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So, we deploy an agent on an SAP environment. Not all the transactional data, just the data required to calculate a metric or make a decision. We built a technology that allows us to crawl the transactional systems. The agent selectively pushes data to the Aera data model.”
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.
Aligned Metrics. To ensure the management of the complex system, the metrics of operating margin, inventory turns, ROIC, customer service, revenue, and forecast accuracy need to be managed together as a non-linear system. What does an investment in SAP mean for a company? SAP means many different things for different people.
Driving decarbonization with technology In 2023, the SAP CPO Think Tank community has been closely examining how companies can accelerate supply chain decarbonization. This approach often involves using standalone or point solutions that focus specifically on sustainability metrics and reporting.
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.
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. Let me give you example.
The first in the 1990s was Manugistics, the second in the early 2000s was SAP APO, and now their solution is SAS. Use data and new metrics systems to free the organization from the ball and chain of corporate politics. Use data and new metrics systems to free the organization from the ball and chain of corporate politics.
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. CFOs, get ready for the next year.
Avoid implementing Aera on top of an existing SAP APO implementation.) Watermelon Metrics Don’t Drive The Right Results. I love the metaphor of watermelon metrics. The issue is that traditional functional metrics drive underperformance—the greater the variability, the larger the gap. What are functional metrics?
You’ve likely already recognized the limits of deterministic planning if your company has recently launched (or relaunched) an S&OP initiative, or you’ve started to migrate from traditional platforms like SAP APO to advanced demand analytics tools, or trained your planners on supply chain performance trade-off competencies.
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. When I get off the plane, I am accosted by the signs at airports around the world. I shake my head.
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.
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.
Bill was a strong advocate of SAP ERP. The metrics were not aligned. Map the different metrics and incentives in the organization to behavior. He worked with an executive team of Jim, Dave, and Bill. My client attempted to have a supply chain discussion to improve flow, and his executive group just did not get it.
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.
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. If we use the balance sheet improvement as a guide, the best run companies do not run SAP. The larger danger are the large system integrator ERP planning solutions from SAP and Oracle.
While there is work within SAP to rethink SNC and use the assets purchased with Ariba to build multi-tier capabilities, the progress is not encouraging. For example, an application like SAP SNC, while functioning across supply chain tiers, is an enterprise data model that is inside-out, not outside-in. Marketplace Rebirth.
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 Effective Frontier.
This research was the backbone of the Supply Chain Metrics that Matter series of reports. Instead, they have measured functional metrics or focused on projects. I believe that customer service is a critical metric and a key element of managing a complex supply chain system. The Building of the Index. Check them out!
Meanwhile SAP jumped to an all-time high based on a bullish forecast of double-digit growth in cloud revenue. Metrics are critical as well. As reported by The Wall Street Journal , “Those jobs weren’t likely to return even when business picks up,” UPS said, adding that the reductions are part of what would be “ new ways of working.”
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.) As we brace for the future of continued and unplanned disruption, the knee-jerk reaction is to tighten functional metrics.
In today’s competitive manufacturing environment, the only metrics that count are how a change impacts the company’s goals. Put this information into the hands of your planners and suddenly they are making decisions based on the impact to the company, not just to their own internal metrics (like expediting costs). So what do you think?
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
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.
The second generation of solutions were built and marketed by Enterprise Resource Planning technology companies like SAP and Oracle. In addition, I am now done with the page proofs for my new book, Metrics that Matter. Instead, he wants to drive supply chain excellence and build the metrics that matter. The book is a story.
2) The focus needs to be on driving a balanced portfolio of metrics that goes across the organization. Keep riding the horse… It is morning in London, and I spent the week with a client working on the implementation of the SAP IBP technology built on HANA. The process needs to be very disciplined. Balance drives alignment.
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. SAPSAP showed off Joule, its generative AI assistant. There were two use cases that I found interesting.
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. This perspective is not shared by SAP.). The solution needs to mature, but the good news is that SAP is investing in supply chain.
The EMEA Automotive division also utilizes SAP APO and determining a vision for how best to apply the strengths of RapidResponse and APO across the various business processes is still a work in progress.
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. These codes were put into SAP after an order cut had occurred. The change management was difficult.” Planners are far more efficient.
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). The project included the centralization of SAP ERP and the augmentation with other software.
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 larger the organization, the more tension with conflicting functional metrics making decisions more difficult. Functional metrics need to be abandoned to focus on balanced scorecard outputs. A focus on functional metrics throws the supply chain out of balance. As a result, in a market downturn, process latency increases.
Procurement leaders are increasingly turning to SAP S/4HANA as their solution of choice. In October, SAP launched SAP S/4HANA 2020, and while there are numerous features that make S/4HANA stand out from other ERP solutions, what truly differentiates this latest release for procurement is its compelling offering of: Procurement Analytics.
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.
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.
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). The project included the centralization of SAP ERP and the augmentation with other software.
If one plant uses one version of SAP, another plant uses a different version and your warehouse uses Oracle, how does collaboration happen between these systems? For example, choosing the lowest cost supplier over one that provides better quality and delivery guarantees. Typically by e-mail and Excel…hardly an advanced collaboration approach!
Most small businesses use an ERP system from companies like SAP, NetSuite and Microsoft. Inventory planning uses a wide range of variables and metrics, which generally include: But they fall short of providing inventory optimization and rationalization. How do you get there? How do you know when you have arrived?
While ToolsGroup and SAP (with the acquisition of SmartOps) are the nearest competitors, Terra prided itself on delivering better decisions through better math. The Terra solution complimented the functionality of the traditional APS vendors, i.e. Adexa, JDA, Logility, Kinaxis, SAP APO and Steelwedge.
In the market there is a clearer understanding that the software planning functionality by Oracle and SAP does not meet today’s business requirements. Oracle and SAP have not been able to bring enough domain expertise to solution development to stay current with the market requirements. Focus of Spending Increases.
The current efforts are improving functional metrics and traditional processes. At this next session, we will focus on current state of B2B, improving inter-operability between existing networks (Elemica, E2open, GTNexus and SAP Ariba), and blockchain case studies. This open group is learning together. We have 30 registered.
No metric should be measured in isolation, and functional metrics should be replaced with the balanced scorecard metrics shown in Figure 2. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance.
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