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Infor’s CEO, Kevin Samuelson Infor’s strategy for differentiating their business from competitors like SAP and Oracle rests on a truly differentiated approach to ensuring that their customers get ongoing value from the business applications they purchase. Infor, with anticipated revenues of $3.4 We just want them solved.”
” CFO of a major manufacturer. Have the early adopters of inventory optimization seen a reduction in inventory on their balance sheets?” So far I can only find one industry that has systemically reduced inventory and working capital over the ten-year period. Ownership of Inventory as a Metric. I really do.
Once upon a time, the world of manufacturing was a relatively stable place. So how does a manufacturer navigate this rollercoaster? According to Gartner , these issues can lead to missed manufacturing deadlines and wasted capital. And that’s where real-time perpetual inventory signals come in.
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. The traditional leader values cost reduction but is blind on how to value time. Show the technology vendors touting digital and AI transformation the door. Tougher than most understand. Shift in cycles.
The client leaned across the table and asked, “Is a customer-centric supply chain strategy the same as a demand-driven supply chain strategy?” Drawing from the Whiteboard: Building Customer-Centric Supply Chain Strategies. It had been a long night. However, I had little time to be tired. ” I smiled.
So your company is looking to reduce costs, and you’ve been asked to contribute by reducing your inventory cost. Here we explain how you can do this with 16 cost reductionstrategies in inventory management?that that are each proven to reduce a company’s costs.?
As I work with companies, I often contrast the strategies, approaches and outcomes within a peer group. Both companies provide packaging materials to the food manufacturing industry. Six years ago, Owens Illinois’ primary question was IT standardization versus the choice of best-of-breed vendor. Owens Illinois (OI), a $6.3
A successful relationship with your vendor can last many years so companies may embark on supply chain planning implementations once every 10-15 years – or longer. We’re here to spill the proverbial beans – the critical success factors, or essential components, of supply chain planning vendor selection success.
As I mentioned in my previous post, Sales Dashboards – 16 Metrics for Manufacturers , a strategy for measuring business performance should also incorporate metrics that focus on the supply chain and other operational areas of the enterprise. You can refine as you go! Inventory Turns and Sales-to-Inventory Ratio.
Manufacturing systems and regulatory compliance are considered to be very complex, coupled with the limited number suppliers due to the high barriers to entry. Moreover, the aircraft manufacturers have to do whatever it takes to win the order long before the commencement of production. Zara is very famous for its time based strategy.
Among the many supply chain initiatives taking place today, vendor-managed inventory (VMI) has become an increasingly effective process and business model to help organizations share risk and information between vendors and customers — while benefitting from lower stockouts, reduced uncertainty and lower costs.
An optimized supply chain is one that is as efficient as possible; it is more likely to reduce costs, increase customer satisfaction rates, and add value for stakeholders. That means identifying areas of waste, overlap and large volumes and enabling continuous improvement through the use of transportation metrics to track performance.
Year after year, well intentioned people toiled against improving metrics that reduced, not improved, the effectiveness of the supply chain. I feel that there is an opportunity cost to the organization to work on their third or fourth ERP upgrade and look blindly, and only, at analytics from the ERP vendor. You got it!
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.
In this blog, we’ll explore some key inventory optimization strategies that can benefit businesses of all sizes and industries. Top 5 Inventory Optimization Strategies Explained Managing inventory efficiently is vital for any business.
A solid supply chain and logistics strategy is essential for large companies. A global chemical manufacturer recently had to replace ships that transported bulk materials to ports. This chemical manufacturer is converting its entire distribution system to containers. Metrics help to prioritize activities and improve processes.
The first evolution of technologies were built by best-of-breed solution vendors. The promise was the delivery of a decision support system that would allow the organization to optimize the relationships between cash, cost and customer service against the strategy. How do I know this? They also have higher satisfaction rates.
Here are the trends our Blue Yonder Industry Strategy team sees for the upcoming quarter: Supply Chain and Technology Supply chains will remain volatile with escalating disruptions as a result of extreme weather effects and unrest across the globe. Speak to one of our Industry Strategy leaders today! Reach out at blueyonder.com.
While each is different in vendor selected and problem solved, what is common is the depth of modeling and the ability for business leaders to change the model with shifts in business conditions. Advanced planning evolved with a focus on modeling manufacturing constraints. Watermelon Metrics Don’t Drive The Right Results.
Managing global vendors well is an investment in the future of your business. However, if you manage your vendors well, issues can often be avoided, or at the very least mitigated, before they do harm. Yet, vendor management is integral because your reputation and success – or failure – hinges on it. Proper Vendor Onboarding.
In supply chain management, total lead time is a crucial metric encompassing the period from customer order to delivery, be it in B2B or B2C scenarios. Production Lead Time: Encompassing manufacturing, quality control, assembly, and related processes. Cost Savings: Reduction in inventory holding costs.
For example, consider the challenges in the automotive industry that stem from the supply chain issue in chip manufacturing. Tracking the Metrics that Matter. While Ardent expects Procurement to rise to and tackle these challenges, tracking the metrics that matter will help them stay focused for full recovery. Inflation Metrics.
