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Picture this: You’re a warehouse manager, and with a few taps on your smartphone, you instantly know the exact location and quantity of every item in your inventory. That’s not science fiction—it’s the power of mobile inventory management. Ready to turn your inventory from a headache into a strategic asset?
Choosing the right inventory management software , often referred to as an inventory control system, can be the difference between a well-oiled, profit-generating operation and one plagued by costly mistakes and inefficiencies. Modern inventory management solutions have evolved far beyond basic stock counting.
His company had just implemented SAP IBP , and he was not a fan. Companies speak about moving from a functional metric focus to managing corporate metrics, but this does not happen. Capturing this value will never happen by focusing on cost reduction based on functional metrics no matter how advanced the engines.
While the performance rankings were based on comparisons of inventory turns, operating margin and Return on Invested Capital (ROIC) for the periods of 2006-2013 and 2009-2013, the concept is that to be a supply chain leader you must outperform and drive improvement. Aligned Metrics. What does an investment in SAP mean for a company?
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?
I am speaking this morning at the Terra Technology conference and doing a book signing of my new book, Supply Chain Metrics That Matter. Several good friends in consulting roles are sharing information on SAP HANA from SAP Insider; and this morning, LLamasoft announced the acquisition of the LogicTools assets from IBM.
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. The technology group wanted to implement SAP IBP, and the business leaders were resistant. Reward teams for cross-functional metrics.
Bill was a strong advocate of SAP ERP. 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.
The goal of this blog is to help business users maximize their current SAP Investments in a time of change. While the name of SAP’s Supply Chain Planning suite has changed to SCM7 (the old name was SAP APO), the gaps are glaring. For SAP users, it is the best and a much needed system of record. Reflections.
The goal of this blog is to help business users maximize their current SAP Investments in a time of change. While the name of SAP’s Supply Chain Planning suite has changed to SCM7 (the old name was SAP APO), the gaps are glaring. For SAP users, it is the best and a much needed system of record. Reflections.
How are companies rethinking their liquidity management strategies in response to the recent degradation across major working capital metrics? In the wake of economic uncertainty, many companies have experienced a degradation in key working capital metrics.
SAP touts “best-run companies” while the Accenture ads claim “ high-performance supply chains.” It is a quest and the subject of my next book, Metrics That Matter , that will publish in September, 2014. And, recently, Procter & Gamble is more focused on improving inventory turns. I shake my head.
Shell operates as a single-instance of SAP Enterprise Resource Planning (ERP). Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. What can often look like compliance in APO could actually be numbers calculated in Excel and posted into the SAP system.
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.
2) The focus needs to be on driving a balanced portfolio of metrics that goes across the organization. Team members need to be held equally accountable for growth, inventory, profitability, customer service, and forecast accuracy. Demand Supply Chain alignment inventory turns Sales and operations planning' Why It Matters.
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.
The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study. Inventory management is a hot issue. Companies invest in project after project, yet inventory levels remain the same. The Business Problem. The analogy is weight loss.
Here “near real-time” is defined as a refresh of key metrics every five minutes. They use SAP as their ERP. Generating the analytics in SAP also would not work. Longbow Advantage’s main business has been doing warehouse management system (WMS) implementations. The real-time reporting of work was weaker than expected.”.
Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics.
The data is all anonymous, but retailers can look at metrics such as time to fulfill, pack time, conversions, and ship versus pick-up, to name a few, across hundreds of Active Omni customers. Infor is able to use its visibility application to dynamically update ETAs and look at the impact on inventory.
The second generation of solutions were built and marketed by Enterprise Resource Planning technology companies like SAP and Oracle. It is tough for me to see that nine out of ten companies are stuck, and not making progress, at the intersection of operating margin and inventory turns. The book is a story.
We find that three factors mattered: organizational alignment, descriptive analytics, and inventory management. Companies driven by functional metrics struggled: they could not adapt quickly to the higher transportation costs.). There was a negative correlation with companies adhering to tight SAP standardization.) Conclusion.
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?
The goal was to take data directly out of disparate source data systems including different versions of SAP and different types of supply chain planning, and then quickly assemble a common data model. The algorithms generate recommendations on optimal ways to rebalance inventory based on cost and service level impacts.
Benji Green, director of global sales, operations and inventory planning, Avaya. Session Title: “Accelerating Vision to Value: Integrating Supply Chain Operations” Avaya has been on a 4 year transformation to create a Best In Class supply chain with industry leading On Time Ship, Inventory Turns, and Expense to Revenue ratio.
