This episode covers the 2024 Predictions for Supply Chain.

✅ChatGPT As Supply Chain and Procurement practitioners always looking for ways to make our work more effective and efficient, my prediction is that the use of ChatGPT will trend upward.

✅Dashboards for Communication with Stakeholders Data visualizations like those from PowerBI will be on the rise because they have different levels of aggregations so your stakeholders can see only what they are looking for.

✅Sustainability Sustainability has been trending in the most recent years. I think 2024 will not be the exception.

✅Procurement as Revenue Generator I think this year, Procurement will show and educate more about their financial impact on the top and bottom lines.

✅Logistics Planning and Execution Logistics will continue to make headlines. Companies will increase their focus on logistics planning and execution.

✅Innovation with New Product Introductions Companies will continue investing in innovation. I think the trend will be upward about product launches.

✅Inventory Optimization Most companies will be focusing on inventory optimization in 2024 to achieve greater profitability and to free up cash.

✅Operations and Finance Integration – Advanced S&OP/ IBP I think that in 2024 there will be an increased focused on the intersection between finance and supply chain to improve profitability and working capital.

✅Supply Chain in the C-Suite This year, we are keeping a seat at the table with a supply chain that integrates with finance and with participants that know the language of the business—finance and accounting—the language that the C-suite speaks.

✅Generative AI I think that the adoption of these technologies will move at a slow pace. Excel will continue to be the top planning tool in 2024, used together with the company’s ERP and advanced planning systems.

Hope you like it!

What are your thoughts? What predictions would you add?

Let's make it a GREAT year!

Bonus Tip: For Free and Actionable Resources, please visit https://usmsupplychain.com/

Ready to know the top 10 inventory management metrics that everyone in supply chain and procurement must know. In this video you will know the top metrics, the meaning, and calculation. Everything is here.

#1 Inventory Days of Supply #2 Inventory Turnover #3 Cash to Cash Cycle #4 Return on Working Capital #5 Inventory Carrying Cost #6 Cost of Goods Sold (COGS) #7 Obsolescence for Raw Material, WIP, and Finished Goods Inventory #8 Perfect Customer Order Fulfillment #9 Inventory Accuracy #10 Customer Order Fulfillment Cycle Time

Bonus Tip: For Free and Actionable Resources, please visit https://usmsupplychain.com/

Inventory has a tremendous impact on your profit and loss statement and balance sheet.

If it's not properly balanced against demand, it's hard for companies to serve customers, which can lead to problems.

For example, Nike's difficulty with responding to supply chain issues and inflation created an inventory surplus that's negatively impacted its profit.

On the other side, Revlon's inability to meet demand because of low inventory led to the company to file for bankruptcy after 90 years in business.

In this episode, we will unveil 5 secrets for effective inventory management:

Secret #1 – Increase Your Visibility Secret #2 – Focus on Better Responsiveness Secret #3 – Have a New Product Launch Management Process Secret #4 – Improve Your Demand Forecasting Secret #5 – Consider the Total Cost of Ownership

Bonus Tip: For Free and Actionable Resources, please visit https://usmsupplychain.com/

Tim Cook—Apple’s CEO—says that inventory is “fundamentally evil”.

In Accounting, inventory is an asset.  This means a resource that the company expects to generate future benefits.

It seems that Cook and Accounting views are in conflict. Who’s right: Apple’s CEO or Accounting?

To answer this question, listen to this video and know the impact of inventory on the financial statements in S&OP/ IBP.

For Free and Actionable Resources, please visit https://usmsupplychain.com/

Sales and Operations Planning (S&OP) has been around since the late 1980’s. However, a handful of companies only are successful in this cross-functional process that “integrates demand, supply, operations, and financial planning into one game plan for business.” This is the definition by the Institute of Business Forecasting and Planning. It is unfortunate that most organizations are just capturing a small fraction of the potential benefits of S&OP. 

In this episode, we are going to cover:

-        Benefits of S&OP/ IBP

-        5 reasons for S&OP failures

The number 1 secret for a successful S&OP implementation

Walmart has a negative working capital. Coca-Cola has a positive working capital. Which company is doing better? Another question for you. Being in Supply Chain and Procurement, how can you improve working capital? In this video we are going to cover:

• What’s working capital?

• What’s the difference with cash?

• What are the metrics we can use?

• How can we improve working capital?

• What’s the impact of inventory on working capital?

For Free and Actionable Resources, please visit https://usmsupplychain.com/

Ready to know the top 10 financial metrics that everyone in supply chain and procurement must know? In this episode you will know the top metrics, the meaning, and calculation. Everything is here.

Top 10 Financial Metrics for Supply Chain Professionals

#1 – Gross Margin

#2 – Operating Profit Margin

#3 – EBITDA

#4 – ROA

#5 – Inventory Turnover Ratio

#6 – Days Sales in Inventory

#7 – Accounts Receivable Turnover Ratio

#8 – Accounts Payable Turnover Ratio

#9 – Working Capital Ratio

#10 – Operating Cash Flow Ratio

For Free and Actionable Resources, please visit https://usmsupplychain.com/

What is the Difference Between Sales and Operations Planning (S&OP) and Integrated Business Planning (IBP)?

Is that the right question? Or should we ask if there are any differences between S&OP and IBP.

In this episode we will dive into the key aspects of S&OP and IBP, compare them against each other for you to decide if they are different.

We will cover the following aspects:

-Focus

-Scope

-Execution

-Approach

-Language

For Free and Actionable Resources, please visit https://usmsupplychain.com/

I am not an Accountant; Why do I need to know about cash flow if I am in Supply chain, I am in planning, S&OP? 

Fair question. To advance in your career and improve in your sales and operations planning or in integrated business planning, you need to know the language of the business. And that language is Finance and Accounting.  

In this episode, you will learn about the Cash Flow Statement and its key components so you can understand the impact of operations on a fundamental financial statement and think like the CEO and CFO. After all, cash is king.  

For Free and Actionable Resources, please visit https://usmsupplychain.com/

Please also visit our YouTube channel: https://www.youtube.com/@usmsupplychain387

The Profit and Loss Statement or P&L? Why do I need to know about that if I am in Supply chain?

These are valid questions. Supply Chain is not Finance or Accounting. But, we need Finance and Accounting to be successful in Supply Chain careers and to improve in sales and operations planning or in integrated business planning. It is the language of the business.

In this episode, you will learn about the Profit and Loss Statement (P&L) or Income Statement and its key components so you can understand the impact of operations on a fundamental financial statement and think like the CEO and CFO.

For Free and Actionable Resources, please visit https://usmsupplychain.com/

Please also visit our YouTube channel: https://www.youtube.com/@usmsupplychain387