![\"Operations](\"https://riverrockadvisors.com/wp-content/uploads/2024/12/Operations-as-a-Competitive-Advantage-chart.png\")
Know the Best Next Step with River Rock AdvisorsAugust, 2025 — Cleveland, Ohio — River Rock Advisors (RRA), a leading boutique value chain management firm, has been recognized by SupplyChainBrain in its list of Top 100 Great Supply Chain Partners. This marks RRA’s sixth appearance in the list since 2018.
SupplyChainBrain is an in-depth resource on supply chain management information for executives and leaders in multiple global industries. The organization covers the latest innovations, industry best practices, and supply chain strategies and trends.
“For twenty-three consecutive years, SupplyChainBrain has published our much-anticipated list of 100 Great Supply Chain Partners — a select group of companies whose customers recognize them for providing outstanding solutions and services,” said Brad Berger, Publisher for SupplyChainBrain.
The company selects winners for this award through qualified submissions from a six-month online poll of supply chain professionals. SupplyChainBrain asks contributors to nominate vendors and service providers whose solutions have made an impact on their company’s efficiency, customer service, and supply chain performance. In a highly competitive field, RRA is honored to earn this recognition for the sixth time.
“We are very excited and proud of our accomplishment,” said Steve Keener, Partner and Cofounder of River Rock Advisors. “Our intended market differentiator is being customer intimate rather than just operationally excellent, so this is big news for us.”
“We’re honored once again to be recognized among SupplyChainBrain’s 100 Great Supply Chain Partners,” said Gary Jones, RRA Partner and Cofounder. “Earning this recognition across multiple years reflects how our team puts its collective experience into action. Our focus has always been on delivering practical, measurable solutions that drive meaningful improvements for our clients.”
RRA will appear in the August 2025 issue of SupplyChainBrain magazine and on SupplyChainBrain.com as a celebrated member of this year’s 100 Great Supply Chain Partners.
About River Rock Advisors
River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively. For more information, visit www.riverrockadvisors.com.
About SupplyChainBrain
SupplyChainBrain is today’s most comprehensive supply chain management information resource that identifies the latest news, emerging trends, technologies and best practices, forward-thinking ideas, and cutting-edge solutions. The organization continues to write and report about these as they evolve and mature.
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", "content_plain": "August, 2025 — Cleveland, Ohio — River Rock Advisors (RRA), a leading boutique value chain management firm, has been recognized by SupplyChainBrain in its list of Top 100 Great Supply Chain Partners. This marks RRA’s sixth appearance in the list since 2018. SupplyChainBrain is an in-depth resource on supply chain management information for executives and leaders in multiple global industries. The organization covers the latest innovations, industry best practices, and supply chain strategies and trends. “For twenty-three consecutive years, SupplyChainBrain has published our much-anticipated list of 100 Great Supply Chain Partners — a select group of companies whose customers recognize them for providing outstanding solutions and services,” said Brad Berger, Publisher for SupplyChainBrain. The company selects winners for this award through qualified submissions from a six-month online poll of supply chain professionals. SupplyChainBrain asks contributors to nominate vendors and service providers whose solutions have made an impact on their company’s efficiency, customer service, and supply chain performance. In a highly competitive field, RRA is honored to earn this recognition for the sixth time. “We are very excited and proud of our accomplishment,” said Steve Keener, Partner and Cofounder of River Rock Advisors. “Our intended market differentiator is being customer intimate rather than just operationally excellent, so this is big news for us.” “We’re honored once again to be recognized among SupplyChainBrain’s 100 Great Supply Chain Partners,” said Gary Jones, RRA Partner and Cofounder. “Earning this recognition across multiple years reflects how our team puts its collective experience into action. Our focus has always been on delivering practical, measurable solutions that drive meaningful improvements for our clients.” RRA will appear in the August 2025 issue of SupplyChainBrain magazine and on SupplyChainBrain.com as a celebrated member of this year’s 100 Great Supply Chain Partners. About River Rock Advisors River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively. For more information, visit www.riverrockadvisors.com. About SupplyChainBrain SupplyChainBrain is today’s most comprehensive supply chain management information resource that identifies the latest news, emerging trends, technologies and best practices, forward-thinking ideas, and cutting-edge solutions. The organization continues to write and report about these as they evolve and mature. ###", "image": "https://riverrockadvisors.com/wp-content/uploads/2025/08/RiverRock-2025-Great-Supply-Chain-Award-B.png", "modified": "2025-08-04T11:13:18-05:00", "mapped_entity": "Article" }, { "id": 4898, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/mind-the-dip-against-the-certainty-of-risk/", "title": "Mind the Dip Against the Certainty of Risk", "h1": "Mind the Dip Against the Certainty of Risk", "summary": "Learn how to understand and counter risk, manage the unavoidable dip, and come out the other side competitively advantaged.", "content": "Liberation day and then the 11th hour pull-back of some of the tariffs — combined with the escalating trade war between the US and China — complicate an already complex picture. The sheer breath and scale of the tariff regime carries one vital meaning for most companies: there is no place to turn.
However, when one thinks of tariffs, previous tariffs were targeted by materials and nations, meaning:
These rounds are different in oh-so-many ways, but importantly:
There is a returning concept of radical suggesting that the uncertainty is so profound that it’s impossible to assign probabilities to future outcomes. That may be true when trying to get to specific financial outcomes, but here we may want to flip our logic to radical certainty: business leaders can be certain that negative pressure will continue to mount on margin performance. And pressure will be caused both by weakening revenue and increased costs.
Most businesses will face an unavoidable dip in performance. For the next six to nine months, the game plan should be to manage the dip to make it as shallow and short as possible and avoid a long, deep, or perilous dip. We believe critical steps are:
RRA provides both rapid assessments and operational and supply chain strategies designed to understand and counter risks, to help you manage the unavoidable dip, and come out the other side competitively advantaged.
Connect with us today to learn how we can help.
", "content_plain": "No Place to Turn Liberation day and then the 11th hour pull-back of some of the tariffs — combined with the escalating trade war between the US and China — complicate an already complex picture. The sheer breath and scale of the tariff regime carries one vital meaning for most companies: there is no place to turn. However, when one thinks of tariffs, previous tariffs were targeted by materials and nations, meaning: Consumers were, at best, partially aware of them They were sufficiently focused on limiting the threat of broad trade wars or loss of markets to US goods and services There was a reasonable opportunity to re-optimize supply chains to protect supplies and margin These rounds are different in oh-so-many ways, but importantly: There is a chill across the consumer base: on top of the expected $4,200 decline in household purchasing power due to tariffs, consumer confidence is near an all-time low and even with some surge in spending in front of the impacts of tariffs, we are already seeing consumers trading down and trading out The evolving trade conflicts strongly suggest that, apart from select carve-outs, few industries will be spared from the impacts of tariffs The global scope of tariffs means that supply chain leaders won’t easily find safe havens to avoid higher costs The combination of inflation-wary and unconfident consumers and higher input costs will stress margins due to revenue, cost, or both There is a returning concept of radical suggesting that the uncertainty is so profound that it’s impossible to assign probabilities to future outcomes. That may be true when trying to get to specific financial outcomes, but here we may want to flip our logic to radical certainty: business leaders can be certain that negative pressure will continue to mount on margin performance. And pressure will be caused both by weakening revenue and increased costs. Most businesses will face an unavoidable dip in performance. For the next six to nine months, the game plan should be to manage the dip to make it as shallow and short as possible and avoid a long, deep, or perilous dip. We believe critical steps are: Run risk scenarios that have a clear line to budgeting, forecasts, and reserves, even if the level of precision is broad Rapidly move beyond any sense that “good enough” operations are good enough in this climate; instead, to aggressively drive cost and variability out of operations Expand and scenarioize supply chain options, including the time, cost, and risk to reoptimize and the tariff landscape, although certain in its impact, is likely to be fluid in its specifics Rather than focusing the supply chain team on greater efficiency within current operating model(s), focus on “nimbility” in the ability of your supply chain to quickly yet effectively adapt to this quickly changing environment Get a clear, pragmatic view of benefits as your teams may already be overwhelmed with keeping up with status quo, let alone new projects — this has got to be provable Get Insights and Support to Navigate Uncertainty RRA provides both rapid assessments and operational and supply chain strategies designed to understand and counter risks, to help you manage the unavoidable dip, and come out the other side competitively advantaged. Connect with us today to learn how we can help.", "image": "https://riverrockadvisors.com/wp-content/uploads/2025/05/iStock-588264630.jpg", "modified": "2025-05-08T13:27:06-05:00", "mapped_entity": "Article" }, { "id": 4833, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/testing-our-imagination-strengthening-your-business-risk-response-strategy/", "title": "Testing Our Imagination — Strengthening Your Business Risk Response Strategy", "h1": "Testing Our Imagination — Strengthening Your Business Risk Response Strategy", "summary": "Learn how to strengthen your business risk response strategy in today's uncertain climate. Turn disruption into an advantage with our expertise.", "content": "There is this adage in business that failure of imagination can be fatal. Unable to see an oncoming disruption or unfamiliar competitive threats are the usual suspects. However, developing an effective business risk response requires expanding our imagination beyond the traditional. COVID widened our sense of what was possible. The pandemic + Ukraine War + Middle East turmoil + severe weather events told us that black swans can fly in flocks.
But now? Well, anything is possible. And given the times, we should not fully exclude an alien invasion.
We knew that the new U.S. administration would drive change. They would look at international and economic norms differently. Present new ideas and policies. Certainly, tariffs would be high on the list. But four things rise up, fueled by two factors: (1) the greater link between words and deeds; and (2) that it would happen this fast:
It’s a lot of moving pieces that, when taken together and apart from the macro view that a conservative economic agenda means less regulation and faster growth, offer up at least two potential underlying risks for businesses to consider when it comes to operational risk management:
The truth is we really don’t know how this movie ends. It’s more like a Quentin Tarantino film where each chapter offers new tensions and we’re not sure which characters make it (or how they make it) to the end. What we do know is that:
Resiliency used to describe the ability to withstand familiar risk and the rare black swan moment. Now, resiliency means the ability to withstand a flock of black swans, each slightly different in their individual traits but common in their implications.
There are any number of “so what’s” that come from this. We wanted to focus on three that we believe are imperative for companies to be resilient in this climate — and maybe even gain share as resilience translates to competitive advantage:
RRA understands the need — and the complexity — of moving to a more proactive approach to operational risk management. It challenges the view of “good enough” and pushes leaders beyond the familiar. However, we are in a rapidly evolving business climate that will force a more aggressive approach to operational excellence.
If you want to learn more about our approach to operational risk management, risk scenario modeling, business risk response and our work, please reach out to Steve.Keener@riverrockadvisors.com or David.Toth@riverreockadvisors.com to learn more.
", "content_plain": "There is this adage in business that failure of imagination can be fatal. Unable to see an oncoming disruption or unfamiliar competitive threats are the usual suspects. However, developing an effective business risk response requires expanding our imagination beyond the traditional. COVID widened our sense of what was possible. The pandemic + Ukraine War + Middle East turmoil + severe weather events told us that black swans can fly in flocks. But now? Well, anything is possible. And given the times, we should not fully exclude an alien invasion. The Changing Risk Landscape We knew that the new U.S. administration would drive change. They would look at international and economic norms differently. Present new ideas and policies. Certainly, tariffs would be high on the list. But four things rise up, fueled by two factors: (1) the greater link between words and deeds; and (2) that it would happen this fast: The clear use of the US economy and massive consumer spending pools, as leverage in foreign policy Decisions can be made and just as rapidly unmade (e.g, tariffs with Canada and Mexico), adding to the already heightened sense of uncertainty The Department of Government Efficiency (DOGE) and what it will really mean to critical government functions Disconnects with Europe that may signal a level of economic disentanglement. Emerging Business Risks Requiring Response It’s a lot of moving pieces that, when taken together and apart from the macro view that a conservative economic agenda means less regulation and faster growth, offer up at least two potential underlying risks for businesses to consider when it comes to operational risk management: Continued, if not the escalation of inflation that will challenge margins Declining consumer confidence and spending will challenge revenues. The truth is we really don’t know how this movie ends. It’s more like a Quentin Tarantino film where each chapter offers new tensions and we’re not sure which characters make it (or how they make it) to the end. What we do know is that: The possible variance to margin has increased And much of that increase is out of the direct control of business leaders Some industries (e.g., steel, disaster remediation) may see positive margin impacts, but most will feel downside risk. Resilience and Actions for Effective Business Risk Response Resiliency used to describe the ability to withstand familiar risk and the rare black swan moment. Now, resiliency means the ability to withstand a flock of black swans, each slightly different in their individual traits but common in their implications. There are any number of “so what’s” that come from this. We wanted to focus on three that we believe are imperative for companies to be resilient in this climate — and maybe even gain share as resilience translates to competitive advantage: Increase risk scenario modeling, noting that each individual risk may seem remote (e.g., China invasion of Taiwan), but the common implications of many risks increase the probability of impact to the business (disruptions to supply lines that drive up cost and/or force changes to supply chain design). Potential Action Items: Develop quarterly risk assessment workshops with cross-functional teams Create a risk register with probability and impact ratings Fully integrate risk scenario modeling into financial and operational processes and decisions, as we have found that often risk is outside normal budgeting and forecasting, or in the assessment as to whether operations are good enough to be resilient in this climate Potential Action Items: Incorporate risk factors into your KPIs and dashboards Review supply chain redundancies regularly Focus on your ability to manage the dip: the inevitable disruption from any one or several of the black swans such that “your dip” is short and shallow and you can bounce back to take share. Potential Action Items: Develop rapid response playbooks for your top 5 risk scenarios Cross-train teams to ensure operational continuity Strengthening Your Business Risk Response with River Rock Advisors RRA understands the need — and the complexity — of moving to a more proactive approach to operational risk management. It challenges the view of “good enough” and pushes leaders beyond the familiar. However, we are in a rapidly evolving business climate that will force a more aggressive approach to operational excellence. If you want to learn more about our approach to operational risk management, risk scenario modeling, business risk response and our work, please reach out to Steve.Keener@riverrockadvisors.com or David.Toth@riverreockadvisors.com to learn more.", "image": "https://riverrockadvisors.com/wp-content/uploads/2025/03/iStock-90978674.jpg", "modified": "2025-03-07T09:31:00-05:00", "mapped_entity": "Article" }, { "id": 4824, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/operations-as-a-competitive-advantage-in-an-uncertain-business-climate/", "title": "Operations as a Competitive Advantage (in an Uncertain Business Climate)", "h1": "Operations as a Competitive Advantage (in an Uncertain Business Climate)", "summary": "With the new administration comes the likelihood of tariffs. Explore their impact and learn how to prepare your business.", "content": "Theories and opinions abound as to what the new administration really means to the economy broadly and to individual markets and businesses specifically — especially given the uncertain nature of today’s economy. What we wanted to delve into is how these uncertainties can influence operational strategies — to ensure that you have (better) levers in place to protect margins and ensure resiliency to disruption.
We certainly have plenty of signals as to what the future holds as this administration takes shape:
Does this sound familiar? Tariffs were a major topic several years ago. Dig into our thoughts on tariff strategy to inform your business strategy.
The most urgent of these is tariffs — as there is a straight line between tariffs and costs to businesses — whether or not they can pass along those costs. It’s worth noting that tariffs don’t need to be effective to be popular: recent studies show that when people and businesses have provable evidence that tariffs hurt their financials, they still support them. In other words, the push for tariffs is happening with or without prior evidence of them being ineffective to the domestic economy. Tariffs have had specific impacts:
With every pun intended, this can be a tariff-ying reality to businesses that are dependent on international goods and unable to pass along costs without degrading revenue performance.
Business leaders are likely already developing scenarios and contingencies. And in that deck of cards should reside operational analytics that ensure two outcomes to strengthen the business:
And we will go one step further. Business leaders need tangible evidence that any operational investment would free up working capital and improve resiliency for the business. The business case needs to be seen before material investment takes place. Leaders simply can’t absorb more uncertainty.
The chart below provides an example of what tangible evidence can look like: a clear set of levers able to provide a clear set of expectations (even where new investments are needed). In this example, the firm in question can expect a 35% reduction in inventory costs even with the $.57M investment included. Stated differently, this provides $3.59M of working capital back to the business while strengthening operations.
Know the Best Next Step with River Rock AdvisorsRiver Rock Advisors gives leaders the visibility and ability to strengthen financials and resiliency. Our RRApid Assessment assesses the different elements of operations, identifies levers, and projects the expected financial impact of changes — with the goal of producing a continuous stream of working capital back to the business and self-funding any significant changes.
About 11 years ago, River Rock Advisors started building around the core theme of balancing conflicting objectives of high customer service, low inventory working capital, and low costs — especially in challenging times. The current environment is an exciting time for us to support firms both in business and risk modeling and end-to-end value chain planning. Connect with us today to learn how we can make your operations function a competitive advantage for your business. Fill out the form below to connect with us.
", "content_plain": "Change is Coming, but What Does That Look Like? Theories and opinions abound as to what the new administration really means to the economy broadly and to individual markets and businesses specifically — especially given the uncertain nature of today’s economy. What we wanted to delve into is how these uncertainties can influence operational strategies — to ensure that you have (better) levers in place to protect margins and ensure resiliency to disruption. We certainly have plenty of signals as to what the future holds as this administration takes shape: First, the nominations to date have been consistent with campaign themes — meaning, there is a close relationship between words and deeds. Specifically, the nature of the nominated economic team suggests that stated priorities such as tariffs, tax reductions, and broad-based deregulation are likely. As an example, tariffs have already been suggested for Canada and Mexico as economic leverage to force them to take increased measures to solidify the borders. Does this sound familiar? Tariffs were a major topic several years ago. Dig into our thoughts on tariff strategy to inform your business strategy. What Should Businesses Be Focused on for the Road Ahead? The most urgent of these is tariffs — as there is a straight line between tariffs and costs to businesses — whether or not they can pass along those costs. It’s worth noting that tariffs don’t need to be effective to be popular: recent studies show that when people and businesses have provable evidence that tariffs hurt their financials, they still support them. In other words, the push for tariffs is happening with or without prior evidence of them being ineffective to the domestic economy. Tariffs have had specific impacts: They either (a) raised costs to consumers and therefore negatively affected demand, and/or (b) eroded the margins for those unable to raise costs or withstand declining demand. They had negligible impact on increasing jobs, particularly manufacturing jobs, as the primary “threat” to employment is automation, which is a domestic dynamic. They reduced access and/or increased the cost of U.S. businesses selling into foreign markets that reciprocate with economic hurdles. With every pun intended, this can be a tariff-ying reality to businesses that are dependent on international goods and unable to pass along costs without degrading revenue performance. Business leaders are likely already developing scenarios and contingencies. And in that deck of cards should reside operational analytics that ensure two outcomes to strengthen the business: Reducing costs to protect margin but moving from “operations is good enough” to “operations is a competitive advantage.” Increasing operational agility and resiliency to efficiently respond to economic shocks out of your control. And we will go one step further. Business leaders need tangible evidence that any operational investment would free up working capital and improve resiliency for the business. The business case needs to be seen before material investment takes place. Leaders simply can’t absorb more uncertainty. The chart below provides an example of what tangible evidence can look like: a clear set of levers able to provide a clear set of expectations (even where new investments are needed). In this example, the firm in question can expect a 35% reduction in inventory costs even with the $.57M investment included. Stated differently, this provides $3.59M of working capital back to the business while strengthening operations. Know the Best Next Step with River Rock Advisors River Rock Advisors gives leaders the visibility and ability to strengthen financials and resiliency. Our RRApid Assessment assesses the different elements of operations, identifies levers, and projects the expected financial impact of changes — with the goal of producing a continuous stream of working capital back to the business and self-funding any significant changes. About 11 years ago, River Rock Advisors started building around the core theme of balancing conflicting objectives of high customer service, low inventory working capital, and low costs — especially in challenging times. The current environment is an exciting time for us to support firms both in business and risk modeling and end-to-end value chain planning. Connect with us today to learn how we can make your operations function a competitive advantage for your business. Fill out the form below to connect with us.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/12/iStock-1160999495.jpg", "modified": "2024-12-18T08:56:00-05:00", "mapped_entity": "Article" }, { "id": 4813, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/the-importance-of-siop-tracking/", "title": "The Importance of SIOP Tracking", "h1": "The Importance of SIOP Tracking", "summary": "Learn the importance of SIOP tracking when it comes to understanding maturity level and reporting on progress over time.", "content": "Recently, we have been exploring the concept and components of an outcomes-based SIOP maturity model. The work is based on years of sales, inventory, and operations planning (SIOP) and End-to-End Planning with what seems like countless clients, most of which are smaller in size, are lower in their SIOP maturity stage, and are often self-taught before we get involved to energize or re-energize and accelerate their journey.
A thought contributor that we’ve been in contact with for years decided to provide us with some of his personal experience regarding outcomes-focused SIOP metrics from across a six-year SIOP journey with a real-world organization. We’re thrilled to share his insights as part of our ongoing SIOP maturity series.
P.S. — This is part four of our ongoing SIOP series. If you haven’t yet read the first few posts in this series, be sure to start with the introductory part one, an explanation of the maturity stages in part two, and the metrics that this new approach considers in part three.
The organization below understands the importance of SIOP tracking and the impact it can make. While the data is itself older, the message remains regardless: you can’t show value and progress if you’re not tracking the data. Remember, SIOP maturity is a longer-term process that involves numerous functions and steps. It’s going to take time. Data must be captured and monitored as time passes in order to understand progress.
Before you explore the image and data further down, here is a snapshot of the results of SIOP tracking over a six-year period:
![\"The](\"https://riverrockadvisors.com/wp-content/uploads/2024/11/Screen-Shot-2024-11-12-at-12.54.46-PM-1024x780.png\")
A naysayer to the above data and results would say that the dates are 20 years ago. One might argue that they had other initiatives going on, and of course they did. What company doesn’t? Not all of a company’s initiatives are successful, and the unsuccessful initiatives will stall or drag down outcome performance. Others might argue that it was a small company, but we all know that smaller companies generally have less technology and detailed instilled standard operating procedures to lean on.
All of that is irrelevant — the point is the tracking.
The key point of providing this information is that it is important to start SIOP tracking now, if you haven’t already done so. As you experience success thanks to outcomes-focused tracking and your career grows, be sure to hand off SIOP tracking measures and metrics to the next person to ensure the foundation you’ve built continues and your business benefits from the process.
There’s more to come with our SIOP maturity series, to be sure to follow along here and on LinkedIn.
", "content_plain": "You Can’t Prove What You Don’t Measure Recently, we have been exploring the concept and components of an outcomes-based SIOP maturity model. The work is based on years of sales, inventory, and operations planning (SIOP) and End-to-End Planning with what seems like countless clients, most of which are smaller in size, are lower in their SIOP maturity stage, and are often self-taught before we get involved to energize or re-energize and accelerate their journey. A thought contributor that we’ve been in contact with for years decided to provide us with some of his personal experience regarding outcomes-focused SIOP metrics from across a six-year SIOP journey with a real-world organization. We’re thrilled to share his insights as part of our ongoing SIOP maturity series. P.S. — This is part four of our ongoing SIOP series. If you haven’t yet read the first few posts in this series, be sure to start with the introductory part one, an explanation of the maturity stages in part two, and the metrics that this new approach considers in part three. Exploring a Real-World SIOP Tracking Scenario The organization below understands the importance of SIOP tracking and the impact it can make. While the data is itself older, the message remains regardless: you can’t show value and progress if you’re not tracking the data. Remember, SIOP maturity is a longer-term process that involves numerous functions and steps. It’s going to take time. Data must be captured and monitored as time passes in order to understand progress. Before you explore the image and data further down, here is a snapshot of the results of SIOP tracking over a six-year period: Revenue growth of $53M to $130M (a 6 year 16% CAGR) On-Time and Complete metrics of 93% to 99% respectively Keep in mind, this was achieved during the same time as the growth rate Reduced Cycle/Lead Time from 10 days to 3 days And no increase in planning staff A naysayer to the above data and results would say that the dates are 20 years ago. One might argue that they had other initiatives going on, and of course they did. What company doesn’t? Not all of a company’s initiatives are successful, and the unsuccessful initiatives will stall or drag down outcome performance. Others might argue that it was a small company, but we all know that smaller companies generally have less technology and detailed instilled standard operating procedures to lean on. All of that is irrelevant — the point is the tracking. Start SIOP Tracking Now The key point of providing this information is that it is important to start SIOP tracking now, if you haven’t already done so. As you experience success thanks to outcomes-focused tracking and your career grows, be sure to hand off SIOP tracking measures and metrics to the next person to ensure the foundation you’ve built continues and your business benefits from the process. There’s more to come with our SIOP maturity series, to be sure to follow along here and on LinkedIn.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/11/iStock-1349338733.jpg", "modified": "2024-11-18T14:31:05-05:00", "mapped_entity": "Article" }, { "id": 4801, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/understanding-key-siop-metrics-and-potential-risks/", "title": "Understanding Key SIOP Metrics and Potential Risks", "h1": "Understanding Key SIOP Metrics and Potential Risks", "summary": "Part three of our SIOP maturity model series explores key metrics and measurables — as well as risks — that come in each stage.", "content": "But what actually should be measured as you navigate through each stage of this new approach to becoming more mature in your sales, inventory, and operations planning (SIOP) processes? Thus far, we’ve introduced the concept of an outcomes-focused SIOP model. We’ve also helped you identify and understand where your organization may be right now based on the “symptoms” experienced — both internally and externally.
In part three of this series, we’ll explore a sampling of the metrics involved in each of the stages of our new model. The aim is to help you understand the outcome of each stage: to focus on what is being achieved rather than focusing on what is being done.
Traditional SIOP maturity models typically enable a simpler understanding of stage by activities performed (e.g. “Did you do X? Great, then you’re in stage 2.”). But when the focus of evaluation shifts from activities performed to value derived by the business and its customers from those activities, metrics become a bit more challenging.
Let’s dig into some examples below, along with potential risks to be aware of. Note that we’ll be starting with stage one and not stage zero. Because if you read what was happening in stage zero, you’ll know that metrics were the last thing on everyone’s mind (and basically didn’t exist, anyway).
SIOP is about managing conflicting objectives across corporate functional pillars. Sales would like to have enough inventory of every item so that whenever a customer makes a request, it’s easily satisfied. Procurement and manufacturing would like to have the capability to buy and build at the lowest unit cost, so knowing well in advance of when raw materials are needed and at sufficient volumes. Finance would like to minimize inventory to keep space, inventory carrying (cost of capital), and the risk of obsolescence down. Supply chain planning wants SIOP to be efficient in support of all those objectives, yet enabling resilience in the face of ever mounting disruptions.
At River Rock Advisors, we consider those conflicting objectives to be Service | Cost | Capital. For our client base, we most commonly leverage:
But not all conflicting metrics can be optimized/balanced at once when a firm is starting from ground zero. Rome wasn’t built in a day. What follows is what can/should be emphasized by phase to get your SIOP, thus your cross-functional operations, in shape across time and in-line with the “Outcomes Based Maturity Model.”
So, now we will address the timing of when metrics evolve to showcase what stage of SIOP maturity a company is currently in and what is next:
The metric to watch here is a reduction in the number of internal complaints voiced to executive management — along with a reduction in the amount of time that executive management spends resolving those cross-functional complaints.
In the second stage of SIOP maturity, customer service is beginning to improve thanks to prior efforts. Thus, tracking OTIF (On-Time In-Full) customer deliveries at the customer order line level and/or customer order header level will be important, and this improvement can help drive sales/revenue. This should build upon the stage-one metrics on internal complaints.