However, in the polling data in the APICS webinar, we found that over 70% of the respondents had deployed solutions from the ERP-expansionists (either SAP or Oracle). Today, SAP and Oracle have market share dominance; however, the data is clear. The SAP and Oracle analyst relations groups are big machines. It is uncomfortable.
Reason #6 Not effectively managing inventory. In today’s competitive manufacturing environment, the only metrics that count are how a change impacts the company’s goals. Reason #3 Not having end-to-end supply chain visibility. Reason #4 Making key decisions by modelling the supply chain in Excel. I’ll tell them what they are getting.”This
At the time, DuPont, now acquired by DOW, boasted externally on internal adherence to SAP standardization for decision support. Companies tightly coupling the budget to S&OP have significantly higher inventories and lower growth than their peer group. Industries carried on average 32 days more inventory in 2020 than in 2007. (I
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). In 2018, Rockwell Automation won the Supply Chains to Admire Award. Meet Ernest.
Then it is off to Dallas to speak on Supply Chain Metrics That Matter at the Dallas CSCMP roundtable and complete some more client work. The supply chain is a complex system and these metrics are tightly linked in non-linear relationships. Figure 2: Supply Chain Effective Frontier. Figure 3: Defining Planning Architectures.
In addition, 85% of the vendors in the multi-tier inventory optimization market that I wrote about in 1995, are now part of larger platforms. Evolution of S&OP Options for SAP. I like what SAP is doing for SAP IBP. In many organizations, SAP is a planning system of record for hundreds and thousands of planners.
Granular data by volume is a must to be able to manage replenishment, network design, and inventory targets. A simplistic view is that supply chain excellence is the trade-off of cost, inventory and customer service. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability.
Most small businesses use an ERP system from companies like SAP, NetSuite and Microsoft. But they fall short of providing inventory optimization and rationalization. Achieving a well-balanced, efficient inventory is no small task as supply chain complexity is ever increasing. How do you get there?
SAP Announces Second Quarter and First Half Results 2013. Here are some additional details from the press release: Data Services data sets will include mode-specific transportation costs and transit times, facilities cost estimates, demographics, risk metrics, duties and taxes, sustainability metrics and others.
The winners drive improvement while posting financial results in the Supply Chain Metrics That Matter ahead of the peer group. Inventory Turns. Better performance in inventory turns than the peer group average for the period of 2006-2015. The performance factors evaluated in the analysis are: Growth. Operating Margin.
With new sales leadership, with the addition of Dale Erker and Robert McFarland (prior experiences selling software at IBM, JDA, Manugistics and SAP), I expect LLamasoft to become much more aggressive in selling network design capabilities to the global multinational. The Acquisition Is a Mixed Bag for the Inventory Management Market.
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). In 2018, Rockwell Automation won the Supply Chains to Admire Award. Meet Ernest.
Improvement on the key metrics of growth, inventory turns, operating margin and Return on Invested Capital (ROIC) is elusive. Contractually, analyst work at existing companies must be reviewed by large software companies (primarily SAP and Oracle). Then it was sexy. Today, it is not. There is struggle.
Gone are the days of paper inventory tracking and manual data entry. The businesses of tomorrow need technology solutions that give real-time information in order to make key business decisions when it comes to inventory. It’s also critical to your inventory management strategy. Case Study: NFPC Enhances ERP to Gain 99.9%
This boosts revenues and optimises inventory. This can be applied to inventory management, fleet and order tracking, ID badging. Amazon’s supply chain heavily depends on the outsourcing of its inventory management. Oxford Economics and SAP (2020). Oxford Economics & Sap. billion (based on 2018 sales).
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As As a group, these metrics have the highest correlation to market capitalization. They include growth, inventory turns, operating margin and Return on Invested Capital (ROIC)). Inventory Turns. Improvement.
Metrics Definition. The organization needs to be clear on the Metrics That Matter and the alignment of vertical silos’ metrics to the balanced portfolio. Forecasting hierarchies need to roll up to define business requirements, and inventory needs to be reported by form and function. Form and Function of Inventory.
In 2007-2014 Terra added inventory management, multi-tier demand sensing, transportation forecasting, and long-term forecasting. While ToolsGroup and SAP (with the acquisition of SmartOps) are the nearest competitors, Terra prided itself on delivering better decisions through better math.
I think that IBM, HP, Microsoft, Oracle, SAP and Teradata are victims today in the information technology sector. Inventory piles up and revenues gaps are closed by pushing product into the market. In a SAP shop, I would stabilize the investments in SAP APO or SAP SCM 7. This is disruptive innovation.
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