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Inventory management has always been challenging. Too often, inventory is viewed from an aggregate position, likely driven by finance, who are concerned about working capital implications. Inventory should act as a buffer to adsorb variability and decouple the demand from the supply side of our supply chains. – Tweet this.
I did a little digging to find out the specifics about excess inventory, the stated causes, and the potential implications. Retailers’ Inventories – Just Keep your Returns? Unfortunately, I am unsure about the order of magnitude or the duration of these inventory mismatches. Here’s my take on the topic.
This urges a shift from the unsustainable practice of buffering against uncertainty with high inventory levels. Enter Inventory Optimization (IO) as a vital strategy to combat supply chain stress. Yet, recent research suggests a more advanced approach, Multi-Echelon Inventory Optimization (MEIO), surpasses traditional methods.
Are you making the fatal mistake of underestimating the importance of inventory rebalancing? Many retailers treat inventory management as a mundane task rather than a strategic lever for success. It’s about strategically adjusting your inventory levels across locations and products in response to real-time customer demand.
From demand forecasting to inventory optimization, risk mitigation to sustainability — AI is set to transform everything. But here’s the secret: success will only come from strong human-AI collaboration, reveals this new new Economist Impact report. Another 57% will do it in the next 12 months*.
After finishing the Supply Chains to Admire report and the Youtube series (to be released this week), this is my feeling. They rock back and forth in improving singular metrics but struggle to improve a portfolio of growth, margin, inventory performance, and asset utilization. Here, in this blog, I explain. Reflections on Excellence.
New solution debuting at NRF 2025 reduces stockouts and markdowns, driving profitability BOSTON January 13, 2024 ToolsGroup , a global leader in retail and supply chain planning and optimization software, today announced the launch of Inventory.io, an AI-powered solution designed to simplify inventory management and enhance profitability.
Functional excellence throws the supply chain out of balance decreasing results on a balanced scorecard of growth, margin, inventory turns, customer service and ROIC (Return on Invested Capital). 56% of the respondents reported an active supplier development program. Reset: A n act or instance of setting again.
BOSTON & LONDON — January 15, 2024 — ToolsGroup , a global leader in retail and supply chain planning and optimization software, today announced the launch of their In-Season Inventory Optimization Solution, an integrated suite of tools in the greater JustEnough retail planning and execution suite.
Download this complimentary report to learn about: Gartner’s research findings on the role of scenario planning in S&OP. How to articulate scenarios for portfolio planning, network, inventory, and more. The paradigm shift happening in S&OP and pain points experienced by SCP leaders.
In a survey by the Institute for Supply Management released March 10, 2020, almost 75% of companies reported supply disruption due to Covid-19. Inventory tracking enables flexible e-Commerce fulfillment models and allows for managing shocks caused by shop closures. Covid-19—the global supply chain awakening. MORE FROM THIS EDITION.
Wikipedia In 2014, I was exploring methods to publish what is now the Supply Chains To Admire report. This data source synchronizes corporate reporting across global markets while tracking restatements, name changes, and currency shifts.) We have archived corporate reporting from Y charts for 1982-2023. but declining.
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.
For example, with a data gateway, a supply planner gains accelerated access to customer orders, inventory levels, and transportation schedules, all in one place, to increase the user experience of making the right choice to identify inefficiencies and make better, more informed decisions.
How are organizations performing on inventory optimization? Find out in this new research report. Inventory: asset or liability? Although nobody could have predicted the degree of disruption most companies experienced last year, the pandemic did expose the many challenges organizations face when it comes to inventory.
The importance of having the right inventory at the right price to service customer demand is crucial. Calculating and maintaining optimal levels of inventory is increasingly complex in this market as a result of long lead times, exchange rate volatility, economic factors, tariffs, political unrest, pricing trends, etc.
In the fast-paced world of retail, every decision counts—especially those related to inventory management. Stockouts are one of the most direct and visible consequences of poor inventory management. While it might seem safer to have too much stock than too little, the hidden costs of excess inventory can add up quickly.
The report identifies the leaders and highlights best practices. The report takes a holistic approach to what a digital transformation means. The final report focuses on the current state of key practices in digital transformation in logistics, spread across multiple industries and over 1,100 respondents.
Though corporations are starting to pay attention to supply chain sustainability, less than half of those surveyed in the CSCMP report know how to make their processes more sustainable. For retailers, supply chain sustainability is part of the conversation about inventory. Regulations may be more of a driver in the future.
Team Procure Cloud offers a comprehensive solution to procurement management, streamlining the entire process from purchase requests and approvals to supplier management and inventory control. One of the key features of the platform is the custom approval workflows, which are tailored to each department within an organization.
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?
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). This week, while all my friends are on vacation, I am writing the final report for the Supply Chains to Admire.
As an old gal, with over forty-years of supply chain experience, writing this report for ten years taught me many lessons. I find in the orbit chart analysis that 45% of companies in the report are unconsciously incompetent. An average margin of 21% with inventory turns of 1.58 Wrap-up Spend time with the report.
