Supply Chain Shaman

MAY 15, 2023

Use of Supply Chain Descriptors Most organizations are locked into functional silos driven by functional metrics. Stuck in a rut, supply chain leaders try to punch their way through a set of conflicting metrics and priorities each day. The metrics defining success in manufacturing and procurement do not align.

Manufacturing Procurement 448

Manufacturing Procurement Optimal Sourcing Agile and Lean Supply Chain Supply Chain Planning 448

Supply Chain Shaman

JULY 19, 2020

The supply chain is complex non-linear system that is easily thrown out of balance through a focus on functional metrics. They rock back and forth in improving singular metrics but struggle to improve a portfolio of growth, margin, inventory performance, and asset utilization. Stop the Focus on Functional Metrics.

Supply Chain Design Software 415

Supply Chain Design Software Supply Chain Planning Software Supply Chain Design Agile and Lean Supply Chain 415

Supply Chain Shaman

SEPTEMBER 22, 2024

Companies speak about moving from a functional metric focus to managing corporate metrics, but this does not happen. Of the 114 balance sheet metrics tested in work with the statisticians at Georgia Tech, operating margin improvement has the highest correlation to market capitalization. Hence the Facebook analogy.)

Cost Reduction Strategies 376

Cost Reduction Strategies Waste Reduction Inventory Reduction Supply Chain Planning Software 376

Supply Chain Shaman

APRIL 27, 2022

At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) I never calculated and accounted for the inter-dependencies between metrics.

Procurement Analytics 339

Procurement Analytics Manufacturing Procurement Supply Chain Planning Software Supply Chain Design Software 339

Supply Chain Shaman

JUNE 29, 2021

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). A focus on functional metrics throws the supply chain out of balance.)

Supply Chain Planning Software 370

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Design 370

Supply Chain Shaman

SEPTEMBER 3, 2018

We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. Reward teams for cross-functional metrics.

Supply Chain Planning Software 317

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

Supply Chain Shaman

DECEMBER 28, 2020

It is my hope that we can side-step political discussions demonstrated in my stories and ground the problem solving in scientific methods to understand the properties of data, the potential of supply chains through modeling, and the alignment of metrics. Relative Importance of Supply Chain Skills. All the best in your journey.

Supply Chain Planning Software 418

Supply Chain Planning Software Forecasting Forecasting Software Modeling 418

Supply Chain Shaman

JULY 25, 2021

The Focus Inside-out Supported by Functional Metrics. Functional excellence drove regional supply chain performance in the 1990s, but a focus on functional metrics in large, global and complex supply chains over the last two decades threw the supply chain out of balance. Functional Intitiatives Without Clarity on Supply Chain Strategy.

Procurement Analytics 370

Procurement Analytics Supply Chain Design Software Agile and Lean Supply Chain Supply Chain Planning Software 370

Supply Chain Shaman

DECEMBER 15, 2022

Functional Metrics. With the implementation of transactional systems, the focus was on measuring and controlling functional metrics like the lowest manufacturing cost or purchase price variance in procurement.

Manufacturing Procurement 393

Manufacturing Procurement Supply Chain Design Software Supply Chain Planning Software Procurement Analytics 393

Supply Chain Shaman

OCTOBER 16, 2023

A shift from functional metrics to a balanced scorecard. I like the use of growth, margin, inventory turns, Return on Invested Capital, customer service and ESG metrics. The focus on functional metrics sub-optimizes balance sheet results. Funny, isn’t it?

S&OP 333

S&OP Supply and Demand Forecasting Supply Chain Design Software 333

Supply Chain Shaman

FEBRUARY 18, 2021

Watermelon Metrics Don’t Drive The Right Results. I love the metaphor of watermelon metrics. In most organizations, there is a dashboard of functional metrics that shows all of the functions operating in the “Green” or acceptable levels until it comes to customer service. What are functional metrics?

Supply Chain Planning Software 285

Supply Chain Planning Software Supply Chain Design Software Supply and Demand Procurement Analytics 285

Supply Chain Shaman

APRIL 9, 2021

Focus on functional metrics without alignment to a balanced scorecard to drive value. Over the last decade, in the building of global supply chains, organizations grew more political with gaming on metrics. Mistake #3.

Supply Chain Planning Software 360

Supply Chain Planning Software Procurement Analytics Supply Chain Performance Manufacturing Procurement 360

Supply Chain Shaman

MAY 13, 2024

How aligned do you believe your organization is to drive these metrics? Leaders align metrics and processes to focus on customer service reliability and hold all teams accountable for a balanced scorecard of Growth, Operating Margin, Inventory Turns, Return on Invested Capital (ROIC), and Orders Filled On-time and Complete (OTIF). (

S&OP 349

S&OP Supply and Demand Inventory Reduction Expense Reduction 349

Logistics Viewpoints

OCTOBER 28, 2024

Yet in EY’s research, they report that “nearly all supply chain leaders (97%) say that their organizations are currently facing challenges as it relates to supply chain metrics and that challenges come from a lack of integrated data and cross-functional metrics being in conflict with each other, among others.

