The Logistics of Logistics

JUNE 14, 2024

trillion distortion inventory problem. Trillion Inventory Distortion Problem In this podcast, Karl Swensen, CEO and Co-founder of Pull Logic, discusses how their AI-enabled technology helps retailers, brands, and manufacturers reduce lost sales by addressing supply chain and selling process failure points. Summary: Solving the $1.8

Inventory Reduction 227

Inventory Reduction Inventory Inventory Management Software Modeling 227

Supply Chain Shaman

JULY 25, 2021

I find the industry complicit. To make the point, let me share an orbit chart for four industries (reference Figure 1). While some might claim that the industry made progress, the facts show that the industry margin decreased precipitously in three of the four industries shown. 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 22, 2024

Companies speak about moving from a functional metric focus to managing corporate metrics, but this does not happen. Of the 114 balance sheet metrics tested in work with the statisticians at Georgia Tech, operating margin improvement has the highest correlation to market capitalization. Hence the Facebook analogy.)

Cost Reduction Strategies 376

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

Logistics Viewpoints

JUNE 1, 2021

Why should we consider Promotion Planning in Inventory Management? Whether it be e-commerce, brick-and-mortar, or both, retail companies care about the inventory they keep. During promotional management, especially for big events around special days and holidays, inventory levels need to be adjusted to meet the peaks in demand.

Inventory Management Software 214

Inventory Management Software Supply Chain Planning Software Inventory Management Optimal Sourcing 214

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

Supply Chain Shaman

MAY 13, 2024

How aligned do you believe your organization is to drive these metrics? It preceded the crazy M&A activity in the process industries. P&G did not appreciate the work Gilette accomplished on form and function of inventory and using market signals. In assessing the health of the plan, what do you measure? Were they used?

S&OP 349

S&OP Supply and Demand Inventory Reduction Expense Reduction 349

Supply Chain Shaman

JANUARY 9, 2024

The industry struggles with groupthink. The industry is awash with ex-execs advising companies, speaking at events, and consulting. 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 The issue is ubiquitous.

Supply Chain Planning Software 299

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Gartner 299

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. Lenovo posts a 2% average margin compared to the industry average of 6%. The second part of the story is that inventory turns for Lenovo are 10.8, By charting the performance against peer groups, I could see the story.

Eliminating Excel in Purchasing 318

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

Supply Chain Shaman

JULY 6, 2020

Tom, the colorful warehouse manager, constantly heckled Frank for the increasing inventory levels while Ed, the quiet material/logistics manager, constantly questioned if there was a better way. He felt that inventory was no problem, he would just cut it at the end of each quarter to make the balance sheet goals. The So What?

Agile and Lean Supply Chain 297

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Planning Software Supply Chain Strategy 297

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. Orbit charts of four companies for the period of 2013-2022 at the intersection of operating margin and inventory turns. We talk about complexity, but do not measure the impact on forecastability.

Gartner 284

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

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. Inventory-based KPIs probably make sense for you, but how will you benchmark results?

Metrics 130

Metrics Modeling Supply Chain Planning Software Supply Chain Design Software 130

Supply Chain Shaman

JANUARY 8, 2024

An analysis of improvement, performance, and value of over 500 public companies in 28 industries over a decade. (I However, writing it is a great time to get into industry patterns and think. ” Compare the results to the industry trends. Look at the industry decline in Figure B. I posted my working summary.)

Supply Chain Design Software 243

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

Logistics Viewpoints

DECEMBER 18, 2024

The logistics and supply chain industry is a critical component of global trade, responsible for moving goods and materials efficiently to meet consumer and business demands. The industry’s dependency on traditional energy sources necessitates an urgent shift toward cleaner alternatives.

Optimal Sourcing 143

Optimal Sourcing Material Savings Supply Chain Design Software Supply Chain Planning Software 143

The Logistics & Supply Chain Management Society

JULY 20, 2020

Lockdown of cities and manufacturing plants have significantly impacted many industries’ supply chains. Relying on our experience in the industry and academic field, it is worth to say that if everything is urgent, nothing is urgent! Industry 4.0. Cyber Physical Systems (CPSs) are key enablers for Industry 4.0.