In stage three, the focus shifts to making the most out of your purchasing, manufacturing, distribution operations processes. A key SIOP metric to watch here is increased operations throughput with the same amount of capacity. Additionally, metrics in this stage might also (or instead) use overtime reduction, expedite costs reduction, lead time reduction, and, particularly important for SIOP, “meeting appropriate inventory investments and reducing excess and obsolete (E&O) inventory.”
With stage four, the stability of metrics in the prior stages enables sales teams to sell more high performing goods and services while holding low priority segmentation goods and services stable — or reducing them. So, the metrics in stage four are cross-functional in nature and in support of profitable revenue growth: Top Line Revenue, Total Supply Chain Cost as a % of Revenue, Gross Profit, and (again) Inventory Levels.
With stage five, the same thinking as stage four applies: you want even greater stability in all prior metrics. The reason for that is stability of the metrics defined in stages one through four will now help to drive improved market share and/or desirability within your customer base as well as desirable pricing.
If you’ve been following along, you’ll now have an understanding of what this SIOP maturity model entails, its stages and what happens in them, and the knowledge of what needs to be measured in them for success. We have more to share, so be sure to check back often and follow us on LinkedIn. And if you’re ready to put this maturity model to work for your organization, we’re here to help. Reach out whenever you’re ready.
", "content_plain": "You Know the Model and Where You Fit In… But what actually should be measured as you navigate through each stage of this new approach to becoming more mature in your sales, inventory, and operations planning (SIOP) processes? Thus far, we’ve introduced the concept of an outcomes-focused SIOP model. We’ve also helped you identify and understand where your organization may be right now based on the “symptoms” experienced — both internally and externally. In part three of this series, we’ll explore a sampling of the metrics involved in each of the stages of our new model. The aim is to help you understand the outcome of each stage: to focus on what is being achieved rather than focusing on what is being done. Reminder: This Is Not a Simple Process Traditional SIOP maturity models typically enable a simpler understanding of stage by activities performed (e.g. “Did you do X? Great, then you’re in stage 2.”). But when the focus of evaluation shifts from activities performed to value derived by the business and its customers from those activities, metrics become a bit more challenging. Let’s dig into some examples below, along with potential risks to be aware of. Note that we’ll be starting with stage one and not stage zero. Because if you read what was happening in stage zero, you’ll know that metrics were the last thing on everyone’s mind (and basically didn’t exist, anyway). Outcome-Focused SIOP Metrics to Watch by Maturity Stage First, Here’s How We Think About These Metrics SIOP is about managing conflicting objectives across corporate functional pillars. Sales would like to have enough inventory of every item so that whenever a customer makes a request, it’s easily satisfied. Procurement and manufacturing would like to have the capability to buy and build at the lowest unit cost, so knowing well in advance of when raw materials are needed and at sufficient volumes. Finance would like to minimize inventory to keep space, inventory carrying (cost of capital), and the risk of obsolescence down. Supply chain planning wants SIOP to be efficient in support of all those objectives, yet enabling resilience in the face of ever mounting disruptions. At River Rock Advisors, we consider those conflicting objectives to be Service | Cost | Capital. For our client base, we most commonly leverage: Service — Most easily tracked, yet still quite difficult to capture and track, On-Time and In-Full (OTIF), which is on the path to “Perfect Order” as a metric. Cost — Minimizing “expedite” costs. Meaning wasting budget on hurrying up activities to react to unplanned events, often good events but expedite costs can be a margin killer. Inventory Working Capital — Inventory excess impacts space, potential obsolescence, shrink, space required, warehouse efficiency and importantly the working capital (carrying costs, interest lost, insurance, etc) involved that can hamstring a firm’s ability to invest in revenue generation activities But not all conflicting metrics can be optimized/balanced at once when a firm is starting from ground zero. Rome wasn’t built in a day. What follows is what can/should be emphasized by phase to get your SIOP, thus your cross-functional operations, in shape across time and in-line with the “Outcomes Based Maturity Model.” So, now we will address the timing of when metrics evolve to showcase what stage of SIOP maturity a company is currently in and what is next: Stage 1: Service Function The metric to watch here is a reduction in the number of internal complaints voiced to executive management — along with a reduction in the amount of time that executive management spends resolving those cross-functional complaints. Watch out: Word could get out that the “squeaky wheel gets the grease,” thus SIOP could devolve into a regularly scheduled complaining session. Stage 2: Customer Service Provider In the second stage of SIOP maturity, customer service is beginning to improve thanks to prior efforts. Thus, tracking OTIF (On-Time In-Full) customer deliveries at the customer order line level and/or customer order header level will be important, and this improvement can help drive sales/revenue. This should build upon the stage-one metrics on internal complaints. Watch out: A singular focus on OTIF may lead to much too much inventory as well as an increase in expediting costs. This can cause executive management to believe that SIOP has failed. Stage 3: Efficiency Driver In stage three, the focus shifts to making the most out of your purchasing, manufacturing, distribution operations processes. A key SIOP metric to watch here is increased operations throughput with the same amount of capacity. Additionally, metrics in this stage might also (or instead) use overtime reduction, expedite costs reduction, lead time reduction, and, particularly important for SIOP, “meeting appropriate inventory investments and reducing excess and obsolete (E&O) inventory.” Watch out: Improved end-to-end planning can and does help, but lack of stability in or improvements in underlying processes, data quality, and beliefs can derail or cancel intended actions — leading executives to move to another “flavor of the month.” Stage 4: Revenue Generator With stage four, the stability of metrics in the prior stages enables sales teams to sell more high performing goods and services while holding low priority segmentation goods and services stable — or reducing them. So, the metrics in stage four are cross-functional in nature and in support of profitable revenue growth: Top Line Revenue, Total Supply Chain Cost as a % of Revenue, Gross Profit, and (again) Inventory Levels. Watch out: Everyone likes the concept of customer or product segmentation but hates pursuing segmentation to improve “profitable revenue growth.” To start, the thinking behind it is hard as you have to say “no” when it is easier to say “yes,” and the process changes and “at the time of action” decisions required are even harder. Stage 5: Competitive Advantage With stage five, the same thinking as stage four applies: you want even greater stability in all prior metrics. The reason for that is stability of the metrics defined in stages one through four will now help to drive improved market share and/or desirability within your customer base as well as desirable pricing. Watch out: Desire for silver bullet solutions can drive executives to want to jump steps to gain a competitive advantage — without doing the work required to have thoughtful, responsive, and resilient processes, change management, and technology. What’s Your SIOP Maturity Model Measuring? If you’ve been following along, you’ll now have an understanding of what this SIOP maturity model entails, its stages and what happens in them, and the knowledge of what needs to be measured in them for success. We have more to share, so be sure to check back often and follow us on LinkedIn. And if you’re ready to put this maturity model to work for your organization, we’re here to help. Reach out whenever you’re ready.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/10/iStock-2095584352.jpg", "modified": "2025-12-22T14:54:20-05:00", "mapped_entity": "Article" }, { "id": 4796, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/identifying-your-outcomes-based-siop-maturity-stage-by-symptoms/", "title": "Identifying Your “Outcomes Based SIOP Maturity” Stage by Symptoms", "h1": "Identifying Your “Outcomes Based SIOP Maturity” Stage by Symptoms", "summary": "Whether you’re already using a SIOP maturity model, or you’re considering adopting one, it’s important to know where you’re at now.", "content": "Recently, we introduced a new sales, inventory, and operations planning (SIOP) maturity model that focuses on outcomes. It can be challenging to understand how this fits into your organization — and even more so where your business fits into the new model. Here, we’ll explore the symptoms that are often experienced in each stage of the new model to help you understand where you’re at now and what should be focused on to move forward.
The new SIOP maturity model we recently proposed stands in stark contrast to traditional maturity models, which focus on what teams are doing, but not what is actually being accomplished. In addition to changing the focus, the model creates additional benefits:
Whether you’re already using a SIOP maturity model, or you’re considering adopting one to assess current efforts, it’s important to know where you’re at now. Below are indicators of where your SIOP function may be based on the issues experienced.
Stage zero is exactly what it implies: no synchronized efforts have been made in SIOP or sales and operations execution (S&OE). Everyone is a firefighter, and the culture of firefighting is both recognized and rewarded. There is no proactive work being done to get ahead of fires springing up or to mitigate their impact. Some key symptoms here include:
In the first SIOP maturity stage, the organization has recognized that a problem exists and that work must be done to resolve it. Efforts are launching in order to help prevent issues, but it’s still early days. Internally, teams are beginning to understand one another’s roles and responsibilities, but there may be little to no actual value experienced.
In stage two, the work that has been initiated in stage one is beginning to pay off — not only internally, but also externally. Customers are beginning to take notice that the organization is living up to its promises. However, all is not as it seems.
In the third SIOP maturity stage, “less” is the name of the game. The organization has made progress on its metrics and navigating the behind-the-scenes complexity, resulting in less overall inventory, less expediting, and less panic-driven decisions/efforts.
Improvements made in the SIOP maturity stages thus far have brought the organization to a position where those improvements are now able to generate more positive momentum and results. Customers are responding to this new stability and improved focus, resulting in increased revenue and a better internal and external experience of value.
With time and the consistent implementation of improvements, as well as learning from the results of those improvements, the organization achieves stage five maturity. Here, the perception of the company is that it is becoming a leader in its selected markets. This helps to drive new opportunities for growth, expansions of customer accounts, new partnerships, and even M&A opportunities.
The symptoms explored above are built upon decades of learning and experience with organizations spanning numerous industries and geographies. At River Rock Advisors, we’ve helped these companies navigate the complexities of SIOP to mature in thought, process, and execution — and we can do the same for you. Connect with us today to learn more about our capabilities, and be sure to stay tuned for future thinking in Outcomes Based SIOP Maturity.
", "content_plain": "Where Does Your SIOP Process Stand Right Now? Recently, we introduced a new sales, inventory, and operations planning (SIOP) maturity model that focuses on outcomes. It can be challenging to understand how this fits into your organization — and even more so where your business fits into the new model. Here, we’ll explore the symptoms that are often experienced in each stage of the new model to help you understand where you’re at now and what should be focused on to move forward. Recapping the SIOP Maturity Model The new SIOP maturity model we recently proposed stands in stark contrast to traditional maturity models, which focus on what teams are doing, but not what is actually being accomplished. In addition to changing the focus, the model creates additional benefits: It changes how team members think about SIOP maturity (task-focused to outcome-focused) and what’s needed to actually call the function “mature” SIOP processes become stickier in team thinking and in execution It keeps executive leadership involved and focused on outcomes Value becomes easier to measure and share, internally and externally Whether you’re already using a SIOP maturity model, or you’re considering adopting one to assess current efforts, it’s important to know where you’re at now. Below are indicators of where your SIOP function may be based on the issues experienced. Understanding Maturity by Symptoms Experienced Stage 0: Ground Zero Stage zero is exactly what it implies: no synchronized efforts have been made in SIOP or sales and operations execution (S&OE). Everyone is a firefighter, and the culture of firefighting is both recognized and rewarded. There is no proactive work being done to get ahead of fires springing up or to mitigate their impact. Some key symptoms here include: Customer service is poor, and it’s unclear why that’s the case Orders are consistently being expedited to improve customer service Levels of raw material, “work in process,” and finished goods inventory are high — but out of balance with what is actually needed Customer churn is high — especially below your top few customers Significant blaming between functions and escalations, resulting in knee-jerk responses/solutions. Undefined “white space” between organizational roles and responsibilities Each function is telling the other how to behave and/or do their role No or limited business metrics to understand business decision trade-offs Numerous initiatives with few making progress, and many become “flavor of the month” in which resources hold their breath to outwait management attention Stage 1: Service Function: Tamping Down The Volume of Nonsense In the first SIOP maturity stage, the organization has recognized that a problem exists and that work must be done to resolve it. Efforts are launching in order to help prevent issues, but it’s still early days. Internally, teams are beginning to understand one another’s roles and responsibilities, but there may be little to no actual value experienced. Finger pointing, complaining, and knee-jerk responses are reduced or dropping Customer service is improving, but expediting and wrong-mix inventory persist Resources are better at staying in their respective lanes Trust between internal organizations is improving (but still weak) RACI systems are beginning to be adopted Stage 2: Customer Service Provider: Customers Becoming Aware Something is Changing In stage two, the work that has been initiated in stage one is beginning to pay off — not only internally, but also externally. Customers are beginning to take notice that the organization is living up to its promises. However, all is not as it seems. Customer on-time, in-full (OTIF) metrics are improving Reliable performance is becoming an advantage However, operations are calm above the water but working hard beneath Customer service performance is tracked, revealing opportunities for improvement rather than one-off initiatives Wrong-mix inventory, expediting, and firefighting persist in order to achieve OTIF Executives are becoming more selective on operational improvement projects that align with objectives Stage 3: Efficiency Driver: Still Better, but with Less In the third SIOP maturity stage, “less” is the name of the game. The organization has made progress on its metrics and navigating the behind-the-scenes complexity, resulting in less overall inventory, less expediting, and less panic-driven decisions/efforts. Internal organizations are staying in their lane Organizational roles and responsibilities are becoming more defined and stable Stage two initiatives are paying off, and new initiatives are building upon that base of organizational and process improvements More metrics are able to be tracked, with growing attention to the need for balanced metrics to avoid unintentional consequences and finger pointing Customer churn is reduced Margin has improved and working capital is freed up Stage 4: Revenue Generator Improvements made in the SIOP maturity stages thus far have brought the organization to a position where those improvements are now able to generate more positive momentum and results. Customers are responding to this new stability and improved focus, resulting in increased revenue and a better internal and external experience of value. Sales is now able to shape demand based on supply insights (e.g., over abundance of specific inventory) Sales is also now working with key customers on inter-company improvements Customers beginning to value the company as a “trusted partner” and/or “lead” vendor in your category because: Prices can be lower or very competitive Informative answers to questions / requests are readily available “Promises” are kept Customer stickiness to the organization’s brand has improved Stage 5: Competitive Advantage With time and the consistent implementation of improvements, as well as learning from the results of those improvements, the organization achieves stage five maturity. Here, the perception of the company is that it is becoming a leader in its selected markets. This helps to drive new opportunities for growth, expansions of customer accounts, new partnerships, and even M&A opportunities. Where Does Your SIOP Maturity Level Stand? The symptoms explored above are built upon decades of learning and experience with organizations spanning numerous industries and geographies. At River Rock Advisors, we’ve helped these companies navigate the complexities of SIOP to mature in thought, process, and execution — and we can do the same for you. Connect with us today to learn more about our capabilities, and be sure to stay tuned for future thinking in Outcomes Based SIOP Maturity.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/09/iStock-1223992751.jpg", "modified": "2024-10-29T09:47:56-05:00", "mapped_entity": "Article" }, { "id": 4784, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/waiting-on-the-flames-the-gap-between-the-impact-of-disruption-and-our-ability-to-manage-it-is-widening-and-thats-risky/", "title": "Waiting on the Flames: The Gap Between the Impact of Disruption and Our Ability to Manage It Is Widening, and That’s Risky", "h1": "Waiting on the Flames: The Gap Between the Impact of Disruption and Our Ability to Manage It Is Widening, and That’s Risky", "summary": "Risk management cannot be something you implement down the road. Learn why it’s time to be proactive — and how we can help.", "content": "You know these. The team saw early signs of smoke but still fell back to waiting for the flames. A sense of surprise, a sense of inevitability, and then a sense of extreme urgency — even panic. Tiger teams, rapid-fire financial assessments, pulling critical resources away from their core work, high emotion that creates the “fog of war” sense, and coffee — lots of coffee.
This may be inevitable when a singular black swan event happens, but with an isolated disruption the organization can often snap back in place. But what happens when it’s a potential flock of black swans — a collection of diverse and dynamic risks that create persistent uncertainty and financial risk?
There is real and often untapped value in taking a thoughtful step back to consider risks, both broad and specific, to address those that are reasonably in your control and develop warning alarms for those that aren’t.
Addressing risks may mean developing clear mitigation strategies and plans, but it should also mean making current operations more robust, resilient, and agile right now — when you can be more methodical.
Tactically, this could be things like evaluating true capacity and working capital needs so that you can free them up now. In a more strategic way, it could be strengthening or reinvigorating your SIOP process.
The further out this process focuses on, and tighter the linkage between your market sensing in Sales is with your supply sensing from Operations, the more likely and effectively you will be able to avoid or mitigate risk going forward.
As we write this, we’re not sure the world has instantly changed, so we need a new way to look at things. Instead, we see this more as recognizing that this constant wave of disruption isn’t changing. We all need to more formally adapt to a world in which disruption is normal and proactive risk management is critical.
Reach out to us to learn more about how we model risk, integrate those outcomes into your core financial decision-making, and put in motion methodical, proactive operational improvement to free up working capital and increase resiliency. Also, stay tuned for our upcoming SIOP series that explores new maturity models and more.
", "content_plain": "There is This Moment When Risks Move From Concept to Reality You know these. The team saw early signs of smoke but still fell back to waiting for the flames. A sense of surprise, a sense of inevitability, and then a sense of extreme urgency — even panic. Tiger teams, rapid-fire financial assessments, pulling critical resources away from their core work, high emotion that creates the “fog of war” sense, and coffee — lots of coffee. This may be inevitable when a singular black swan event happens, but with an isolated disruption the organization can often snap back in place. But what happens when it’s a potential flock of black swans — a collection of diverse and dynamic risks that create persistent uncertainty and financial risk? It’s Time to Get Proactive There is real and often untapped value in taking a thoughtful step back to consider risks, both broad and specific, to address those that are reasonably in your control and develop warning alarms for those that aren’t. Addressing risks may mean developing clear mitigation strategies and plans, but it should also mean making current operations more robust, resilient, and agile right now — when you can be more methodical. Tactically, this could be things like evaluating true capacity and working capital needs so that you can free them up now. In a more strategic way, it could be strengthening or reinvigorating your SIOP process. The further out this process focuses on, and tighter the linkage between your market sensing in Sales is with your supply sensing from Operations, the more likely and effectively you will be able to avoid or mitigate risk going forward. How Can We Help You Prepare? As we write this, we’re not sure the world has instantly changed, so we need a new way to look at things. Instead, we see this more as recognizing that this constant wave of disruption isn’t changing. We all need to more formally adapt to a world in which disruption is normal and proactive risk management is critical. Reach out to us to learn more about how we model risk, integrate those outcomes into your core financial decision-making, and put in motion methodical, proactive operational improvement to free up working capital and increase resiliency. Also, stay tuned for our upcoming SIOP series that explores new maturity models and more.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/08/RiverRock-Blog-Graphics-Opt2.png", "modified": "2024-08-28T15:43:36-05:00", "mapped_entity": "Article" }, { "id": 4777, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/consumer-spending-impact-and-the-need-for-proactive-siop/", "title": "Consumer Spending Impact and the Need for Proactive SIOP", "h1": "Consumer Spending Impact and the Need for Proactive SIOP", "summary": "The impact of consumer spending on the global economy is significant. How does this connect to SIOP practices? Get the answers here.", "content": "Recent Institute for Supply Management PMI and Job Report readings remind us that forecasts for a soft landing didn’t fully describe what they meant by the word “soft.” Roughly 14% of the global economy is driven by US consumer spending. Any dent in consumer spending or confidence sends ripples around the world, as we saw in capital markets.
That shock wave had been building over the last several months as we have seen consumers increasingly trade down or trade out of prior spending habits, driven by the combined effects of higher prices, high borrowing rates, and increased debt. September’s expected rate cut will help, but it won’t cure this dynamic.
This was never going to be a smooth ride. But it was a useful reminder that each time the US consumer — and the broader economy — was deemed resilient, it may have meant that at least it didn’t crater. We are still in a fragile business climate in which companies operate against the backdrop of uncertain demand, a far more cost-conscious consumer, stubborn inflationary pressures, and a volatile geopolitical climate.
Now, it may seem to be a bit of a leap to jump from macroeconomics to SIOP — but it’s not. Sales, Inventory, and Operations Planning (SIOP) is not simply good hygiene or a necessary response to operational woes. Instead, SIOP is a powerful lever to free up capital with neutral to positive impact to revenues. Done proactively (read: now), it enables you to get in front of any uncontrollable margin erosion and/or build reserves — all while strengthening operations.
One way to think about it is building muscle versus cutting into muscle if the economy further erodes.
For example, recent work for a mechanical components manufacturer reduced inventory costs by 35% while improving service delivery. More than $3.6 million in previously wasted capital was now available for surgical investments to drive growth or reserves to protect margin.
![\"Consumer](\"https://riverrockadvisors.com/wp-content/uploads/2024/08/Consumer-Spending-Impact-and-the-Need-for-Proactive-SIOP.png\")
This was not an anomaly or some edge case. These are predictable gains as companies uncover and address accumulated inefficiencies in the business.
Part of the message is that there are gains to be had that strengthen the business. The larger message is to do this now — proactively. It’s far better to do this work now and get ahead of any erosion in your sector.
And you don’t need to invest in SIOP without getting a good feel for what it can produce for you. Our RRApid Assessment enables you to be clear-eyed about the underlying issues to be tackled (and therefore at least the initial focus of the work), the investment needs, the expected gains, the likely timing of those gains — and thus the expected payback.
Let us know if this piques your interest, and we would be happy to connect and see what we can do for you.
", "content_plain": "Recent Institute for Supply Management PMI and Job Report readings remind us that forecasts for a soft landing didn’t fully describe what they meant by the word “soft.” Roughly 14% of the global economy is driven by US consumer spending. Any dent in consumer spending or confidence sends ripples around the world, as we saw in capital markets. That shock wave had been building over the last several months as we have seen consumers increasingly trade down or trade out of prior spending habits, driven by the combined effects of higher prices, high borrowing rates, and increased debt. September’s expected rate cut will help, but it won’t cure this dynamic. This was never going to be a smooth ride. But it was a useful reminder that each time the US consumer — and the broader economy — was deemed resilient, it may have meant that at least it didn’t crater. We are still in a fragile business climate in which companies operate against the backdrop of uncertain demand, a far more cost-conscious consumer, stubborn inflationary pressures, and a volatile geopolitical climate. What Does Consumer Spending Impact Mean for SIOP? Now, it may seem to be a bit of a leap to jump from macroeconomics to SIOP — but it’s not. Sales, Inventory, and Operations Planning (SIOP) is not simply good hygiene or a necessary response to operational woes. Instead, SIOP is a powerful lever to free up capital with neutral to positive impact to revenues. Done proactively (read: now), it enables you to get in front of any uncontrollable margin erosion and/or build reserves — all while strengthening operations. One way to think about it is building muscle versus cutting into muscle if the economy further erodes. For example, recent work for a mechanical components manufacturer reduced inventory costs by 35% while improving service delivery. More than $3.6 million in previously wasted capital was now available for surgical investments to drive growth or reserves to protect margin. This was not an anomaly or some edge case. These are predictable gains as companies uncover and address accumulated inefficiencies in the business. Part of the message is that there are gains to be had that strengthen the business. The larger message is to do this now — proactively. It’s far better to do this work now and get ahead of any erosion in your sector. And you don’t need to invest in SIOP without getting a good feel for what it can produce for you. Our RRApid Assessment enables you to be clear-eyed about the underlying issues to be tackled (and therefore at least the initial focus of the work), the investment needs, the expected gains, the likely timing of those gains — and thus the expected payback. Let us know if this piques your interest, and we would be happy to connect and see what we can do for you.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/08/iStock-989428948.jpg", "modified": "2025-04-28T08:37:02-05:00", "mapped_entity": "Article" }, { "id": 4769, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/from-task-to-accomplishment-a-better-approach-to-siop-maturity-modeling/", "title": "From Task to Accomplishment: A Better Approach to SIOP Maturity Modeling", "h1": "From Task to Accomplishment: A Better Approach to SIOP Maturity Modeling", "summary": "Introducing the outcomes-based SIOP maturity model — a value-focused alternative to traditional maturity models.", "content": "Sales, inventory, and operations planning (SIOP) is a critical function in organizations worldwide, and while it certainly has helped those businesses streamline their processes and achieve better levels of performance, there is a persistent shortcoming that we feel must be addressed. Throughout this series, we’ll explore this in depth and provide considerations for you and your team as you also look to improve performance. Our first post introduces an alternative SIOP maturity model and what it aims to achieve.
As a supply chain professional, you’re already well aware of SIOP and its importance for evaluating and enhancing those functions within your organization. You also likely have experience in measuring the overall effectiveness of those processes via SIOP maturity models.
There are a number of models commonly used worldwide, including those developed by Gartner, McKinsey, APICS, AMR Research, and others. In general, these models evaluate SIOP practices along various criteria and stages. These often start at levels described as “basic,” “reactive,” “none,” and similar terminology. As organizations mature with SIOP processes, higher levels are typically categorized as “advanced,” “proactive,” “event driven,” etc. Any effort to grow in SIOP maturity is worthwhile, but there’s an issue prevalent in many of these models:
Most maturity models are based on what the SIOP team is doing rather than the outcome derived from the maturity stage.
At River Rock Advisors, our team has significant experience in the integrated End-to-End Planning (E2E) and Sales & Operations Planning (S&OP) space. However, we have always been confounded by the fact that, again, most maturity models are based on what is being done rather than what is being accomplished. For example:
Below is a table comparing the measures of SIOP maturity between traditional models and an outcome-based model (many thanks to our colleague Steven Faber). In this comparison, SIOP maturity is evaluated based on what is accomplished — the outcome — and how the company uses the SIOP function, rather than what the function attempts to do.
| Stage | Traditional Model “A” | Traditional Model “B” | Outcomes-Based Model |
| 1 | No shared goals | No S&OP Process | A service function |
| 2 | Create Volume Plan | Reactive | Customer Service Provider |
| 3 | Balance Supply and Demand | Standard | Efficiency Driver |
| 4 | Create a demand-driven supply response | Advanced | Revenue Generator |
| 5 | Coordinated inside and outside network making | Event Driven | Competitive Advantage |
A key benefit of the outcomes-based maturity model is that it changes up team member mindsets and the focus of SIOP itself. With traditional models, the focus is on tasks that the team is executing. With this new model, the focus changes to what is actually being accomplished — as well as what should be accomplished next.
This is key to making SIOP processes stick and enabling progression through each stage. Without this focus, interest in moving to the next stage of maturity as well as the focus of executive management can fall off in favor of the next “flavor of the month.” Additionally, while it’s easier to verify stage by activities completed in a traditional model, it becomes harder and harder to apply metrics on value derived in the company in later stages.
But perhaps best of all is that an outcomes-based model becomes the start of a value creation plan. By taking a different approach to SIOP maturity modeling, your organization simultaneously develops new and better ways to experience value internally as well as create and share that value with customers, suppliers, and other external partners.
Here, we’ve shared a high-level introduction of this new maturity model for you and your team to consider. Make sure you check back often — we’ll be sharing even more about key metrics, stage-specific information and risks, tips to understand where your business is at with its maturity level, and much more.
Connect with us to learn more and to discuss your SIOP processes with our team.
