Supply Chain Shaman

MAY 24, 2024

When we compare the companies listed on the Gartner Top 25 to peer group results for the period of 2013-2023, we find that 59% of the listed companies score below their peer group on year-over-year growth, 41% below their peer group on inventory turns, and 41% fall below their peer group on Return on Invested Capital (ROIC).

Gartner 355

Gartner Comparison Taiwan Groups 355

ToolsGroup

NOVEMBER 12, 2024

QKS Group , a global advisory and research firm, evaluates vendors for its SPARK Matrix™ based on two key criteria: technology excellence and customer impact. The QKS Group SPARK Matrix™ offers an in-depth analysis of global market dynamics, major trends, vendor landscapes, and competitive positioning.

ToolsGroup 156

ToolsGroup Supply Chain Design Software Supply Chain Planning Software Supply Chain Software 156

Logistics Viewpoints

AUGUST 9, 2022

While consumers may see some short-term benefit in the form of discounted goods, many retailers have had to reset investor expectations , reflecting the expected hit on margins from carrying so much inventory. Inventory management is challenging enough in normal times. So, what is it going to take to enable better inventory management?

Inventory Management Software 246

Inventory Management Software Inventory Management Inventory Reduction Supply Chain Planning Software 246

Supply Chain Shaman

MARCH 21, 2024

The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team. In my forty years of studying supply chain planning, the groups became larger, but with questionable results.

Inventory Reduction 403

Inventory Reduction Supply Chain Planning Software Cost Reduction Strategies Supply Chain Design Software 403

Supply Chain Shaman

MAY 25, 2024

By charting the performance against peer groups, I could see the story. The first step was to find a reliable data set and establish the peer groups. The second step of establishing peer groups was trickier. It took us four years to establish what we believe are representative peer groups based on the performance patterns.

Eliminating Excel in Purchasing 318

Eliminating Excel in Purchasing Gartner Supply Chain Design Supply Chain Strategy 318

Supply Chain Shaman

APRIL 15, 2020

To adapt, I recommend that companies form two groups: Operational/Business Continuity Group. This cross-functional group (sales, procurement, manufacturing, and distribution) is an operational team to manage the day-to-day issues and exceptions in the supply chain. Evaluate Inventory. Evaluate inventory health weekly.

Supply Chain Planning Software 440

Supply Chain Planning Software Supply Chain Design Software Modeling Supply and Demand 440

ToolsGroup

OCTOBER 14, 2024

In the competitive industrial landscape, efficient spare parts inventory management is crucial to maintaining seamless operations and driving profitability. Organizations require robust inventory management systems capable of handling diverse parts throughout their lifecycle.

Inventory Reduction 156

Inventory Reduction Negotiating Skills Optimal Sourcing Cost Reduction Strategies 156

Supply Chain Shaman

DECEMBER 28, 2020

Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns. When compared to pre-recession years, we ended the decade with twenty more days of inventory. Days of Inventory Comparison. Both companies outperformed their peer groups.

Supply Chain Planning Software 418

Supply Chain Planning Software Forecasting Forecasting Software Modeling 418

Supply Chain Shaman

JANUARY 9, 2024

They are unconscious that they are underperforming their peer group and have not driven industry improvement. An average margin of 21% with inventory turns of 1.58 Sanofi Performance Versus Peer Group for 2013-2022 Similarly, I find 35% of companies following the pack not able to drive resilience in the face of market shifts.

Supply Chain Planning Software 299

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Gartner 299

Supply Chain Shaman

JANUARY 2, 2024

Many discussions focus on driving improvement through planning, yet, when I take the client case studies on the websites of leading planning technologies and map the intersection of operating margin and inventory turns, I do not see metric improvement, sustained performance, or an increase in value. As I write, I scratch my head.

Gartner 284

Gartner Supply Chain Planning Software Supply Chain Design Software Case Study 284

ToolsGroup

SEPTEMBER 30, 2024

This shift has led to a growing need for agile inventory management and quick delivery systems. The Challenges of Inventory Management in the Aftermarket Managing inventory in the aftermarket is uniquely challenging.

Manufacturing Procurement 156

Manufacturing Procurement Optimization Software Supply Chain Planning Software ToolsGroup 156

Supply Chain Shaman

JUNE 30, 2023

As a result, demand planning is largely manual, inventory management is a series of manual inputs, and production planning is via spreadsheet. Anne is a lean disciple and sees all inventory as Muda. She lacks the appreciation for the need for inventory as a buffer. I advised John to ask for help to improve inventory health.

Supply Chain Planning Software 323

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Eliminating Excel in Purchasing 323

Logistics Viewpoints

JANUARY 18, 2024

This ensures the secure, high-capacity, and bi-directional transfer of essential information such as master data on products, customers, production-distribution infrastructure, transactional data on sales, inventory status and position, transportation execution data, external data e.g. competitor pricing, weather, recommendations, action triggers.

