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

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? Buffer strategies.

Supply Chain Planning Software 317

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Software 317

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

GlobalTranz

JULY 13, 2015

Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. What Distribution Center Metrics Need Tracking? However, the most important metrics can be categorized into the following eight areas. On-Time Shipping.

Procurement Analytics 120

Procurement Analytics Metrics Distribution Inventory Reduction 120

ToolsGroup

MARCH 1, 2018

By using data to stock items with higher forecasted demand, they can reallocate cash that would normally be tied up in poorly performing inventory, avoid margin erosion from markdowns and dead stock, and increase overall on-shelf availability metrics. Engineer Profit.

Inventory Reduction 189

Inventory Reduction Retail Inventory Supply Chain Planning Software 189

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

OCTOBER 22, 2015

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.

Inventory Reduction 150

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

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

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

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

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

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

Supply Chain Shaman

SEPTEMBER 3, 2015

We were discussing the results of the planning benchmarking work that we have just finished, and I was sharing some insights on inventory management when one of the panelists emphatically stated, “Inventory is a waste to manage. We feel so strongly about this that we do not have an inventory planning role.”

Waste Reduction 150

Waste Reduction Inventory Reduction Inventory Optimal Sourcing 150

Supply Chain Shaman

JUNE 6, 2013

Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. More advanced supply chain leaders model the role of complexity (product and customer), the impact of risk, and opportunity of innovation as well as product shipping and manufacturing locations, and inventory policies.

Supply Chain Planning Software 280

Supply Chain Planning Software Supply Chain Planning Optimal Sourcing Scenario Planning 280

Supply Chain Shaman

SEPTEMBER 17, 2014

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. Can you help us with what you see in the data?”

Optimal Sourcing 302

Optimal Sourcing Supply Chain Design Software Supply Chain Planning Software Manufacturing Procurement 302

Supply Chain Shaman

APRIL 1, 2015

I am speaking this morning at the Terra Technology conference and doing a book signing of my new book, Supply Chain Metrics That Matter. In parallel, I have been hard at work on a report on multi-tier inventory optimization for the last two weeks. It is morning in Orlando. The sun is rising. This inbound news adds to the story.

Supply Chain Design Software 150

Supply Chain Design Software Supply Chain Planning Software Network Design Software Optimization Software 150

GlobalTranz

JULY 20, 2015

BONUS: Download the Ultimate Guide to Transportation Reverse Logistics White Paper. Importance of Metrics in Reverse Logistics Management. To monitor progress against its reverse logistics management plan, a company needs metrics that measure the financial impact of returns on the firm and on other members of the supply chain.

Reverse Logistics 120

Reverse Logistics Supply Chain Planning Software Supply Chain Network Software Optimization Software 120

Unleashed

MARCH 9, 2021

This is often managed with the help of supplier management software or inventory management software. For example, industries like transportation and logistics, technology or consumer goods will focus more on supplier collaboration. That’s where Procurement Metrics and Key Performance Indicators (KPIs) come into play.

Procurement Analytics 104

Procurement Analytics Procurement Solutions Optimal Sourcing Material Savings 104

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

GlobalTranz

OCTOBER 19, 2015

Transportation management is no longer a tactical approach to simply moving freight and doing it at the lowest possible cost. 10 Tips to Remain Competitive and Have an Effective Transportation Management Strategy. 10 Tips to Remain Competitive and Have an Effective Transportation Management Strategy.

Transportation Management 120

Transportation Management Resource Reduction Cost Reduction Strategies Optimal Sourcing 120

Supply Chain Shaman

SEPTEMBER 28, 2022

We find that three factors mattered: organizational alignment, descriptive analytics, and inventory management. There was a strong negative correlation (at an 80% confidence level) when companies were not aligned between customer service and transportation. Multi-tier inventory management by itself was not sufficient.

Manufacturing Procurement 195

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

Logility

AUGUST 25, 2020

in inventory write-down and 20% drop in stock value. Every company today runs on data – the key to using your data is choosing the right metrics for visibility into your supply chain. Management must be cognizant of issues of procurement, manufacturing, inventory, and distribution that impact satisfaction and loyalty.

Supply Chain Planning Software 173

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Software 173

Logistics Viewpoints

NOVEMBER 20, 2024

Transportation, warehousing, and manufacturing collectively contribute significantly to carbon emissions, making these areas critical for meaningful change. Similarly, shifting freight from road to rail or waterways offers lower-emission alternatives for long-haul transport. Efficiency is a vital component of economic sustainability.

Waste Reduction 244

Waste Reduction Sustainability Supply Chain Design Software Resource Reduction 244

QAD

JULY 1, 2021

Total manufacturing costs showcase how much your company spent to produce its inventory in a given period of time. This is not to be confused with the cost of goods manufactured (COGM), which refers to just the cost of inventory that was finished and prepared for the sale in the period. Notice that it’s direct materials.

