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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. Growing Complexity.
The AMR Top 25 was the first methodology that tried to connect financial metrics with supply chain excellence. It elevated the discussion on supply chain excellence and drove more discipline and rigor in the use of financial metrics. As a result, the crowned leader will always be a consumer electronics company or an e-commerce player.
It is critical to monitor inventory effectiveness using five key metrics: Expedited orders, inventory turns, obsolete inventory, safety stock and stockouts. Using Metrics to Measure the Health of the Business. Companies use these metrics to minimize their investment in inventory without adversely affecting customer service levels.
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. Supply chain excellence is about people doing powerful things with atoms and electrons to improve economies and lives.
In the first post our long tme guest blogger, Chuck Intrieri of The Lean Supply Chai n, gave us 5 core metrics to evaluate supplier performance using supplier quality management and a 4 step process to execute. Review of SQM Metrics and Issues Across 5 Core Industries. #1: Trend Metrics Collected per Site. Medical Devices.
Keeping track of all your moving parts in manufacturing is a tall order. That’s where manufacturing inventory management software comes in. In this ultimate guide, we’ll break down everything you need to know about manufacturing inventory management software. Spreadsheets just don’t cut it anymore.
When you choose a company to transport your freight or to supply you with the materials you need to manufacture a product, you are putting your hard work and reputation in their hands. The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM.
For instance, a growing number of cell phone manufacturers have established procedures in place for consumers who wish to return an older model and ensure that the device is refurbished or recycled rather than dumped into the local landfill. Importance of Metrics in Reverse Logistics Management. How much value is recaptured?
As a result, the metrics have to be viewed together as a pattern over time. In the journey, the supply chain leader needs to improve the potential of a portfolio of metrics. The metrics of growth, Return on Invested Capital, Inventory Turns and Operating Margin have the highest correlation to market capitalization.
“The idea of the value chain is based on the process view of organizations, the idea of seeing a manufacturing (or service) organisation as a system, made up of subsystems each with inputs, transformation processes and outputs. ” Institute for Manufacturing, 2013. __. High-Tech and Electronic Supply Networks.
While there was always passionate discussions on companies and metrics, the end goal was to raise awareness of supply chain as a practice. However, they seem to fall under the conglomerate issue, where multiple business units may skew the summary metrics. There has been so much discussion on the “top” supply chain lists.
I am hearing it again in my interviews for the book Metrics That Matter. And, as shown in our prior reports, the variation in contract manufacturing and third-party logistics providers should be a stay-awake issue for companies worried about corporate risk. It has been a two-year research effort, and we are not done. Encompassing.
For example, a vaccine manufacturer increased their order size by a factor of four in one weekend; a video call company wanted to receive ten times as much product as they initially forecast with just a month’s lead-time. Pure Storage’s manufacturing is done at three contract manufacturing sites, two in Texas and one in the Czech Republic.
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. Who Needs Lean Manufacturing? Lean Manufacturing Planning and Implementation. Establish time-tables.
Commerce is global and regional at the same time, the world is getting smaller and more interconnected, and Consumer Packaged Goods (CPG) manufacturers operate in this build-anywhere and sell-anywhere market. Here we have compiled a list of the top six challenges that CPG companies face in the post-pandemic market.
This is a public, multinational providing different types of electronic and machinery products for different industries. It started in manufacturing and spread, step by step, to improvements in the way the company runs its supply chain. This manufacturer already has business continuity plans in place. A Complex Supply Chain.
To understand supply chain excellence, Abby and I have been studying pattern recognition for industry peer groups at the intersection of the metrics in the Supply Chain Effective Frontier of growth, profitability, cycles and complexity. The Gartner Top 25 methodology, by definition, is biased to reward the high-tech and electronics industry.
For instance, goods move from the customer to the distributor or to the manufacturer. When a manufacturer’s product normally moves through the supply chain network, it is to reach the distributor or customer. High-cost products include electronics, medications, and specialty equipment. Imagine this scenario.
The average manufacturing company’s supply chain organization is 15 years old. 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. A Look at History. Resiliency.
Develop Supplier Collaboration Frameworks , engage key suppliers in strategic discussions, develop joint value-creation initiatives, and establish clear performance metrics to ensure mutual growth. Ensure that these tools can scale with your business.
Manufacturers have historically found themselves at the cutting edge of technological advances. It’s surprising, then, to read stories encouraging manufacturers to jump aboard the Digital Age technology bandwagon. ” He noted, “Each of these technologies will fundamentally change how products are manufactured.”
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 organizations within the automotive supplier industry contribute to manufacturing excellence in many ways, including quality, cost, and delivery to their OEM and subsystem customer base. Electronic communication between suppliers and customers (zero latency preferred). Supplier shipment information accuracy.
C3Nano is a material technology company developing and manufacturing transparent conductive films, the main component in all touch sensors used in phones, tablets, and more. The top trends impacting manufacturing in the next 3 to 5 years. The top trends impacting manufacturing in the next 3 to 5 years. Transcript.
