Supply Chain Shaman

DECEMBER 15, 2022

If you answer the survey, I will gladly give you a custom analysis of your organization against the peer group. The financial teams, and the Information Technology (IT) groups, did not see alignment gaps, but the supply chain teams felt them and viewed them as a critical performance issue. Functional Metrics.

Manufacturing Procurement 393

Manufacturing Procurement Supply Chain Design Software Supply Chain Planning Software Procurement Analytics 393

Supply Chain Shaman

SEPTEMBER 3, 2018

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. ” I am not sure that I convinced the group, but I got them to think.

Supply Chain Planning Software 316

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Software 316

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. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) I never calculated and accounted for the inter-dependencies between metrics.

Procurement Analytics 337

Procurement Analytics Manufacturing Procurement Supply Chain Planning Software Supply Chain Design Software 337

Supply Chain Shaman

MAY 25, 2024

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. The first step was to find a reliable data set and establish the peer groups. The second step of establishing peer groups was trickier.

Eliminating Excel in Purchasing 316

Eliminating Excel in Purchasing Gartner Supply Chain Design Supply Chain Strategy 316

Logility

MAY 22, 2020

The obvious danger of this is that business rules and data governance often don’t exist from department to department or user to user, leaving an overall picture into the health of the business that is foggy because KPIs and metrics do not correlate across the organization. A great example of this comes from a Logility customer.

Analytics Software 148

Analytics Software Metrics Supply Chain Design Software Supply Chain Software 148

ivalua

SEPTEMBER 10, 2019

Here’s a look at some of the Procure- to-Pay metrics procurement leaders should watch in order to better understand their digital progress. This metric closely aligns with digital transformation progress. This metric also impacts others like speed, visibility, and cost savings. . #2

Metrics 140

Metrics Negotiate Pricing Supply Chain Software Benchmarking 140

Logistics Viewpoints

DECEMBER 15, 2022

The idea is that data points within a group share similar properties, and each group is different (statistically speaking) from another. Retailers can apply cluster analysis techniques in different ways to find groups of customers, products, stores, or suppliers that behave similarly. The retail industry is rich with data.

Optimal Sourcing 254

Optimal Sourcing Analysis Procurement Analytics Purchasing Skills 254

Logility

AUGUST 5, 2021

But before you start measuring everything in sight – and a few things not in sight – start with a set of thoughtful intentions and questions that will guide you to the right set of metrics and the right set of expectations. Cash-Cash Cycle Time; Return on SC Fixed Assets; Return on Working Capital ASCM SCOR Metrics, Supply Chain Council.

Metrics 130

Metrics Modeling Supply Chain Planning Software Supply Chain Design Software 130

Supply Chain Shaman

JULY 25, 2021

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%

Procurement Analytics 370

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

Logistics Viewpoints

JANUARY 3, 2025

The DOE is still issuing large federal loans to startup companies, Novonix a synthetic graphite startup just received a $755 million loan to support its mission and reach its goal of producing 31,500 metric tonnes of synthetic graphite. The facility aims to reach full production capacity by the end of 2028.

Supply Chain Software 280

Supply Chain Software Negotiating Skills Supply Chain Planning Software Purchasing Training 280

Supply Chain Shaman

JANUARY 9, 2024

They are unconscious that they are underperforming their peer group and have not driven industry improvement. 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. The group is pragmatic. Challenge this paradigm.)

Supply Chain Planning Software 298

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Gartner 298

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 402

Inventory Reduction Supply Chain Planning Software Cost Reduction Strategies Supply Chain Design Software 402

Supply Chain Shaman

SEPTEMBER 9, 2014

It is the end of a two-year research project, and identifies which publicly held companies outperformed their peer group on balance sheet results. We built peer groups based on like industries. How did you define peer groups? As a result, we report their results along with their pharmaceutical peer group.

