Supply Chain Shaman

MAY 15, 2023

Use of Supply Chain Descriptors Most organizations are locked into functional silos driven by functional metrics. Stuck in a rut, supply chain leaders try to punch their way through a set of conflicting metrics and priorities each day. The metrics defining success in manufacturing and procurement do not align.

Manufacturing Procurement 448

Manufacturing Procurement Optimal Sourcing Agile and Lean Supply Chain Supply Chain Planning 448

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 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.) Understanding this relationship requires modeling. (A A Case Study.

Procurement Analytics 339

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

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. Now, let’s take consumer products. What can we learn?

Supply Chain Planning Software 418

Supply Chain Planning Software Forecasting Forecasting Software Modeling 418

Supply Chain Shaman

MAY 13, 2024

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.

S&OP 349

S&OP Supply and Demand Inventory Reduction Expense Reduction 349

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

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

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

OCTOBER 16, 2023

A shift from functional metrics to a balanced scorecard. I like the use of growth, margin, inventory turns, Return on Invested Capital, customer service and ESG metrics. The focus on functional metrics sub-optimizes balance sheet results. Funny, isn’t it? Improved Forecast Value Added (FVA).

S&OP 333

S&OP Supply and Demand Forecasting Supply Chain Design Software 333

Supply Chain Shaman

JULY 25, 2021

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. As supply chains moved from regional to global, intransit and cycle inventories increased.

Procurement Analytics 370

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

ToolsGroup

JANUARY 22, 2020

In my decades of working in replenishment and inventory optimization, I’ve noticed that many companies seek solutions to symptoms rather than the underlying problem. They want to have an aging report for inventory or a report on vendor performance. Let’s examine the first: inventory aging reports.

Optimization Software 199

Optimization Software Inventory Reduction Forecasting Software Supply Chain Planning Software 199

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. Reward teams for cross-functional metrics. Focus functional metrics to improving reliability. What did we find?

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

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

MAY 25, 2024

The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. The second part of the story is that inventory turns for Lenovo are 10.8, Ranking at #13, PepsiCo outperforms on inventory turns, but performance is declining. For the past decade, I have been studying these patterns.

Eliminating Excel in Purchasing 318

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

Supply Chain Shaman

JANUARY 9, 2024

An average margin of 21% with inventory turns of 1.58 As shown in Figure B, the company improved cash-to-cash through the extension of payables, but never improved inventory levels after the spin-off from Kraft. The group’s response is, “Are these supply chain metrics?” show a clear gap in performance.

Supply Chain Planning Software 299

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Gartner 299

Supply Chain Shaman

MARCH 21, 2024

We explore the concept of holistic inventory strategies focused on the form and function of inventory. In the process, we learn that only 15-20% of inventories are safety stock and that the current APS frameworks do not enable a holistic analysis of the form and function of inventory. Lack of aligned metrics.

Inventory Reduction 403

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

Supply Chain Shaman

JANUARY 8, 2024

No company in either the household non-durable (consumer goods) or the food manufacturing group beat their peer group on the balanced scorecard of growth, inventory turns, operating margin, and Return on Invested Capital (ROIC) for 2013-2022. The supply chain has two important buffers–inventory and capacity. 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

NOVEMBER 21, 2023

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. As a result, inventories ballooned after the DRP implementation. The metrics were not aligned. I also ran three outside warehouses.

Supply Chain Planning Software 339

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

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

Logistics Viewpoints

APRIL 21, 2021

What is the Perfect Delivery Metric? Improving on this metric will always involve a focus on people and processes, but often also includes implementing new, more robust, supply chain applications. The wrong metrics drive suboptimal behaviors and metrics can often be manipulated.

Sourcing Strategies 271

Sourcing Strategies How To Supply Chain Design Software Supply Chain Planning Software 271

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

OCTOBER 14, 2024

Solvoyo has a metric they call the user acceptance rate. This metric measures the percentage of time the planners accept replenishment, transportation, or inventory plans as they are without any change in the timing of the delivery or the quantity to be delivered. You set a target inventory level. That’s an action.

Supply Chain Planning Software 243

Supply Chain Planning Software Supply Chain Planning Procurement Analytics Scenario Planning 243

Supply Chain Shaman

NOVEMBER 21, 2024

Yawn and walk on if the answer is i mproving demand error or reducing inventory levels. On December 5th, Supply Chain Insights is hosting a small event at Georgia Tech to share the results of a two-year research effort to connect financial metrics by industry to supply chain performance to drive value.

