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Congratulating the Supply Chains to Admire Winners

Supply Chain Shaman

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. This is the fun part of my job. This work is not easy. Today, it is not.

Gartner 212
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Getting Ready for 2017: Reflections on Telling Lies

Supply Chain Shaman

The gloomy streets will soon be alive with Mummers to ring in the New Year in Philadelphia. The Mummers Parade is a Philadelphia tradition. As I study research methods, and the market, I realize the lies I’ve spun for prior employers (Gartner and AMR Research) are untrue: The AMR Research Hierarchy of Supply Chain Metrics.

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How Can You Seize Opportunity If You Cannot Manage Risk?

Supply Chain Shaman

Companies with the lower score on the Index are driving faster rates of metrics improvement. Energizer and Unilever are driving the fastest rates of improvement and Clorox and P&G improvement rates are the slowest on the Metrics That Matter of Growth, Operating Margin, Inventory Turns, and Return on Invested Capital (ROIC)).

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The Fight of the Titans

Supply Chain Shaman

My caution is not so fast… 95% of companies are not making progress at the intersection of growth, operating margin, inventory turns and asset strategies. Figure 1: Supply Chain Metrics Are a Balancing Act. The metrics shown in Figure 1 are difficult to improve together. This is especially true for the Titans.

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Why Do We Forget to Define Supply Chain Excellence?

Supply Chain Insights

This past month I attended our Supply Chain Insights Bootcamp training led by Lora Cecere in Philadelphia and facilitated the first course of a Cross-Company Academy training, End-to-End Supply Chain Orchestration. What specific policies, processes, and metrics in the supply chain would achieve success in this strategy?

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Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

When we study 600 public companies by peer group, at the intersection of inventory turns and operating margin, only 5% drive improvement. An orbit chart is a plotting of data at the intersection of two metrics. In this case, the metrics are operating margin and inventory turns. Question the Basics. This is not progress.

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How Do You Define a Mature Supply Chain Planning Organization? (Part 1)

Supply Chain Shaman

It was a sultry day in Philadelphia. Integration of corporate social responsibility metrics in planning. There is a lack of clarity on what drives value and metrics are functional. Monthly design of the supply chain including form and function of inventory and inventory placement. Focus on the level of inventory.