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Aligning Supply Chain Metrics to Improve Value

Supply Chain Shaman

When I started this research project, I was busy. One of my lessons learned in completing survey-based research over the past twelve years, is that projects are full of surprises. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. Error is error, but is it the most important metric?

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How Can You Improve Value in Your Supply Chain?

Supply Chain Shaman

To build an outside-in model, and use new forms of analytics, we must start the discussion with the question of, “what drives value?” ” Traditional planning models optimize functional processes to improve cost and customer service. You are right. What should be on the scorecard? This work was expensive.

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Inefficient Procurement processes are costing UK businesses almost £2m per year, reveals research

ivalua

At the same time, two-thirds (66%) of businesses admitted they were still reliant on such processes as part of their Procurement or supplier management function. The research, conducted by Vanson Bourne on behalf of Ivalua, found that 71% of respondents believed the rate of digitisation in Procurement is low.

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Uh-Oh! Insights On How P&G Failed And What This Means For You

Supply Chain Shaman

In this area of research, I find that companies are like dogs chasing cars. 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.)

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Monetizing Analytics Features: Why Data Visualizations Will Never Be Enough

Discover which features will differentiate your application and maximize the ROI of your embedded analytics. Brought to you by Logi Analytics. But today, dashboards and visualizations have become table stakes.

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Organizational Alignment: Overlooked, but So Important.

Supply Chain Shaman

In my research, I find that the lack of alignment has a direct impact to value (operating margin and market price to book value). In the supply chain team analysis, note the 21% gap between procurement and manufacturing teams, the 35% gap between sales and operations and the 21% gap between finance and operations. Functional Metrics.

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The One Key Shift in Your Supply Chain and Procurement Strategies that can Drive Better Business Continuity and Resilience

Logistics Viewpoints

Procurement and Supply Chain Management are essential functions that can help companies navigate these challenges, but they are often siloed and operate in separate departments. Their metrics are often misaligned as well – supply chain focuses on service and procurement focuses on the cost of acquiring materials and services.