Agile and Lean Supply Chain 230

Agile and Lean Supply Chain Supply Chain Planning Software Supply Chain Design Software Supply Chain Software 230

Supply Chain Shaman

NOVEMBER 21, 2024

The industry has had little value from digital transformation and business networks. Yawn and walk on if the answer is i mproving demand error or reducing inventory levels. At the session, we will discuss the choice of metrics for a balanced scorecard to improve market capitalization/employee by industry.

Supply Chain Planning Software 367

Supply Chain Planning Software Modeling Software Modeling Supply Chain Network Software 367

Supply Chain Shaman

OCTOBER 29, 2020

Inventory, in this time of uncertainty, is the organization’s most important buffer to protect against variability. However, organizations are not good at managing inventory. Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle.

Optimal Sourcing 236

Optimal Sourcing Supply Chain Design Software Waste Reduction Inventory Reduction 236

Silvon Software

APRIL 29, 2022

Inventory can be a manufacturer’s most important asset. But a large inventory has its own liabilities such as cost to store and insure it, along with the risk of spoilage, theft and damage. The Basics of Inventory Management KPIs. Every inventory KPI needs a clearly defined goal.

Optimal Sourcing 119

Optimal Sourcing Inventory Reduction Procurement Analytics Price Mitigation Strategies 119

Supply Chain Shaman

MAY 3, 2015

When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” Inventory is the culmination of many business decisions. Tracking Progress.

Inventory Reduction 150

Inventory Reduction Supply Chain Design Software Supply Chain Planning Software Inventory Management Software 150

Logistics Viewpoints

FEBRUARY 16, 2021

And the impact doesn’t stop there, since trade-off decisions will be required to answer questions like which customer is most important to satisfy with the limited bolts in inventory and if production capacity should be reallocated. And then decisions on these questions will in turn affect other customers in your rattled supply chain.

Supply Chain Visibility 316

Supply Chain Visibility Agile and Lean Supply Chain Supply Chain Planning Software Scenario Planning 316

Logistics Viewpoints

DECEMBER 15, 2022

The retail industry is rich with data. ABC Analysis for Inventory Planning : Clustering products that behave similarly highlights issues, challenges, and opportunities for serving customers better. Another way is to cluster stores by looking at a specific category’s inventory productivity or sales performance.

Optimal Sourcing 220

Optimal Sourcing Analysis Procurement Analytics Purchasing Skills 220

Supply Chain Shaman

OCTOBER 29, 2014

I feel that the industry is engaged in ‘Group Think’ No one in this meetings is going to ask tough questions. As shown in table 1, the movement to adopt “integrated ERP and Supply Chain Planning software from an ERP vendor” moved the industry backward. Of course not… But, the industry is in a group think.

Supply Chain Planning Software 312

Supply Chain Planning Software Modeling Demand Planning Software Optimization Software 312

ToolsGroup

MARCH 18, 2019

Fine paper is an example of an industry whose total addressable market has been shrinking for decades and looks set to continue (see figure). Rather than cutting back, our customer Mohawk Industries decided to lean in. They also cut inventory levels, grew sales and resolved capacity issues.

Supply Chain Planning Software 228

Supply Chain Planning Software Supply Chain Planning Scenario Planning Agile and Lean Supply Chain 228

Supply Chain Shaman

FEBRUARY 1, 2024

I will share insights as we go along) The Word Salad Shuffle In the industry, I feel that there is a lot of word salad–consultants and technologists spinning words with little meaning to drive leads. Optimization engines to improve functional metric performance resulted in an exploding number of planners. On average, it takes 2.8

Supply Chain Planning Software 342

Supply Chain Planning Software Optimal Sourcing Manufacturing Procurement Waste Reduction 342

Supply Chain Shaman

OCTOBER 11, 2023

Or tired from two weeks of road travel… But after twenty years as an industry analyst in supply chain technology, I struggle with why we cannot make more progress in the adoption of technology to make better decisions. I am excited by the graph, but disappointed in the industry’s use of the graph to drive process improvement.

Supply Chain Planning Software 392

Supply Chain Planning Software Supply Chain Software Forecasting Software Supply Chain Network Software 392

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 211

Gartner Supply Chain Design Software Supply Chain Design Supply Chain Strategy 211

Supply Chain Shaman

OCTOBER 5, 2018

At the Supply Chain Global Summit 2018 , Francois discussed the impact of digitalization, Industry 4.0, 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.