Supply Chain Software 285

Supply Chain Software Supply Chain Planning Software Supply Chain Design Software Network Design Software 285

Supply Chain Shaman

SEPTEMBER 13, 2023

If S&OP efforts were that effective, don’t you think that we would have made more progress against inventory levels, margin, and growth? In part, this results in increasing swings in inventory in response to shifts in consumer demand as one moves further up the supply chain. Which brings me back to Anna. She is a disbeliever.

Supply and Demand 385

Supply and Demand Supply Chain Planning Software Modeling Demand Planning 385

Supply Chain Shaman

SEPTEMBER 22, 2024

The group’s goal was to drive process innovation through collaborative networking. The group wanted to focus on models and engines, so the conversation was void of a discussion of outcomes. I want to broaden the discussions to focus on policy, strategy, and rules automation, but most groups cannot help themselves.

Cost Reduction Strategies 376

Cost Reduction Strategies Waste Reduction Inventory Reduction Supply Chain Planning Software 376

ToolsGroup

JUNE 17, 2021

Right-sizing inventory. Avoiding inventory overages and shortages begins with a better forecast, but also requires a smarter inventory strategy. Differentiated customer service classes enable alignment of order fill rate targets by groups to the organization’s go-to market strategy.

Forecasting 295

Forecasting Forecasting Software Modeling Supply Chain Planning Software 295

Supply Chain Shaman

NOVEMBER 21, 2023

My client attempted to have a supply chain discussion to improve flow, and his executive group just did not get it. In the early 1980s, As a result, we did not have a perpetual inventory signal. Without a perpetual inventory signal, we were never synchronized on where to place customer orders. His view was very transactional.

Supply Chain Planning Software 339

Supply Chain Planning Software Inventory Reduction Supply Chain Design Software Cost Reduction Strategies 339

Supply Chain Shaman

JANUARY 8, 2024

When compared to the peer group performance, smaller and regional players outperform larger companies. Intuitive Surgical, L’Oreal, and Sleep Number drove excellence through product and service innovation to outperform their peer groups. The supply chain has two important buffers–inventory and capacity. The reason?

Supply Chain Design Software 243

Supply Chain Design Software Supply Chain Planning Software Modeling Software Supply Chain Network Software 243

Supply Chain Shaman

APRIL 9, 2021

Rise in Inventories. Less Effective at Inventory Management. Inventories grew twenty days over the decade. Yes, companies held more inventory (measured in days of inventory) in 2019 than at the start of the 2007 recession. Sadly, most of it is the wrong inventory. Despite spending 1.1% Alignment Barriers.

Supply Chain Planning Software 360

Supply Chain Planning Software Procurement Analytics Supply Chain Performance Manufacturing Procurement 360

ToolsGroup

APRIL 17, 2024

The impact of AI and GenAI extends beyond traditional boundaries, with major tech groups like Google and Apple realigning their offerings to harness its potential. Marcello Pace, CEO of Scarpe & Scarpe , highlighted one such case, showcasing the transformative impact of AI and data in addressing inventory and margin challenges.

Supply Chain Design Software 294

Supply Chain Design Software Waste Reduction Supply Chain Planning Software Inventory Reduction 294

Supply Chain Shaman

APRIL 27, 2022

At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. When we compare the results of P&G to its peer group for 2012-2021, P&G outperforms in inventory turns and margin but underperforms in growth and asset utilization. Was this by design?

Procurement Analytics 339

Procurement Analytics Manufacturing Procurement Supply Chain Planning Software Supply Chain Design Software 339

ToolsGroup

JULY 29, 2021

You set aggregate and service class goals for different product groups or markets; the planning system will automatically translate customer service goals into SKU level service targets for each item within each service class. ? The results: a 33% inventory reduction and product availability increased to 96%.

Supply Chain Planning Software 295

Supply Chain Planning Software Supply and Demand Supply Chain Design Software Modeling 295

Logistics Viewpoints

MAY 25, 2021

The airline lobbying group Airlines for America announced in March that its member carriers will all go green by 2050. For retailers, supply chain sustainability is part of the conversation about inventory. That’s starting to change. More and more large U.S.

Supply Chain Planning Software 337

Supply Chain Planning Software Sustainability Supply Chain Software Inventory Reduction 337

Supply Chain Shaman

DECEMBER 7, 2023

I am currently doing research on inventory management. In the research, I ask inventory planners to define resilience. Of the twenty companies interviewed, only one can answer the question, “Do you have a good inventory plan?” No technology in the market measures inventory health. Today, this is not the case.