", "content_plain": "Welcome to Our New SIOP Maturity Series Sales, inventory, and operations planning (SIOP) is a critical function in organizations worldwide, and while it certainly has helped those businesses streamline their processes and achieve better levels of performance, there is a persistent shortcoming that we feel must be addressed. Throughout this series, we’ll explore this in depth and provide considerations for you and your team as you also look to improve performance. Our first post introduces an alternative SIOP maturity model and what it aims to achieve. The Challenge with Traditional SIOP Maturity Models As a supply chain professional, you’re already well aware of SIOP and its importance for evaluating and enhancing those functions within your organization. You also likely have experience in measuring the overall effectiveness of those processes via SIOP maturity models. There are a number of models commonly used worldwide, including those developed by Gartner, McKinsey, APICS, AMR Research, and others. In general, these models evaluate SIOP practices along various criteria and stages. These often start at levels described as “basic,” “reactive,” “none,” and similar terminology. As organizations mature with SIOP processes, higher levels are typically categorized as “advanced,” “proactive,” “event driven,” etc. Any effort to grow in SIOP maturity is worthwhile, but there’s an issue prevalent in many of these models: Most maturity models are based on what the SIOP team is doing rather than the outcome derived from the maturity stage. Why This is a Problem At River Rock Advisors, our team has significant experience in the integrated End-to-End Planning (E2E) and Sales & Operations Planning (S&OP) space. However, we have always been confounded by the fact that, again, most maturity models are based on what is being done rather than what is being accomplished. For example: Is the SIOP model working cross-functionally internally or cross-company externally? Have we worked to enhance processes, or have processes actually been enhanced? Are boxes just being checked, or do we know that value actually exists? Comparing Traditional Models with an Outcome-Based Model Below is a table comparing the measures of SIOP maturity between traditional models and an outcome-based model (many thanks to our colleague Steven Faber). In this comparison, SIOP maturity is evaluated based on what is accomplished — the outcome — and how the company uses the SIOP function, rather than what the function attempts to do. Stage Traditional Model “A” Traditional Model “B” Outcomes-Based Model 1 No shared goals No S&OP Process A service function 2 Create Volume Plan Reactive Customer Service Provider 3 Balance Supply and Demand Standard Efficiency Driver 4 Create a demand-driven supply response Advanced Revenue Generator 5 Coordinated inside and outside network making Event Driven Competitive Advantage A key benefit of the outcomes-based maturity model is that it changes up team member mindsets and the focus of SIOP itself. With traditional models, the focus is on tasks that the team is executing. With this new model, the focus changes to what is actually being accomplished — as well as what should be accomplished next. This is key to making SIOP processes stick and enabling progression through each stage. Without this focus, interest in moving to the next stage of maturity as well as the focus of executive management can fall off in favor of the next “flavor of the month.” Additionally, while it’s easier to verify stage by activities completed in a traditional model, it becomes harder and harder to apply metrics on value derived in the company in later stages. But perhaps best of all is that an outcomes-based model becomes the start of a value creation plan. By taking a different approach to SIOP maturity modeling, your organization simultaneously develops new and better ways to experience value internally as well as create and share that value with customers, suppliers, and other external partners. There’s More to Come on the Outcomes-Based SIOP Maturity Model Here, we’ve shared a high-level introduction of this new maturity model for you and your team to consider. Make sure you check back often — we’ll be sharing even more about key metrics, stage-specific information and risks, tips to understand where your business is at with its maturity level, and much more. Connect with us to learn more and to discuss your SIOP processes with our team.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/08/RiverRock-Blog-Graphic-Chart-2-1.png", "modified": "2024-11-12T12:58:42-05:00", "mapped_entity": "Article" }, { "id": 4763, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/is-mapping-business-processes-still-worth-it/", "title": "Is Mapping Business Processes Still Worth It?", "h1": "Is Mapping Business Processes Still Worth It?", "summary": "One of the most common approaches to solving recurrent problems is mapping business processes. Learn why here.", "content": "Companies frequently grapple with the frustration of business inefficiencies. The lack of bandwidth in teams often forces them into a firefighting mode — applying temporary fixes and/or expedites that only mask the problems. These issues then resurface, either in the same form or in a different guise, perpetuating a frustrating cycle.
Supply chain teams often do not have the time to stop and find the root cause while problem-solving. They move from crisis to urgent crisis, and then can enjoy the thrill of being a “firefighter” that continually “saves” the company. Root cause is also forgotten when revamping the supply chain strategy. Some team members feel empowered when they “solve” the current specific crisis. All these reasons add to why companies are not stopping to find the root cause while problem-solving.
This carries a risk of crisis response that becomes unintentionally baked into “normal” operations — meaning the crisis modifications bake productivity loss, inefficiencies, extra costs, and additional working capital into normal modes of operation. A crisis can provide an opportunity to expose where fragility or inefficiency exists and create a moment to think both narrowly and broadly (end-to-end and cross-functional white space) to process-upgrade the business.
A couple of years ago, there was a boom with continuous improvement, LEAN, Six Sigma, Agile, change management, and many other methodologies that, for some companies, were just the buzzwords for the time. Companies that took it seriously and worked to change the internal mindset saw the results and still benefit from continuous improvement processes today.
The others, where it was not adequately implemented and was just a buzz, found it unnecessary, slow, and a bunch of meetings and extra documentation.
In fact, some methodologies are better than others for each problem. Knowing comes with the experience and problem-solving maturity of the business or the supply chain team. We could root cause the problem-solving approaches, but it might take us down a rabbit hole. The easiest path is to handle problem-solving with experienced and knowledgeable professionals. Dedicate a team to it or hire external help.
One of the most common approaches to solving recurrent problems is mapping business processes, which could be using Value Stream Mapping, swim lanes, workflow design, and SIPOC diagrams. When processes are unclear or not well-defined, issues such as chaos, reworks, delays, human errors, system issues, lack of data integrity, lack of ownership/accountability, and thousands more resurface.
A common issue with mapping business processes is employing subject matter-free facilitators. They have the facilitation tools at hand to address issues, but not the content knowledge to help keep the team from going down “rabbit holes” or “SQUIRREL” distractions, or even just to keep the team from focusing on the most recent urgent crisis encountered. A topic content-rich facilitator can use the power of the marker to tease out true insights from the team members, all while keeping the process on track.
Next time you stop by to talk to your teams, pick a specific process and ask them about it. You will find it interesting how many different versions of the same method the managers, coordinators, and analysts have for the same process they are all involved with, commonly providing different end results.
A series of business process mapping workshop sessions brings clarity and control over processes, help identify the root cause of problems, define ownership and accountability, integrate the teams, and help to bring up where collaboration or training is needed. More in-depth, a future ideal process can be defined as a team and become a new strategy goal, where redundancy eliminations, compliance, and standardization are implemented and measured by the importance indicators.
If you are interested in learning more about how LEAN, Six Sigma, and root cause analysis can improve your team’s efficiency and operations results, contact River Rock Advisors.
", "content_plain": "Have Kaizen Sessions Become a Crisis Management Tool? Have They Lost Their Continuous Improvement Power? Companies frequently grapple with the frustration of business inefficiencies. The lack of bandwidth in teams often forces them into a firefighting mode — applying temporary fixes and/or expedites that only mask the problems. These issues then resurface, either in the same form or in a different guise, perpetuating a frustrating cycle. Supply chain teams often do not have the time to stop and find the root cause while problem-solving. They move from crisis to urgent crisis, and then can enjoy the thrill of being a “firefighter” that continually “saves” the company. Root cause is also forgotten when revamping the supply chain strategy. Some team members feel empowered when they “solve” the current specific crisis. All these reasons add to why companies are not stopping to find the root cause while problem-solving. This carries a risk of crisis response that becomes unintentionally baked into “normal” operations — meaning the crisis modifications bake productivity loss, inefficiencies, extra costs, and additional working capital into normal modes of operation. A crisis can provide an opportunity to expose where fragility or inefficiency exists and create a moment to think both narrowly and broadly (end-to-end and cross-functional white space) to process-upgrade the business. The Importance of Methodology for Mapping Business Processes A couple of years ago, there was a boom with continuous improvement, LEAN, Six Sigma, Agile, change management, and many other methodologies that, for some companies, were just the buzzwords for the time. Companies that took it seriously and worked to change the internal mindset saw the results and still benefit from continuous improvement processes today. The others, where it was not adequately implemented and was just a buzz, found it unnecessary, slow, and a bunch of meetings and extra documentation. In fact, some methodologies are better than others for each problem. Knowing comes with the experience and problem-solving maturity of the business or the supply chain team. We could root cause the problem-solving approaches, but it might take us down a rabbit hole. The easiest path is to handle problem-solving with experienced and knowledgeable professionals. Dedicate a team to it or hire external help. One of the most common approaches to solving recurrent problems is mapping business processes, which could be using Value Stream Mapping, swim lanes, workflow design, and SIPOC diagrams. When processes are unclear or not well-defined, issues such as chaos, reworks, delays, human errors, system issues, lack of data integrity, lack of ownership/accountability, and thousands more resurface. A common issue with mapping business processes is employing subject matter-free facilitators. They have the facilitation tools at hand to address issues, but not the content knowledge to help keep the team from going down “rabbit holes” or “SQUIRREL” distractions, or even just to keep the team from focusing on the most recent urgent crisis encountered. A topic content-rich facilitator can use the power of the marker to tease out true insights from the team members, all while keeping the process on track. Next time you stop by to talk to your teams, pick a specific process and ask them about it. You will find it interesting how many different versions of the same method the managers, coordinators, and analysts have for the same process they are all involved with, commonly providing different end results. A series of business process mapping workshop sessions brings clarity and control over processes, help identify the root cause of problems, define ownership and accountability, integrate the teams, and help to bring up where collaboration or training is needed. More in-depth, a future ideal process can be defined as a team and become a new strategy goal, where redundancy eliminations, compliance, and standardization are implemented and measured by the importance indicators. If you are interested in learning more about how LEAN, Six Sigma, and root cause analysis can improve your team’s efficiency and operations results, contact River Rock Advisors.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/05/iStock-1397603916.jpg", "modified": "2024-06-26T13:00:11-05:00", "mapped_entity": "Article" }, { "id": 4757, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/operational-resiliency-in-a-disrupted-world-and-why-rules-of-thumb-increasingly-fail/", "title": "Operational Resiliency in a Disrupted World and Why Rules of Thumb Increasingly Fail", "h1": "Operational Resiliency in a Disrupted World and Why Rules of Thumb Increasingly Fail", "summary": "Explore why disruption is becoming the new norm, and how you can instill operational resiliency in your thinking to address it.", "content": "Call it what you want: black swans, unprecedented events, rogue waves, market disruption, etc. Whatever we call it, the reality is the same: uncertainty is the game. The financial crisis, Covid, supply chain disruption, rampant inflation, deglobalization — businesses today confront almost predictable unpredictability that severely complicates keeping operations in balance.
Resilience is profoundly important.
There are (somewhat dangerous) adages that perfect is the enemy of good and that speed matters when confronting uncertainty. That unintentional impact is that “rule of thumb” thinking takes over as leaders accept than any planning assumption is inherently flawed. But the real impact of that approach is that assumptions merely echo the status quo that either work with aged data or abstracted data that does not capitalize on today’s ability to run your business with atomic-level data. It is what we know, what we are comfortable with…and what we use.
And we end up with a bad math equation where assumed variability of one factor (e.g., demand) is multiplied by variability in another factor (e.g., generic inventory targets), and another (e.g., irregular demand/supply review cycles), and another (e.g., rule of thumb supplier lead times) — and you end up with a level of confidence that is nearer to 20%.
The proliferation of data and the speed to insight enables us to thread the needle; to respond rapidly with insights that radically improve the business confidence — and relevance — of business decisions. And we should distinguish systems like ERP from the ability to make precise decisions at the atomic level. You can access and use precise data irrespective of the system and frankly, you may want to have a decision-support capability that can also work independently of the system in case system workflow or business rules complicate your ability to access and capitalize on atomic-level data.
This is worth an example: A recent mid-market client had invested in improved data quality and integrated order management via a new ERP, but still wasn’t seeing the improved service with lower inventory and lower expediting levels cost benefits anticipated. River Rock Advisors (RRA) stepped in to assist in thinking about:
As a result, on-time and in-full levels jumped with less inventory while still providing response levels to the crisis of the day.
Once normal operations are based on better data (not perfect, of course), when disruptions do occur, then fact-based decisions (or close to fact-based) can be levered alongside institutional knowledge, industry insights, and common sense. The combination of “knowns” combined with knowledge will provide quicker, more agile customer- and margin-protecting sensible solutions.
Disruption is becoming an operational norm. Beyond the financial meltdown, Covid, geopolitics, and supply chain issues, we can now add severe weather and new sustainability requirements to that roster. There can also be an instinct of default to rules of thumb to maintain operational speed. But that will place you out of balance and in a competitively disadvantaged state.
Capitalize on the ability to rapidly analyze atomic-level data — in this case, item-level data — and integrate that capability into core operations. There is a way to have operational resiliency, speed, and precision in this disrupted world.
Connect with us to learn more about implementing this approach in your organization.
", "content_plain": "Operational Disruption is Becoming Normal Call it what you want: black swans, unprecedented events, rogue waves, market disruption, etc. Whatever we call it, the reality is the same: uncertainty is the game. The financial crisis, Covid, supply chain disruption, rampant inflation, deglobalization — businesses today confront almost predictable unpredictability that severely complicates keeping operations in balance. Resilience is profoundly important. The Dangers of Rules of Thumb in Driving Operational Performance There are (somewhat dangerous) adages that perfect is the enemy of good and that speed matters when confronting uncertainty. That unintentional impact is that “rule of thumb” thinking takes over as leaders accept than any planning assumption is inherently flawed. But the real impact of that approach is that assumptions merely echo the status quo that either work with aged data or abstracted data that does not capitalize on today’s ability to run your business with atomic-level data. It is what we know, what we are comfortable with…and what we use. And we end up with a bad math equation where assumed variability of one factor (e.g., demand) is multiplied by variability in another factor (e.g., generic inventory targets), and another (e.g., irregular demand/supply review cycles), and another (e.g., rule of thumb supplier lead times) — and you end up with a level of confidence that is nearer to 20%. Keeping Operational Balance with Item-Level Decision-Making The proliferation of data and the speed to insight enables us to thread the needle; to respond rapidly with insights that radically improve the business confidence — and relevance — of business decisions. And we should distinguish systems like ERP from the ability to make precise decisions at the atomic level. You can access and use precise data irrespective of the system and frankly, you may want to have a decision-support capability that can also work independently of the system in case system workflow or business rules complicate your ability to access and capitalize on atomic-level data. This is worth an example: A recent mid-market client had invested in improved data quality and integrated order management via a new ERP, but still wasn’t seeing the improved service with lower inventory and lower expediting levels cost benefits anticipated. River Rock Advisors (RRA) stepped in to assist in thinking about: Inventory targets set at the item level (rather than generic ABC type categories) The positive impacts of understanding real stock transfer times between facilities and supplier lead times Improving planner education to understand the benefits of leveraging math at a more granular level rather than using multiple “rules of thumb” As a result, on-time and in-full levels jumped with less inventory while still providing response levels to the crisis of the day. Operational Resiliency is Born from Insights and Analytics-Based Decision-Making — Even in This Disrupted World Once normal operations are based on better data (not perfect, of course), when disruptions do occur, then fact-based decisions (or close to fact-based) can be levered alongside institutional knowledge, industry insights, and common sense. The combination of “knowns” combined with knowledge will provide quicker, more agile customer- and margin-protecting sensible solutions. Disruption is becoming an operational norm. Beyond the financial meltdown, Covid, geopolitics, and supply chain issues, we can now add severe weather and new sustainability requirements to that roster. There can also be an instinct of default to rules of thumb to maintain operational speed. But that will place you out of balance and in a competitively disadvantaged state. Capitalize on the ability to rapidly analyze atomic-level data — in this case, item-level data — and integrate that capability into core operations. There is a way to have operational resiliency, speed, and precision in this disrupted world. Connect with us to learn more about implementing this approach in your organization.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/05/iStock-1059972048.jpg", "modified": "2024-06-26T13:01:08-05:00", "mapped_entity": "Article" }, { "id": 4746, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/siop-as-a-funding-mechanism/", "title": "SIOP as a Funding Mechanism", "h1": "SIOP as a Funding Mechanism", "summary": "Sales, Inventory and Operations Planning (SIOP), aligned and managed at the appropriate level, and executed at the item level, enables companies to align and then optimize operations, while maintaining or improving service levels to their most important customers.", "content": "The squeeze is on, as uncertain demand combines with persistent inflationary pressures. In this climate, margin expansion directly depends on your ability to drive operational efficiencies – efficiencies that can both counter increasing costs and fund revenue initiatives.
The strategic imperative for operations to free up working capital is increasing as the underlying economic fundamentals are concerning:
In this business climate, companies need to maximize the resources available to drive revenue. Or differently stated, companies need to avoid having capital buried in unproductive inventory and having operations become a barrier, not a remedy, in protecting or expanding margin.
Sales, Inventory and Operations Planning (SIOP), aligned and managed at the appropriate level, and executed at the item level, enables companies to align and then optimize operations while maintaining or improving service levels to their most important customers. It’s a methodology driven by item-level analytics.
Even with those expected outcomes, leaders may be cautious about launching revenue and operations initiatives at the same time. Concerns for overtaxing resources, working cross-purpose, and making system changes that disrupt the business are all rational reasons to defer SIOP given the prioritization to strengthen revenue performance in this economy.
But what if SIOP can be sequenced to minimize disruption, but more importantly, to fund the revenue initiatives along the way? That’s not just a possibility; it should be your expectation given the pressure on margin performance.
![\"SIOP](\"https://riverrockadvisors.com/wp-content/uploads/2024/05/Screenshot-2024-05-14-at-2.05.02%E2%80%AFPM.png\")
Our approach is to start with a rapid assessment that identifies issues affecting operations, identifies options, sizes the cost and capital reduction, and creates an initial sense of timing so that you gain an early view of how much funding can be available and when it would be available. From that initial assessment, we execute SIOP in stages, organized by business line, and product that allows us to work sequentially to keep resources and complexity in check, yet enables us to fund revenue initiatives along the way.
In a subsequent post, we will walk through the methodology able to deliver these outcomes.
If not, you are competitively disadvantaged in a market consisting of more business risk than business reward.
Margin expansion — or even margin protection for some – will prove challenging over the next 12 months driven by the toxic combination of uncertain demand, supply disruptions, and continued inflationary pressures. Undoubtedly, leaders will need to expand revenue initiatives to capture the growth that is available. The question goes to funding. What if you can fund these through methodical and predictable operational efficiencies? Well, you can – and you should.
", "content_plain": "The squeeze is on, as uncertain demand combines with persistent inflationary pressures. In this climate, margin expansion directly depends on your ability to drive operational efficiencies – efficiencies that can both counter increasing costs and fund revenue initiatives. The strategic imperative for operations to free up working capital is increasing as the underlying economic fundamentals are concerning: Although consumer spending has maintained better-than-expected economic performance, persistent inflationary pressures combined with the $17.3 trillion of consumer debt and reduced consumer confidence will weigh on spending outside those with disposable incomes Increasing energy, transportation and logistics, material, and wage costs — and now the added cost of carbon — are creating a next wave of inflationary pressures The reduced likelihood of the Fed lowering rates will keep the cost of money high for longer. In this business climate, companies need to maximize the resources available to drive revenue. Or differently stated, companies need to avoid having capital buried in unproductive inventory and having operations become a barrier, not a remedy, in protecting or expanding margin. Sales, Inventory and Operations Planning (SIOP), aligned and managed at the appropriate level, and executed at the item level, enables companies to align and then optimize operations while maintaining or improving service levels to their most important customers. It’s a methodology driven by item-level analytics. Even with those expected outcomes, leaders may be cautious about launching revenue and operations initiatives at the same time. Concerns for overtaxing resources, working cross-purpose, and making system changes that disrupt the business are all rational reasons to defer SIOP given the prioritization to strengthen revenue performance in this economy. Using SIOP as a Funding Mechanism But what if SIOP can be sequenced to minimize disruption, but more importantly, to fund the revenue initiatives along the way? That’s not just a possibility; it should be your expectation given the pressure on margin performance. Our approach is to start with a rapid assessment that identifies issues affecting operations, identifies options, sizes the cost and capital reduction, and creates an initial sense of timing so that you gain an early view of how much funding can be available and when it would be available. From that initial assessment, we execute SIOP in stages, organized by business line, and product that allows us to work sequentially to keep resources and complexity in check, yet enables us to fund revenue initiatives along the way. In a subsequent post, we will walk through the methodology able to deliver these outcomes. If not, you are competitively disadvantaged in a market consisting of more business risk than business reward. Margin expansion — or even margin protection for some – will prove challenging over the next 12 months driven by the toxic combination of uncertain demand, supply disruptions, and continued inflationary pressures. Undoubtedly, leaders will need to expand revenue initiatives to capture the growth that is available. The question goes to funding. What if you can fund these through methodical and predictable operational efficiencies? Well, you can – and you should.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/05/margin-pressure.webp", "modified": "2025-04-28T12:15:07-05:00", "mapped_entity": "Article" }, { "id": 4740, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/river-rock-advisors-daniela-aguilera-discusses-mentoring-students-with-college-now/", "title": "River Rock Advisors’ Daniela Aguilera Discusses Mentoring Students With College Now", "h1": "River Rock Advisors’ Daniela Aguilera Discusses Mentoring Students With College Now", "summary": "During National Volunteer Week from April 21-27, 2024, Daniela Aguilera, RRA Director, joined Alison Bibb-Carson, Chief Marketing and Communications Officer at College Now, on Channel 3 News to share her experience volunteering with College Now Greater Cleveland mentorship program. College …", "content": "During National Volunteer Week from April 21-27, 2024, Daniela Aguilera, RRA Director, joined Alison Bibb-Carson, Chief Marketing and Communications Officer at College Now, on Channel 3 News to share her experience volunteering with College Now Greater Cleveland mentorship program. College Now works to recruit mentors for local college-bound students to help guide them through their education.
Daniela Aguilera has served as a mentor for different organizations and signed up to be a mentor through College Now’s program a couple of years ago, citing her own experience with mentors throughout her life.
“During my whole career, I feel like I have been lucky to have amazing mentors — like managers, co-workers, people that helped me through my career,” Aguilera said. “So, I felt it was good to give back and help”.
Daniela works mainly with international students to provide guidance and advice as they progress through their degree programs. Coaching Supply Chain graduate students from Case Western Reserve University on career aspects to get internships and placement in the job market, and with College Now guiding low-income or first-generation students on their journey to reduce the college dropout rates in Greater Cleveland.
Watch the video here to learn more about the College Now mentorship program and what other volunteering Daniela has done recently.
", "content_plain": "During National Volunteer Week from April 21-27, 2024, Daniela Aguilera, RRA Director, joined Alison Bibb-Carson, Chief Marketing and Communications Officer at College Now, on Channel 3 News to share her experience volunteering with College Now Greater Cleveland mentorship program. College Now works to recruit mentors for local college-bound students to help guide them through their education. Aguilera’s History Mentoring Students Daniela Aguilera has served as a mentor for different organizations and signed up to be a mentor through College Now’s program a couple of years ago, citing her own experience with mentors throughout her life. “During my whole career, I feel like I have been lucky to have amazing mentors — like managers, co-workers, people that helped me through my career,” Aguilera said. “So, I felt it was good to give back and help”. Daniela works mainly with international students to provide guidance and advice as they progress through their degree programs. Coaching Supply Chain graduate students from Case Western Reserve University on career aspects to get internships and placement in the job market, and with College Now guiding low-income or first-generation students on their journey to reduce the college dropout rates in Greater Cleveland. Watch the video here to learn more about the College Now mentorship program and what other volunteering Daniela has done recently.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/05/RiverRock-Blog-Graphics-DanielaMentoring.png", "modified": "2025-04-28T09:20:14-05:00", "mapped_entity": "Article" }, { "id": 4736, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/river-rock-advisors-partners-with-startup-analytics-to-expand-data-and-business-intelligence-capabilities/", "title": "River Rock Advisors Partners with Startup Analytics to Expand Data and Business Intelligence Capabilities", "h1": "River Rock Advisors Partners with Startup Analytics to Expand Data and Business Intelligence Capabilities", "summary": "March 2024 — Cleveland, Ohio — River Rock Advisors (RRA), a leading value chain management firm that partners with mid-market manufacturing and distribution organizations, is partnering with Startup Analytics to bring business intelligence capabilities to the supply chain market. What …", "content": "March 2024 — Cleveland, Ohio — River Rock Advisors (RRA), a leading value chain management firm that partners with mid-market manufacturing and distribution organizations, is partnering with Startup Analytics to bring business intelligence capabilities to the supply chain market.
Startup Analytics is a Data Engineering and Data Intelligence firm that can provide data analysis environments either internally or externally to clients, and couples that with ETL (extract, transform, load) and data visualization capabilities.
“We have partnered with Startup Analytics very successfully on a few RRA client engagements,” said RRA Partner and Co-founder Steve Keener. “They extend our Value Chain subject matter knowledge, applied business analytics, and data visualizations, so it has made a strong case to formalize the partnership.”
Startup Analytics has a solid track record of quickly standing up an internal or external data environment (e.g., Microsoft Azure, AWS) for RRA’s analytic models to have reoccurring use client use and near real-time data visualizations.
“I created Startup Analytics, as a result of watching too many companies attempt to jump into AI without a solid base of data and analytics,” said Startup Analytics founder Matt Rispoli. “Our theme for firms large and small is ‘BI (business intelligence) before AI (artificial intelligence).’ There is no reason that mid-market firms can’t take advantage of analytically based decisions and be ready to progress to AI.”
", "content_plain": "March 2024 — Cleveland, Ohio — River Rock Advisors (RRA), a leading value chain management firm that partners with mid-market manufacturing and distribution organizations, is partnering with Startup Analytics to bring business intelligence capabilities to the supply chain market. What is Startup Analytics? Startup Analytics is a Data Engineering and Data Intelligence firm that can provide data analysis environments either internally or externally to clients, and couples that with ETL (extract, transform, load) and data visualization capabilities. “We have partnered with Startup Analytics very successfully on a few RRA client engagements,” said RRA Partner and Co-founder Steve Keener. “They extend our Value Chain subject matter knowledge, applied business analytics, and data visualizations, so it has made a strong case to formalize the partnership.” Startup Analytics has a solid track record of quickly standing up an internal or external data environment (e.g., Microsoft Azure, AWS) for RRA’s analytic models to have reoccurring use client use and near real-time data visualizations. “I created Startup Analytics, as a result of watching too many companies attempt to jump into AI without a solid base of data and analytics,” said Startup Analytics founder Matt Rispoli. “Our theme for firms large and small is ‘BI (business intelligence) before AI (artificial intelligence).’ There is no reason that mid-market firms can’t take advantage of analytically based decisions and be ready to progress to AI.”", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/04/RiverRock-Blog-Graphic-StartupAnalytics.png", "modified": "2025-04-28T08:53:57-05:00", "mapped_entity": "Article" }, { "id": 4716, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/forecasting-for-the-rest-of-us-with-gary-jones-of-river-rock-advisers/", "title": "Forecasting for the Rest of Us with Gary Jones of River Rock Advisers", "h1": "Forecasting for the Rest of Us with Gary Jones of River Rock Advisers", "summary": "The proposed demand, inventory, and supply model works well for large corporations. This model allows these larger institutions to forecast potential supply disruptions using data they have collected. Unfortunately, this data is difficult for smaller companies to collect and maintain, …", "content": "The proposed demand, inventory, and supply model works well for large corporations. This model allows these larger institutions to forecast potential supply disruptions using data they have collected. Unfortunately, this data is difficult for smaller companies to collect and maintain, making it difficult for them to make these forecasts.
At the BISG Supply Chain Lunch & Learn, being held March 5th at 12:00 pm ET, Gary Jones of River Rock Advisers will give some insight as to how smaller companies can forecast without the need of some of this unattainable information. As a founder and partner of River Rock Advisers, Gary has extensive experience in leveraging insights and analytics to help with business decisions. He will use this knowledge and experience to propose practical and potentially more manageable solutions to help small businesses with their forecasting needs.
The first 20 minutes of the session will feature Gary giving his insight on these important issues and then the floor will open up for questions.
If you have a question in mind, feel free to send it in advance to info@bisg.org. Our Lunch & Learn events are very interactive, so you will have a chance to contribute even if you don’t send a question in advance.