Make Sure Your Inventory is Healthy. Getting to healthy inventory levels is a natural result of leveraging downstream demand with demand sensing. Employ a multi-echelon inventory strategy to protect supply chain integrity and plan inventory at every level. Traditional inventory approaches create stockouts and waste.
Brittle supply chains, fragmented systems landscapes, unreliable and inaccurate data, as well as poorly managed IT and business networks are consistently reported as top concerns, which is why executives are increasingly prioritizing digital transformation.
This made supply chain living easier – most (74%) importers report that their logistics operations are at least as smooth as they were pre-pandemic. Businesses quickly began to notice a different beast: a significant decrease in consumer demand compounded by looming inventory excesses. This trend was a while in coming.
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. See the World Kitchen case study in the Agility Report. Drives Alignment.
The time gave me a good time to reflect and finish the reports that I should have completed in the summer when I recovered from Uterine Cancer. Writing and Reflection Completing the edits on the two reports that are publishing soon, felt good. The reports took me two months to write. Today, I wish good health for each of you.
I like the use of growth, margin, inventory turns, Return on Invested Capital, customer service and ESG metrics. Holistic design of the form and function of inventory with a focus on setting inventory targets for each flow. Reports to a Profit Center Manager. Funny, isn’t it? Improved Forecast Value Added (FVA).
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. We have lots of functions, lots of analytics, lots of reports.” That’s an action.
Gartner’s report, “ How to Build a Strong Business Case for Your Supply Chain Planning Technology Investment ” provides recommendations to help supply chain professionals secure the executive and financial sponsorship required to move supply chain planning technology projects forward. Want more tips on building your business case?
It started with toilet paper hoarding and quickly escalated to horrific reports of hospitals lacking basic medical gear. Over three quarters (77%) of SMBs reported that their businesses have experienced supply chain difficulties. And it’s not just ocean freight. Most (73%) Amazon sellers who’ve raised prices have done so by up to 20%.
Supply chain reports offer a comprehensive view of your entire supply chain operation. What are Supply Chain Reports? However, identifying and addressing slow-moving and obsolete inventory is necessary to prevent capital from being tied up in unproductive assets.
The vendors included in this report all met the criteria of earning 60% or more of their 2021 revenue from midmarket enterprises with 100 to 999 employees or $50 million to $3 billion in revenue.” ToolsGroup’s continued focus on customers has driven technological innovations that make its solutions invaluable to midmarket companies.
PwC reports that almost half of assets under management are held by investment firms committed to decarbonization. UPS saves time and money at a level worth reporting on earnings calls, but they are also more sustainable. Reducing inventory saves money but also reduces waste, because obsolete inventory becomes another problem.
Returns come with plenty of challenges around logistics, inventory, and predicting volatile sales trends. 54% of buyers report that free returns or exchanges are the second biggest factor in determining if they will be returning shoppers. 83% of consumers with a household income of over $100,000 report that returns are important.
I am currently doing research on inventory management. In the research, I ask inventory planners to define resilience. Of the twenty companies interviewed, only one can answer the question, “Do you have a good inventory plan?” No technology in the market measures inventory health. Today, this is not the case.
Impact of Red Sea Crisis on Businesses The majority of respondents (70%) reported experiencing disruptions since the onset of the Red Sea crisis, with 40% describing these disruptions as significant. Consider expediting some volumes using Less than Container Load (LCL) ocean shipping or air cargo to fill possible short term inventory gaps.
American Shipper reported that indexes measuring container-ship rental rates are now dropping rapidly. Nike reported its first fiscal quarter 2023 results yesterday (September 29). The supply chain issues noted in the reporting were notable, interesting, and likely familiar to many. population with next or two-day shipping.
Supply shortages, low inventory to sales ratios, and hiring lags are noted as factors at play. Data as recent as the end of June 2021 show that inventories remain below 1.3 However, the CPI report did state, “ the index for used cars and trucks rose 0.2 Used cars and trucks were up 41.7%. I question if this is a data anomaly.
According to the Global Supply Chain Disruption and Future Strategies Survey Report, this goal was the top-ranked planned tool investment. Achieving their goal of no stockouts is impressive, but that they did so without significant buffering with inventory is a testament to the combination of transparency and agility.
A recent report says that more than 77% of companies said, in a survey, that they are investing in deeper and more collaborative supplier relationships to improve resilience and agility. From natural disasters to geopolitical tensions and the ongoing COVID-19 pandemic, supply chains have been significantly impacted.
If S&OP efforts were that effective, don’t you think that we would have made more progress against inventory levels, margin, and growth? In part, this results in increasing swings in inventory in response to shifts in consumer demand as one moves further up the supply chain. Go to the source.
Inventory Is an Egregious Symptom of Supply Chains Gone Wrong. Today, inventory fire sales abound. Headline news included Wal-Mart, Target, Kohl’s and Macy’s struggling with inventory bloat and offering deep discounts. Wall Street Journal Headline on Retailers Using Containers to Store Excess Inventories. My take away?
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