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metrics that matter

Provoking the Industry to Move Past Incrementalism

By | market-driven value chains, metrics that matter, New technologies | No Comments

Definitions: Provocateur. A person who or thing which provokes; a challenger, instigator, inciter, irritator; (in later use) specifically = “provocateur.” Incrementalism. Movement by degrees. Known by gradualism. I am tired. For the past month, I have been working alongside companies implementing digital strategies. In my experience, during the first session energy is high. As time goes on these high energies dissipate. Fear engulfs companies. Teams cannot help themselves. They guard the…

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Why Financial Reengineering Does Not Equal Supply Chain Improvement

By | metrics that matter, Uncategorized | 5 Comments

Financial Reengineering is the radical redesign of business processes and organizational structure in order to achieve significant improvements in performance, such as productivity, cost reduction, cycle time, and quality. It is the basis for many recent developments in management. Sounds good? Right? Think again. The traditional supply chain leader was only focused on cost reduction. This sounds aligned with financial reengineering. Right? The correct answer is “Wrong.” Let me explain. Financial…

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Summoning the Courage to Redefine Forecasting: Upending the Apple Cart

By | Demand, metrics that matter, New technologies | 2 Comments

“We have too many planners. And even if we can afford the costs, we don’t get good answers with our current forecasting processes,” stated the supply chain leader on the phone. “I want to build outside-in processes, but I don’t know what this looks like. Can you tell me what you mean by this statement?” My question to her was “Do you have the courage to upend the apple cart?” The…

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Household Products Industry Stuck in Neutral and Going Backwards

By | metrics that matter, Supply chain excellence, Supply Chain Excellence, Supply Chain Performance Index | No Comments

I was on my way to Peru. I scooted into an aisle seat and sat beside a stranger. He begrudgingly let me slide my bag under the center seat. I put in my earphones and zoned out letting the plane take off. It was a hot day, and I was not in the mood to talk. He introduced himself as Steve. Over the course of trip to Atlanta to connect…

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Measuring Up?

By | metrics that matter, Supply chain excellence, Supply Chain Excellence, Supply Chain Performance Index, Supply Chains to Admire | No Comments

The average manufacturing company’s supply chain organization is 15 years old. Historically, the traditional supply chain focused on improving costs. Today more mature supply chain teams focus on delivering value. While companies want to improve supply chain performance and drive value, it is easier said than done. The first question to answer is, “What defines value?” The journey for value requires a clear definition and analysis of what is possible….

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2016: Building a Balanced Scorecard for Discrete Industries

By | Bricks Matter, metrics that matter, Supply Chain, Supply Chain Excellence | No Comments

2016 is around the corner. For the supply chain leader it is time to reflect and build budget targets. To  help, in this blog post I share industry trends. For the discrete industries we contrast the industry averages for growth, operating margins, inventory turns, cash-to-cash cycle, revenue per employee, and SG&A ratio for the periods of 2006-2014 and 2011-2014. For each metric we show the averages and the percent change from…

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