", "content_plain": "The proposed demand, inventory, and supply model works well for large corporations. This model allows these larger institutions to forecast potential supply disruptions using data they have collected. Unfortunately, this data is difficult for smaller companies to collect and maintain, making it difficult for them to make these forecasts. At the BISG Supply Chain Lunch & Learn, being held March 5th at 12:00 pm ET, Gary Jones of River Rock Advisers will give some insight as to how smaller companies can forecast without the need of some of this unattainable information. As a founder and partner of River Rock Advisers, Gary has extensive experience in leveraging insights and analytics to help with business decisions. He will use this knowledge and experience to propose practical and potentially more manageable solutions to help small businesses with their forecasting needs. The first 20 minutes of the session will feature Gary giving his insight on these important issues and then the floor will open up for questions. Do You Have Questions You Want Answered? If you have a question in mind, feel free to send it in advance to info@bisg.org. Our Lunch & Learn events are very interactive, so you will have a chance to contribute even if you don’t send a question in advance. Register Now", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/03/River-Rock-Social-BISG-Event.png", "modified": "2024-06-26T13:03:00-05:00", "mapped_entity": "Article" }, { "id": 4711, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/why-sustainability-is-now-part-of-your-operations/", "title": "Why Sustainability is Now Part of Your Operations", "h1": "Why Sustainability is Now Part of Your Operations", "summary": "We Are at the Proverbial Starting Line It’s time to take stock of the reality in front of us and decide if and how to act. January 2024, when the first major sustainability regulation (EU’s CSRD) comes into effect, is a …", "content": "It’s time to take stock of the reality in front of us and decide if and how to act. January 2024, when the first major sustainability regulation (EU’s CSRD) comes into effect, is a watershed moment because we must move from the theory of sustainability to the practice of sustainability. We are at the proverbial starting line. It’s time to take stock of the reality in front of us and decide if and how to act.
Without question, sustainability is primarily driven by incoming regulations. But that should not mask growing consumer concern about the impact of climate change – a concern that will convert to purchasing behavior.
Sustainability will become an increasing factor in the 70% of consumer economic activity that drives the US economy. Beyond regulations, it will become an unavoidable business dynamic.
Let’s be honest, sustainability may seem more like an unwelcome guest than a key part of your mission or fiduciary responsibilities. For most companies, it is not part of the strategy, not in the budget, and not a core competency. It is an unfamiliar distraction to your operations that have already withstood Covid, supply chain disruption, and inflationary pressures.
Although regulations make sustainability “real”, they only affect a small percentage of companies – mostly large public and private companies. The real issue is the effect of Scope 3 emissions (that is emissions from regulated companies’ value chains, including upstream from suppliers, and downstream, from product use and disposal).
For example, California’s Climate Corporate Data Accountability Act (CCDAA) is expected to directly affect roughly 5,200 companies. But the commercial impact will affect every company operating in those companies’ supply chains – meaning that every small and mid-sized company doing business with the 5,200 directly affected companies are now impacted by sustainability because the larger, regulated companies are now scrutinizing the emissions associated with their entire value chain.
For those companies, the issue is not regulatory compliance, it is commercial pressure that translates to financial risk. And there are several key reasons why Scope 3 will be high on the agenda for regulated companies – and therefore, more immediately at your door:
In short, your large downstream customers will look to you to tell them what your emissions are, the strategies and programs you have in place to reduce emissions, and your expectations for emissions reductions. In practical terms, sustainability will increasingly influence procurement decisions. You may already be receiving ESG/sustainability questionnaires from your procurement department that are a precursor to RFP and contract language (if not, expect them soon enough).
Sustainability risk is rapidly evolving as regulations come into effect, as downstream companies ramp up sustainability operations, and as Scope 3 increasingly translates into financial risk to you.
Although unique in some ways, sustainability as a disruptive force shares a key characteristic with other large-scale disruptions (Covid, supply chain disruptions, the mobile and tech revolution, etc) – it causes a performance dip as organizations allocate unexpected resources and operations are forced to adapt to new processes and practices. “Managing the dip” should be a primary design point for organizations working on how to address sustainability. What prior best practices have taught us is that speed matters: organizations that respond early to disruptive dynamics spend less and realize a shallower and shorter performance dip. Organizations that defer action, (ironically) face a deeper and longer performance dip – and often must overspend to recapture market share. This dynamic may be more acute in sustainability since it is outside your core business today, you will need time to build up acumen and practices that synchronize with how you run your operations.
The recommendation is not to take immediate action. Sustainability does not exist in a vacuum and there are other priorities that likely demand your attention. The recommendation is to decouple planning from action – but start planning now. This enables you to:
An example of how this may play out is that in addressing looming Scope 3 pressures, you can determine how much of that you can pass onto your current vendors. You will need time to determine if your current suppliers can absorb your Scope 3 demands, or if an alternative supplier can better deliver reduced emissions at favorable price points.
Sustainability is a disruptive and unavoidable dynamic as the combination of regulations, consumer behavior, and your downstream customer’s sustainability operations take shape. All companies will need to wrestle with how best to adapt to a new business reality. In the short-term, companies will need to consider how to limit the depth and duration of the expected performance impact.
", "content_plain": "We Are at the Proverbial Starting Line It’s time to take stock of the reality in front of us and decide if and how to act. January 2024, when the first major sustainability regulation (EU’s CSRD) comes into effect, is a watershed moment because we must move from the theory of sustainability to the practice of sustainability. We are at the proverbial starting line. It’s time to take stock of the reality in front of us and decide if and how to act. Sustainability Has Entered the Consumers’ Consciousness Without question, sustainability is primarily driven by incoming regulations. But that should not mask growing consumer concern about the impact of climate change – a concern that will convert to purchasing behavior. 64% of global consumers and 53% of American consumers are very or extremely concerned about environmentally sustainability. 42% of US consumers were directly affected by severe weather in 2022; 79% of them believe climate change was a root cause. Those sentiments and experiences are already translating to consumer behavior: US consumers are willing to pay 11% more for sustainability products. And the economic toll is becoming stark: the cost of severe weather in the US is $1B every 3 weeks (vs $1B every 3 months just a decade ago). Sustainability will become an increasing factor in the 70% of consumer economic activity that drives the US economy. Beyond regulations, it will become an unavoidable business dynamic. Let’s Recognize the Unwelcome Guest at the Door Let’s be honest, sustainability may seem more like an unwelcome guest than a key part of your mission or fiduciary responsibilities. For most companies, it is not part of the strategy, not in the budget, and not a core competency. It is an unfamiliar distraction to your operations that have already withstood Covid, supply chain disruption, and inflationary pressures. Although regulations make sustainability “real”, they only affect a small percentage of companies – mostly large public and private companies. The real issue is the effect of Scope 3 emissions (that is emissions from regulated companies’ value chains, including upstream from suppliers, and downstream, from product use and disposal). For example, California’s Climate Corporate Data Accountability Act (CCDAA) is expected to directly affect roughly 5,200 companies. But the commercial impact will affect every company operating in those companies’ supply chains – meaning that every small and mid-sized company doing business with the 5,200 directly affected companies are now impacted by sustainability because the larger, regulated companies are now scrutinizing the emissions associated with their entire value chain. For those companies, the issue is not regulatory compliance, it is commercial pressure that translates to financial risk. And there are several key reasons why Scope 3 will be high on the agenda for regulated companies – and therefore, more immediately at your door: Emphasis on Scope 3 Emissions: Identified as the largest pool of emissions (72%) Scope 3 emissions become a priority for regulated companies and they therefore exert pressure on their value chain to manage these emissions because doing so has minimal impact on regulated companies financially and operationally. Influence of Shadow Carbon Pricing: The maturation of shadow carbon pricing essentially financializes carbon, making it easier for companies to quantify the cost impact of carbon emissions, including those from their suppliers. In short, your large downstream customers will look to you to tell them what your emissions are, the strategies and programs you have in place to reduce emissions, and your expectations for emissions reductions. In practical terms, sustainability will increasingly influence procurement decisions. You may already be receiving ESG/sustainability questionnaires from your procurement department that are a precursor to RFP and contract language (if not, expect them soon enough). Managing the Sustainability Dip Sustainability risk is rapidly evolving as regulations come into effect, as downstream companies ramp up sustainability operations, and as Scope 3 increasingly translates into financial risk to you. Although unique in some ways, sustainability as a disruptive force shares a key characteristic with other large-scale disruptions (Covid, supply chain disruptions, the mobile and tech revolution, etc) – it causes a performance dip as organizations allocate unexpected resources and operations are forced to adapt to new processes and practices. “Managing the dip” should be a primary design point for organizations working on how to address sustainability. What prior best practices have taught us is that speed matters: organizations that respond early to disruptive dynamics spend less and realize a shallower and shorter performance dip. Organizations that defer action, (ironically) face a deeper and longer performance dip – and often must overspend to recapture market share. This dynamic may be more acute in sustainability since it is outside your core business today, you will need time to build up acumen and practices that synchronize with how you run your operations. The recommendation is not to take immediate action. Sustainability does not exist in a vacuum and there are other priorities that likely demand your attention. The recommendation is to decouple planning from action – but start planning now. This enables you to: Ensure you and the team are comfortable with the sustainability regulations, including what Scope 1, Scope 2, Scope 3, and carbon credits mean, and how shadow carbon pricing work Model risks so you can translate sustainability to financial and operational risks Integrate risks into current financial models and assumptions so you can understand what is truly at stake Work through different options to integrate sustainability practices into core operations to best enable you to keep your operations in balance. An example of how this may play out is that in addressing looming Scope 3 pressures, you can determine how much of that you can pass onto your current vendors. You will need time to determine if your current suppliers can absorb your Scope 3 demands, or if an alternative supplier can better deliver reduced emissions at favorable price points. Sustainability is Becoming Business Normal Sustainability is a disruptive and unavoidable dynamic as the combination of regulations, consumer behavior, and your downstream customer’s sustainability operations take shape. All companies will need to wrestle with how best to adapt to a new business reality. In the short-term, companies will need to consider how to limit the depth and duration of the expected performance impact.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/02/iStock-1400822013.jpg", "modified": "2025-07-09T11:08:20-05:00", "mapped_entity": "Article" }, { "id": 4708, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/black-buffalo/", "title": "Black Buffalo", "h1": "Black Buffalo", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/02/unnamed-3.png", "modified": "2024-02-06T11:32:21-05:00", "mapped_entity": "Customers" }, { "id": 4704, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/defunkify-drives-the-junk-out-of-its-supply-chain/", "title": "Defunkify Drives the Junk Out of Its Supply Chain", "h1": "Defunkify Drives the Junk Out of Its Supply Chain", "summary": "Defunkify was satisfied it had the business of removing odor from clothing all sewn up, but then realized it was struggling to manage operational planning, scheduling and execution capability in house. That’s when River Rock Advisors stepped in. With the …", "content": "Defunkify was satisfied it had the business of removing odor from clothing all sewn up, but then realized it was struggling to manage operational planning, scheduling and execution capability in house. That’s when River Rock Advisors stepped in.
With the slogan, “Wash the Funk Out!” Defunkify was created with the aim of making sure that consumers had access to household cleaning products that are free from toxic chemicals. Leveraging Material Scientists from the University of Oregon, the company started its “better for you” range of cleaning products, to help customers solve what it identified as the number one problem in laundry: removing odor from clothing. The range includes multiple scents across liquid and powder laundry detergents, odor remover sprays, laundry stain remover, all-purpose cleaner and, most recently, automatic dishwashing detergent.
Defunkify has won multiple EPA Safer Choice Partner of the Year awards, and has worked to improve the consumer experience and environmental impact, not just via the product itself, but the packaging as well.
Using mid-market focused raw material distributors, contract manufacturers and third-party distribution providers, the company developed a strategy to go to market using multiple channels, including direct to consumer, via its website; on Fulfillment by Amazon (FBA); through grocery retailers; and through specialty and sports retailers.
Things got complicated fast. In order to accommodate customer requests, and to encourage new customers to give their products a try, the company produced multiple pack sizes of many of its products and scents. There was also a need for marketing and sales samples.
That’s when Defunkify realized it did not have sufficient operational planning, scheduling and execution capability in-house to handle the unanticipated complexity of its outbound activities. As a small start-up, it was going to be tough without adding multiple additional in-house employees.
Luckily, a friend introduced CEO & founder, Richard Geiger, to Steve Keener of River Rock Advisors (RRA) in late 2020.
Keener, his business partner Gary Jones, and junior team members worked with Defunkify, mostly pro bono, over the course of a few months in order to understand the business situation and provide a number of options. These included steps the company could undertake to fit its special needs, from installing commercial software to creating a planning and operational environment using Excel, or outsourcing support to RRA.
Initially, Defunkify’s internal operations personnel wanted to take RRA’s recommendations and run with them. However, after almost a year, it became clear that the company was not going to be able to achieve the efficiencies it needed, so Geiger reached back out to Keener and RRA. The hope was that they could come in and run the full breadth of the supply chain so that it was no longer having a negative impact on customer service and profitability.
RRA immediately jumped in, performing triage where needed, and taking over management of outbound operations so that CEO Geiger could focus on growing the business.
Read more: Full List of SupplyChainBrain’s 100 Great Supply Chain Partners
With the transition to RRA’s business process outsourcing services, Defunkify was able to support the regular Amazon FBA demand, as well as offer the products to Amazon Prime Day customers. It also reduced finished goods inventories, while improving customer service and reducing raw material lead-times while freeing up working capital tied up in inbound materials. Another benefit was the ability to support a short-notice national rollout of Defunkify’s liquid laundry detergent at Whole Foods. The company also improved relationships with, and service from, raw material and packaging vendors and contract manufacturers. Defunkify was able to switch out 3PL providers in two different market channels (Amazon FBA and Direct to Consumer). It also had a freer hand with a new product launch, changes to packaging and more.
“RRA’s willingness to start on a dime and market-price their services while helping us to reduce complexity, in addition to the stated planning and execution capability of their contract, has meant that I can focus on growing the business without worrying about the supply chain,” says Geiger.
", "content_plain": "Defunkify was satisfied it had the business of removing odor from clothing all sewn up, but then realized it was struggling to manage operational planning, scheduling and execution capability in house. That’s when River Rock Advisors stepped in. With the slogan, “Wash the Funk Out!” Defunkify was created with the aim of making sure that consumers had access to household cleaning products that are free from toxic chemicals. Leveraging Material Scientists from the University of Oregon, the company started its “better for you” range of cleaning products, to help customers solve what it identified as the number one problem in laundry: removing odor from clothing. The range includes multiple scents across liquid and powder laundry detergents, odor remover sprays, laundry stain remover, all-purpose cleaner and, most recently, automatic dishwashing detergent. Defunkify has won multiple EPA Safer Choice Partner of the Year awards, and has worked to improve the consumer experience and environmental impact, not just via the product itself, but the packaging as well. Using mid-market focused raw material distributors, contract manufacturers and third-party distribution providers, the company developed a strategy to go to market using multiple channels, including direct to consumer, via its website; on Fulfillment by Amazon (FBA); through grocery retailers; and through specialty and sports retailers. Things got complicated fast. In order to accommodate customer requests, and to encourage new customers to give their products a try, the company produced multiple pack sizes of many of its products and scents. There was also a need for marketing and sales samples. That’s when Defunkify realized it did not have sufficient operational planning, scheduling and execution capability in-house to handle the unanticipated complexity of its outbound activities. As a small start-up, it was going to be tough without adding multiple additional in-house employees. Defunkify Partners with River Rock Advisors Luckily, a friend introduced CEO & founder, Richard Geiger, to Steve Keener of River Rock Advisors (RRA) in late 2020. Keener, his business partner Gary Jones, and junior team members worked with Defunkify, mostly pro bono, over the course of a few months in order to understand the business situation and provide a number of options. These included steps the company could undertake to fit its special needs, from installing commercial software to creating a planning and operational environment using Excel, or outsourcing support to RRA. Initially, Defunkify’s internal operations personnel wanted to take RRA’s recommendations and run with them. However, after almost a year, it became clear that the company was not going to be able to achieve the efficiencies it needed, so Geiger reached back out to Keener and RRA. The hope was that they could come in and run the full breadth of the supply chain so that it was no longer having a negative impact on customer service and profitability. RRA immediately jumped in, performing triage where needed, and taking over management of outbound operations so that CEO Geiger could focus on growing the business. Read more: Full List of SupplyChainBrain’s 100 Great Supply Chain Partners With the transition to RRA’s business process outsourcing services, Defunkify was able to support the regular Amazon FBA demand, as well as offer the products to Amazon Prime Day customers. It also reduced finished goods inventories, while improving customer service and reducing raw material lead-times while freeing up working capital tied up in inbound materials. Another benefit was the ability to support a short-notice national rollout of Defunkify’s liquid laundry detergent at Whole Foods. The company also improved relationships with, and service from, raw material and packaging vendors and contract manufacturers. Defunkify was able to switch out 3PL providers in two different market channels (Amazon FBA and Direct to Consumer). It also had a freer hand with a new product launch, changes to packaging and more. “RRA’s willingness to start on a dime and market-price their services while helping us to reduce complexity, in addition to the stated planning and execution capability of their contract, has meant that I can focus on growing the business without worrying about the supply chain,” says Geiger.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/01/Screenshot-2024-01-31-at-2.25.21-PM.png", "modified": "2025-04-28T08:52:43-05:00", "mapped_entity": "Article" }, { "id": 4702, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/amplify/", "title": "Amplify", "h1": "Amplify", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/11/Amplify_Education_logo.png", "modified": "2024-01-25T21:30:01-05:00", "mapped_entity": "Customers" }, { "id": 4701, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/abrams/", "title": "Abrams", "h1": "Abrams", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/11/Abrams-Logo@2x.jpg", "modified": "2024-01-25T21:29:41-05:00", "mapped_entity": "Customers" }, { "id": 4681, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/planning-for-sustainability-with-rra-and-cairnbridge-advisors/", "title": "Planning for Sustainability with RRA and Cairnbridge Advisors", "h1": "Planning for Sustainability with RRA and Cairnbridge Advisors", "summary": "Hear from Gary Jones and Victor Milligan in this supply chain lunch and learn on understanding and modeling risks around sustainability.", "content": "Sustainability is a disruptive and unavoidable force. Although it is driven by concerns for the climate and often described in environmental and purpose-driven language, that misses — and obscures — the point for most companies.
Sustainability creates financial risks for companies, especially for companies that defer or fail to understand and model those risks. Risks that are modest today are expected to materially escalate over the next 18 to 24 months. Whether seen through the P&L, cost of money, or valuation, sustainability is already affecting (or will soon affect) financial results.
In a Book Industry Study Group (BISG) Lunch & Learn to be held January 9 at 12:00 pm ET, Victor Milligan, who is a founder and Partner at Cairnbridge Advisors, a consultancy helping businesses model and minimize the risk presented by sustainability, and Gary Jones, a founder and partner at River Rock Advisors, a value chain consultancy leveraging insights and analytics for business decisions, join forces to talk about how to understand and model risks. They will use this framework to identify different strategic options to address sustainability by:
After that, they’ll open the conversation up to comments, questions, and potential next steps toward improved management of sustainability requirements.
Feel free to send it in advance to info@bisg.org. The Lunch & Learn will be highly interactive, so you’ll have a chance to contribute at the session even if you don’t send a question in advance.
", "content_plain": "Sustainability is a disruptive and unavoidable force. Although it is driven by concerns for the climate and often described in environmental and purpose-driven language, that misses — and obscures — the point for most companies. Sustainability creates financial risks for companies, especially for companies that defer or fail to understand and model those risks. Risks that are modest today are expected to materially escalate over the next 18 to 24 months. Whether seen through the P&L, cost of money, or valuation, sustainability is already affecting (or will soon affect) financial results. Learn More About Sustainability In a Book Industry Study Group (BISG) Lunch & Learn to be held January 9 at 12:00 pm ET, Victor Milligan, who is a founder and Partner at Cairnbridge Advisors, a consultancy helping businesses model and minimize the risk presented by sustainability, and Gary Jones, a founder and partner at River Rock Advisors, a value chain consultancy leveraging insights and analytics for business decisions, join forces to talk about how to understand and model risks. They will use this framework to identify different strategic options to address sustainability by: Explaining how commercial pressures will flow into supply chains through Scope 3 terms Explaining how to translate pressures into financial terms so you can better interpret and model risks Discussing what strategic options exist to minimize risk After that, they’ll open the conversation up to comments, questions, and potential next steps toward improved management of sustainability requirements. Attending and Want a Question Answered? Feel free to send it in advance to info@bisg.org. The Lunch & Learn will be highly interactive, so you’ll have a chance to contribute at the session even if you don’t send a question in advance. Register for this event here.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/01/RRA-BISG-Cairnbridge-Sustainability.png", "modified": "2025-04-28T09:45:59-05:00", "mapped_entity": "Article" }, { "id": 4669, "type": "partners", "url": "http://www.startup-analytics.com/", "title": "Startup Analytics", "h1": "Startup Analytics", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/12/unnamed-2023-12-15T131527.588.png", "modified": "2023-12-15T13:15:58-05:00", "mapped_entity": "Partners" }, { "id": 4643, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/rras-brian-mccrea-achieves-certification-in-planning-and-inventory-management/", "title": "RRA’s Brian McCrea Achieves Certification in Planning and Inventory Management", "h1": "RRA’s Brian McCrea Achieves Certification in Planning and Inventory Management", "summary": "River Rock Advisors consultant Brian McCrea has earned CPIM certification through APICS. Learn more here.", "content": "River Rock Advisors is pleased to announce that Consultant Brian McCrea recently completed a year-long process to reach APICS certification in Planning and Inventory Management (CPIM).
APICS certifications are the standard of professional excellence in supply chain and operations management. The APICS CPIM designation demonstrates knowledge and skills in global operations production and inventory activities. The certification process was completed through the Association for Supply Chain Management (ASCM) — the largest non-profit association for supply chain and a global leader in supply chain organizational transformation, innovation and leadership.
The official certification came as a result of a rigorous examination process based on industry standards guided by the APICS Certification Committee.
“This news comes as a result of a year-long journey that involved countless late nights and weekends devoted to studying,” McCrea said. “I’d like to thank everyone who shared their support and kind words of encouragement throughout this process. I’d also like to extend a special shoutout to my wife (Liz Stark McCrea) and my colleagues at River Rock Advisors—I could not have done this without you!”
“We’re exceptionally proud of Brian and the hard work he’s put in to further develop his career and industry knowledge,” said River Rock Advisors Partner Steve Keener. “He’s delivered tremendous work for our firm and we’re excited to see him continue to grow.”
McCrea joined River Rock Advisors in 2018 after graduating from Miami University’s Farmer School of Business in 2017 with a B.S. in Supply Chain Operations Management. In his time with our firm, McCrea has supported clients in a variety of industries through projects with a focus on inventory target setting, inventory stocking strategies, production planning & allocation, item segmentation, SIOP/S&OP processes, KPI dashboard development, value stream mapping, and more.
", "content_plain": "River Rock Advisors is pleased to announce that Consultant Brian McCrea recently completed a year-long process to reach APICS certification in Planning and Inventory Management (CPIM). APICS certifications are the standard of professional excellence in supply chain and operations management. The APICS CPIM designation demonstrates knowledge and skills in global operations production and inventory activities. The certification process was completed through the Association for Supply Chain Management (ASCM) — the largest non-profit association for supply chain and a global leader in supply chain organizational transformation, innovation and leadership. River Rock Advisors Celebrates McCrea’s Accomplishment The official certification came as a result of a rigorous examination process based on industry standards guided by the APICS Certification Committee. “This news comes as a result of a year-long journey that involved countless late nights and weekends devoted to studying,” McCrea said. “I’d like to thank everyone who shared their support and kind words of encouragement throughout this process. I’d also like to extend a special shoutout to my wife (Liz Stark McCrea) and my colleagues at River Rock Advisors—I could not have done this without you!” “We’re exceptionally proud of Brian and the hard work he’s put in to further develop his career and industry knowledge,” said River Rock Advisors Partner Steve Keener. “He’s delivered tremendous work for our firm and we’re excited to see him continue to grow.” McCrea joined River Rock Advisors in 2018 after graduating from Miami University’s Farmer School of Business in 2017 with a B.S. in Supply Chain Operations Management. In his time with our firm, McCrea has supported clients in a variety of industries through projects with a focus on inventory target setting, inventory stocking strategies, production planning & allocation, item segmentation, SIOP/S&OP processes, KPI dashboard development, value stream mapping, and more.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/11/RiverRock-Blog-BrianMcCrea.png", "modified": "2025-04-28T08:43:47-05:00", "mapped_entity": "Article" }, { "id": 4628, "type": "partners", "url": "https://cairnbridgeadvisors.com/#new_tab", "title": "cairnbridge", "h1": "cairnbridge", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/11/1694542606179.jpg", "modified": "2023-11-29T12:32:57-05:00", "mapped_entity": "Partners" }, { "id": 4605, "type": "page", "url": "https://riverrockadvisors.com/about-us/our-partners/", "title": "Our Partners", "h1": "Our Partners", "summary": "See who we partner with at River Rock Advisors.", "content": "![\"Startup](\"https://riverrockadvisors.com/wp-content/uploads/2023/12/unnamed-2023-12-15T131527.588.png\")
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Mike, an affiliate of River Rock Advisors, has a consulting career that spans finance, advanced costing, BI, complexity modeling and operational process excellence from the boardroom to the manufacturing floor. His 15-year-old firm, On Target Performance Group, has worked on projects with us covering cost analysis, process improvement, software selection/implementation, and program management, and Mike’s time as an advisory colleague goes back to working with Gary and Steve in the 1990s with Computer Sciences Corporation.
