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In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. To manage continuous improvement, companies need a clear definition of excellence and organizational alignment to that goal. What Drives Value?
Wikipedia In 2014, I was exploring methods to publish what is now the Supply Chains To Admire report. The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. By charting the performance against peer groups, I could see the story. We purchase data from Y charts. (A
The myopic focus on IT standardization resulted in the purchase of technology, but not value delivery. Informational Technology groupsreporting to the Chief Financial Officer. Over the last decade, the CIO’s office reporting structure shifted to report to the CFO. Belief in efficient procurement.
Strategic sourcing and innovative solutions are often viewed as two distinct procurement tools, but they should not be seen in isolation. Think of them as apples and gearseach essential and effective on its own, yet when combined; they create a formidable mechanism for achieving procurementexcellence.
” Followed by “How are you organized, and what defines functional excellence? And, how do you tie functional excellence to corporate value?” Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. Functional Metrics.
Supply chain excellence is easier to say than to explain. At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) The reason?
Reason #4 Making key decisions by modelling the supply chain in Excel. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Imagine that your child brings home their report card and it’s a mix of good and fair grades. Why do companies focus on reducing a specific metric?
Next Steps: Start to model demand based on market data to align the organization on baseline demand. Resist the temptation to place deeper analytics on top of existing data models. Instead, rethink the model and the approach. Out of desperation, they turned to the use of descriptive analytics. Next Steps.
Only four percent of companies outperformed their peer groups. of revenue on IT solutions and expensive solutions to improve performance, yet degrade balance sheet results against peer group sectors in tough markets? The Focus Inside-out Supported by Functional Metrics. How could the industry spend 1.7%
How Do You Define Excellence? As an old gal, with over forty-years of supply chain experience, writing this report for ten years taught me many lessons. In retrospect, I find that technology is an enabler, but only if we are clear on what defines supply chain excellence. Humility exudes from my fingers as I type this post.
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.
Today, supply chain excellence matters more than ever. Until there are clear answers, business leaders should avoid buying software from companies with deep investments by venture capitalists. One of my favorite supply chain leaders has a stack of Palantir reports in black binders on his desk. Kinaxis Purchase of Rubikloud.
On one hand, consumers expect to increase their online purchases post-pandemic. Retailers and delivery services companies that can break through today’s cycle of mediocre home delivery performance stand an excellent chance of improving customer loyalty and growing market share. Here are three charts that paint the whole picture.
I write for this blog, craft reports from research for our newsletters, create blogs for Linkedin, and build articles for Forbes. I define supply chain excellence as year-over-year performance better than the peer group on this balanced scorecard. Each company ranks in the 4% of companies beating their peer groups.
In the height of the e-commerce craze, the marketplace offerings started with a focus on e-procurement. The widely-held view was that the e-procurement market would fuel the next generation of marketplace applications. The rebirth of marketplace offerings is not on the back of e-procurement or ERP. The debates were heated.
The Center of Excellence at the company wanted to improve base-level capabilities but struggled to move forward due to the traditional views of the planning team, which they felt were self-serving. (The The team was not calibrated on the role of forecasting and the basics around process excellence. Models Matter. The reason?
Each executive has a different perspective on the definition of supply chain excellence, but they are never discussed and aligned. His organization purchased an advanced planning technology from well-known best of breed provider, and the implementation should have been successful, but it was not. What Is The Ring of Fire?
I know that your primary focus is procurement. The issues are largely rooted in politics and the lack of clarity on supply chain excellence. Or planned orders to purchase orders?) This is despite the deployment of ERP, descriptive analytics, APS, SRM, and teams of data scientists working on their data lakes.
Within this setup, an ERP procurement module helps companies make purchases and manage suppliers. Numbers speak louder: According to Procurement Tactics’ top procurement trends in 2025 , 83% of CPOs prioritize digitization. Keep reading to learn: What Is ERP in Procurement?
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). Note the balanced results of Rockwell Automation against their peer group.
Aptean is orchestrating the Blue Yonder/E2open/Infor playbook of buying undervalued assets and milking the maintenance and Software-as-a-Service contracts with existing customers. following the reporting of fourth-quarter results. This is despite the strengths of the recent purchase of Optimity. Manhattan Associates.
There will be little relief in 2022 unless the factors driving the increased import volumes—a strong economy and the fundamental shift in consumer behavior to purchase more goods and less services—change. Online buying will fuel home delivery growth, challenges and new strategies. The post Is it too Early For 2022 Predictions?
The platinum medal puts RS Group in the top 1% of the 100,000-plus rated companies assessed by EcoVadis with each company rated on the material sustainability risks and issues for size, location, and industry. ESG Report: FY24 www.rsgroup.com/media/bsocsl4m/rs-group-esg-h1-highlights-pack_-november-23.pdf
Groupthink is a psychological phenomenon that occurs within a group of people in which there is a desire for harmony within the group, but the result is an irrational or dysfunctional outcome. I feel that the industry is engaged in ‘Group Think’ No one in this meetings is going to ask tough questions.
