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Strategy. Strategy. Wherefore Art Thou Strategy?

Supply Chain Shaman

In contrast, those who outperformed were better at strategy and aligned with outcomes. Instead, the starting point, as shown in Figure 1, should start with a clear understanding of business strategy. The operating strategy–a major part of the supply chain strategy–flows from the business strategy.

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Aligning Supply Chain Metrics to Improve Value

Supply Chain Shaman

In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. Error is error, but is it the most important metric? My answer is no.

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Four Strategies What Worked

Supply Chain Shaman

Based on my research, I write about four strategies that drove value over the last decade. Colgate outperformed P&G in Return on Invested Capital (ROIC), and P&G exceeded Colgate in inventory turns. Which strategy drove the most significant value??” A Clear Strategy. Schneider Electric Strategy.

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The Secret to Rapid Digitisation: A Dual Platform Strategy

The Logistics & Supply Chain Management Society

This unlocks enormous value as you eliminate time lags, lower costs, and slash inventory buffers across the network. This strategy enables companies to achieve four critical objectives: Unlock value trapped in the supply network that is due to poor data quality and communication. This then sub-optimises the supply chain.

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How Can You Improve Value in Your Supply Chain?

Supply Chain Shaman

The problem is that the reduction of costs within one function does not necessarily drive value. In today’s architectures and functional metrics, value optimization does not exist. I think the rewiring starts with the education of the executive team, and that process should follow strategy. You are right.

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Make Room for Leadership to Drive S&OP

Supply Chain Shaman

How aligned do you believe your organization is to drive these metrics? P&G did not appreciate the work Gilette accomplished on form and function of inventory and using market signals. As a result, the company’s performance at the intersection of margin and inventory turns was circular for the past decade.

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We Should Not AI Stupid

Supply Chain Shaman

Most supply chain leaders focus on cost reduction and are unclear on value-based outcomes. In my forty years in the profession, supply chain leaders have waxed eloquently about improving models and engines to reduce functional costs. They want to keep discussing models and engines to reduce costs. I am no spring chicken.