", "content_plain": "Mike, an affiliate of River Rock Advisors, has a consulting career that spans finance, advanced costing, BI, complexity modeling and operational process excellence from the boardroom to the manufacturing floor. His 15-year-old firm, On Target Performance Group, has worked on projects with us covering cost analysis, process improvement, software selection/implementation, and program management, and Mike’s time as an advisory colleague goes back to working with Gary and Steve in the 1990s with Computer Sciences Corporation.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Michael.jpg", "modified": "2023-11-29T02:11:47-05:00", "mapped_entity": "People" }, { "id": 4451, "type": "partners", "url": "https://www.inrhythm-inc.com/#new_tab", "title": "InRhythm", "h1": "InRhythm", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Inrhythm-1.png", "modified": "2023-11-29T11:49:14-05:00", "mapped_entity": "Partners" }, { "id": 4449, "type": "partners", "url": "http://www.treadwellmedia.com/#new_tab", "title": "Treadwell Media Group", "h1": "Treadwell Media Group", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Screen-Shot-2018-04-09-at-6.49.16-PM.png", "modified": "2023-11-29T12:35:45-05:00", "mapped_entity": "Partners" }, { "id": 4445, "type": "partners", "url": "#", "title": "VYD and Associates", "h1": "VYD and Associates", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/VYD-Logo.jpg", "modified": "2023-11-29T11:51:22-05:00", "mapped_entity": "Partners" }, { "id": 4443, "type": "partners", "url": "#", "title": "New Roads Advisors", "h1": "New Roads Advisors", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/5cdc4b_b43fc3b6d1084131acabb520253ccb6b.jpg", "modified": "2023-11-29T11:48:25-05:00", "mapped_entity": "Partners" }, { "id": 4441, "type": "partners", "url": "https://www.ontargetpg.com/#new_tab", "title": "On Target Consulting Group", "h1": "On Target Consulting Group", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/On-Target-Logo.png", "modified": "2023-11-29T11:47:54-05:00", "mapped_entity": "Partners" }, { "id": 4439, "type": "partners", "url": "https://www.quinnox.com/#new_tab", "title": "Quinnox", "h1": "Quinnox", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/5cdc4b_3e4f21281dee4af39a83adbcd059c9b4.png", "modified": "2023-11-29T11:47:39-05:00", "mapped_entity": "Partners" }, { "id": 4437, "type": "partners", "url": "#", "title": "Firefly Consulting", "h1": "Firefly Consulting", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/5cdc4b_237c4658f616475f8144eee957a2c315.png", "modified": "2023-11-29T12:32:07-05:00", "mapped_entity": "Partners" }, { "id": 4435, "type": "partners", "url": "https://www.netstock.com/#new_tab", "title": "NetStock", "h1": "NetStock", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Netstock-copy.png", "modified": "2023-11-29T11:46:40-05:00", "mapped_entity": "Partners" }, { "id": 4433, "type": "partners", "url": "https://logicsource.com/#new_tab", "title": "LogicSource", "h1": "LogicSource", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/LogicSource.png", "modified": "2023-11-29T11:46:26-05:00", "mapped_entity": "Partners" }, { "id": 4431, "type": "partners", "url": "http://www.inventorycurve.com/#new_tab", "title": "Inventory Curve", "h1": "Inventory Curve", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Inventory-Curve.png", "modified": "2023-11-29T11:46:07-05:00", "mapped_entity": "Partners" }, { "id": 4429, "type": "partners", "url": "https://qubidex.com/#new_tab", "title": "Qubidex", "h1": "Qubidex", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Qubidex.png", "modified": "2023-11-29T11:45:48-05:00", "mapped_entity": "Partners" }, { "id": 4426, "type": "partners", "url": "#", "title": "Plan Tensive", "h1": "Plan Tensive", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Plan-Tensive.png", "modified": "2023-11-29T11:48:47-05:00", "mapped_entity": "Partners" }, { "id": 4688, "type": "team", "url": "https://riverrockadvisors.com/team/matt-rispoli/", "title": "Matt Rispoli", "h1": "Matt Rispoli", "summary": "Matt is a River Rock Advisors affiliate with more than 15 years of industry and consulting experience. He leads the data engineering, data warehousing and analytics enablement company, Startup Analytics. He and his company focus on building and scaling data …", "content": "Matt is a River Rock Advisors affiliate with more than 15 years of industry and consulting experience. He leads the data engineering, data warehousing and analytics enablement company, Startup Analytics. He and his company focus on building and scaling data analytics infrastructure and client capability. His approach of “BI (Business Intelligence) before AI (Artificial Intelligence) aligns well with RRA’s “Insights and Analytics for business decisions.” Matt and RRA have teamed to provide rapid set up of external data analysis environments and powering critical data visualizations assisting ongoing executive decision insights and actions at RRA clients.
", "content_plain": "Matt is a River Rock Advisors affiliate with more than 15 years of industry and consulting experience. He leads the data engineering, data warehousing and analytics enablement company, Startup Analytics. He and his company focus on building and scaling data analytics infrastructure and client capability. His approach of “BI (Business Intelligence) before AI (Artificial Intelligence) aligns well with RRA’s “Insights and Analytics for business decisions.” Matt and RRA have teamed to provide rapid set up of external data analysis environments and powering critical data visualizations assisting ongoing executive decision insights and actions at RRA clients.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/01/Matt-Rispoli.png", "modified": "2024-01-15T12:11:48-05:00", "mapped_entity": "People" }, { "id": 4215, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/hussmann/", "title": "Hussmann", "h1": "Hussmann", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/5cdc4b_6f9b36c287de40e7bba1737b7baef8e9.png", "modified": "2023-10-24T11:18:17-05:00", "mapped_entity": "Customers" }, { "id": 4213, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/abbvie/", "title": "Abbvie", "h1": "Abbvie", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/5cdc4b_f737454b99934f2a80308d93432eb5c0.gif", "modified": "2023-10-24T11:18:03-05:00", "mapped_entity": "Customers" }, { "id": 4211, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/bunzl/", "title": "Bunzl", "h1": "Bunzl", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/1200px-Bunzl-Logo.svg-150x150-1.png", "modified": "2023-10-24T11:17:43-05:00", "mapped_entity": "Customers" }, { "id": 4209, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/tarkett/", "title": "Tarkett", "h1": "Tarkett", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/5cdc4b_1332e2a161c44ae9b11673e84f55e99b.png", "modified": "2023-10-24T11:17:29-05:00", "mapped_entity": "Customers" }, { "id": 4207, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/husky/", "title": "Husky", "h1": "Husky", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Husky.jpg", "modified": "2023-10-24T11:17:09-05:00", "mapped_entity": "Customers" }, { "id": 4205, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/icp/", "title": "ICP", "h1": "ICP", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/ICP_Logo_FullColor-150x150-1.png", "modified": "2023-10-24T11:16:58-05:00", "mapped_entity": "Customers" }, { "id": 4203, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/belnick/", "title": "Belnick", "h1": "Belnick", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Belnick-Inc.png", "modified": "2023-10-24T11:16:46-05:00", "mapped_entity": "Customers" }, { "id": 4201, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/defunkify/", "title": "Defunkify", "h1": "Defunkify", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/defunkify.png", "modified": "2023-10-24T11:16:31-05:00", "mapped_entity": "Customers" }, { "id": 4199, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/oi/", "title": "OI", "h1": "OI", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/5cdc4b_157944c9fdb449b4b9bae42a9997d927mv2.jpg", "modified": "2023-10-24T11:16:12-05:00", "mapped_entity": "Customers" }, { "id": 4197, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/way/", "title": "Way", "h1": "Way", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/WAY_LOGO_TRANS_300x_2x.png", "modified": "2023-10-24T11:15:57-05:00", "mapped_entity": "Customers" }, { "id": 4195, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/laclede-chain/", "title": "Laclede Chain", "h1": "Laclede Chain", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/LacledeChainLogo-01.jpg", "modified": "2023-10-24T11:15:38-05:00", "mapped_entity": "Customers" }, { "id": 4193, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/syndicate-sales/", "title": "Syndicate Sales", "h1": "Syndicate Sales", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Syndicate.png", "modified": "2023-10-24T11:15:17-05:00", "mapped_entity": "Customers" }, { "id": 4191, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/inter-design/", "title": "Inter Design", "h1": "Inter Design", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/InterDesign.png", "modified": "2023-10-24T11:15:01-05:00", "mapped_entity": "Customers" }, { "id": 4189, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/lmc/", "title": "LMC", "h1": "LMC", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/logo-desktop.png", "modified": "2023-10-24T11:14:43-05:00", "mapped_entity": "Customers" }, { "id": 4187, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/meyer-corporation/", "title": "Meyer Corporation", "h1": "Meyer Corporation", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Meyer-Corp.png", "modified": "2023-10-24T11:14:13-05:00", "mapped_entity": "Customers" }, { "id": 4185, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/diversified-distribution-systems/", "title": "Diversified Distribution Systems", "h1": "Diversified Distribution Systems", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/DDS.png", "modified": "2023-10-24T11:13:54-05:00", "mapped_entity": "Customers" }, { "id": 4183, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/lube-tech/", "title": "Lube Tech", "h1": "Lube Tech", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/ezgif.com-gif-maker-600x189-1.png", "modified": "2023-10-24T11:13:31-05:00", "mapped_entity": "Customers" }, { "id": 4181, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/watergen/", "title": "Watergen", "h1": "Watergen", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/new-watergen-logo-1536x333-1.png", "modified": "2023-10-24T11:13:10-05:00", "mapped_entity": "Customers" }, { "id": 4179, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/adventure-ready-brands/", "title": "Adventure Ready Brands", "h1": "Adventure Ready Brands", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Adventure_Ready_brands__Logo-600x314-1.jpg", "modified": "2023-10-24T11:12:13-05:00", "mapped_entity": "Customers" }, { "id": 4177, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/associated-materials/", "title": "Associated Materials", "h1": "Associated Materials", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Associated_Materials_Logo-600x227-1.jpg", "modified": "2023-10-24T11:11:52-05:00", "mapped_entity": "Customers" }, { "id": 4175, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/inrhythm/", "title": "Inrhythm", "h1": "Inrhythm", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Inrhythm.png", "modified": "2023-10-24T11:11:30-05:00", "mapped_entity": "Customers" }, { "id": 4173, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/envysion/", "title": "Envysion", "h1": "Envysion", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Envysion.png", "modified": "2023-10-24T11:11:00-05:00", "mapped_entity": "Customers" }, { "id": 4171, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/schwartz-supply-source/", "title": "Schwartz Supply Source", "h1": "Schwartz Supply Source", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/5cdc4b_241c2d2a26b24e91a5371d56516c64famv2.jpg", "modified": "2023-10-24T11:10:37-05:00", "mapped_entity": "Customers" }, { "id": 4169, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/nassimi/", "title": "Nassimi", "h1": "Nassimi", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Nassimi.png", "modified": "2023-10-24T11:09:00-05:00", "mapped_entity": "Customers" }, { "id": 4167, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/achieve-global/", "title": "Achieve Global", "h1": "Achieve Global", "summary": "", "content": "", "content_plain": "", "image": 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4160, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/rpui/", "title": "RPUI", "h1": "RPUI", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/RPUI.png", "modified": "2023-10-24T11:06:49-05:00", "mapped_entity": "Customers" }, { "id": 4158, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/twenty-eight/", "title": "Twenty Eight", "h1": "Twenty Eight", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/TwentyEighty-e1602184245769.jpg", "modified": "2023-10-24T11:06:05-05:00", "mapped_entity": "Customers" }, { "id": 4631, "type": "team", "url": "https://riverrockadvisors.com/team/victor-milligan/", "title": "Victor Milligan", "h1": "Victor Milligan", "summary": "Victor Milligan is the co-Founder and Managing Partner of Cairnbridge Advisors and an Advisor to River Rock Advisors. Cairnbridge Advisors helps companies minimize the risk and capitalize on opportunities presented by sustainability with an emphasis on companies operating in supply …", "content": "Victor Milligan is the co-Founder and Managing Partner of Cairnbridge Advisors and an Advisor to River Rock Advisors. Cairnbridge Advisors helps companies minimize the risk and capitalize on opportunities presented by sustainability with an emphasis on companies operating in supply chains that are responding to commercial pressure from downstream customers.
", "content_plain": "Victor Milligan is the co-Founder and Managing Partner of Cairnbridge Advisors and an Advisor to River Rock Advisors. Cairnbridge Advisors helps companies minimize the risk and capitalize on opportunities presented by sustainability with an emphasis on companies operating in supply chains that are responding to commercial pressure from downstream customers.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Victor-Milligan.jpg", "modified": "2023-11-29T02:19:05-05:00", "mapped_entity": "People" }, { "id": 4929, "type": "team", "url": "https://riverrockadvisors.com/team/elyse-kamaniski/", "title": "Elyse Kamaniski", "h1": "Elyse Kamaniski", "summary": "Elyse joined River Rock Advisors as an analyst in June 2026, bringing hands-on experience in operations, inventory management, and process improvement. Her background spans warehouse operations, logistics, SOP development, and training program design — with prior experience in operations and …", "content": "Elyse joined River Rock Advisors as an analyst in June 2026, bringing hands-on experience in operations, inventory management, and process improvement. Her background spans warehouse operations, logistics, SOP development, and training program design — with prior experience in operations and logistics roles in horticulture and academia. Elyse earned her MBA from Slippery Rock University’s Haverlack College of Business in May 2026.
", "content_plain": "Elyse joined River Rock Advisors as an analyst in June 2026, bringing hands-on experience in operations, inventory management, and process improvement. Her background spans warehouse operations, logistics, SOP development, and training program design — with prior experience in operations and logistics roles in horticulture and academia. Elyse earned her MBA from Slippery Rock University’s Haverlack College of Business in May 2026.", "image": "https://riverrockadvisors.com/wp-content/uploads/2026/06/Elyse-1.png", "modified": "2026-06-16T12:39:23-05:00", "mapped_entity": "People" }, { "id": 4920, "type": "team", "url": "https://riverrockadvisors.com/team/zachary-goodman/", "title": "Zachary Goodman", "h1": "Zachary Goodman", "summary": "Zach Goodman joined River Rock Advisors in October 2025 graduating from Bowling Green State University with undergraduate and master’s degrees in Computer Science with a specialization in Computational Data Science. While at RRA, Zach has primarily worked within Supply Planning …", "content": "Zach Goodman joined River Rock Advisors in October 2025 graduating from Bowling Green State University with undergraduate and master’s degrees in Computer Science with a specialization in Computational Data Science. While at RRA, Zach has primarily worked within Supply Planning and developed an economic order quantity model for purchasing within the publishing industry. Zach has also implemented agentic AI workflows for self healing ETL pipelines as well as improved the technological capabilities of RRA through comprehensive visualizations and interactive tools. Bringing his systems and data science skills, Zach further expands RRA’s analytic, computational and AI offerings to RRA’s clients.
", "content_plain": "Zach Goodman joined River Rock Advisors in October 2025 graduating from Bowling Green State University with undergraduate and master’s degrees in Computer Science with a specialization in Computational Data Science. While at RRA, Zach has primarily worked within Supply Planning and developed an economic order quantity model for purchasing within the publishing industry. Zach has also implemented agentic AI workflows for self healing ETL pipelines as well as improved the technological capabilities of RRA through comprehensive visualizations and interactive tools. Bringing his systems and data science skills, Zach further expands RRA’s analytic, computational and AI offerings to RRA’s clients.", "image": "https://riverrockadvisors.com/wp-content/uploads/2025/10/Zach_headshot_blue-removebg-preview.webp", "modified": "2026-05-21T14:16:31-05:00", "mapped_entity": "People" }, { "id": 4789, "type": "team", "url": "https://riverrockadvisors.com/team/harry-rouse/", "title": "Harry Rouse", "h1": "Harry Rouse", "summary": "Harry is an analyst at River Rock Advisors with experience spanning inventory health analysis, multi-echelon supply planning, mathematical modeling, and decision-support tool development. He has built and maintained end-to-end planning and inventory projection models that leverage bills of material, multi-echelon …", "content": "Harry is an analyst at River Rock Advisors with experience spanning inventory health analysis, multi-echelon supply planning, mathematical modeling, and decision-support tool development. He has built and maintained end-to-end planning and inventory projection models that leverage bills of material, multi-echelon inventory planning, and economic order quantity optimization, and he has contributed to broader RRA solutions for demand forecasting, forecast accuracy, company maturity and growth planning, and inventory health analytics — including executive dashboards and buy-planning reports that turn complex data into clear, actionable insight for clients.
Harry joined RRA in September 2024 after earning his M.A. in Mathematics from Bowling Green State University. He previously earned a B.S. in Mathematics from Baldwin Wallace University with additional coursework in computer science, building a foundation in mathematical modeling and programming across Python, Excel, MATLAB, and Java.
", "content_plain": "Harry is an analyst at River Rock Advisors with experience spanning inventory health analysis, multi-echelon supply planning, mathematical modeling, and decision-support tool development. He has built and maintained end-to-end planning and inventory projection models that leverage bills of material, multi-echelon inventory planning, and economic order quantity optimization, and he has contributed to broader RRA solutions for demand forecasting, forecast accuracy, company maturity and growth planning, and inventory health analytics — including executive dashboards and buy-planning reports that turn complex data into clear, actionable insight for clients. Harry joined RRA in September 2024 after earning his M.A. in Mathematics from Bowling Green State University. He previously earned a B.S. in Mathematics from Baldwin Wallace University with additional coursework in computer science, building a foundation in mathematical modeling and programming across Python, Excel, MATLAB, and Java.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/09/Rouse_Headshot.png", "modified": "2026-05-21T14:13:08-05:00", "mapped_entity": "People" }, { "id": 4041, "type": "team", "url": "https://riverrockadvisors.com/team/brian-mccrea/", "title": "Brian McCrea", "h1": "Brian McCrea", "summary": "Since joining the firm in 2018, Brian has experience in supporting clients in the Chemical Manufacturing, Automotive Lubricants, Industrial / Consumer Products, & Construction / Contracting industries as well as the U.S. Government. During his time with the firm, Brian’s …", "content": "Since joining the firm in 2018, Brian has experience in supporting clients in the Chemical Manufacturing, Automotive Lubricants, Industrial / Consumer Products, & Construction / Contracting industries as well as the U.S. Government. During his time with the firm, Brian’s support has stemmed from but is not limited to — projects with a focus in inventory target setting, inventory stocking strategies, production planning & allocation, item segmentation, SIOP/S&OP processes, master data cleanup, KPI dashboard development and value stream mapping. Brian earned his B.S. degree in Supply Chain Operations management from Miami University’s Farmer School of Business in 2017.
", "content_plain": "Since joining the firm in 2018, Brian has experience in supporting clients in the Chemical Manufacturing, Automotive Lubricants, Industrial / Consumer Products, & Construction / Contracting industries as well as the U.S. Government. During his time with the firm, Brian’s support has stemmed from but is not limited to — projects with a focus in inventory target setting, inventory stocking strategies, production planning & allocation, item segmentation, SIOP/S&OP processes, master data cleanup, KPI dashboard development and value stream mapping. Brian earned his B.S. degree in Supply Chain Operations management from Miami University’s Farmer School of Business in 2017.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/brian-mccrea.png", "modified": "2024-01-25T21:34:33-05:00", "mapped_entity": "People" }, { "id": 4039, "type": "team", "url": "https://riverrockadvisors.com/team/james-axson/", "title": "James Axson", "h1": "James Axson", "summary": "James is a consultant at River Rock Advisors with experience spanning SIOP/S&OP process design, demand planning, inventory management, and distribution network analysis. He has worked across a broad range of industries including chemicals, consumer products, publishing, food manufacturing, and outdoor …", "content": "James is a consultant at River Rock Advisors with experience spanning SIOP/S&OP process design, demand planning, inventory management, and distribution network analysis. He has worked across a broad range of industries including chemicals, consumer products, publishing, food manufacturing, and outdoor gear, helping clients build practical planning tools and processes that drive measurable results. James joined RRA in 2019 after earning an MBA from Ohio University and a BS in Industrial and Systems Engineering from The Ohio State University. Prior to RRA, he worked as a Supply Chain Analyst in silicone and ceramics manufacturing and as an analyst for an automated warehouse robotics startup in Munich, Germany.
", "content_plain": "James is a consultant at River Rock Advisors with experience spanning SIOP/S&OP process design, demand planning, inventory management, and distribution network analysis. He has worked across a broad range of industries including chemicals, consumer products, publishing, food manufacturing, and outdoor gear, helping clients build practical planning tools and processes that drive measurable results. James joined RRA in 2019 after earning an MBA from Ohio University and a BS in Industrial and Systems Engineering from The Ohio State University. Prior to RRA, he worked as a Supply Chain Analyst in silicone and ceramics manufacturing and as an analyst for an automated warehouse robotics startup in Munich, Germany.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/IMG_9058.jpeg", "modified": "2026-05-21T14:11:40-05:00", "mapped_entity": "People" }, { "id": 4037, "type": "team", "url": "https://riverrockadvisors.com/team/craig-bodnar/", "title": "Craig Bodnar", "h1": "Craig Bodnar", "summary": "Craig, a River Rock Advisors affiliate, has more than 25 years of experience moving between consulting and industry roles. Craig’s deep interest in leveraging analytics to drive business performance has put him in significant SIOP/S&OP and Planning Leadership roles in …", "content": "Craig, a River Rock Advisors affiliate, has more than 25 years of experience moving between consulting and industry roles. Craig’s deep interest in leveraging analytics to drive business performance has put him in significant SIOP/S&OP and Planning Leadership roles in industry and for advisory clients, spanning the breadth of value chain issues. Craig’s consulting work has been with CSC and Cleveland Consulting Associates. His industry work has been with companies such as Honeywell, Circuit City, Spectrum Brands and Curtiss-Wright. Beyond advisory roles for River Rock Advisors, Craig has stepped into client interim roles fitting the River Rock Advisors brand of “Insights and Analytics for Business Results.”
", "content_plain": "Craig, a River Rock Advisors affiliate, has more than 25 years of experience moving between consulting and industry roles. Craig’s deep interest in leveraging analytics to drive business performance has put him in significant SIOP/S&OP and Planning Leadership roles in industry and for advisory clients, spanning the breadth of value chain issues. Craig’s consulting work has been with CSC and Cleveland Consulting Associates. His industry work has been with companies such as Honeywell, Circuit City, Spectrum Brands and Curtiss-Wright. Beyond advisory roles for River Rock Advisors, Craig has stepped into client interim roles fitting the River Rock Advisors brand of “Insights and Analytics for Business Results.”", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Craig.png", "modified": "2023-10-23T13:14:38-05:00", "mapped_entity": "People" }, { "id": 4035, "type": "team", "url": "https://riverrockadvisors.com/team/dave-nelson/", "title": "Dave Nelson", "h1": "Dave Nelson", "summary": "Dave has more than 30 years experience in corporate and consulting leadership roles. Having served in multiple business and IT capacities, Dave’s unique value is in helping clients identify, justify and deploy the right combination of process, organization and technology …", "content": "Dave has more than 30 years experience in corporate and consulting leadership roles. Having served in multiple business and IT capacities, Dave’s unique value is in helping clients identify, justify and deploy the right combination of process, organization and technology assets to transform their customer experience, operational performance, and financial results. He is a highly effective executive coach, facilitator, and program leader, with a pragmatic approach to accelerating the delivery of tangible business outcomes. Dave has worked for industry leaders such as Cleveland Consulting, Philips, Kimberly-Clark, DXC, Avanade and TCS. Dave has a BS in Industrial Management and an MBA in Management Information Systems from Indiana University.
", "content_plain": "Dave has more than 30 years experience in corporate and consulting leadership roles. Having served in multiple business and IT capacities, Dave’s unique value is in helping clients identify, justify and deploy the right combination of process, organization and technology assets to transform their customer experience, operational performance, and financial results. He is a highly effective executive coach, facilitator, and program leader, with a pragmatic approach to accelerating the delivery of tangible business outcomes. Dave has worked for industry leaders such as Cleveland Consulting, Philips, Kimberly-Clark, DXC, Avanade and TCS. Dave has a BS in Industrial Management and an MBA in Management Information Systems from Indiana University.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Dave_Nelson.png", "modified": "2024-03-25T15:43:01-05:00", "mapped_entity": "People" }, { "id": 4923, "type": "team", "url": "https://riverrockadvisors.com/team/denis-wolwiecki/", "title": "Denis Wolowiecki", "h1": "Denis Wolowiecki", "summary": "Denis is a River Rock Advisors affiliate with more than 30 years of experience in driving supply chain performance improvements, from both the consulting and the client side of the relationship. He has global senior operating experience in program management, …", "content": "Denis is a River Rock Advisors affiliate with more than 30 years of experience in driving supply chain performance improvements, from both the consulting and the client side of the relationship. He has global senior operating experience in program management, sourcing & procurement, manufacturing, inventory optimization, and distribution across numerous industries. His depth of experience in the breadth of procurement, is evidenced by his recent Executive Managing Director role for CAPS research (in joint agreement with ISM and ASU). Over the course of his career, Denis has architected and implemented numerous global transformation programs, both re-developing existing supply chain organizations or building entirely new organizations following business disruptions, post-M&A changes, PE take-overs, or a greenfield start-up in China. Denis was a senior manager in Accenture’s Supply Chain practice and a manager at KPMG. He has a BS Mechanical Engineering from Ohio Northern University, an MBA from Kent State University, and a certificate of International Management from Thunderbird-AGSIM.
", "content_plain": "Denis is a River Rock Advisors affiliate with more than 30 years of experience in driving supply chain performance improvements, from both the consulting and the client side of the relationship. He has global senior operating experience in program management, sourcing & procurement, manufacturing, inventory optimization, and distribution across numerous industries. His depth of experience in the breadth of procurement, is evidenced by his recent Executive Managing Director role for CAPS research (in joint agreement with ISM and ASU). Over the course of his career, Denis has architected and implemented numerous global transformation programs, both re-developing existing supply chain organizations or building entirely new organizations following business disruptions, post-M&A changes, PE take-overs, or a greenfield start-up in China. Denis was a senior manager in Accenture’s Supply Chain practice and a manager at KPMG. He has a BS Mechanical Engineering from Ohio Northern University, an MBA from Kent State University, and a certificate of International Management from Thunderbird-AGSIM. ", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Wolowiecki-headshot_for-posting-1.webp", "modified": "2026-04-02T15:17:48-05:00", "mapped_entity": "People" }, { "id": 4033, "type": "team", "url": "https://riverrockadvisors.com/team/steve-caulkins/", "title": "Steve Caulkins", "h1": "Steve Caulkins", "summary": "Steve is a River Rock Advisors affiliate, working with the firm almost since its inception, has more than 25 years of supply chain consulting experience with a focus on being a client’s most trusted advisor and bringing value by combining …", "content": "
Steve is a River Rock Advisors affiliate, working with the firm almost since its inception, has more than 25 years of supply chain consulting experience with a focus on being a client’s most trusted advisor and bringing value by combining functional area knowledge, IT experience and ability to drive change. As a Senior Partner for CSC, Steve led a Supply Chain Operations & Execution practice and a number of significant client accounts. Steve’s experience in global distribution network design, operations and implementation has led him across the globe, and now enables him to bring unique viewpoints to his clients.
", "content_plain": "Steve is a River Rock Advisors affiliate, working with the firm almost since its inception, has more than 25 years of supply chain consulting experience with a focus on being a client’s most trusted advisor and bringing value by combining functional area knowledge, IT experience and ability to drive change. As a Senior Partner for CSC, Steve led a Supply Chain Operations & Execution practice and a number of significant client accounts. Steve’s experience in global distribution network design, operations and implementation has led him across the globe, and now enables him to bring unique viewpoints to his clients.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Steve-Caulkins.jpg", "modified": "2024-03-25T15:42:46-05:00", "mapped_entity": "People" }, { "id": 4028, "type": "team", "url": "https://riverrockadvisors.com/team/gary-jones/", "title": "Gary Jones", "h1": "Gary Jones", "summary": "Gary has more than 25 years of Value & Supply Chain Advisory experience, and has brought business performance value to a large array of clients. Gary’s large company consulting experience has been in both direct client serving and thought leadership …", "content": "Gary has more than 25 years of Value & Supply Chain Advisory experience, and has brought business performance value to a large array of clients. Gary’s large company consulting experience has been in both direct client serving and thought leadership roles in consultancies such as Coopers and Lybrand, Cleveland Consulting Associates and CSC. As a senior executive with those firms, he has been the developer and practitioner of the key solution offerings where River Rock Advisors focuses: Supply Chain Assessment; Value Chain Strategy; Inventory Performance Optimization; Fixed Frequency Scheduling.
", "content_plain": "Gary has more than 25 years of Value & Supply Chain Advisory experience, and has brought business performance value to a large array of clients. Gary’s large company consulting experience has been in both direct client serving and thought leadership roles in consultancies such as Coopers and Lybrand, Cleveland Consulting Associates and CSC. As a senior executive with those firms, he has been the developer and practitioner of the key solution offerings where River Rock Advisors focuses: Supply Chain Assessment; Value Chain Strategy; Inventory Performance Optimization; Fixed Frequency Scheduling.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Gary-New.jpg", "modified": "2023-10-23T11:20:38-05:00", "mapped_entity": "People" }, { "id": 4024, "type": "team", "url": "https://riverrockadvisors.com/team/steve-keener/", "title": "Steve Keener", "h1": "Steve Keener", "summary": "Steve has been in the management consulting industry for more than 30 years with a focus on driving value through targeted client business issue resolution and business operations performance improvement. His career started with Cleveland Consulting Associates, which was acquired …", "content": "Steve has been in the management consulting industry for more than 30 years with a focus on driving value through targeted client business issue resolution and business operations performance improvement. His career started with Cleveland Consulting Associates, which was acquired by CSC, where he was the National Supply Chain practice operating officer before leading the practice. He has led Gartner’s North American Consulting practice, and has held client account roles at Ernst & Young Advisory and the George Group (acquired by Accenture).