Pharmaceutical 274

Pharmaceutical Gartner Supply Chain Design Software Supply Chain Design 274

Supply Chain Shaman

APRIL 9, 2021

Informational Technology groups reporting to the Chief Financial Officer. Focus on functional metrics without alignment to a balanced scorecard to drive value. Over the last decade, in the building of global supply chains, organizations grew more political with gaming on metrics. Mistake #2. Mistake #3.

Supply Chain Planning Software 360

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

Logistics Viewpoints

NOVEMBER 3, 2022

The latter refers to a single variable standard (SVS), by which one metric, such as cases per hour, is expected to tell all. What’s more, because an SVS approach only accounts for one metric at a time, a host of other equally if not more important metrics are bypassed, leaving you largely in the dark. Ad infinitum.

Supply Chain Design Software 256

Supply Chain Design Software Optimization Software System Logistics Network Optimization Software 256

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 gaps widened in the past five years. This happened pre-pandemic. Any takers here?

Supply Chain Design Software 243

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

Supply Chain Shaman

MARCH 19, 2014

As an analyst in the market for the past ten years (first with Gartner, then with AMR Research, followed by my work at Altimeter Group and now with my own firm Supply Chain Insights), I have stood in front of clients doing strategy days advocating “best practices” and I wanted to set the record straight. We have stubbed our toes.

Gartner 314

Gartner Supply Chain Planning Software Supply Chain Strategy Supply Chain Software 314

Supply Chain Shaman

JANUARY 2, 2024

We talk about the move from functional metrics to a balanced scorecard, but we don’t use a balanced scorecard as an objective function. They underperform in their peer groups against companies weaker in planning. Gartner Comparison to the Industry Peer Group For more on the methodology, check out the powerpoint summary online.

Gartner 283

Gartner Supply Chain Planning Software Supply Chain Design Software Case Study 283

Supply Chain Shaman

OCTOBER 29, 2014

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.

Supply Chain Planning Software 311

Supply Chain Planning Software Modeling Demand Planning Software Optimization Software 311

Supply Chain Shaman

FEBRUARY 18, 2021

Watermelon Metrics Don’t Drive The Right Results. I love the metaphor of watermelon metrics. This was a gift from a member of a group that I am facilitating.) The issue is that traditional functional metrics drive underperformance—the greater the variability, the larger the gap. What are functional metrics?

Supply Chain Planning Software 283

Supply Chain Planning Software Supply Chain Design Software Supply and Demand Procurement Analytics 283

Supply Chain Shaman

FEBRUARY 4, 2025

Functional Metrics and the Lack of Alignment to Strategy. Few companies are clear on the number of supply chains they operate, design the rhythms and cycles of each, and align metrics to the strategy. I define supply chain excellence as the ability to outperform an industry peer group during a time period. Clarity on Value.

Supply Chain Design Software 221

Supply Chain Design Software Price Reduction Cost Reduction Strategies Supply Chain Planning Software 221

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

Supply Chain Shaman

APRIL 18, 2023

For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. Companies driving digital transformation did not outperform their peer groups during the past three years. Tougher than most understand. United States Inflation Rates and GDP Inflation is the highest in forty years. The reason?

Supply Chain Planning Software 386

Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing Supply Chain Software 386

Supply Chain Shaman

JULY 22, 2019

In the Supply Chains to Admire analysis, the focus is to understand the relative performance of a company within a peer group of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). (We We selected these metrics based on correlation work with Arizona State University in 2012. Target Setting.

Supply Chain Design Software 254

Supply Chain Design Software Supply Chain Planning Software Gartner Supply Chain Software 254

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. The metrics were not aligned. Map the different metrics and incentives in the organization to behavior. Map influence groups and gain an understanding of social connections. His view was very transactional.

Supply Chain Planning Software 337

Supply Chain Planning Software Inventory Reduction Supply Chain Design Software Cost Reduction Strategies 337

Logistics Viewpoints

JULY 7, 2022

These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. Prior to Oracle, Joan held product marketing and strategy positions at Unilever, Qualcomm, Amadeus IT Group and various start-ups focusing on cloud applications and supply chain.