Manufacturing Procurement 98

Manufacturing Procurement Procurement Analytics Cost Reduction Strategies Purchasing Skills 98

Supply Chain Shaman

NOVEMBER 9, 2014

I believed that we would find a company with the lowest distribution costs (warehousing and transportation), and the lowest manufacturing costs, and this would result in the best overall cost structure. I also believed that this company would have the best inventory and customer service. I was wrong. We never found this company.

Manufacturing Procurement 286

Manufacturing Procurement Optimal Sourcing Benchmarking Supply Chain Design Software 286

Logistics Viewpoints

FEBRUARY 21, 2022

This configuration screen shows how Solvyouo maps transportation constraints. The primary payback for demand and supply solutions comes in the form of reducing the amount of raw material, work-in-process, and finished goods inventory a company needs to carry. Here the savings are based on transportation and facility cost savings.

Supply Chain Planning Software 295

Supply Chain Planning Software Supply Chain Planning Scenario Planning Modeling 295

Logistics Viewpoints

NOVEMBER 3, 2022

The latter refers to a single variable standard (SVS), by which one metric, such as cases per hour, is expected to tell all. What’s more, because an SVS approach only accounts for one metric at a time, a host of other equally if not more important metrics are bypassed, leaving you largely in the dark. Inventory mix.

Supply Chain Design Software 238

Supply Chain Design Software Optimization Software System Logistics Network Optimization Software 238

GlobalTranz

SEPTEMBER 23, 2021

Talent shortages, especially limited drivers, will exacerbate the capacity crunch and result in shortages across warehousing and transportation simultaneously.? . Pent-up demand of customers and the strong predictions for another above-average peak season has put a unique burden on truckload and parcel transportation. Focusing on the?

Prescriptive Analytics Software 308

Prescriptive Analytics Software Optimal Sourcing Pricing Training Negotiating Skills 308

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 22, 2021

nodes), flows of the products between origin-destination pairs, and policies (inventory, replenishment, asset utilization etc) with no clear accountability on how the recommendations make their way into planning and execution. Strategic placement of inventory buffers to ensure sufficient ability to absorb shocks.

S&OP 271

S&OP Supply and Demand Optimal Sourcing Supply Chain Design Software 271

Supply Chain Shaman

MARCH 5, 2019

While there are many types of visibility (see Figure 1), the most common use case is either sourcing or transportation visibility. The focus is on functional metrics, but are unable to get to overall supply chain metrics. Visibility. The most common use case for control towers is visibility. Gaps in Enterprise Visibility.

Supply Chain Design Software 294

Supply Chain Design Software Real-time Visibility Prescriptive Analytics Software Supply Chain Planning Software 294

Supply Chain Shaman

NOVEMBER 15, 2021

Inventories in the chemical industry are at record lows: a forerunner of bad days ahead. While we will recover quickly in retail (moving from painful shortages to a glut of inventory), the chemical industry–sitting four and five layers back in the supply chain–takes longer to recover. Retail shelves are increasingly empty.

Supply Chain Design Software 285

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

GlobalTranz

OCTOBER 6, 2021

OTR freight represents a long-standing aspect of supply chain operations and transportation management. M odern transportation networks and supply chains continuously adapt to market volatility and transitions.

Prescriptive Analytics Software 216

Prescriptive Analytics Software Analytics Software Optimal Sourcing Supply Chain Network Software 216

Supply Chain Shaman

MAY 1, 2023

The techniques to improve agility are improving data transparency/insights, use of attribute-based planning, design of push-pull decoupling points, pooling of inventory, and configure-to-order/make-to-order manufacturing. Inventory as Waste. Manage inventory as a liability. Inventory as a Buffer. Frustration.

Inventory Reduction 246

Inventory Reduction Cost Reduction Strategies Waste Reduction Resource Reduction 246

Logistics Viewpoints

OCTOBER 12, 2023

The same “If” statement was repeated for a host of financial and operational metrics. The following will delve into some of the intricate farm-to-table challenges that supply chains face across sourcing, demand planning, procurement and inventory management, transportation, and warehousing.

Supply Chain Design Software 267

Supply Chain Design Software Supply Chain Design Supply Chain Planning Software Supply Chain Planning 267

ToolsGroup

JULY 11, 2017

Gartner recommends multiplying the planned unit volume: by price to generate monetized revenue plans, by cost to generate monetized inventory plans, by margin to generate monetized profit plans. 4-9% decrease in the value of obsolete inventory as a percentage of total stocked goods (product costs).

S&OP 92

S&OP Supply and Demand Inventory Reduction Price Reduction 92

Supply Chain Shaman

JUNE 7, 2018

When we study 600 public companies by peer group, at the intersection of inventory turns and operating margin, only 5% drive improvement. There are many forms of decision support—price optimization, revenue management, transportation planning, spend management, network design. of revenue on IT are we improving inventories.

Supply Chain Planning Software 231

Supply Chain Planning Software Supply Chain Design Software Optimization Software Forecasting Software 231