", "content_plain": "Steve has been in the management consulting industry for more than 30 years with a focus on driving value through targeted client business issue resolution and business operations performance improvement. His career started with Cleveland Consulting Associates, which was acquired by CSC, where he was the National Supply Chain practice operating officer before leading the practice. He has led Gartner’s North American Consulting practice, and has held client account roles at Ernst & Young Advisory and the George Group (acquired by Accenture).", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Steve-New.jpg", "modified": "2024-05-14T15:05:36-05:00", "mapped_entity": "People" }, { "id": 4020, "type": "awards", "url": "https://riverrockadvisors.com/our-thinking/awards/pros-who-know-2020/", "title": "Pros To Know 2020", "h1": "Pros To Know 2020", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/PTK-2020-1.png", "modified": "2023-11-29T01:09:39-05:00", "mapped_entity": "Awards" }, { "id": 4018, "type": "awards", "url": "https://riverrockadvisors.com/our-thinking/awards/supply-chain-brain-2023/", "title": "Supply Chain Brain 2023", "h1": "Supply Chain Brain 2023", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/SCP-2023.jpg", "modified": "2023-10-23T10:46:30-05:00", "mapped_entity": "Awards" }, { "id": 4017, "type": "awards", "url": "https://riverrockadvisors.com/our-thinking/awards/supply-chain-brain-2021/", "title": "Supply Chain Brain 2021", "h1": "Supply Chain Brain 2021", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/SCB-2021.png", "modified": "2023-10-23T10:44:10-05:00", "mapped_entity": "Awards" }, { "id": 4016, "type": "awards", "url": "https://riverrockadvisors.com/our-thinking/awards/supply-chain-brain-2020/", "title": "Supply Chain Brain 2020", "h1": "Supply Chain Brain 2020", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/SCP-2020.png", "modified": "2023-10-23T10:43:42-05:00", "mapped_entity": "Awards" }, { "id": 4015, "type": "awards", "url": "https://riverrockadvisors.com/our-thinking/awards/supply-chain-brain-2019/", "title": "Supply Chain Brain 2019", "h1": "Supply Chain Brain 2019", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/SCP-2019.png", "modified": "2023-10-23T10:43:31-05:00", "mapped_entity": "Awards" }, { "id": 4002, "type": "awards", "url": "https://riverrockadvisors.com/our-thinking/awards/weatherhead-100-2022/", "title": "Weatherhead 100 2022", "h1": "Weatherhead 100 2022", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Weatherhead-2022.png", "modified": "2023-10-23T10:35:44-05:00", "mapped_entity": "Awards" }, { "id": 3999, "type": "awards", "url": "https://riverrockadvisors.com/our-thinking/awards/sample-2/", "title": "Weatherhead 100 2019", "h1": "Weatherhead 100 2019", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/River-Rock-Awards-2019.png", "modified": "2023-10-23T10:35:30-05:00", "mapped_entity": "Awards" }, { "id": 3953, "type": "customers", "url": "https://riverrockadvisors.com/our-thinking/customers/customer/", "title": "Ariel", "h1": "Ariel", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Ariel_Ukraine-600x316-1.png", "modified": "2023-10-24T11:05:39-05:00", "mapped_entity": "Customers" }, { "id": 3888, "type": "awards", "url": "https://riverrockadvisors.com/our-thinking/awards/sample/", "title": "Supply Chain Brain 2018", "h1": "Supply Chain Brain 2018", "summary": "", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/SCP-2018.png", "modified": "2023-10-23T10:43:21-05:00", "mapped_entity": "Awards" }, { "id": 4314, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/river-rock-advisors-celebrate-their-10-year-anniversary/", "title": "River Rock Advisors Celebrate Their 10-Year Anniversary", "h1": "River Rock Advisors Celebrate Their 10-Year Anniversary", "summary": "River Rock Advisors is celebrating their 10-year anniversary as a company. Learn more about our growth journey.", "content": "October, 2023 — Cleveland, Ohio — River Rock Advisors (RRA), a leading value chain management firm that partners with global manufacturing and distribution organizations, is celebrating their 10-year anniversary as a company.
Since its conception, RRA has been recognized five times on SupplyChainBrain’s 100 Great Supply Chain Partners List and is a two-time winner of the Weatherhead 100 Upstart Award.
Additionally, both RRA co-founders, Gary Jones and Steve Keener, on separate years have been recipients of the Pros to Know award from Supply & Demand Chain Executive magazine, a publication for leadership at manufacturing and non-manufacturing organizations covering a variety of supply chain operations topics and events.
“We are so proud of how far we’ve come, not just as a company, but as a team,” said RRA Partner and Co-founder Gary Jones. “We look forward to many more years of bringing value to our clients and expanding talent in the Cleveland market.”
Jones and Keener created RRA in 2013 after more than 30 years of working with larger supply chain consulting firms. Their focus was, and still is, to model a boutique style of management consulting firm and bring consulting professionals back into the market.
RRA continues to identify, reach out, add and then grow talent in their Rocky River office, which is expected to double in space. Their success as a business comes down to how the firm puts its collective experience to use in helping organizations implement and monitor metrics that are specific and appropriate to their industry and businesses.
“We are excited to be celebrating 10 years of business,” said RRA Partner and Co-founder Steve Keener. “With continuous recognition for our expertise and efforts, we hope we can continue to grow and flourish as a team for the betterment of our community.”
River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively. For more information, visit www.riverrockadvisors.com.
", "content_plain": "October, 2023 — Cleveland, Ohio — River Rock Advisors (RRA), a leading value chain management firm that partners with global manufacturing and distribution organizations, is celebrating their 10-year anniversary as a company. Since its conception, RRA has been recognized five times on SupplyChainBrain’s 100 Great Supply Chain Partners List and is a two-time winner of the Weatherhead 100 Upstart Award. Additionally, both RRA co-founders, Gary Jones and Steve Keener, on separate years have been recipients of the Pros to Know award from Supply & Demand Chain Executive magazine, a publication for leadership at manufacturing and non-manufacturing organizations covering a variety of supply chain operations topics and events. “We are so proud of how far we’ve come, not just as a company, but as a team,” said RRA Partner and Co-founder Gary Jones. “We look forward to many more years of bringing value to our clients and expanding talent in the Cleveland market.” Jones and Keener created RRA in 2013 after more than 30 years of working with larger supply chain consulting firms. Their focus was, and still is, to model a boutique style of management consulting firm and bring consulting professionals back into the market. RRA continues to identify, reach out, add and then grow talent in their Rocky River office, which is expected to double in space. Their success as a business comes down to how the firm puts its collective experience to use in helping organizations implement and monitor metrics that are specific and appropriate to their industry and businesses. “We are excited to be celebrating 10 years of business,” said RRA Partner and Co-founder Steve Keener. “With continuous recognition for our expertise and efforts, we hope we can continue to grow and flourish as a team for the betterment of our community.” About River Rock Advisors River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively. For more information, visit www.riverrockadvisors.com.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/RRA-10-Year-Anniversary.png", "modified": "2025-04-28T09:37:25-05:00", "mapped_entity": "Article" }, { "id": 3884, "type": "page", "url": "https://riverrockadvisors.com/about-us/our-recognitions/", "title": "Our Recognitions", "h1": "Our Recognitions", "summary": "We are honored to have received numerous recognitions and awards. Explore them here.", "content": "The River Rock Advisors team is dedicated to the success of our clients who entrust the performance of their supply chains and operations to us. As a result of that dedication, we — both our company and the talented individuals in it — have been fortunate to be recognized by a variety of organizations and institutions for our service and results. Learn more about our awards and recognitions here.
As a supply chain management information resource, SupplyChainBrain has for more than two decades been asking organizations around the country to nominate their supply chain partners based on outstanding service and solutions. For multiple years in a row, we have been honored for making a significant impact on our clients’ efficiency, customer service, and overall supply chain performance.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2025/08/Supply-Chain-Brain-2025.jpg\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/SCP-2023.jpg\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/SCB-2021.png\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/SCP-2020.png\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/SCP-2019.png\")
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The Weatherhead 100 Upstart Awards are issued by the Weatherhead School of Management at Case Western Reserve University in Cleveland, Ohio. Winners are fast-growing companies with 15 or fewer employees and net sales of less than $5 million in the previous year (determined by the percentage of growth over the past five years).
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Weatherhead-2022.png\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/River-Rock-Awards-2019.png\")
Supply & Demand Chain Executive, the only publication covering the entire global supply chain, recognizes outstanding executives whose accomplishments offer a roadmap for other leaders looking to leverage supply chains for competitive advantage.
![\"Pros](\"https://riverrockadvisors.com/wp-content/uploads/2023/11/PTK-2023.png\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/PTK-2020-1.png\")
With our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges. Contact us today to get started.
Contact", "content_plain": "Your Success is Our Success The River Rock Advisors team is dedicated to the success of our clients who entrust the performance of their supply chains and operations to us. As a result of that dedication, we — both our company and the talented individuals in it — have been fortunate to be recognized by a variety of organizations and institutions for our service and results. Learn more about our awards and recognitions here. SupplyChainBrain Great Supply Chain Partners As a supply chain management information resource, SupplyChainBrain has for more than two decades been asking organizations around the country to nominate their supply chain partners based on outstanding service and solutions. For multiple years in a row, we have been honored for making a significant impact on our clients’ efficiency, customer service, and overall supply chain performance. Weatherhead 100 Upstart Award The Weatherhead 100 Upstart Awards are issued by the Weatherhead School of Management at Case Western Reserve University in Cleveland, Ohio. Winners are fast-growing companies with 15 or fewer employees and net sales of less than $5 million in the previous year (determined by the percentage of growth over the past five years). Supply & Demand Chain Executive Pros to Know Supply & Demand Chain Executive, the only publication covering the entire global supply chain, recognizes outstanding executives whose accomplishments offer a roadmap for other leaders looking to leverage supply chains for competitive advantage. Reach Out to Get Started with Us With our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges. Contact us today to get started. Contact", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/11/River-Rock-Awards.jpg", "modified": "2023-11-29T01:25:41-05:00", "mapped_entity": "WebPage" }, { "id": 3882, "type": "page", "url": "https://riverrockadvisors.com/about-us/our-team/", "title": "Our Team", "h1": "Our Team", "summary": "Meet the talented advisors and consultants that comprise the River Rock Advisors team.", "content": "![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Steve-New.jpg\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Gary-New.jpg\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Steve-Caulkins.jpg\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Wolowiecki-headshot_for-posting-1.webp\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Dave_Nelson.png\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Craig.png\")
![\"James](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/IMG_9058.jpeg\")
![\"Brian](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/brian-mccrea.png\")
![\"Harry](\"https://riverrockadvisors.com/wp-content/uploads/2024/09/Rouse_Headshot.png\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2025/10/Zach_headshot_blue-removebg-preview.webp\")
![\"Elyse](\"https://riverrockadvisors.com/wp-content/uploads/2026/06/Elyse-1.png\")
![\"Victor-Milligan\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Victor-Milligan.jpg\")
![\"Matt](\"https://riverrockadvisors.com/wp-content/uploads/2024/01/Matt-Rispoli.png\")
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Michael.jpg\")
With our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges. Contact us today to get started.
Contact", "content_plain": "Expert Advisors and Consultants That Drive Results Steve Keener Read Bio See on LinkedIn Gary Jones Read Bio See on LinkedIn Steve Caulkins Read Bio See on LinkedIn Denis Wolowiecki Read Bio See on LinkedIn Dave Nelson Read Bio See on LinkedIn Craig Bodnar Read Bio See on LinkedIn James Axson Read Bio See on LinkedIn Brian McCrea Read Bio See on LinkedIn Harry Rouse Read Bio See on LinkedIn Zachary Goodman Read Bio See on LinkedIn Elyse Kamaniski Read Bio See on LinkedIn Victor Milligan Read Bio See on LinkedIn Matt Rispoli Read Bio See on LinkedIn Michael Contino Read Bio See on LinkedIn Reach Out to Get Started with Us With our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges. Contact us today to get started. Contact", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Our-Team.jpg", "modified": "2025-04-28T10:32:39-05:00", "mapped_entity": "WebPage" }, { "id": 3880, "type": "page", "url": "https://riverrockadvisors.com/3d-ops-model/operational-readiness/", "title": "Sustainability", "h1": "Sustainability", "summary": "", "content": "River Rock Advisors, through Cairnbridge Advisors, helps you minimize financial and operational risk driven by sustainability.
Although today’s sustainability risk is modest, new regulations and growing commercial pressure from downstream customers will turn theoretical risk to financial risk.
The simple reason is that more than 70% of carbon emissions occur in the supply chain (named Scope 3), making it the area where your downstream customers can make the most and most efficient progress. Procurement will increasingly base buying decisions on your ability to report on and reduce emissions.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2025/08/RiverRock-2025-Great-Supply-Chain-Award-B.png\" "\\"RiverRock")
Sustainability is both disruptive and unavoidable — it will increasingly be inseparable from market and financial performance.
River Rock Advisors helps you assess and forecast your risks and proportionally invest to simultaneously drive sustainability while delivering financials.
Contact us to learn more about how we can support you in this initiative.
", "content_plain": "Addressing Escalating Risks and New Opportunities Driven by Sustainability. River Rock Advisors, through Cairnbridge Advisors, helps you minimize financial and operational risk driven by sustainability. Although today’s sustainability risk is modest, new regulations and growing commercial pressure from downstream customers will turn theoretical risk to financial risk. The simple reason is that more than 70% of carbon emissions occur in the supply chain (named Scope 3), making it the area where your downstream customers can make the most and most efficient progress. Procurement will increasingly base buying decisions on your ability to report on and reduce emissions. Sustainability is both disruptive and unavoidable — it will increasingly be inseparable from market and financial performance. River Rock Advisors helps you assess and forecast your risks and proportionally invest to simultaneously drive sustainability while delivering financials. Contact us to learn more about how we can support you in this initiative.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/11/Sustainability-.png", "modified": "2025-07-09T11:09:20-05:00", "mapped_entity": "WebPage" }, { "id": 3877, "type": "page", "url": "https://riverrockadvisors.com/3d-ops-model/rrapid-assessment/", "title": "RRApid℠ Assessment", "h1": "RRApid℠ Assessment", "summary": "", "content": "Sometimes the first step is to understand what is needed to drive a business case and investment decision — whether that is to best understand the area of focus, the scope of the effort, and/or the expected resources needed.
That’s why River Rock Advisors offers our RRApid℠ Assessment — to enable you, through an operations assessment, to quickly get your hands around current risk and the size of the opportunity in front of you.
The focus of the RRApid℠ Assessment will depend on the situation at hand, but the fundamental goal is to create sufficient clarity to reduce risk and begin your journey toward more balanced and productive operations.
The RRApid℠ Assessment is the ideal beginning for supply chain and operational improvement. While our 3D-Ops Model℠ framework provides direction for distinct challenges, companies often don’t know exactly what those challenges are or how to properly address them. They just know something is wrong and the business isn’t where it should be. The RRApid℠ Assessment provides the clarity needed to take the best first step with confidence. Connect with us today to discuss your situation and to start the process.
Looking for different starting points on your way to operational excellence?
Learn MoreWith our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges. Contact us today to get started.
Contact", "content_plain": "Gain Clarity with Our Operations Assessment Sometimes the first step is to understand what is needed to drive a business case and investment decision — whether that is to best understand the area of focus, the scope of the effort, and/or the expected resources needed. That’s why River Rock Advisors offers our RRApid℠ Assessment — to enable you, through an operations assessment, to quickly get your hands around current risk and the size of the opportunity in front of you. The focus of the RRApid℠ Assessment will depend on the situation at hand, but the fundamental goal is to create sufficient clarity to reduce risk and begin your journey toward more balanced and productive operations. Let’s Lay the Foundation for Action The RRApid℠ Assessment is the ideal beginning for supply chain and operational improvement. While our 3D-Ops Model℠ framework provides direction for distinct challenges, companies often don’t know exactly what those challenges are or how to properly address them. They just know something is wrong and the business isn’t where it should be. The RRApid℠ Assessment provides the clarity needed to take the best first step with confidence. Connect with us today to discuss your situation and to start the process. 3D-Ops Model℠ Looking for different starting points on your way to operational excellence? Learn More Reach Out to Get Started with Us With our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges. Contact us today to get started. Contact", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/placeholder.png", "modified": "2023-10-24T12:29:25-05:00", "mapped_entity": "WebPage" }, { "id": 3874, "type": "page", "url": "https://riverrockadvisors.com/3d-ops-model/service-cost-capital/", "title": "Service | Cost | Capital", "h1": "Service | Cost | Capital", "summary": "Determine optimal balance of objectives to meet company’s objective of profitable revenue growth.", "content": "Either due to necessity or the real opportunity to drive a breakthrough strategy, it may be advantageous or necessary to holistically take on all three dimensions. The starting points may vary depending on where symptoms exist and where you can build on good practices.
An example is collaborative demand planning where historical demand proves not to be the best predictor of future demand. Often, different stakeholders have different perspectives. Collaborative Demand Planning & Sales, Inventory, and Operations Planning (SIOP) — greatly improves the quality of the forecast, which in turn improves downstream supply chain planning and decision-making.
We typically conduct the following analytics to get to the root cause issues that need to be addressed in the Service | Cost | Capital dimension:
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Service-Cost-Capital-Thumb.png\" "\\"Service")
Analyzing supply chain and inventory processes through the lens of our holistic Service | Cost | Capital dimension enables multiple aspects of your effort to be streamlined and improved. If you need greater insight into and oversight of existing practices, our 3D-Ops Model℠ framework and collaborative demand planning capabilities will help you identify a better path forward. Connect with us today to get started.
", "content_plain": "Use Collaborative Demand Planning When History Falls Short Either due to necessity or the real opportunity to drive a breakthrough strategy, it may be advantageous or necessary to holistically take on all three dimensions. The starting points may vary depending on where symptoms exist and where you can build on good practices. An example is collaborative demand planning where historical demand proves not to be the best predictor of future demand. Often, different stakeholders have different perspectives. Collaborative Demand Planning & Sales, Inventory, and Operations Planning (SIOP) — greatly improves the quality of the forecast, which in turn improves downstream supply chain planning and decision-making. We typically conduct the following analytics to get to the root cause issues that need to be addressed in the Service | Cost | Capital dimension: Sales, Inventory, and Operations Planning (SIOP) Collaborative Demand Planning End-to-End Integrated Planning Distribution Network Design Value Chain Assessment Operational Performance Analysis Tackle Your Most Pressing Challenges — from Every Angle Analyzing supply chain and inventory processes through the lens of our holistic Service | Cost | Capital dimension enables multiple aspects of your effort to be streamlined and improved. If you need greater insight into and oversight of existing practices, our 3D-Ops Model℠ framework and collaborative demand planning capabilities will help you identify a better path forward. Connect with us today to get started.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/collaborative-demand-planning-1.png", "modified": "2023-11-29T00:54:56-05:00", "mapped_entity": "WebPage" }, { "id": 3871, "type": "page", "url": "https://riverrockadvisors.com/3d-ops-model/cost-capital/", "title": "Cost | Capital", "h1": "Cost | Capital", "summary": "Managing the trade-off of working capital investments versus material and operating costs to best balance fixed and variable costs.", "content": "Alternatively, the Cost | Capital dimension of the River Rock Advisors 3D-Ops Model℠ framework factors in sourcing, inventory management, and use of capital when demand is uncertain and purchasing decisions become more difficult. The goal is to better balance procurement costs with inventory capital employed, yet give agility needed in times of disruption.
For example, sometimes decisions based on the lowest purchase price create excess inventory. Decisions based on minimal order quality can lead to stockouts and costly replenishments. To achieve procurement productivity improvements, you can assess different factors and look through different scenarios to find the optimal balance and minimize risk.
We typically conduct the following analytics to get to the root cause issues that need to be addressed in the Cost | Capital dimension:
![\"Cost](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Cost-Capital-Thumb.png\" "\\"Cost")
Whether you’re looking to make your business more resilient ahead of future or unknown demand shifts or are looking to better manage inventory costs, our 3D-Ops Model℠ framework and the analysis via the Cost | Capital dimension will help put your business in a stronger position. Contact us to learn more about our capabilities in this area.
", "content_plain": "Balancing Inventory with Cost for Greater Flexibility Alternatively, the Cost | Capital dimension of the River Rock Advisors 3D-Ops Model℠ framework factors in sourcing, inventory management, and use of capital when demand is uncertain and purchasing decisions become more difficult. The goal is to better balance procurement costs with inventory capital employed, yet give agility needed in times of disruption. For example, sometimes decisions based on the lowest purchase price create excess inventory. Decisions based on minimal order quality can lead to stockouts and costly replenishments. To achieve procurement productivity improvements, you can assess different factors and look through different scenarios to find the optimal balance and minimize risk. We typically conduct the following analytics to get to the root cause issues that need to be addressed in the Cost | Capital dimension: Procurement cost, lead time, and agility trade-offs Situational economic order quality “Newsvendor” procurement situations Manufacturing and distribution scheduling attainment improvement implications Cost | Capital RRApid℠ assessment Achieve the Procurement Productivity Improvements Needed Whether you’re looking to make your business more resilient ahead of future or unknown demand shifts or are looking to better manage inventory costs, our 3D-Ops Model℠ framework and the analysis via the Cost | Capital dimension will help put your business in a stronger position. Contact us to learn more about our capabilities in this area.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/procurement-productivity-improvements-1.png", "modified": "2023-11-29T00:54:07-05:00", "mapped_entity": "WebPage" }, { "id": 3868, "type": "page", "url": "https://riverrockadvisors.com/3d-ops-model/service-capital/", "title": "Service | Capital", "h1": "Service | Capital", "summary": "Address clients needs to meet customer goals and objectives while managing capital and working capital investments, including facilities, equipment, inventory and other assets.", "content": "The Service | Capital dimension of the River Rock Advisors 3D-Ops Model℠ analyzes how to best balance inventory working capital and service levels to meet operational strategy as well as prioritize initiatives to both address service levels and reduce overall inventory levels — all while driving efficiency and remaining resilient to disruptions.
We often find that companies use rules-of-thumb or category-based inventory planning processes. However, these one-size-fits-all approaches can create an mix problem with too much of the wrong inventory and not enough of the right inventory.
The goal is to get to item-level supply/demand attributes in order to move to item-specific inventory targets, significantly improving inventory productivity. Through this, companies can move from getting on the appropriate service-inventory curve, to defining the best balance to being in position to shift the curve to maximize business impact.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Service-Capital-Thumb.png\" "\\"Service")
River Rock Advisors typically conducts the following inventory productivity analytics to get to the root cause of issues that need to be addressed in the Service | Capital dimension:
The 3D-Ops Model℠ framework encompasses multiple approaches that improve supply chain and operational processes to drive meaningful, measurable business results. If inventory productivity and analysis have been a consistent challenge for your business, our team is ready to help. Contact us today to learn how we can support your success.
", "content_plain": "Making the Most Effective Use of Inventory Data The Service | Capital dimension of the River Rock Advisors 3D-Ops Model℠ analyzes how to best balance inventory working capital and service levels to meet operational strategy as well as prioritize initiatives to both address service levels and reduce overall inventory levels — all while driving efficiency and remaining resilient to disruptions. We often find that companies use rules-of-thumb or category-based inventory planning processes. However, these one-size-fits-all approaches can create an mix problem with too much of the wrong inventory and not enough of the right inventory. The goal is to get to item-level supply/demand attributes in order to move to item-specific inventory targets, significantly improving inventory productivity. Through this, companies can move from getting on the appropriate service-inventory curve, to defining the best balance to being in position to shift the curve to maximize business impact. River Rock Advisors typically conducts the following inventory productivity analytics to get to the root cause of issues that need to be addressed in the Service | Capital dimension: Inventory Performance or Inventory Productivity Improvement Product Segmentation Options and Initiatives to Shift the Inventory Curve Transform the Way You Look at Inventory The 3D-Ops Model℠ framework encompasses multiple approaches that improve supply chain and operational processes to drive meaningful, measurable business results. If inventory productivity and analysis have been a consistent challenge for your business, our team is ready to help. Contact us today to learn how we can support your success.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/inventory-productivity-1.png", "modified": "2025-04-28T11:57:33-05:00", "mapped_entity": "WebPage" }, { "id": 3865, "type": "page", "url": "https://riverrockadvisors.com/3d-ops-model/service-cost/", "title": "Service | Cost", "h1": "Service | Cost", "summary": "The Service | Cost dimension focuses on helping clients meet customer requirements while achieving financial goals of cost and profitability.", "content": "The Service | Cost dimensions of the 3D-Ops Model℠ framework look at how best to optimize service delivery while protecting margins — both under pressure as customers demand more and inflation complicates margins.
A key example is the need to conduct customer segmentation that reflects the realities that different segments produce different values at different costs — giving you the opportunity to allocate resources to those customers that create the most value and avoid overinvestment in those producing marginal value.
![\"Service](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Service-Cost-Thumb.png\" "\\"Service")
With our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges while implementing targeted strategies to resolve them as you maximize results. Contact us today to get started.
", "content_plain": "Using Customer Segmentation and More to Maximize Value The Service | Cost dimensions of the 3D-Ops Model℠ framework look at how best to optimize service delivery while protecting margins — both under pressure as customers demand more and inflation complicates margins. A key example is the need to conduct customer segmentation that reflects the realities that different segments produce different values at different costs — giving you the opportunity to allocate resources to those customers that create the most value and avoid overinvestment in those producing marginal value. Our solutions in the Service | Cost dimension include: Customer segmentation Voice of the customer Cost-to-serve analysis Service | Cost RRApid℠ Assessment Identify Your Best Customers with the 3D-Ops Model℠ With our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges while implementing targeted strategies to resolve them as you maximize results. Contact us today to get started.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/customer-segmentation.png", "modified": "2023-11-29T00:51:40-05:00", "mapped_entity": "WebPage" }, { "id": 3856, "type": "page", "url": "https://riverrockadvisors.com/our-work/", "title": "Our Work", "h1": "Our Work", "summary": "Explore companies River Rock Advisors has served, what they have to say about us, and the results of our supply chain improvement programs.", "content": "River Rock Advisors, LLC is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions specifically focusing on cross-functional whitespace challenges, thus our 3D modeling. Our analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively.
Our project-based services include situational investigations, program value management, prescriptive recommendations, business segmentation and solution differentiation, in the SIOP value chain, along with end-to-end integrated planning (demand, inventory supply, procurement), inventory strategies and planning, supply chain strategy, and distribution network strategy analysis.
Recent disruptions in the supply chain have reminded us of one simple truth — those companies in the heart of supply chains are the bedrock of our economy, and their performance is critical to our day-to-day lives. Given the uncertain and disruptive nature of our business climate, supply chain improvement is a critical and persistent challenge.
River Rock Advisors is proud to have served more than 100 companies through more than 500 engagements — each of them different in their own way but common in their importance to our economy and lives. Learn more about the companies we serve, what our clients have to say about us, and the solutions we’ve developed below.
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With our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges.
Learn More![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/12/adhesive-manufacting.png\" "\\"adhesive-manufacting\\"")
Increasing agility and resilience in times of dramatic change (supply chain physical disruption and new market service channels) by leveraging SIOP and supply planning to improve OTIF by 20%.
RRA worked with this manufacturer to open up and expand their D2C and Amazon channels by planning replenishments for multiple brands to keep the rapid growth in stock. Additionally, RRA assisted in guiding the firm through the 2021/2022 supply chain disruptions by instituting both SIOP and customer/product-focused supply plans while laying the groundwork for sustainable improvements with people, process, and technology aligned initiatives.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/12/building-materials.png\" "\\"building-materials\\"")
Expanding SIOP adoption and technology effectiveness and assisting SIOP capability to move up a maturity stage.