Supply Chain Planning Software 367

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

Logistics Viewpoints

DECEMBER 15, 2022

ABC Analysis for Inventory Planning : Clustering products that behave similarly highlights issues, challenges, and opportunities for serving customers better. Price index and price elasticity are useful metrics on their own, and a combination of these can help determine the right price point to maximize revenue and profit.

Optimal Sourcing 220

Optimal Sourcing Analysis Procurement Analytics Purchasing Skills 220

Logistics Viewpoints

JUNE 19, 2023

However, AI’s inability to solve the very limited problem of ensuring that inventory is located in the right place in a warehouse suggests that planners don’t have to worry too much about job security. For fulfillment to be efficient, a warehouse needs the right inventory located in the right slots in a warehouse.

Supply Chain Design Software 261

Supply Chain Design Software Supply Chain Planning Software Supply Chain Network Software Optimization Software 261

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

Supply Chain Shaman

FEBRUARY 1, 2024

Optimization engines to improve functional metric performance resulted in an exploding number of planners. Rolling up a perpetual inventory signal takes eleven hours. days to get a perpetual inventory signal and 2.2 What is the impact of the amplification and distortion on inventory and cost? On average, it takes 2.8

Supply Chain Planning Software 342

Supply Chain Planning Software Optimal Sourcing Manufacturing Procurement Waste Reduction 342

ToolsGroup

MARCH 18, 2019

They also cut inventory levels, grew sales and resolved capacity issues. Establish joint responsibility for inventory to reduce the risk of obsolescence. Mohawk continues to fine-tune its S&OP process to optimize inventory in the planning system. Their S&OP program, however, was only the beginning.

Supply Chain Planning Software 228

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

Logistics Viewpoints

OCTOBER 4, 2021

A study by E2open – the 2021 Forecasting and Inventory Benchmark Study: Supply Chain Performance During the Covid-19 Pandemic – provides the answers. The company provides demand and inventory planning solutions based on a public cloud architecture. I look forward to this study every year. Forecasting Accuracy Was Terrible .

Inventory Reduction 255

Inventory Reduction Supply Chain Performance Cost Reduction Strategies Supply and Demand 255

Enchange Supply Chain Consultancy

JULY 3, 2024

Ensure they have the necessary inventory, marketing materials, and training to effectively introduce your products to the market. Internal Perspective: Performance Monitoring: KPIs and Metrics: Establish key performance indicators (KPIs) to monitor distributor performance. Encourage continuous learning and improvement.

Inventory Reduction 200

Inventory Reduction Supply Chain Planning Software Material Savings Price Mitigation Strategies 200

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

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

Logistics Viewpoints

JULY 10, 2024

Supply chain resilience refers to planning for things that could go wrong and then creating inventory buffers or contingency plans. SCP solutions provide a solid ROI based on hitting targeted service levels with less raw material, work-in-process, or finished goods inventory. This would be a three-way tradeoff.

Supply Chain Planning Software 271

Supply Chain Planning Software Supply Chain Planning Scenario Planning Modeling 271

Supply Chain Shaman

DECEMBER 7, 2022

Colgate outperformed P&G in Return on Invested Capital (ROIC), and P&G exceeded Colgate in inventory turns. ” So, I started work with Arizona State University to take balance sheet data from 2003-2007 to analyze which combination of metrics drove the highest market capitalization. The question was, “What mattered?

Inventory Reduction 55

Inventory Reduction Material Savings Supply Chain Strategy Price Mitigation Strategies 55

ToolsGroup

AUGUST 20, 2019

Gartner says that the most common outsourced SCP processes are inventory management, statistical forecasting and service parts planning. Companies moving to BPO in these practice areas are experiencing supply chain improvements in metrics such as inventory turnover and customer service. versus $4.84 per $1000 of revenue).

Supply Chain Planning Software 214

Supply Chain Planning Software Supply Chain Planning Gartner Supply Chain Software 214

Supply Chain Shaman

OCTOBER 13, 2022

The larger the organization, the more tension with conflicting functional metrics making decisions more difficult. Inventories increased by 44% due to supply chain volatility. Inventories grew year-over-year by 43%. Coming off a period of high growth, companies are struggling with margins and inventory. See the pattern?

Supply Chain Planning Software 221

Supply Chain Planning Software Modeling Supply and Demand Supply Chain Software 221

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. Data inventory and assessment: Conduct a comprehensive inventory of available data sources within the organization, including internal systems (e.g.,

Optimal Sourcing 274

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