manufacturing industry. Food manufacturers, over the course of the last decade, have pushed costs and waste backwards in the supply chain. billion company, manufactures glass containers with headquarters in the Midwest. It cannot be about singular metrics.
In today’s fast-paced and competitive business landscape, organizations across industries are realizing the immense value of effective procurement practices. Procurement professionals play a vital role in driving operational efficiency, cost savings, and strategic decision-making. But how do you get started? Do not worry!
Over the course of the last week, I have been working on healthcare research. Medical Device Manufacturer. The most common reporting relationship in the supplier organization is to a leader of supply (focus on logistics, distribution, materials sourcing and customer service). The focus has been on sourcing and managed costs.
The company sources goods from 34,000 suppliers out of 30 nations. Products, of course, can be picked up at the branches. In the annual report where they report on their key performance indicators (KPIs), they don’t just report on core financial metrics and the NPS, they also have people metrics. The company recorded 1.9
Over the course of the last year, I have written about this extensively. I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. These tools allow us to look at sell, source, make, and deliver together. They are slow to adapt.
While there are many types of visibility (see Figure 1), the most common use case is either sourcing or transportation visibility. Contract manufacturing or 3PL data often will have a 24-hour latency due to batch integration. The focus is on functional metrics, but are unable to get to overall supply chain metrics.
The Power of Source-to-Pay Digital Transformation To put it briefly, source-to-pay refers to the entire process that starts with finding, negotiating with, and contracting the suppliers of materials, goods and services, and culminates in the final payment for those items. Who Should Prioritize an S2P Digital Transformation?
What does Procurement mean? An organization’s Procurement function is responsible for managing spend, in other words the buying goods and services that are used to make the products sold to customers as well as the purchasing of products and services used to run the organization on a day to day basis.
cities over the course of the year, bringing the total number to 110. Teradyne , a supplier of semiconductor testing equipment, pulled manufacturing worth about $1 billion out of China last year, a Teradyne spokesperson said on Monday, after U.S. export regulations led to supply chain disruptions. That’s all for this week.
Many-to-many can also refer to many participants in a network accessing many, many sources of event data critical to supply chain operations through a public cloud network. COVID of course taught companies the need for agility. The supply ecosystem connects over 630,000 manufacturers and suppliers. Stuff happens.
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. Specific metrics: process metrics and outcome metrics.
Operational innovations like the invention of containers led to the huge growth in global value chains, and today 95% of manufactured goods move on ships. Scenarios allow planners to ask all kinds of what-if questions to help determine the best course of action under a variety of future outcomes. Why supply chain optimization matters.
Customer expectations of reliable quality and rapid delivery forces today’s manufacturers to either shorten cycle times or lose business. There are multiple good models for lean manufacturing operations. “5S” programs are taught in some business college courses, and the SCOR model is also utilized.
Fortunately, there are numerous courses available to help you develop your expertise in supply chain management, regardless of your level of experience. In this article, we’ll take a closer look at the top 10 supply chain management courses that can take your career to the next level. Ratings of each course will also be included.
Manufacturers and distributors experienced huge supply chain disruptions due to the pandemic which exposed many vulnerabilities and tested the resilience of supply chain leaders globally. Manufacturing KPIs. can be measured to define this metric.
Now, of course the systems of healthcare differ but overall the level and growth is certainly a concern. It is also helping to bridge the supply chain management gap that has traditionally existed between healthcare providers and other industries such as manufacturing. Most other developed countries are around 40-50% less than this.
This means routinely bringing together the C-suite, finance, supply chain, manufacturing, sales and marketing teams so everyone is seeing, working from and agreeing to an aligned plan that achieves optimal business outcomes. Assess root causes, adjust plans, and debate course corrections. Answer: you review KPIs, current and trended.
” CFO of a major manufacturer. Procter & Gamble and Kimberly Clark); but for most companies that I have worked with, I see that they have purchased and implemented inventory technologies, but there has not been an impact on future years results in either Days of Inventory or Days of Working Capital. I am a skeptic.
The purchasing department plays a critical role in the success of an organization. Thought-out practices and well-managed workflows within the purchasing department are crucial for making sure that the company has the necessary resources available at the right time and at a reasonable cost.
While Contract Pharma & BioPharma manufacturers continue to experience an increase in demand for more projects, new challenges are emerging from nearly every angle including new regulatory and quality requirements, workforce shortages and of course, supply chain disruptions. is likely to reach 2.1
Abby and I are writing an e-book on Supply Chain Metrics that Matter. Likewise, in today’s supply chain environment, I find that supply chain leaders favor a single function of logistics, manufacturing or sourcing. Companies that are not looking holistically at metrics are stuck. Measurement. What do I mean?
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? Talent Gaps.
Before boarding the plane, I watched a traveler pull a diet Coke from the bin and thought about the struggle to source sweetener with the rise of COV-19. As I poured the dog food into the bowl for my pups, I wondered if I was going to have to switch kibble due to the looming issues of sourcing taurine—a health additive in many pet foods.
Nvidia, Northrup Grumman, PACCAR Inc, PCA (Packaging Corporation of America), ResMed, Rockwell Automation, Ross Stores, Taiwan Semiconductor Manufacturing (TSMC) Company, Tempur-Pedic, TJX, Toro, Toyota, West Pharma, United Tractors, and Urban Outfitters. The group’s response is, “Are these supply chain metrics?”
Year after year, well intentioned people toiled against improving metrics that reduced, not improved, the effectiveness of the supply chain. The example that I give in the first post is the focus of manufacturing strategies to drive strong results to improve Return on Assets (ROA) that have actually caused a deterioration in operating margin.
by John Westerveld Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Reason #7 Making decisions based on bad data (supply chain data accuracy).
I was surprised as I have evaluated balance sheet progress of these leaders over the course of the last year. Over the course of the last year, Abby Mayer ( @indexgirl ) worked with the Supply Chain Insights team to build a database of 20 years of information with over 50 supply chain financial ratios. Publication of our next book.
In one case, a long-time packaging manufacturer changed its reporting structure, putting in place a new manager responsible for the MRO supply chain. Over the course of any client engagement, the calculus for material savings changes, priorities and focus areas evolve, as does the strategic direction of the provider.
I was at three clients’ sites over the course of the last two weeks. This includes the automation of path-to-purchase for consumer products, active shaping of demand through price, channel incentives and promotions, eCouponing and mobile commerce for retail, and product proliferation for all. ” I smiled.
Most of the current repetitive processes like (forecasting, reports, purchase orders & Invoicing) will be automated using various technologies. As the fabric suppliers require the longest lead times, ZARA approves designs & initiates manufacturing after it gets feedback from its stores. Case Study Resilience: CISCO. CONCLUSION.
The BCG analysts explain, “Today, another workforce transformation is on the horizon as manufacturing experiences a fourth wave of technological advancement: the rise of new digital industrial technologies that are collectively known as Industry 4.0.” ”[2] Computers and digital manufacturing ushered in other Industry 4.0
Ask yourself, “Are your supply chain metrics bogging you down?” ” To manage a supply chain containing complex dependencies between teams, departments and partner companies across international boundaries requires a rich set of metrics. Functionally isolated metrics lead to sub-optimized supply chain performance.
While it’s undeniably important to source products responsibly and produce recyclable or reusable products, companies also need to focus on making the transportation and distribution of products more sustainable. This is a global issue, of course, but if we just take the U.S. Ensure Your Materials Are Ethically Sourced.
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