Case Study 261

Case Study Inventory Reduction Agile and Lean Supply Chain Study 261

SCMDOJO

APRIL 27, 2022

Managing the flow of goods within the apparel industry requires an extensive and well-established supply chain network. Since this particular industry is insanely fast-paced, any problem within the supply chain can lead to a loss of sales for the business. Why Does the Apparel Industry Require Supply Chain Management?

Apparel 130

Apparel Supply Chain Design Software Supply Chain Design Supply Chain Optimization 130

DELMIA Quintiq

MARCH 30, 2023

This is what it’s like for manufacturers with siloed operations that lack visibility—especially in industries with more complex products such as Industrial Equipment. Why does Industrial Equipment need MCT? To learn more, download the whitepaper Centralizing Control of Manufacturing Operations in Industrial Equipment.

Manufacturing 156

Manufacturing Real-time Visibility Supply Chain Planning Software Industrial 156

Supply Chain Shaman

AUGUST 12, 2020

The first step was to charter a research project with the Arizona State University statistics department to analyze which combination of metrics drives the highest market capitalization. The research project analyzed 1200 combinations of 180 metrics for four hundred companies for the period of 2010-2012. The result? The reason?

Gartner 243

Gartner Supply Chain Software Procurement Analytics Manufacturing Procurement 243

Supply Chain Shaman

JULY 22, 2019

Smaller, more agile companies outperform the larger and well-known brands in the retail, beverages, food, and pharmaceutical industry sectors. Industry-by-industry, I compiled data for the period of 2010-2018. The study of improvement and performance for the 535 companies in 26 industries took two months.

Supply Chain Design Software 254

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

Logistics Viewpoints

JULY 23, 2024

Collaborative discussions can help identify relevant data sources and metrics that capture the end-to-end supply chain process and align with overall business goals. Leveraging their industry knowledge and experience will streamline the process of identifying and collecting the data needed to fuel AI-driven insights and decision-making.

Optimal Sourcing 274

Optimal Sourcing Agile and Lean Supply Chain Supply Chain Software Modeling 274

Logistics Viewpoints

NOVEMBER 20, 2024

Technologies such as artificial intelligence, IoT, and predictive analytics enable smarter inventory management, real-time tracking, and predictive maintenance, reducing waste and costs. Industry leaders must navigate these intersections carefully, balancing priorities and stakeholder expectations to achieve the most significant impact.

Waste Reduction 244

Waste Reduction Sustainability Supply Chain Design Software Resource Reduction 244

Supply Chain Shaman

SEPTEMBER 28, 2022

Ford, historically has been an industry laggard in the automotive sector and, with this focus, will continue to be a laggard in the future. Results in the Automotive Industry for the period of 2012-2021. We find that three factors mattered: organizational alignment, descriptive analytics, and inventory management. Conclusion.

Manufacturing Procurement 195

Manufacturing Procurement Supply Chain Design Software Network Design Software Supply Chain Planning Software 195

Supply Chain Shaman

FEBRUARY 26, 2024

Based on the work with Georgia Tech, we are getting clear on which metrics matter by industry. As companies adopt a balanced scorecard, the functional metrics shift to a focus on reliability. The implementation of NoSQL for inventory management gives them an inventory signal with little to no process latency.

Modeling 207

Modeling Supply and Demand Optimal Sourcing Supply Chain Planning Software 207

Supply Chain Shaman

NOVEMBER 15, 2021

Self-reported projections of the ocean carriers forecast that the industry is posting over $200B in profits. Yes, a single year offsets twenty years of poor margins for a struggling industry. Inventories in the chemical industry are at record lows: a forerunner of bad days ahead. profit for Q3 on $16.6B Time For Action.

Supply Chain Design Software 285

Supply Chain Design Software Supply Chain Planning Software Sourcing Strategies Supply and Demand 285

Supply Chain Shaman

OCTOBER 8, 2019

The number one question that I am asked today by manufacturers across all industries is “How can I improve customer service?” Granular data by volume is a must to be able to manage replenishment, network design, and inventory targets. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability.

Supply Chain Design Software 189

Supply Chain Design Software Inventory Reduction Supply Chain Planning Software Forecasting 189

Supply Chain Shaman

AUGUST 7, 2019

Understand Industry Performance. Build an industry peer group and gain insights on major trends. In Figure 1, we show the aggregate trend of the chemical industry in an orbit chart format showing year-over-year results at the intersection of two metrics operating margin and inventory turns. inventory turns.

Supply Chain Design Software 253

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Supply Chain Design 253