Supply Chain Design Software 316

Supply Chain Design Software Supply Chain Planning Software Modeling Supply Chain Software 316

Supply Chain Shaman

JULY 25, 2021

Only four percent of companies outperformed their peer groups. Orbit Chart of Four Industry Sectors at the Intersection of Operating Margin and Inventory Turns (Year-over-Year Averages for the Sector). Lack of Focus on Form & Function of Inventory and Designing Network Flows. How could the industry spend 1.7%

Procurement Analytics 370

Procurement Analytics Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Planning Software 370

Supply Chain Shaman

SEPTEMBER 5, 2022

Inventory Is an Egregious Symptom of Supply Chains Gone Wrong. Today, inventory fire sales abound. Headline news included Wal-Mart, Target, Kohl’s and Macy’s struggling with inventory bloat and offering deep discounts. Wall Street Journal Headline on Retailers Using Containers to Store Excess Inventories. My take away?

Supply Chain Planning Software 243

Supply Chain Planning Software Supply Chain Planning Supply Chain Software Supply Chain Strategy 243

Supply Chain Shaman

SEPTEMBER 3, 2018

Over the last six years, we studied the connection between business results (growth, operating margin, inventory turns and Return on Invested Capital (ROIC)) and the link to company characteristics. The technology group wanted to implement SAP IBP, and the business leaders were resistant. What did we find? The gap was large.

Supply Chain Planning Software 317

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Software 317

Supply Chain Shaman

AUGUST 12, 2020

I struggled to manage myself as I settled in elbow-to-elbow with the group to listen to the presentation. 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. Orbit Chart of Lenovo Performance Against Peer Group.

Gartner 243

Gartner Supply Chain Software Procurement Analytics Manufacturing Procurement 243

ToolsGroup

JUNE 15, 2020

During this stage project leaders should be communicating with leaders and other functional groups to help them understand how SCP will benefit their specific roles and goals. How will the company and different functional groups transition to life with the new SCP technology? How will the technology remove these barriers?

Supply Chain Planning Software 319

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Forecasting Software 319

ToolsGroup

JANUARY 6, 2022

Pre pandemic we were importing the majority of our inventory from East Asia, in particular China and Japan. These businesses often collect tires of high quality as spare inventory and do not have the infrastructure in place to sell them. Lesson #1: Global supply chain challenges have businesses turning to local suppliers.

Supply Chain Planning Software 290

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Supply Chain Strategy 290

Supply Chain Shaman

JUNE 29, 2021

Using balance sheet data from 2011 to 2019, we chart companies’ progress by peer group on rate of improvement and performance in the metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). A focus on functional metrics throws the supply chain out of balance.)

Supply Chain Planning Software 370

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Design 370

Supply Chain Shaman

JUNE 23, 2020

I find in my Supply Chains to Admire research that 96% of companies (when compared to their peer groups) are unable to drive improvement while delivering higher performance year-over-year on a balanced scorecard of growth, inventory turns, operating margin and Return on Invested Capital (ROIC). They did it. Examining The Current State.

Supply Chain Design Software 293

Supply Chain Design Software Supply Chain Planning Software Analytics Software Optimization Software 293

Logistics Viewpoints

FEBRUARY 2, 2023

Providing customers self-service access to their inventory data relieves 3PL staff from answering calls regarding inventory on hand for promotions, expiration dates connected to lot numbers and quantities, “available to promise” stock across multiple locations, and more. To learn more, visit Open Sky Group today.

Supply Chain Planning Software 235

Supply Chain Planning Software Inventory Management Software Analytics Software Forecasting Software 235

Logistics Viewpoints

AUGUST 1, 2024

In this scenario, by adopting an adaptive supply chain, the retailer uses real-time data analytics to identify emerging trends and collaborate closely with suppliers to quickly adjust production and inventory levels to meet customer demand. This collaboration enables faster response times and cost savings.

Modeling 283

Modeling Network Optimization Supply Chain Design Software Material Savings 283

Supply Chain Shaman

MAY 21, 2024

In fact, Estee Lauder has just finished an elaborate deployment of supply chain planning yet is not driving improvement faster than their peer group. Evaluate the performance of L’Oreal against peer group in Figures 3A and 3B. Note that L’Oreal is driving a faster level of improvement and market capitalization than Estee.

Procurement Analytics 347

Procurement Analytics Metrics Optimal Sourcing Supply Chain Planning Software 347

Supply Chain Shaman

JANUARY 25, 2024

With slim margins and ever-increasing inventories, companies invested less in capital assets. Today, this network operates with less capacity and ballooning inventories. Less than 1% of companies in this value chain outperform their peer group. Here I offer three starting points: ESG Initiatives Need to Focus on Inventory.

Supply Chain Network Software 273

Supply Chain Network Software Manufacturing Procurement Inventory Reduction Purchasing Skills 273

The Logistics of Logistics

SEPTEMBER 26, 2024

Demo is a Founding Partner and Chief Commercial Officer of IPL Group , a Panama based 3PL that helps companies expand their business into the Latin American market by simplifying order fulfillment and regional distribution. About IPL Group IPL Group helps global firms expand their business into the Latin American market.

Panama 213

Panama America Logistics Network Optimization Software Costa Rica 213