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This integration includes tracking individual components and collecting data on environmental impact, including sustainability metrics such as carbon footprint and recyclability. Tracking key performance metrics and conducting regular audits help identify areas for improvement and ensure ongoing compliance with regulatory requirements.
Here’s a look at some of the Procure- to-Pay metrics procurement leaders should watch in order to better understand their digital progress. 1 Use automation for touchless processing – “Touchless” means data is electronic, transactions match the first time and need no human intervention.
In some industries, like electronics, legislation is requiring that electronic waste be reduced. Despite legislation, in 2022, the world generated 62 million metric tons of e-waste, according to the United Nations Global E-waste Monitor. Or, to refurbish and resell goods that are repairable. This waste could fill more than 1.5
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. by CJ Wehlage. Success, provided they monitor the 7 “elephants” in the room.
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.
In one case, a consumer electronics manufacturer used AI to reoptimize its supplier base in response to U.S.China trade tensions, proactively shifting production to Southeast Asia and reducing potential cost impacts by double digits. Metrics must reflect the new priorities. Cultural alignment is just as important.
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.
Interview with Lora Cecere, Founder and CEO of Supply Chain Insights and Author of Supply Chain Metrics that Matter ( published December 2014 ). Metrics that Matter became a three year research project. I realized that many organizations are very confused about metrics. So I started this book as a summary of this research.
The vehicle deployments are expected to lower emissions by 7,052 metric tons of greenhouse gas (GHG) emissions annually, equivalent to 1,533 passenger cars removed from the road. Volvo Wins Bid for 300 Electric Trucks from DSV Announced on Thursday, Volvo received an order for 300 electronic trucks from Danish logistic firm DSV.
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.
This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. ” Through this series of reports, we now can see that consumer electronics has pulled ahead of the pack. When companies look at singular metrics (labor costs or inventory), they have moved backwards.
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. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ). The definition of this metric is similar to the way it sounds. Cost of quality.
The chemical and consumer electronics industries have made the most progress. The only industry that has made progress in inventory management is consumer electronics. It will be nice to be home and to have time to write on this second book, Metrics that Matter. Balance Remains an Issue. Complexity has Grown.
Much of this development derived from the electronics sector, in which product lifecycles are significantly shorter, global service networks are increasingly intricate, sustainability processes are mandated and consumer customization is becoming the norm. Importance of Metrics in Reverse Logistics Management.
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.
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.
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. I think that the marked resiliency between Samsung and LG Electronics is due to supply chain excellence. More encompassing of metrics beyond the growth, inventory and Return on Assets (ROA) metrics used in the Gartner Top 25. Encompassing.
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.
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.
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.
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). The results for the high tech and electronics industry is shown in Figure 1. Performance of High Tech and Electronics Supply Chains for the Periods of 2006-2013 and 2009-2013.
Samsung Electronics. Consider that Samsung has consumer electronics, visual display, semiconductor, heavy industry and biotech divisions. In this area, Gartner should push the metrics benchmark. Schneider Electric. Colgate-Palmolive. Coca Cola Company. Wal-Mart Stores. McDonald’s. Cisco Systems.
How will you establish and manage electronic communication with carriers and other trading partners? to deliver sustained business value. Do you have the skills and discipline to keep the TMS tuned?
I want to be part of the evolution that helps leaders to redefine strategies based on the changing physics, electronics and capabilities in value networks. I think about this discussion with Keith often as I work on the Supply Chain Index and edit the chapters of Metrics That Matter. High-Tech and Electronic Supply Networks.
Electronic communication between suppliers and customers (zero latency preferred). Demand analytics around EDI transaction sets 830, 862, 866, as well as any web-based electronic communication. From a measurement perspective the key trending metrics at a high level include: Supplier on time delivery.
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.
Automate status updates via Electronic Data Interchange (EDI) or custom Application Programming Interface (API) Automate updates of Master Data, such as features, SKU transitions, dimensions, weight, volume, and pictures. to provide very specific output (production, fulfillment, transportation plans by product/date, etc.).
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.
I define digital as the rethinking the atoms and electrons of the supply chain. An orbit chart is a plotting of data at the intersection of two metrics. In this case, the metrics are operating margin and inventory turns. We are quickly falling into the trough of disillusionment because we are not thinking more broadly.
This gives Pure real-time visibility to core performance metrics. But achieving supply chain resilience can’t be accomplished just by relying on people or the ability to remotely monitor metrics; the design of the supply chain matters. Monitoring is enabled by the use of EDI and system-to-system integration.
Stalled progress on metrics: 90% of companies find themselves stuck on key supply chain metrics (cost, inventory, growth, ROIC). We need to challenge the fundamentals of the past and redefine the atoms and electrons of the processes of the future. We don’t have the answers. We have historical practices, not best practices.
This is a public, multinational providing different types of electronic and machinery products for different industries. By the end of 2021, the company had achieved this with over 90% of their spend on electronic components. A Complex Supply Chain. Their revenues exceed €25 billion. Concurrent planning is kind of amazing.
High-cost products include electronics, medications, and specialty equipment. For example, ISO standards mandate the proper disposal of electronics to prevent data theft. The best way to tackle this massive undertaking is with a robust and fully integrated TMS.
For instance, electronic data interchange (EDI) enables seamless communication between your company and your partners using electronic forms. This tool allows you to exchange electronic documents like orders, invoices, and shipping notices via an electronic data network (EDN).
Today our first course, Supply Chain Metrics That Matter, is ready for sale. The seven courses currently in joint development between CorpU and Supply Chain Insights are: Supply Chain Metrics That Matter. Improve the metrics that matter on the balance sheet? The development is complete. How can they shift and drive value?
And if you’re still using dated technologies that don’t support robust and adaptive collaboration, you may even need to make critical decisions without the context of knowing their impact on corporate-wide metrics and objectives. It’s certainly no walk in the park.
Within the report, each risk is assigned a risk score metric to help global supply chain leaders prioritize planning and mitigation efforts this year. The report outlines the most critical supply chain cybersecurity risks, particularly for the manufacturing and electronics industries.
However, as brand companies make consumers believe they need a new smart phone every two years, today’s global supply chains are responsible for incredibly large amounts of electronic waste. million metric tonnes (Mt) and it is forecasted to increase to 50 Mt in 2018. The total amount of e-waste generated in 2014 is 41.8
Customer metrics. Metric: Goal/KPI: Zero quality reports upon the receipt of goods at Warehouse or ultimate consumer; Embedded 3PL rep to help improve 3PL service by monitoring 3PL deliveries and daily service. Shorten the SLA/KPI to be only critical issues, as listed: Cost Reduction, Service, Quality, Safety and Customer Metrics.
On the technology front, Dreams is using Paragon Software Systems’ home delivery solution for continuous optimization and route execution, as well as fleXipod , an electronic proof of delivery and configurable data capture system that can be implemented using PDA, tablet, and smartphone devices.
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.
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.
Change internal metrics to a balanced scorecard and force the functions to work better together. Like old-fashioned mail, Electronic Data Interchange is expensive and is delivered party-to-party. As a result, in this time of increased variability, organizations are more reactive. What to do? Focus Outside-In. EDI is not sufficient.
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