C3Nano is a material technology company developing and manufacturing transparent conductive films, the main component in all touch sensors used in phones, tablets, and more. The top trends impacting manufacturing in the next 3 to 5 years. The top trends impacting manufacturing in the next 3 to 5 years. Transcript.
Decision support includes all forms of planning: demand, supply, revenue, manufacturing and transportation planning. Robust Market Emerging for Digital Manufacturing Technologies. Robotics/wearables/the Internet of Things/additive manufacturing coalescence is redefining manufacturing. We don’t have the answers.
As I shopped at Best Buy for office supplies, I struggled to not think about the massive disruption of electronics supply chain. As companies outsourced—greater dependency on third parties for manufacturing and transportation—and asset utilization grew from 10% to 35% ROIC the management of the supply chain became more complex.
The global manufacturing sector has seen an upswing, a technological renaissance of sorts. Since the start of 2012, more people graduating from college and universities are entering the engineering/manufacturing fields. The manufacturing sector has been severely impacted by this trend because production jobs are highly technical.
This study identified the five most disrupted industries in 2024 to be Life Sciences , Healthcare , General Manufacturing , High Tech , and Automotive , marking the fourth year in a row that these particular industries have been the most impacted. government as well as potential retaliatory measures by other countries.
At the enterprise level, manufacturers and retailers focus on corporate efficiency. Figure 1: Current State of a Global Manufacturer of White Goods. Change internal metrics to a balanced scorecard and force the functions to work better together. Manage Make, Source, and Deliver Together. All are out of balance. What to do?
At the enterprise level, manufacturers and retailers focus on corporate efficiency. Figure 1: Current State of a Global Manufacturer of White Goods. Change internal metrics to a balanced scorecard and force the functions to work better together. Manage Make, Source, and Deliver Together. All are out of balance. What to do?
We are trying to understand how supply chain leaders have raised the bar at the intersection of these four sets of metrics on the supply chain effective frontier. I also believe that it is because the organization is not incented to manage cash-to-cash metrics. The results have been eye-opening. Other industry groups did not.
Much of our world relies on the timeliness, effectiveness, quality, and reliability of manufacturers. However, it is proving to be a more complex proposition for manufacturers who are typically more nascent in their digitalization efforts, and in bringing improved connectivity and visibility to their supply chains.
For the purposes of clarity, in this article, the term digital supply chain is the transformation of the atoms and electrons within the supply chain to unleash new levels of value. This includes SCOR, APICs, Gartner Top 25 Supply Chains, Gartner Hierachy of Metrics, etc. It feels a bit like tulip mania. The focus will be on outcomes.
Unfortunately, we find most companies are moving backwards on the Supply Chain Metrics That Matter™ or making progress on singular metrics versus driving performance improvement on a balanced portfolio of supply chain metrics that correlate to market capitalization. (If The winners and finalists are an elite group.
by Alexa Cheater From designing, sourcing and manufacturing, to distribution and consumption, your supply chain is at the heart of your customer satisfaction levels. If you deal with large volumes of similar stock across multiple distribution nodes, like those in the consumer electronic space, MEIO is almost a must.
We have found that supply chain metrics are gnarly and complicated.During In our program, cost avoidance, while desirable, does not count towards the metric. Our approach simply breaks accountabilities and goals across the areas of Manufacturing, Logistics/Network Optimization and Ingredients/Packaging. What have you learned?
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.
This modern approach allows manufacturers and suppliers to share real-time data about product availability, production, and sales. For instance, electronic data interchange (EDI) enables seamless communication between your company and your partners using electronic forms. Real-Time Information Sharing.
Many of my clients talk about a customer-centric supply chain but rely on useless metrics from an annual survey or a net promoter score. I called the customer service line for the manufacturer and was told that the only thing I could do was call a maintenance specialist. Customer Service Failure. Internet and Cable Issues.
In their time lean manufacturing and just-in-time were game-changing concepts. Manufacturers need to extend visibility and collaboration beyond their own walls to avoid any disruptions. Most manufacturers have ranked increased transparency and collaboration as one the key aspects impacted by the COVID-19 crisis.
Metrics like delivery against estimated delivery date and the promise to the customer and the cost to serve the consumer per unit will become goals outside of just the supply chain. Effective supplier collaboration across supply chain networks remains high on the priority list for manufacturers dealing with multiple tiers of supply.
Managing operations through multiple manufacturing systems can be challenging, but it’s a daily reality for many manufacturers. For instance, one facility might operate in a make-to-stock mode and the other in a make-to-order mode even though they manufacture the same types of products for the same customers.
In this case, the context was an annual bid and quote negotiation they had to do with electronicmanufacturers who wanted to ship products from the factories in Asia to the US. We happened to use the example of a high end consumer electronicsmanufacturer, but in truth, any one of the manufacturers operated the same way.
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