It is one of the reasons that I went from working at AMR Research to being a partner at the Altimeter Group. I had to learn a new language, a new set of vendors and connect with a new group of users. They excel in the four Ps of marketing. The digital marketing group is often siloed. I see the value. Absolutely!
I struggled to manage myself as I settled in elbow-to-elbow with the group to listen to the presentation. When Gartner purchased AMR Research in December 2009, the methodology became the Gartner Supply Chain Top 25. The research project analyzed 1200 combinations of 180 metrics for four hundred companies for the period of 2010-2012.
” Lora’s Advice If the President’s group called me and asked for my advice, these are the steps to take: Ask all “experts” to leave their egos at the door. Consider actions to take Drive execution My fear is that the group is focused on tactics without this alignment. Define the mission.
This is because most classical planning solutions lack the modeling capability and computing power to accommodate different data sources, large SKU count, and detailed constraints and contingencies to build an immediately executable plan. The planning process should be automated, repeatable, and not dependent on Excel-based manipulation.
I wrote my first report on Sales and Operations Planning (S&OP) while sitting on the floor in the Atlanta airport in 2005 when I was an AMR Research analyst. I wrote many reports on airport floors in those days–electrical plugs were just too scarce.) Sales and Operations Maturity Model from 2005-2008. Mistake #3.
I think about this discussion with Keith often as I work on the Supply Chain Index and edit the chapters of Metrics That Matter. This is a group of leaders. Our current processes and dependencies on Excel spreadsheets cannot get us to our goal. E2open last week announced the purchase of Serus. What can we learn?
I never republished the report, because not enough has changed to warrant it.) The report centers on the concept of moving from inside-out to outside-in technologies. The order latency is the time from purchase by the end consumer to the visibility of the order. This is a natural fit for narrow AI and new forms of analytics.
That is the role of marketing or sales or procurement. Yes, I believe that supply chain overlays on top of the sales and marketing organizations and the procurement function. Overall, total costs of the value network have increased because companies have not owned their networks. And, these are the best of their peer group.)
Gartner purchased the firm in 2010.) Driving Improvements in Supply Chain Excellence. He felt strongly that supply chain leaders knew how to drive supply chain excellence and needed a forum– or maybe two or three depending on the business model– to help them network and refine their approaches.
The team understood the importance of margin management, focusing only on cost as an input to margin. The group needed a clear market signal on consumption patterns and the translation of demand with minimal latency to optimize price, mix, and schedule the factory to manage margin. Maximize the value of your purchase.
With the purchase of i2 by JDA, and Logictools by IBM, manufacturing companies serious about network design started looking for a company, with a well-established community, that was more serious about network design. Most companies are still struggling with “what good looks like” and “what defines supply chain excellence.”
This data will be combined with the financial ratio data and published in an Open Content Research report in April on the Supply Chain Insights Community. Current State: Costs are rising. They each lag in their understanding of supply chain excellence, and are now struggling to build effective supply chain teams.
eAuctions are online real-time dynamic discussions between one purchasing organization and a group of pre-qualified vendors competing for the purchaser’s trade. Throughout a genuine and collaborative cooperation with business vendors, they produce innovative approaches to current procurement difficulties.
<Bear with me… > Here I share a nine-step process in an attempt to help companies unravel the process for buying supply chain planning software. They center on how to make a good decision in the purchase of supply chain planning solutions. Most have purchased software, but are dependent on Excel spreadsheets.
How do we harness the power of data with new forms of analytics? Today, technology providers are selling analytics. This week, I received this email from a financial institution questioning why business leaders are not harnessing more insights and redesigning processes based on analytics. S&OP Challenges. Reflection.
Our focus today is to discuss the relevance of buzz words such as Analytics, PredictiveAnalytics, Data Science, and Machine Learning, for S&OP. What is analytics? We might use “availability in Excel directly or with Add-ons” as an “age metric’.). Marketing efforts by firms such as IBM.
Buying supplies, equipment, low preference items and the latest innovations to support high-value care delivery is expensive and while it’s not an area where you want to skimp, there are certainly ways to reduce these expenses without impacting quality of care. The Path to Supply Chain Excellence. Watch a BSW webinar here.
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). Note the balanced results of Rockwell Automation against their peer group.
In groups of 5, each team member is given a different role: Finance, Sales, Marketing, Production, and Procurement. The beer game requires purchasing, manufacturing, and distribution quantities to be set with no communication amongst the people assigned to the functions, aside from an order quantity. Screenshot of SCI IMPACT!
Bonuses and incentives align with functions and are often counter productive to driving supply chain excellence. PFEP optimizes the policies that define how to procure each part. PFEP enables supply chain leaders to glean a 360-degree view of their inventory and procurement policies to maximize the value of each inventory dollar.
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