Leveraging RRA’s SIOP and data interrelationships expertise, this housing materials manufacturer and distributor’s supply chain leadership was able to rapidly expand their SIOP capabilities into additional product lines, revamp the process and technology to a new organizational design, and drive greater SIOP usage and capability. In addition, technology improvements enabled a 10% reduction in planner time in preparing data for analysis, enabling greater time focus on analysis than manipulation.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/12/national-distributor.png\" "\\"national-distributor\\"")
Establishing end-to-end planning, organization and technology for key products, vendors, and customers to meet changing market conditions
RRA was engaged to help a decentralized distribution company that had significant vendor and customer M&A consolidation to better position response to national programs and leverage buying power. RRA worked to establish the organization, process, and technology to enable end-to-end integrated planning capability, thus improving response to supply chain disruptions (such as COVID), providing higher service levels with less inventory, and improving procurement volume opportunities.
![\"Retail](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Refrigeration.jpg\" "\\"Retail")
Leveraging Cost to Serve dynamics across full Request for Quote To Cash Receipt process to optimize business performance
Working with the company’s executive leadership, River Rock Advisors was engaged to address SG&A costs and customer service in the client’s equipment Quote to Cash environment, which provided the driving force for an enterprise wide change program of process improvement, systems changes, cost to serve enhancement and improved cross functional alignment between sales, sales support services, engineering and manufacturing.
![\"Pet](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Pet-Supplies-1.jpg\" "\\"Pet")
Balancing service level agreements (SLAs), dedicated inventory investment, and the total cost to serve for a specific customer segment or channel
Leveraging RRA’s methodology and tools, this pet products company was able to improve their value chain. The overarching project approach was to: segment their customer base, determine appropriate SLA’s, and balance cost and inventory to meet those needs.
![\"Flooring](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Flooring1.jpg\" "\\"Flooring")
Establishing new distribution strategies to improve customer service and profitability
River Rock Advisors was engaged to help reduce inventory investment and overall logistics costs, while sustaining or improving customer service. Custom-developed analytical tools were used to evaluate new distribution and inventory strategies, with regards to their impact on customer service.
![\"Industrial](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Factory.jpg\" "\\"Industrial")
Efficiently balancing performance across multiple manufacturing entities within a vertically integrated company
Utilizing RRA’s custom modeling capabilities, we analyzed the client’s total supply chain to provide the client with fact based insights on which production stage to best hold inventory to minimize overall costs and inventories, while holding or improving customer service levels.
![\"Floral](\"https://riverrockadvisors.com/wp-content/uploads/2024/01/iStock-1458750230.jpg\" "\\"\\"")
Reconfiguring distribution network design to meet new market channels and improve customer service while minimizing costs and working capital (inventory) investment.
RRA’s Midwest-located client wanted to expand to better serve customers on the West Coast and prepare for expansion into e-commerce. RRA performed a Distribution Network Analysis (DNA) to evaluate around 800 network designs ranging from two to five distribution centers (DCs) while also evaluating different stocking strategies to integrate the resulting impacts. The business case included DC sizing and estimated inventory and operating costs.
![\"Consumer](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Food.jpg\" "\\"Consumer")
Aligning corporate resources to meet dramatic demand improvements in highly promoted product lines
Utilizing RRA’s custom modeling capabilities, RRA worked with this client to tier their retail customer base and stratify services and service levels in support of that tiering. This aligned the client’s resources with how customers wished to engage with the manufacturer and proactively assign appropriate resources (people, working capital, technology) to needed areas.
", "content_plain": "River Rock Advisors, LLC is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions specifically focusing on cross-functional whitespace challenges, thus our 3D modeling. Our analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively. Our project-based services include situational investigations, program value management, prescriptive recommendations, business segmentation and solution differentiation, in the SIOP value chain, along with end-to-end integrated planning (demand, inventory supply, procurement), inventory strategies and planning, supply chain strategy, and distribution network strategy analysis. Proven Supply Chain Improvement Solutions Recent disruptions in the supply chain have reminded us of one simple truth — those companies in the heart of supply chains are the bedrock of our economy, and their performance is critical to our day-to-day lives. Given the uncertain and disruptive nature of our business climate, supply chain improvement is a critical and persistent challenge. River Rock Advisors is proud to have served more than 100 companies through more than 500 engagements — each of them different in their own way but common in their importance to our economy and lives. Learn more about the companies we serve, what our clients have to say about us, and the solutions we’ve developed below. Who We Work With Learn More About Our 3D-Ops Model℠ With our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges. Learn More What Our Clients Are Saying Jim Williams, RetiredBack in the 1990s, I worked directly with one of the now RRA partners on an operations improvement and system selection project. Our time working closely together changed the trajectory of my career, from a mid-level customer service manager to a corporate and industry process improvement and functional expert and up the ranks within the firm. That Partner worked with me in a way that stressed our contribution, not his.Calvin Quan\u2028CEO, EnvysionRRA has always done right by me. I’ve now used them at three different companies to cover a number of operational issues, working closely with my team and giving me straight, honest feedback.Mark Sementilli, EVP Strategic Sourcing, RetiredI never saw the need or value of using outside advisors. Working with RRA changed my opinion to ‘there are some outsiders that do get it and are focused on our results, not their own’.Tim Figge, CEO & President, HussmanThrough their data driven, consensus building approach, RRA moved Hussmann to gain cross functional alignment and affect change in ways that other consulting firms have not been successful.Richard Geiger, Founder & CEO, DefunkifyRRA’s willingness to start on a dime and market-price their services while helping us to reduce complexity, in addition to the stated planning and execution capability of their contract, has meant that I can focus on growing the business without worrying about the supply chain.Kendra Sakoian, VP SCMYou have by far built the best consulting firm that I have ever had the pleasure of working with in my career. Case Studies Coatings and Adhesives Manufacturer Increasing agility and resilience in times of dramatic change (supply chain physical disruption and new market service channels) by leveraging SIOP and supply planning to improve OTIF by 20%. RRA worked with this manufacturer to open up and expand their D2C and Amazon channels by planning replenishments for multiple brands to keep the rapid growth in stock. Additionally, RRA assisted in guiding the firm through the 2021/2022 supply chain disruptions by instituting both SIOP and customer/product-focused supply plans while laying the groundwork for sustainable improvements with people, process, and technology aligned initiatives. Housing Materials Manufacturer and Distributor Expanding SIOP adoption and technology effectiveness and assisting SIOP capability to move up a maturity stage. Leveraging RRA’s SIOP and data interrelationships expertise, this housing materials manufacturer and distributor’s supply chain leadership was able to rapidly expand their SIOP capabilities into additional product lines, revamp the process and technology to a new organizational design, and drive greater SIOP usage and capability. In addition, technology improvements enabled a 10% reduction in planner time in preparing data for analysis, enabling greater time focus on analysis than manipulation. National Distributor with Large, Dispersed Distribution Footprint Establishing end-to-end planning, organization and technology for key products, vendors, and customers to meet changing market conditions RRA was engaged to help a decentralized distribution company that had significant vendor and customer M&A consolidation to better position response to national programs and leverage buying power. RRA worked to establish the organization, process, and technology to enable end-to-end integrated planning capability, thus improving response to supply chain disruptions (such as COVID), providing higher service levels with less inventory, and improving procurement volume opportunities. Retail Refrigeration Engineering Company Leveraging Cost to Serve dynamics across full Request for Quote To Cash Receipt process to optimize business performance Working with the company’s executive leadership, River Rock Advisors was engaged to address SG&A costs and customer service in the client’s equipment Quote to Cash environment, which provided the driving force for an enterprise wide change program of process improvement, systems changes, cost to serve enhancement and improved cross functional alignment between sales, sales support services, engineering and manufacturing. Pet Supplies Company Balancing service level agreements (SLAs), dedicated inventory investment, and the total cost to serve for a specific customer segment or channel Leveraging RRA’s methodology and tools, this pet products company was able to improve their value chain. The overarching project approach was to: segment their customer base, determine appropriate SLA’s, and balance cost and inventory to meet those needs. Flooring Manufacturer Establishing new distribution strategies to improve customer service and profitability River Rock Advisors was engaged to help reduce inventory investment and overall logistics costs, while sustaining or improving customer service. Custom-developed analytical tools were used to evaluate new distribution and inventory strategies, with regards to their impact on customer service. Industrial Products Manufacturer Efficiently balancing performance across multiple manufacturing entities within a vertically integrated company Utilizing RRA’s custom modeling capabilities, we analyzed the client’s total supply chain to provide the client with fact based insights on which production stage to best hold inventory to minimize overall costs and inventories, while holding or improving customer service levels. Floral Goods Manufacturer and Distributor Reconfiguring distribution network design to meet new market channels and improve customer service while minimizing costs and working capital (inventory) investment. RRA’s Midwest-located client wanted to expand to better serve customers on the West Coast and prepare for expansion into e-commerce. RRA performed a Distribution Network Analysis (DNA) to evaluate around 800 network designs ranging from two to five distribution centers (DCs) while also evaluating different stocking strategies to integrate the resulting impacts. The business case included DC sizing and estimated inventory and operating costs. Consumer Packaged Goods Manufacturer Aligning corporate resources to meet dramatic demand improvements in highly promoted product lines Utilizing RRA’s custom modeling capabilities, RRA worked with this client to tier their retail customer base and stratify services and service levels in support of that tiering. This aligned the client’s resources with how customers wished to engage with the manufacturer and proactively assign appropriate resources (people, working capital, technology) to needed areas.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Our-Work.png", "modified": "2024-01-19T10:36:55-05:00", "mapped_entity": "WebPage" }, { "id": 3852, "type": "page", "url": "https://riverrockadvisors.com/3d-ops-model/", "title": "3D-Ops Model℠", "h1": "3D-Ops Model℠", "summary": "", "content": "![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/11/3D-Ops-Model.png\" "\\"3D-Ops-Model\\"")
Although the situation varies company by company, the fundamentals of what is causing pain and where to drive improvements are common.
At River Rock Advisors, our 3D-Ops Model℠ provides a powerful and flexible framework to analyze operational issues, get to the root cause, and successfully transition to strategy execution to deliver results.
The 3D-Ops Model℠ identifies issues that cause service, cost, and capital to go out of balance — putting in place the stepping stones needed to achieve operational excellence.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/11/Service-Cost.png\" "\\"Service-Cost\\"")
The Service | Cost dimension focuses on helping clients meet customer requirements while achieving financial goals of cost and profitability.
Learn More![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/11/Service-Capital.png\" "\\"Service-Capital\\"")
Address clients needs to meet customer goals and objectives while managing capital and working capital investments, including facilities, equipment, inventory and other assets.
Learn More![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/11/Cost-Capital.png\" "\\"Cost-Capital\\"")
Managing the trade-off of working capital investments versus material and operating costs to best balance fixed and variable costs.
Learn More Determine optimal balance of objectives to meet company’s objective of profitable revenue growth.
Learn MoreThe RRApid℠ Assessment provides clarity into multiple areas to enable a course of action. Learn more about our operations assessment.
Learn MoreRiver Rock Advisors partners with procurement professionals to provide operational readiness amid growing ESG and sustainability pressures.
Learn More", "content_plain": "A Proven Framework for Strategy Execution Although the situation varies company by company, the fundamentals of what is causing pain and where to drive improvements are common. At River Rock Advisors, our 3D-Ops Model℠ provides a powerful and flexible framework to analyze operational issues, get to the root cause, and successfully transition to strategy execution to deliver results. The 3D-Ops Model℠ identifies issues that cause service, cost, and capital to go out of balance — putting in place the stepping stones needed to achieve operational excellence. Multiple Approaches to Solve Your Most Pressing Challenges Starting with the Service | Cost dimensions? Starting with the Service | Capital dimensions? Starting with the Cost | Capital dimensions? Looking at the holistic strategy for the Service | Cost | Capital dimensions? Looking for a rapid assessment to do an initial estimate or shape a business case? Getting prepared for sustainability for when it becomes a downstream customer requirement? Service | Cost The Service | Cost dimension focuses on helping clients meet customer requirements while achieving financial goals of cost and profitability. Learn More Service | Capital Address clients needs to meet customer goals and objectives while managing capital and working capital investments, including facilities, equipment, inventory and other assets. Learn More Cost | Capital Managing the trade-off of working capital investments versus material and operating costs to best balance fixed and variable costs. Learn More Service | Cost | Capital Determine optimal balance of objectives to meet company’s objective of profitable revenue growth. Learn More RRApid℠ Assessment The RRApid℠ Assessment provides clarity into multiple areas to enable a course of action. Learn more about our operations assessment. Learn More Sustainability River Rock Advisors partners with procurement professionals to provide operational readiness amid growing ESG and sustainability pressures. Learn More", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/11/3D-Ops-Model.png", "modified": "2025-04-28T10:37:54-05:00", "mapped_entity": "WebPage" }, { "id": 3841, "type": "page", "url": "https://riverrockadvisors.com/who-we-serve/", "title": "Who We Serve", "h1": "Who We Serve", "summary": "River Rock Advisors partners with multiple leadership roles and functions to execute successful operational strategies.", "content": "![\"operational](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/operational-strategies.jpg\" "\\"operational")
Whether you’re a C-suite leader looking for enhanced insight into business performance or you need to refine current supply chain planning processes, our analytically supported operational strategies are tailored to your situation and your goals. Explore our capabilities here, and get in touch with us to start your journey to operational excellence.
With our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges. Contact us today to get started.
Contact", "content_plain": "River Rock Advisors serves the different business functions and roles working together to execute operational strategies. CEO Senses working capital, cost, and service are disconnected and creating avoidable risk Has not yet seen the expected cost synergies from acquisitions CFO Sees rising expedited order costs and inventory working capital with no clear rationale for revenue misses COO Unable to get a unified view of the business Knows operational issues are frustrating customers and impacting financials CPO Needs better visibility and tools to reduce the cost of inventory Needs to understand and address implications of reshoring and multi-vendor trade-offs (price, quality, reliability, lead-time, order quantities, exclusivity) Will begin to layer in sustainability requirements to offset Scope 3 pressure from downstream customers CIO/CTO Seeks to make targeted improvements in ERP, SIOP data and reporting, and supply chain planning and scheduling tools Tries to keep technology (AI, blockchain) on pace with customer expectations and competitor advancements Supply Chain Management Determines how best to synchronize end-to-end operations, orders, and inventory investment given constraints Seeks to make key improvements: S&OP | SIOP | IBP process and control tower capability Inventory Management Under pressure to rationalize inventory (RM, WIP, FG) that protects customer service and minimizes inventory investment General Counsel Address relevant regulatory requirements without impacting marketplace competitiveness and operational effectiveness Lead company efforts to respond to downstream customer’s sustainability inquiries and new terms and conditions What Our Clients Are Saying Jim Williams, RetiredBack in the 1990s, I worked directly with one of the now RRA partners on an operations improvement and system selection project. Our time working closely together changed the trajectory of my career, from a mid-level customer service manager to a corporate and industry process improvement and functional expert and up the ranks within the firm. That Partner worked with me in a way that stressed our contribution, not his.Calvin Quan\u2028CEO, EnvysionRRA has always done right by me. I’ve now used them at three different companies to cover a number of operational issues, working closely with my team and giving me straight, honest feedback.Mark Sementilli, EVP Strategic Sourcing, RetiredI never saw the need or value of using outside advisors. Working with RRA changed my opinion to ‘there are some outsiders that do get it and are focused on our results, not their own’.Tim Figge, CEO & President, HussmanThrough their data driven, consensus building approach, RRA moved Hussmann to gain cross functional alignment and affect change in ways that other consulting firms have not been successful.Richard Geiger, Founder & CEO, DefunkifyRRA’s willingness to start on a dime and market-price their services while helping us to reduce complexity, in addition to the stated planning and execution capability of their contract, has meant that I can focus on growing the business without worrying about the supply chain.Kendra Sakoian, VP SCMYou have by far built the best consulting firm that I have ever had the pleasure of working with in my career. Explore Our 3D-Ops Model℠ Capabilities Whether you’re a C-suite leader looking for enhanced insight into business performance or you need to refine current supply chain planning processes, our analytically supported operational strategies are tailored to your situation and your goals. Explore our capabilities here, and get in touch with us to start your journey to operational excellence. Reach Out to Get Started with Us With our 3D-Ops Model℠ framework, River Rock Advisors can assist you in identifying your most pressing operational and supply chain challenges. Contact us today to get started. Contact", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Who-We-Serve.png", "modified": "2023-11-29T00:31:03-05:00", "mapped_entity": "WebPage" }, { "id": 4313, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/rras-tyler-drellishak-receives-full-scholarship-to-study-quantum-computing/", "title": "RRA’s Tyler Drellishak Receives Full Scholarship to Study Quantum Computing", "h1": "RRA’s Tyler Drellishak Receives Full Scholarship to Study Quantum Computing", "summary": "River Rock Advisors consultant Tyler Drellishak has received a full scholarship to study quantum computing. Learn more here.", "content": "River Rock Advisors is pleased to announce that Consultant Tyler Drellishak recently received a full scholarship to study quantum computing from The Coding School — a national 501(c)(3) dedicated to empowering the next generation through code.
The program is taught by QubitxQubit — the quantum initiative of The Coding School that empowers students with the knowledge and skills in quantum computing with the aim of ensuring innovation, prosperity, and social mobility for all. The program involves more than 20,000 students across the U.S. and 125 countries. Drellishak will be taking the 2023-2024 Introduction to Quantum Computing course.
“I’m very blessed to have been offered a scholarship to learn about quantum computing with QubitxQubit taught through The Coding School!” Drellishak said. “I can’t wait to learn about this new technology and how it can be used to build a better world for everyone.”
“We’re extremely proud of Tyler and his accomplishments,” said River Rock Advisors Partner Steve Keener. “Tyler came to us with an impressive background and has continued to deliver exceptional work for our firm. We’re excited to help him grow his knowledge and see what he can do with these skills.”
Drellishak joined River Rock Advisors after graduating from Cleveland State University with a M.S. in Mathematics specializing in predictive analytics. He previously worked with our firm as an intern, assisting us with a variety of analytical models supporting clients and intellectual property development.
", "content_plain": "River Rock Advisors is pleased to announce that Consultant Tyler Drellishak recently received a full scholarship to study quantum computing from The Coding School — a national 501(c)(3) dedicated to empowering the next generation through code. The program is taught by QubitxQubit — the quantum initiative of The Coding School that empowers students with the knowledge and skills in quantum computing with the aim of ensuring innovation, prosperity, and social mobility for all. The program involves more than 20,000 students across the U.S. and 125 countries. Drellishak will be taking the 2023-2024 Introduction to Quantum Computing course. “I’m very blessed to have been offered a scholarship to learn about quantum computing with QubitxQubit taught through The Coding School!” Drellishak said. “I can’t wait to learn about this new technology and how it can be used to build a better world for everyone.” “We’re extremely proud of Tyler and his accomplishments,” said River Rock Advisors Partner Steve Keener. “Tyler came to us with an impressive background and has continued to deliver exceptional work for our firm. We’re excited to help him grow his knowledge and see what he can do with these skills.” More on Tyler Drellishak’s Background Drellishak joined River Rock Advisors after graduating from Cleveland State University with a M.S. in Mathematics specializing in predictive analytics. He previously worked with our firm as an intern, assisting us with a variety of analytical models supporting clients and intellectual property development.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/09/Blog-Image-Template.png", "modified": "2025-04-28T10:04:44-05:00", "mapped_entity": "Article" }, { "id": 4312, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/river-rock-advisors-receives-fifth-recognition-on-supplychainbrains-100-great-supply-chain-partners-list/", "title": "River Rock Advisors Receives Fifth Recognition on SupplyChainBrain’s 100 Great Supply Chain Partners List", "h1": "River Rock Advisors Receives Fifth Recognition on SupplyChainBrain’s 100 Great Supply Chain Partners List", "summary": "River Rock Advisors received its fifth recognition on SupplyChainBrain’s 100 Great Supply Chain Partners List since they were first recognized in 2018.", "content": "August, 2023 — Cleveland, Ohio — River Rock Advisors (RRA), a leading value chain management firm that partners with global manufacturing and distribution organizations, received its fifth recognition on SupplyChainBrain’s 100 Great Supply Chain Partners List since they were first recognized in 2018.
“We are grateful for the nomination and the opportunity to be on this prestigious list, which came from one of our satisfied clients, DeFunkify, who recognized us for our contributions to their organization,” said RRA Partner and Co-founder Steve Keener.
RRA is featured in SupplyChainBrain’s annual Great Partners issue, which is dedicated to showing what supply chain excellence looks like in the real world and reminds us that partnerships are what make supply chains work. This feature highlights RRA’s work with DeFunkify, where RRA adapted to DeFunkify’s needs and assisted with supply chain issues so the company could focus on growing the business.
“I was honored to nominate RRA for their exceptional partnership, patience and value they have delivered to DeFunkify over a number of years,” said DeFunkify CEO and Founder Richard Geiger. “RRA’s willingness to start on a dime and market-price their services while helping us to reduce complexity, in addition to the stated planning and execution capability of their contract, has meant that I can focus on growing the business without worrying about the supply chain.”
As a supply chain management information resource, SupplyChainBrain has for more than two decades been asking organizations around the country to nominate their supply chain partners based on outstanding service and solutions. After a six-month poll, SupplyChainBrain notified RRA the firm had again been recognized for this honor.
“Our six-month online poll of supply chain professionals requires a qualified response, asking them to nominate vendors and service providers whose solutions have made a significant impact on their company’s efficiency, customer service, and overall supply chain performance,” said SupplyChainBrain Publisher Brad Berger.
RRA also received this recognition in 2018, 2019, 2020 and 2021. This long-standing recognition comes down to how the firm puts its collective experience to use in helping organizations implement and monitor metrics that are specific and appropriate to their industry and businesses. RRA has developed a variety of models used to address operational issues, analyze risk and test possible scenarios.
River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively. For more information, visit www.riverrockadvisors.com.
SupplyChainBrain is today’s most comprehensive supply chain management information resource that identifies the latest news, emerging trends, technologies and best practices, forward thinking ideas and cutting-edge solutions – and continues to write and report about these as they evolve and mature.
", "content_plain": "August, 2023 — Cleveland, Ohio — River Rock Advisors (RRA), a leading value chain management firm that partners with global manufacturing and distribution organizations, received its fifth recognition on SupplyChainBrain’s 100 Great Supply Chain Partners List since they were first recognized in 2018. “We are grateful for the nomination and the opportunity to be on this prestigious list, which came from one of our satisfied clients, DeFunkify, who recognized us for our contributions to their organization,” said RRA Partner and Co-founder Steve Keener. RRA is featured in SupplyChainBrain’s annual Great Partners issue, which is dedicated to showing what supply chain excellence looks like in the real world and reminds us that partnerships are what make supply chains work. This feature highlights RRA’s work with DeFunkify, where RRA adapted to DeFunkify’s needs and assisted with supply chain issues so the company could focus on growing the business. “I was honored to nominate RRA for their exceptional partnership, patience and value they have delivered to DeFunkify over a number of years,” said DeFunkify CEO and Founder Richard Geiger. “RRA’s willingness to start on a dime and market-price their services while helping us to reduce complexity, in addition to the stated planning and execution capability of their contract, has meant that I can focus on growing the business without worrying about the supply chain.” As a supply chain management information resource, SupplyChainBrain has for more than two decades been asking organizations around the country to nominate their supply chain partners based on outstanding service and solutions. After a six-month poll, SupplyChainBrain notified RRA the firm had again been recognized for this honor. “Our six-month online poll of supply chain professionals requires a qualified response, asking them to nominate vendors and service providers whose solutions have made a significant impact on their company’s efficiency, customer service, and overall supply chain performance,” said SupplyChainBrain Publisher Brad Berger. RRA also received this recognition in 2018, 2019, 2020 and 2021. This long-standing recognition comes down to how the firm puts its collective experience to use in helping organizations implement and monitor metrics that are specific and appropriate to their industry and businesses. RRA has developed a variety of models used to address operational issues, analyze risk and test possible scenarios. About River Rock Advisors River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively. For more information, visit www.riverrockadvisors.com. About SupplyChainBrain SupplyChainBrain is today’s most comprehensive supply chain management information resource that identifies the latest news, emerging trends, technologies and best practices, forward thinking ideas and cutting-edge solutions – and continues to write and report about these as they evolve and mature.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/08/supply-chain-partners.jpg", "modified": "2025-04-28T10:17:53-05:00", "mapped_entity": "Article" }, { "id": 4311, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/forecasting-in-a-time-of-uncertainty-with-rras-gary-jones/", "title": "Forecasting in a Time of Uncertainty with RRA’s Gary Jones", "h1": "Forecasting in a Time of Uncertainty with RRA’s Gary Jones", "summary": "RRA’s Gary Jones will be sharing a summary of his three-session conversation with BISG. Register now and receive a link to the recording after the session.", "content": "A large fire consumes a woodpile in a groundwood paper plant. A major west-coast port shuts down, and other ports refuse to handle the diverted cargo. Scorching heat starts to break down the roads and rail networks you rely on to move finished books and raw materials. Staff for your preferred carrier may soon be on strike.
These are just a few of the many variables publishers face in making decisions about where, when, and how much to print. Last winter, Gary Jones (River Rock Advisors) led a three-session conversation about how modeling can help publishers make more informed decisions about printing and inventorying books. Taken together, Gary’s presentations described integrated business planning: the ability to forecast effectively in a time of uncertainty.
On August 1, 2023 Gary will present the summary that he shared with 200 supply-chain professionals at BISG’s annual meeting in April. He’ll be joined by Cathy Felgar (Princeton University Press), whose team has been working to apply the principles of integrated business planning. They’ll describe the principles and how they have made it possible to plan in an uncertain environment.
As with all BISG brown-bag lunches, there will be lots of time for sharing questions, comments, and examples. Because this session will contain so much mission-critical information, BISG is making an exception to its brown-bag rule: it will be recorded. Register now to attend the meeting, and you’ll receive a link to a recording after the session.
", "content_plain": "A large fire consumes a woodpile in a groundwood paper plant. A major west-coast port shuts down, and other ports refuse to handle the diverted cargo. Scorching heat starts to break down the roads and rail networks you rely on to move finished books and raw materials. Staff for your preferred carrier may soon be on strike. These are just a few of the many variables publishers face in making decisions about where, when, and how much to print. Last winter, Gary Jones (River Rock Advisors) led a three-session conversation about how modeling can help publishers make more informed decisions about printing and inventorying books. Taken together, Gary’s presentations described integrated business planning: the ability to forecast effectively in a time of uncertainty. Learn More About the Power of Forecasting On August 1, 2023 Gary will present the summary that he shared with 200 supply-chain professionals at BISG’s annual meeting in April. He’ll be joined by Cathy Felgar (Princeton University Press), whose team has been working to apply the principles of integrated business planning. They’ll describe the principles and how they have made it possible to plan in an uncertain environment. As with all BISG brown-bag lunches, there will be lots of time for sharing questions, comments, and examples. Because this session will contain so much mission-critical information, BISG is making an exception to its brown-bag rule: it will be recorded. Register now to attend the meeting, and you’ll receive a link to a recording after the session. Register Now", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/07/Forecasting-in-a-Time-of-Uncertainty.png", "modified": "2025-04-28T08:57:01-05:00", "mapped_entity": "Article" }, { "id": 3796, "type": "page", "url": "https://riverrockadvisors.com/contact/", "title": "Contact", "h1": "Contact", "summary": "", "content": " Ready to make supply chain and operational excellence a reality for your business? Contact River Rock Advisors today to start your journey. We’ll review your submission and connect with you as soon as possible.
