Calgary, Alberta, Canada Club | SAMBC on Strava
Maybe some day. Why this trip down consumer goods to retail memory lane? I say amazing because this wasn’t really hinted at in the session description, and could be a major inflection point again in supply chain history. If it happens more than a few times, he or she can expect a visit from Cincinnati.
Why Is Sam Broadcaster Pro Crashing?
Maybe some day. Why this trip down consumer goods to retail memory lane? I say amazing because this wasn’t really hinted at in the session description, and could be a major inflection point again in supply chain history.
If it happens more than a few times, he or she can expect a visit from Cincinnati. I believe that is a binary measure at the customer level, meaning missing just one performance expectation would lead to a miss on the measure for that customer.
So just to be clear, let’s walk through this. Each one of those has core metrics. If they don’t, it’s a fail on a pass-fail measure. Impact of the SAMBC Approach There are several pretty important aspects to this, beyond that a company is really and meaningfully orienting their performance measurement systems this way.
First, SAMBC not only recognizes that customers vary in what metrics are most important to them, how those measures on defined, and what the levels of expectations are for each measure, it embraces that diversity. That is really the core of the concept – service as measured by [each individual] customer. Wilson showed a real chart, with customer names removed, of about 10 retailers and what those core metrics were.
I won’t say they were all over the map on-time delivery I think was on every list , but there was also a lot of variation in what metrics were included across the group. Even nearly universally embraced metrics such as on-time and fill rates were calculated differently by various retailers, and there were a variety of xpectations.
Second , this obviously requires a very collaborative approach with customers. Many retailers did not immediately have answers as to what metrics, what levels, etc. Maybe so. Vendors themselves of course set different service levels for A versus C items – but usually, that is often done without any real dialog with the retailer.
This is really the amazing thing. Plant managers will need to be aware of how they are performing not at an aggregate level, but at a customer-specific level, perhaps across dozens of customers. I got the sense the program now was active at between customers. This takes the concept of “order pegging” in manufacturing to whole new levels. Now, let’s just say this takes off, first in consumer goods to retail, but maybe then in other industries too. This will have a huge impact on supply chain performance management and supply chain planning and execution.
It may truly represent a milestone change in supply chain practice. Not if there are more explicit trade-offs to the differences, just the way there are in the “menu-based pricing” approaches many CPG manufactures use that make price adjustments based on order details e. That mindset will be taken to service levels around fill rates, on-time, inventory on-hand, etc. I mean, it can’t really work any other way in the end, can it? And this would now change the whole dialog between suppliers and customers over supply chain performance and joint strategies.
I will note a couple of other interesting aspects. For example: If I am behind on this metric, maybe I call the “hotshot” carrier and absorb the high transport cost. If I am ahead on that metric, maybe I will just be late and save the cash.
We will be watching closely here to see how this one plays out. More soon. Do you think it will stick, and if so, how will it change supply chain practice? Let us know your thoughts at the Feedback button below.
Recent Feedback Too much data is involved. Too many facilities, too many systems. As well, customers are already placed into tiers and are allocated product per these tiers. You manage to numbers, a few specific KPIs. I say great effort, but not going to happen. Chaos will reign deep in the bowels where decisions are truly made.
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SAMBC? WTH? Can’t They Just Say Only Customer Service Matters?
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Next Generation Supply Management Defined
Or at least a better acronym? This one is a Seriously Impractical Customer Orientation.
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