Supply Chain Execution 229

Supply Chain Execution Agile and Lean Supply Chain Supply Chain Planning Software Supply Chain Strategy 229

Supply Chain Shaman

NOVEMBER 21, 2024

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. Did you know that improvement in the supply chain drives 50-70% of this value metric?

Supply Chain Planning Software 367

Supply Chain Planning Software Modeling Software Modeling Supply Chain Network Software 367

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

Supply Chain Shaman

JULY 6, 2020

Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. The second step is to align metrics to the strategy. A focus on cross-functional metrics improves supply chain resiliency. (I The So What? ” I share it because it is real life.

Agile and Lean Supply Chain 297

Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Planning Software Supply Chain Strategy 297

Supply Chain Shaman

JANUARY 8, 2024

Note to the reader: we selected these metrics for the balanced scorecard for the analysis after work with Arizona State University to understand which metrics, in combination, most closely correlated with market capitalization. Consider the role of functional metrics and the lack of alignment with the corporate scorecard.)

Supply Chain Design Software 243

Supply Chain Design Software Supply Chain Planning Software Modeling Software Supply Chain Network Software 243

Logistics Viewpoints

JANUARY 31, 2024

As regulations across the globe strengthen, the pressure to collect, report, and organize emission-related metrics has never been higher. Across the globe, requirements for stricter reporting on complex metrics are increasing.

Report 289

Report Data Material Savings Manufacturing Procurement 289

Supply Chain Shaman

APRIL 18, 2023

For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. About the Global Supply Chain Pressure Index (GSCPI ): The GSCPI integrates a number of commonly used metrics to provide a comprehensive summary of potential supply chain disruptions. Tougher than most understand.

Supply Chain Planning Software 388

Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing Supply Chain Software 388

Logistics Viewpoints

JANUARY 17, 2022

The Rule of 40 was popularized by venture capitalists in recent years as a key performance metric for SaaS firms. The metric captures the trade-off between short-term viability and the investment in growth. on this metric. These high growth SaaS firms also generate returns that are up to 15% more than the S&P 500.

Logistics Network Optimization Software 252

Logistics Network Optimization Software Modeling Software Optimization Software Supply Chain Software 252

Logistics Viewpoints

DECEMBER 15, 2022

Price index and price elasticity are useful metrics on their own, and a combination of these can help determine the right price point to maximize revenue and profit. Since there are often differences in store sizes, a metric representing the size can be added as well for a two-dimensional clustering approach.

Optimal Sourcing 220

Optimal Sourcing Analysis Procurement Analytics Purchasing Skills 220

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. Ad infinitum.

Supply Chain Design Software 238

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

Supply Chain Shaman

JANUARY 9, 2024

The group’s response is, “Are these supply chain metrics?” ” For many stuck in the myriad of functional metrics, like Operational Efficiency (OEE), Purchase Price Variance (PPV), or transportation cost, a focus on growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) is a stretch.

Supply Chain Planning Software 299

Supply Chain Planning Software Pharmaceutical Supply Chain Planning Gartner 299

Logistics Viewpoints

AUGUST 19, 2024

Despite legislation, in 2022, the world generated 62 million metric tons of e-waste, according to the United Nations Global E-waste Monitor. million 40-metric-ton trucks which, if placed bumper-to-bumper, would form a line long enough to wrap around the equator. This waste could fill more than 1.5

Waste Reduction 274

Waste Reduction Material Savings Apparel Supply Chain Design 274

Supply Chain Shaman

JANUARY 2, 2024

We talk about the move from functional metrics to a balanced scorecard, but we don’t use a balanced scorecard as an objective function. ” As I write, I think about the ironies: We talk about the bullwhip, but we do not measure it or use it in driving optimization. We speak of data latency, but do not measure the impact on performance.

Gartner 284

Gartner Supply Chain Planning Software Supply Chain Design Software Case Study 284

Logistics Viewpoints

DECEMBER 17, 2024

However, as carbon taxes and emissions reporting requirements continue increasing, supply chain professionals face mounting pressures from inside and outside their organizations to measure and improve performance against new, nebulous sustainability metrics. Freight transportation makes up over 10% of total global carbon emissions.

Supply Chain Planning Software 161

Supply Chain Planning Software Procurement Solutions Supply Chain Software Cost Reduction Strategies 161

Logistics Viewpoints

JULY 7, 2022

These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. Difficulty tracking their ESG progress due to a lack of data. Complexities integrating data from across global supply chains. Start with your supply chain.

Material Savings 275

Material Savings Waste Reduction Resource Reduction Supply Chain Design Software 275

Supply Chain Shaman

MAY 25, 2024

The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. Fortuitously, I hired a bright summer intern named Alex that introduced me to orbit charts. By charting the performance against peer groups, I could see the story. For the past decade, I have been studying these patterns.

Eliminating Excel in Purchasing 318

Eliminating Excel in Purchasing Gartner Supply Chain Design Supply Chain Strategy 318

GlobalTranz

AUGUST 26, 2021

A collaborative dedicated provider can deliver on critical service metrics and adjust to demand changes, while helping eliminate unfavorable market exposure.” Around-the-clock, anywhere access empowers global operations with advanced metrics and data.

Logistics Network Optimization Software 283

Logistics Network Optimization Software Transportation Management 3PL Optimization Software 283