Material Savings 304

Material Savings Waste Reduction Resource Reduction Supply Chain Design Software 304

Supply Chain Shaman

JUNE 19, 2018

It is now our fifth year of analyzing balance sheets to understand which companies are outperforming their peer groups on the metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC) while driving improvement. We group companies by industry sector because the industries are so different in performance.

Gartner 210

Gartner Supply Chain Design Software Supply Chain Design Supply Chain Strategy 210

Supply Chain Shaman

OCTOBER 5, 2018

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.

Case Study 261

Case Study Inventory Reduction Agile and Lean Supply Chain Study 261

Supply Chain Shaman

APRIL 16, 2014

I have taken myself off the road to write the book Metrics That Matter. Before the session, ask a small group to chart your progress on the Effective Frontier using orbit charts. You just do not see the patterns of the interrelationships of metrics in an Excel spreadsheet. Then give the group an innovation fund.

Supply Chain Design Software 279

Supply Chain Design Software Agile and Lean Supply Chain Modeling Supply Chain Planning Software 279

Supply Chain Shaman

MARCH 5, 2019

Groups throw-out concepts. The focus is on functional metrics, but are unable to get to overall supply chain metrics. Groups rally around the concept of real-time. Here I smile, and I hope that groups take pause.). It looks like this. They sound good. As a result, people have a false sense of agreement. My caution?

Supply Chain Design Software 293

Supply Chain Design Software Real-time Visibility Prescriptive Analytics Software Supply Chain Planning Software 293

Supply Chain Shaman

JULY 6, 2020

Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. The second step is to align metrics to the strategy. A focus on cross-functional metrics improves supply chain resiliency. (I The So What? ” I share it because it is real life.

Agile and Lean Supply Chain 296

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Planning Software Supply Chain Strategy 296

Supply Chain Shaman

JUNE 13, 2017

If the arrow is red, the industry is moving backwards on a metric. While we agree that each of these companies are leaders with significant contributions to the industry, we do not find these companies outperforming when compared against their peer groups on a balanced portfolio of metrics. BASF cannot be compared to P&G.

Supply Chain Planning Software 0

Supply Chain Planning Software Supply Chain Software Supply Chain Planning Supply Chain 0

Supply Chain Shaman

NOVEMBER 9, 2014

It was my first time working with this group. The group laughed. ” The group was quiet as we discussed the fact in the traditional organization that functional silos are not designed to work together. When all functions are jointly focused on improving these metrics, then we can have one team. What do you think?

Manufacturing Procurement 286

Manufacturing Procurement Optimal Sourcing Benchmarking Supply Chain Design Software 286

Supply Chain Shaman

DECEMBER 7, 2022

Over time, I used this group as a research panel to better understand the choices made by supply chain leaders and what made a difference in balance sheet performance. While never exceeding its peer group, the company demonstrated progressive and apparent progress. What I love in this strategy is the focus on simplification.

Inventory Reduction 55

Inventory Reduction Material Savings Supply Chain Strategy Price Mitigation Strategies 55

Supply Chain Shaman

MAY 29, 2014

To be valid, I believe that companies must be compared within a peer group. 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. I find value in looking at these metrics together.

Gartner 303

Gartner Inventory Reduction Supply Chain Planning Software Pharmaceutical 303

Supply Chain Shaman

DECEMBER 18, 2014

Most have a supply organization that has a sub-group that is chartered with forecasting demand for use by supply. In contrast, the demand organization that I am advocating is an analytics group that crosses over sales and marketing into supply. I can count the number of companies with a demand organization on one hand.

Supply and Demand 279

Supply and Demand Forecasting Supply Chain Planning Software Forecasting Software 279

Supply Chain Shaman

MARCH 18, 2018

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. This is number 15 in a series that looks critically, industry by industry, to understand relative improvement of peer groups on the Effective Frontier. Cash-to-cash is a compound metric. These have taken us a year to produce.

Optimal Sourcing 172

Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software Supply Chain Optimization 172