GEP and the North Carolina State University (NCSU) Supply Chain Resource Cooperative surveyed supply chain, procurement and IT professionals across a range of industries to gain insight into their priorities and strategies regarding supply chain resilience and optimization. At top performing procurement organizations, 86.2%
However, the market was small enough that it was largely ignored by the big ERP vendors for a while. With the promise of these newer and exciting technologies at the time, IT organizations opted for a “best-of-breed” strategy bringing together the best of the ERP platforms and the specialty supply chain vendor capabilities.
Some re-sellers may also distribute products from the competing manufacturers. So this section will explain some characteristics of Apple Supply Chain through various metrics and compare them with Amazon Supply Chain. Supply chain professionals also use this metric in inventory management function. Inventory Turnover.
In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times. We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency.
While other analysts may put the vendors into a four-square evaluation model and declare it magic, I think that this approach does a disservice to the industry. The SCP market is a fruit basket of vendors with very different capabilities. We produce there because the regulations say that you need to manufacture there to sell there.
That’s why staying on top of the latest supply chain planning trends is so important – they can make all the difference when it comes to staying competitive, reducing costs, and meeting your customers’ needs. One day, a product is flying off the shelves, and the next, it’s gathering dust. billion a year.
Companies moving to BPO in these practice areas are experiencing supply chain improvements in metrics such as inventory turnover and customer service. Those companies also reduced planning spend. An outsourcing vendor can be used at the entity to share best practices, recommend and implement new methodologies, and train resources.
With the added pressure to lower costs to end-users, your customers, it’s no surprise that the need for increased scrutiny and cost reductions among inbound logistics partners, your vendors, has gone rogue. Vendors need access to stringent, high-quality instructions for how to bring shipments to you.
It is critical to monitor inventory effectiveness using five key metrics: Expedited orders, inventory turns, obsolete inventory, safety stock and stockouts. Safety Stock: This is an extra level of inventory held to reduce the risk of stockouts. Using Metrics to Measure the Health of the Business.
As product flows rapidly shifted and hard baked assumptions about lead times and sourcing locations were put to test, users across many organizations bypassed their planning systems and turned to excel sheets, internal data science teams or non-traditional supply chain vendors who could deliver AI based solutions at a faster turn.
Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. Instead, the focus is on reducing the costs of finance by eliminating labor costs through Business Process Reengineering (BPOS) and elongating payables. This was not a new relationship.
During this time, the same AI tools that underwrite new technologies have been key in improving efficiency and optimizing all areas of logistics and supply chain processes including forecasting, supply planning, inventory management, manufacturing, network optimization, and more.
In our work on the Supply Chains to Admire report , we tracked the progress of manufacturing, retailing and distribution companies for the period of 2006 to 2013 and 2009-2013. We then rated companies on their ability to manage and improve a portfolio of metrics: operating margin, inventory turns and Return on Invested Capital (ROIC).
If so, then it’s time to consider the numerous benefits of reducing inventory. In this article, we’ll explore seven compelling reasons why you should reduce inventory and how it can be a game-changer for your business. But when should you consider reducing inventory? The same applies to inventory reduction.
Know your vendors and apply consistent policies and procedures. This means having a resilient supply chain strategy that includes visibility, transparency, clear communication, and collaboration. Know Your Vendors to Ensure Supply Chain Compliance. Compliance is an ongoing challenge for businesses today.
Supply chain organizations within the automotive supplier industry contribute to manufacturing excellence in many ways, including quality, cost, and delivery to their OEM and subsystem customer base. From a measurement perspective the key trending metrics at a high level include: Supplier on time delivery.
I find senior executives love to throw around superlatives like customer-centric, agile, efficient and responsive but lack the understanding of how the words translate to supply chain strategy in the real world. Managing a supply chain requires big feet—grounding in real-world experience—coupled with big wings—conceptualization of strategy.
Fortunately, applying metrics to multi-source operational information that’s stored and managed in a data hubs greatly minimizes these issues. Supply chain metrics provide the intelligence needed to make better projections and more informed choices in such a market. Our Top 24 Supply Chain KPIs & Metrics. Perfect Order Rate.
Commerce is global and regional at the same time, the world is getting smaller and more interconnected, and Consumer Packaged Goods (CPG) manufacturers operate in this build-anywhere and sell-anywhere market. Here we have compiled a list of the top six challenges that CPG companies face in the post-pandemic market.
While it had been listed as a budget item for the past four years, each year the IT department had overrun their budget and was forced to cut the line item from the budget. How could he engage with a vendor to be sure? His final comment was that he wondered why vendors made it so hard to understand what they did. He laughed.
.” As we build supply chain strategies in the class, I work with attendees to first answer the questions in the green box to design the strategy: What are the right ways to support the business strategy? I also find that there are too few business strategy consultants that understand the need for this translation.
You’ll learn how to leverage data to streamline operations, reduce costs, improve efficiency, and exceed customer expectations. Supplier Performance: Evaluate your vendors’ reliability, quality, and delivery times. Ready to get started? Let’s dive in. This means your leadership team must recognize data as a crucial asset.
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