P: 440-610-0216
F: 440-374-5034
1150 Linda Street
Rocky River, OH 44116
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", "content_plain": "Pellentesque at molestie nisi orbi consectetur est vitae elit vulputate condimentum. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec sed elementum tellus, molestie sagittis ex. Pellentesque sodales elit at elit condimentum, eget maximus urna tristique. Pellentesque consectetur eu enim vitae malesuada. Pellentesque condimentum, tortor sed ullamcorper viverra, diam libero vulputate felis, eu pharetra purus purus vel dui. Etiam gravida felis quis velit maximus interdum. Nulla facilisi.", "image": false, "modified": "2023-07-07T14:51:34-05:00", "mapped_entity": "WebPage" }, { "id": 3607, "type": "page", "url": "https://riverrockadvisors.com/about-us/", "title": "About Us", "h1": "About Us", "summary": "River Rock Advisors helps you navigate today’s uncertain business climate — keeping your operations in balance and your company on a growth trajectory.", "content": "Supply chains are the critical arteries and veins of our economy — enriching our day-to-day lives. But supply chains are under constant pressure, from inflation to geopolitics to emerging sustainability requirements.
But driving operational improvement takes hard work. The combination of external volatility and internal pressures has highlighted the challenge of achieving operational excellence, of creating an engine able to adapt to constant change while delivering predictable performance.
At River Rock Advisors, we have a passion for our clients. We were built for this moment: to immerse ourselves into our clients’ reality — seeing the issues and possibilities from the boardroom to the dock door, helping to shape improvements that make a difference today, and creating an engine of growth for tomorrow.
![\"Our](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Our-Team-1024x683.jpg\")
Meet the talented advisors and consultants that comprise the River Rock Advisors team.
Read more![\"River](\"https://riverrockadvisors.com/wp-content/uploads/2023/11/River-Rock-Awards-1024x684.jpg\")
We are honored to have received numerous recognitions and awards. Explore them here.
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See who we partner with at River Rock Advisors.
Read moreWe are actively looking for talented, motivated individuals to assist us in delivering supply chain and operational improvement strategies for our clients. Current openings are listed below. If you believe that you would be a good match for one of the available positions listed below, please reach out to us here.
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Explore the latest thought leadership, announcements, research, and more from our supply chain and operational improvement experts.
Read more![\"\"](\"https://riverrockadvisors.com/wp-content/plugins/js_composer/assets/vc/vc_gitem_image.png\")
This is the excerpt maecenas ornare augue massa, nec suscipit neque venenatis at. Phasellus commodo suscipit interdum.
Read moreThis is the excerpt maecenas ornare augue massa, nec suscipit neque venenatis at. Phasellus commodo suscipit interdum.
Read more", "content_plain": "Pellentesque at molestie nisi orbi consectetur est vitae elit vulputate condimentum. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec sed elementum tellus, molestie sagittis ex. Pellentesque sodales elit at elit condimentum, eget maximus urna tristique. Pellentesque consectetur eu enim vitae malesuada. Pellentesque condimentum, tortor sed ullamcorper viverra, diam libero vulputate felis, eu pharetra purus purus vel dui. Etiam gravida felis quis velit maximus interdum. Our ThinkingExplore the latest thought leadership, announcements, research, and more from our supply chain and operational improvement experts. Read moreDownloadsThis is the excerpt maecenas ornare augue massa, nec suscipit neque venenatis at. Phasellus commodo suscipit interdum. Read moreCase StudiesThis is the excerpt maecenas ornare augue massa, nec suscipit neque venenatis at. Phasellus commodo suscipit interdum. Read more", "image": false, "modified": "2023-07-07T14:37:06-05:00", "mapped_entity": "WebPage" }, { "id": 4721, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/transforming-supply-chain-communication-with-gary-jones-and-cathy-felgar/", "title": "Transforming Supply Chain Communication with Gary Jones and Cathy Felgar", "h1": "Transforming Supply Chain Communication with Gary Jones and Cathy Felgar", "summary": "Supply chain planning can be difficult for many publishers, especially small businesses that don’t have the same resources as large corporations. In many cases, these publishers have little to no historical data on their supply chain, making it difficult for …", "content": "Supply chain planning can be difficult for many publishers, especially small businesses that don’t have the same resources as large corporations. In many cases, these publishers have little to no historical data on their supply chain, making it difficult for them to forecast. Luckily, there are a few ways these publishers can forecast with confidence.
At the BISG Transforming Supply Chain Communication Annual Meeting on April 28, 2023, Gary Jones of River Rock Advisers and Cathy Felgar of Princeton University Press will introduce an integrated supply chain planning model that ties projected demand into supply. Gary has extensive experience in leveraging insights and analytics to help with business decisions and uses this knowledge to create tools any publisher can use. Princeton University Press has implemented some of these tools, and Cathy and Gary will explain how others can approach the process.
Other sessions during this meeting will address issues in creating, managing, and retrieving information, including metadata, rights data, sales reporting, inventory, information, and more.
", "content_plain": "Supply chain planning can be difficult for many publishers, especially small businesses that don’t have the same resources as large corporations. In many cases, these publishers have little to no historical data on their supply chain, making it difficult for them to forecast. Luckily, there are a few ways these publishers can forecast with confidence. Learn More About Supply Chain Communication At the BISG Transforming Supply Chain Communication Annual Meeting on April 28, 2023, Gary Jones of River Rock Advisers and Cathy Felgar of Princeton University Press will introduce an integrated supply chain planning model that ties projected demand into supply. Gary has extensive experience in leveraging insights and analytics to help with business decisions and uses this knowledge to create tools any publisher can use. Princeton University Press has implemented some of these tools, and Cathy and Gary will explain how others can approach the process. Other sessions during this meeting will address issues in creating, managing, and retrieving information, including metadata, rights data, sales reporting, inventory, information, and more.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/03/River-Rock-Social-AnnualMeeting.png", "modified": "2025-04-28T09:51:12-05:00", "mapped_entity": "Article" }, { "id": 4310, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/supply-demand-chain-executive-names-river-rock-advisors-steve-keener-one-of-2023s-pros-to-know/", "title": "Supply & Demand Chain Executive Names River Rock Advisor’s Steve Keener One of 2023’s Pros to Know", "h1": "Supply & Demand Chain Executive Names River Rock Advisor’s Steve Keener One of 2023’s Pros to Know", "summary": "Supply & Demand Chain Executive named Steve Keener, Partner and Co-Founder of River Rock Advisors, as one of the winners of the 2023 Pros to Know award.", "content": "ROCKY RIVER, OH — March 23, 2022 — Supply & Demand Chain Executive, the only publication covering the entire global supply chain, named Steve Keener, Partner and Co-Founder of River Rock Advisors, as one of the winners of the 2023 Pros to Know award.
The annual Pros to Know award recognizes outstanding executives whose accomplishments offer a roadmap for other leaders looking to leverage supply chains for competitive advantage.
“This year’s list is filled with supply chain professionals whose achievements and success stories have helped move the needle in the supply chain. They promote safety, sustainability and workforce development. They work toward helping heal the supply chain. They’re actually in the supply chain,” says Marina Mayer, Editor-in-Chief of Supply & Demand Chain Executive and Food Logistics. “We received close to 400 nominations this year, the highest number of nominations ever for this award. It’s proof that today’s supply chain professionals are doing great things for the supply chain. They embody what a true leader should be. And, without their initiatives, programs and collaborative efforts, today’s supply chains would be in worse shape.”
“I am so excited and honored to receive this focused award,” said Keener. “I’m glad our teams were able to make such an impact for our clients that they nominated me, and I hope we can continue to make a positive effect on client supply chains.”
Keener has been in the consulting industry for over 30 years with a focus on supply chain consulting, private equity, professional services, and process improvement.
View the full list of 2023 Pros to Know winners here. The overall winner will be announced live at ProMat in Chicago. Go to www.SDCExec.com/awards to learn more about upcoming Supply & Demand Chain Executive awards.
MEDIA CONTACT:
Holly Mueller
Holly M Communications
holly@hollymcommunications.com, www.hollymcommunications.com
Supply & Demand Chain Executive is the only supply chain publication covering the entire global supply chain, focusing on trucking, warehousing, packaging, procurement, risk management, professional development and more. Supply & Demand Chain Executive and sister publication Food Logistics are also home to L.I.N.K. and L.I.N.K. Educate podcast channels, L.I.N.K. Live, SCN Summit, SupplyChainLearningCenter.com, Women in Supply Chain Forum and more. Go to www.SDCExec.com to learn more.
River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively.
", "content_plain": "This award recognizes outstanding executives whose accomplishments offer a roadmap for other leaders looking to leverage supply chains for competitive advantage. ROCKY RIVER, OH — March 23, 2022 — Supply & Demand Chain Executive, the only publication covering the entire global supply chain, named Steve Keener, Partner and Co-Founder of River Rock Advisors, as one of the winners of the 2023 Pros to Know award. The annual Pros to Know award recognizes outstanding executives whose accomplishments offer a roadmap for other leaders looking to leverage supply chains for competitive advantage. “This year’s list is filled with supply chain professionals whose achievements and success stories have helped move the needle in the supply chain. They promote safety, sustainability and workforce development. They work toward helping heal the supply chain. They’re actually in the supply chain,” says Marina Mayer, Editor-in-Chief of Supply & Demand Chain Executive and Food Logistics. “We received close to 400 nominations this year, the highest number of nominations ever for this award. It’s proof that today’s supply chain professionals are doing great things for the supply chain. They embody what a true leader should be. And, without their initiatives, programs and collaborative efforts, today’s supply chains would be in worse shape.” “I am so excited and honored to receive this focused award,” said Keener. “I’m glad our teams were able to make such an impact for our clients that they nominated me, and I hope we can continue to make a positive effect on client supply chains.” Keener has been in the consulting industry for over 30 years with a focus on supply chain consulting, private equity, professional services, and process improvement. View the full list of 2023 Pros to Know winners here. The overall winner will be announced live at ProMat in Chicago. Go to www.SDCExec.com/awards to learn more about upcoming Supply & Demand Chain Executive awards. MEDIA CONTACT: Holly Mueller Holly M Communications holly@hollymcommunications.com, www.hollymcommunications.com About Supply & Demand Chain Executive Supply & Demand Chain Executive is the only supply chain publication covering the entire global supply chain, focusing on trucking, warehousing, packaging, procurement, risk management, professional development and more. Supply & Demand Chain Executive and sister publication Food Logistics are also home to L.I.N.K. and L.I.N.K. Educate podcast channels, L.I.N.K. Live, SCN Summit, SupplyChainLearningCenter.com, Women in Supply Chain Forum and more. Go to www.SDCExec.com to learn more. About River Rock Advisors River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/03/RRA-SDCE-2023-Pros-to-Know.png", "modified": "2025-07-09T11:08:43-05:00", "mapped_entity": "Article" }, { "id": 4724, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/supply-chain-communication-and-data-sharing-inventory-planning/", "title": "Supply Chain Communication and Data Sharing: Inventory Planning", "h1": "Supply Chain Communication and Data Sharing: Inventory Planning", "summary": "Inventory planning can allow businesses and publishers to determine the proper amount of product to order so they can optimize sales. In addition to optimizing sales, inventory planning is also one of the strategies businesses can use to alleviate the …", "content": "Inventory planning can allow businesses and publishers to determine the proper amount of product to order so they can optimize sales. In addition to optimizing sales, inventory planning is also one of the strategies businesses can use to alleviate the impact of supply chain disruptions.
At BISG Supply Chain Brown Bag Lunch & Learn on March 7, 2023, Gary Jones of River Rock Advisers and Ken Brooks of Treadwell Media Group will lead a discussion on how publishers can benefit from inventory planning and prevent the negative impacts of supply chain disruptions. Gary has more than 25 years of experience in value and supply chain advisory and uses this experience to help businesses and publishers address supply chain disruptions.
These Brown Bag Lunch & Learns are focused on experts addressing the questions and concerns of those in attendance, making it an open forum for discussion.
", "content_plain": "Inventory planning can allow businesses and publishers to determine the proper amount of product to order so they can optimize sales. In addition to optimizing sales, inventory planning is also one of the strategies businesses can use to alleviate the impact of supply chain disruptions. Learn More About the Benefits of Inventory Planning At BISG Supply Chain Brown Bag Lunch & Learn on March 7, 2023, Gary Jones of River Rock Advisers and Ken Brooks of Treadwell Media Group will lead a discussion on how publishers can benefit from inventory planning and prevent the negative impacts of supply chain disruptions. Gary has more than 25 years of experience in value and supply chain advisory and uses this experience to help businesses and publishers address supply chain disruptions. These Brown Bag Lunch & Learns are focused on experts addressing the questions and concerns of those in attendance, making it an open forum for discussion.", "image": "https://riverrockadvisors.com/wp-content/uploads/2024/03/River-Rock-Social-SupplyChain.png", "modified": "2025-04-28T09:40:00-05:00", "mapped_entity": "Article" }, { "id": 4309, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/rra-partner-gary-jones-supports-latest-book-industry-study-group-bisg-event/", "title": "RRA Partner Gary Jones Supports Latest Book Industry Study Group (BISG) Event", "h1": "RRA Partner Gary Jones Supports Latest Book Industry Study Group (BISG) Event", "summary": "River Rock Advisors Partner Gary Jones is leading a three-part series on demand planning. Learn more about the event here.", "content": "Committed to providing education and resources for its members, BISG conducts monthly lunch-and-learn events for members on key topics across its five core practice areas.
Starting in February, River Rock Advisor Partner Gary Jones will co-lead a sales, inventory, and operations planning (SIOP) educational series focusing on alleviating the impact of supply chain disruptions through better, more rigorous planning.
Joining Jones is Ken Brooks of Treadwell Media Group, who is also the chair of the BISG Supply Chain Committee and an RRA Affiliate.
The first presentation, titled Supply Chain Communication and Data Sharing: Demand Planning, focuses on demand planning, while subsequent sessions will focus on inventory planning, and supply planning. The series culminates at BISG’s Annual Meeting and a final overview of supply chain communication.
Those interested in the series or the BISG community can learn more at www.bisg.org. Leaders looking to take a new approach to demand planning and its impact on other areas of a supply chain will find additional insights in our exploration of collaborative demand planning here.
", "content_plain": "The Book Industry Study Group (BISG) is a member organization that works to improve standards, research, and information for the publishing industry. Committed to providing education and resources for its members, BISG conducts monthly lunch-and-learn events for members on key topics across its five core practice areas. Starting in February, River Rock Advisor Partner Gary Jones will co-lead a sales, inventory, and operations planning (SIOP) educational series focusing on alleviating the impact of supply chain disruptions through better, more rigorous planning. Joining Jones is Ken Brooks of Treadwell Media Group, who is also the chair of the BISG Supply Chain Committee and an RRA Affiliate. The first presentation, titled Supply Chain Communication and Data Sharing: Demand Planning, focuses on demand planning, while subsequent sessions will focus on inventory planning, and supply planning. The series culminates at BISG’s Annual Meeting and a final overview of supply chain communication. Learn More About the BISG Community Those interested in the series or the BISG community can learn more at www.bisg.org. Leaders looking to take a new approach to demand planning and its impact on other areas of a supply chain will find additional insights in our exploration of collaborative demand planning here.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/02/RRA-BISG-Event.png", "modified": "2025-07-09T11:09:01-05:00", "mapped_entity": "Article" }, { "id": 4308, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/collaborative-demand-planning-a-new-approach-to-predictable-growth/", "title": "Collaborative Demand Planning: A New Approach to Predictable Growth", "h1": "Collaborative Demand Planning: A New Approach to Predictable Growth", "summary": "With companies facing multiple challenges today and even more expected, now is the time to adopt a collaborative demand planning approach.", "content": "This is the goal of every mid-market organization involved in the production and/or distribution of physical goods, is meeting customer demand along with investing the least amount of resources possible in order to fulfill that demand and drive profitable revenue growth. One of the most important aspects of this process is for an organization to understand customer demand in order to forecast what’s needed to make this goal a reality. Demand planning is the cornerstone to success and involves using historical demand to predict future demand.
However, accurate forecasting can be difficult because customers don’t always know what they want or when they want it (but as we all know, they want it now). Additionally, using historical demand to drive statistical forecasting is no longer an effective approach due to a variety of black swan events — an unpredictable circumstance that’s beyond what is normally expected of a situation and has potentially severe consequences. These events are rare, have a severe impact, and yet have widespread hindsight insistence that they were obvious.
The COVID-19 pandemic was one such black swan, but it — along with other economic and political factors — contributed to a number of others, including global supply chain and logistics challenges and long-lasting labor shortages. All of these have turned supply and demand planning on its head. Additionally, the war in Ukraine along with rising inflation and interest rates have made demand planning less predictable. This is not expected to let up anytime soon, with experts still warning of a recession in 2023.
Organizations using historical demand data to calculate a statistical or math-based forecast as the “best guess” for future demand will be at a disadvantage by not accounting for future events and could face negative results such as excess inventory or products that are stocked out where demand is outpacing supply. Even using an internal or external group’s demand plan has risks as they likely have reasons for adding bias to the forecast, meaning over or under predicting demand. For example, a customer generated demand plan might have the intent to over predict demand by 20% to better ensure product is available if they need it. Today, a new approach to demand planning is needed — one that minimizes risk.
It’s clear that demand planning using historical data is no longer a reliable method for forecasting customer demand in today’s world. A more informed solution — and unfortunately one that is often overlooked in current practice — is using intelligence from multiple perspectives combined in with statistical demand. We refer to this alternative approach as collaborative demand planning. This is no longer a capability that can be only leveraged by large enterprises.
Demand intelligence can be incorporated by key stakeholders across multiple departments within the organization: sales, marketing, finance, operations, executive leadership and even customers’ insights. Each of these groups understands customer demand from their respective level and viewpoint in the business. For example, sales understands demand at the category level, whereas marketing can provide deeper insight at the item and period levels based on specific promotions and events. The executive team can provide their input at the macro level.
This collaborative demand planning process helps to sidestep a common problem: one person or team from one department or functional area of the business with an inherent bias creating the (or multiple) demand plan(s). When this happens, the demand plan itself is inherently biased to maximize the metric for which that individual, team, or department is responsible (e.g. a demand plan from a sales-only perspective is likely to call for an increase of certain materials or parts based on the risky perception that enough product will be sold to justify it). By taking the collaborative demand planning approach, all key business departments and functions are heard in the plan and have a say in the output of the work: the Final Consensus Demand Plan that is adjusted for supply constraints.
With the point that recent history is now seldom a strong predictor of the future and now even more economic risks seemingly lying in wait in the coming year, manufacturing and distribution organizations would be wise to evaluate their demand planning processes and consider new methods that result in more informed decisions. Collaborative demand planning is essential for an organization to achieve its goal of having the right product in the right place at the right time — and at the lowest cost — with minimal investment to fulfill customer demand and drive profitable revenue growth.
That said, there are a number of key steps that must be followed in order for collaborative demand planning to produce the desired outcomes. In this series, we’ll explore the eight steps of this approach, highlighting the importance of each, what should be considered or included, and how they tee up the following steps. Be sure to check back frequently, as steps will be covered in short order. Also make sure you’re subscribed to our emails so you’re the first to know when content drops.
Until then, feel free to reach out if we can answer any questions regarding your current demand planning practices. Our team is here to help position you for success.
", "content_plain": "Right Product, Right Place, Right Time This is the goal of every mid-market organization involved in the production and/or distribution of physical goods, is meeting customer demand along with investing the least amount of resources possible in order to fulfill that demand and drive profitable revenue growth. One of the most important aspects of this process is for an organization to understand customer demand in order to forecast what’s needed to make this goal a reality. Demand planning is the cornerstone to success and involves using historical demand to predict future demand. However, accurate forecasting can be difficult because customers don’t always know what they want or when they want it (but as we all know, they want it now). Additionally, using historical demand to drive statistical forecasting is no longer an effective approach due to a variety of black swan events — an unpredictable circumstance that’s beyond what is normally expected of a situation and has potentially severe consequences. These events are rare, have a severe impact, and yet have widespread hindsight insistence that they were obvious. The COVID-19 pandemic was one such black swan, but it — along with other economic and political factors — contributed to a number of others, including global supply chain and logistics challenges and long-lasting labor shortages. All of these have turned supply and demand planning on its head. Additionally, the war in Ukraine along with rising inflation and interest rates have made demand planning less predictable. This is not expected to let up anytime soon, with experts still warning of a recession in 2023. Organizations using historical demand data to calculate a statistical or math-based forecast as the “best guess” for future demand will be at a disadvantage by not accounting for future events and could face negative results such as excess inventory or products that are stocked out where demand is outpacing supply. Even using an internal or external group’s demand plan has risks as they likely have reasons for adding bias to the forecast, meaning over or under predicting demand. For example, a customer generated demand plan might have the intent to over predict demand by 20% to better ensure product is available if they need it. Today, a new approach to demand planning is needed — one that minimizes risk. The Solution: Collaborative Demand Planning It’s clear that demand planning using historical data is no longer a reliable method for forecasting customer demand in today’s world. A more informed solution — and unfortunately one that is often overlooked in current practice — is using intelligence from multiple perspectives combined in with statistical demand. We refer to this alternative approach as collaborative demand planning. This is no longer a capability that can be only leveraged by large enterprises. Demand intelligence can be incorporated by key stakeholders across multiple departments within the organization: sales, marketing, finance, operations, executive leadership and even customers’ insights. Each of these groups understands customer demand from their respective level and viewpoint in the business. For example, sales understands demand at the category level, whereas marketing can provide deeper insight at the item and period levels based on specific promotions and events. The executive team can provide their input at the macro level. This collaborative demand planning process helps to sidestep a common problem: one person or team from one department or functional area of the business with an inherent bias creating the (or multiple) demand plan(s). When this happens, the demand plan itself is inherently biased to maximize the metric for which that individual, team, or department is responsible (e.g. a demand plan from a sales-only perspective is likely to call for an increase of certain materials or parts based on the risky perception that enough product will be sold to justify it). By taking the collaborative demand planning approach, all key business departments and functions are heard in the plan and have a say in the output of the work: the Final Consensus Demand Plan that is adjusted for supply constraints. There Can Be No More Singular “Best Guesses” — Collaboration is the Way Forward With the point that recent history is now seldom a strong predictor of the future and now even more economic risks seemingly lying in wait in the coming year, manufacturing and distribution organizations would be wise to evaluate their demand planning processes and consider new methods that result in more informed decisions. Collaborative demand planning is essential for an organization to achieve its goal of having the right product in the right place at the right time — and at the lowest cost — with minimal investment to fulfill customer demand and drive profitable revenue growth. That said, there are a number of key steps that must be followed in order for collaborative demand planning to produce the desired outcomes. In this series, we’ll explore the eight steps of this approach, highlighting the importance of each, what should be considered or included, and how they tee up the following steps. Be sure to check back frequently, as steps will be covered in short order. Also make sure you’re subscribed to our emails so you’re the first to know when content drops. Until then, feel free to reach out if we can answer any questions regarding your current demand planning practices. Our team is here to help position you for success.", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/02/iStock-853926760.jpg", "modified": "2023-10-25T10:26:17-05:00", "mapped_entity": "Article" }, { "id": 3128, "type": "page", "url": "https://riverrockadvisors.com/", "title": "Home", "h1": "Value Chain consultants leveraging insights\u2028and analytics for business decisions", "summary": "", "content": "![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/hero-1.png\" "\\"hero-1\\"")
Keeping your operations in balance is challenging but critical in a climate of continued uncertainty and disruption.
You need a supply chain consultant able to see the big picture and dig down into the details that matter.
RRA works closely with you to drive operational improvements — and keep operations in balance.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/hero-2.png\" "\\"hero-2\\"")
Our 3D-Ops Model℠ finds the optimal balance among service, cost, and capital to create a durable operational engine that is able to thrive through the turbulence.
Learn More![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Hero-3.png\" "\\"Hero-3\\"")
There is no shortage of high-branded consultancies offering to put you through their machine.
But your situation is different and not easily cookie-cut into greatness.
You need a supply chain consultant that sees the specifics of your challenge.
RRA sees each situation differently and works with you to find solutions fitted to who you are and who you want to be.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/hero-4.png\" "\\"hero-4\\"")
With so many signals coming at you, it is harder — and so important — to get to the true root cause. That means going deep into how the operations work — the people, processes, and systems — and what is causing what.
RRA works side-by-side with your teams, immersing into the often unobvious issues, to get to the root cause and give you a clear path to operational excellence.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/hero-5.png\" "\\"hero-5\\"")
Change and disruption are now constants — and constantly pushing your operations out of balance.
This is when an experienced supply chain consultant matters.
RRA’s deep industry experience — from boardrooms to dock doors — enables you to make critical changes today and consistently adapt to new dynamics and risks. The result is an operational engine able to drive sustainable growth.
![\"Consumer](\"https://riverrockadvisors.com/wp-content/uploads/2024/08/iStock-989428948.jpg\")
The impact of consumer spending on the global economy is significant. How does this connect to SIOP practices? Get the answers here.
Read more![\"The](\"https://riverrockadvisors.com/wp-content/uploads/2024/11/iStock-1349338733.jpg\")
Learn the importance of SIOP tracking when it comes to understanding maturity level and reporting on progress over time.
Read more![\"Mind](\"https://riverrockadvisors.com/wp-content/uploads/2025/05/iStock-588264630.jpg\")
Learn how to understand and counter risk, manage the unavoidable dip, and come out the other side competitively advantaged.
Read more![\"Operations](\"https://riverrockadvisors.com/wp-content/uploads/2024/12/iStock-1160999495.jpg\")
With the new administration comes the likelihood of tariffs. Explore their impact and learn how to prepare your business.
Read more See All ![\"River](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Who-We-Serve-1024x838.png\")
River Rock Advisors partners with multiple leadership roles and functions to execute successful operational strategies.
Read moreRiver Rock Advisor’s 3D-Ops Model℠ enables you to move from the focus on symptoms to priority root cause issues on your broader journey to balanced operations.
Learn MoreIf you wish to address priorities in the Service | Cost | Capital
If you wish to address priorities in the Service | Cost
If you wish to address priorities in the Service | Capital
If you wish to address priorities in the Cost | Capital
![\"Our](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/Our-Work-1024x947.png\")
Explore companies River Rock Advisors has served, what they have to say about us, and the results of our supply chain improvement programs.
Read moreExplore the latest thought leadership, announcements, research, and more from our supply chain and operational improvement experts.
Read more![\"About](\"https://riverrockadvisors.com/wp-content/uploads/2023/10/About-Us-1024x926.png\")
River Rock Advisors helps you navigate today’s uncertain business climate — keeping your operations in balance and your company on a growth trajectory.
Read moreOctober 20, 2022 — Cleveland, OH — River Rock Advisors (RRA), a value chain management consultancy for manufacturing and distribution companies, has received the 2022 Weatherhead 100 Award in the Upstart category.
The awards are issued by the Weatherhead School of Management at Case Western Reserve University in Cleveland, Ohio. Upstart award winners are fast-growing companies with 15 or fewer employees and net sales of less than $5 million in the previous year.
The Weatherhead 100 awards were established in 1988 and recognize for-profit organizations that are leading the way in growth in key Northeast Ohio counties. Winners are determined by the percentage of growth over the past five years.
“The past few years have been strong for River Rock Advisors,” said RRA Partner and Co-Founder Gary Jones. “Our clients have experienced a variety of unprecedented changes, and as a result have had a greater need than ever to better understand and forecast demand in an increasingly complex economic environment. Their trust in our team is what led to this award, and we’re truly grateful for their partnership.”
Along with other award recipients, River Rock Advisors will attend this year’s Weatherhead 100 celebration on Thursday, December 8, 2022 in downtown Cleveland.
“We’re extremely proud of all that our team has accomplished since we were founded in 2013,” said RRA Partner and Co-Founder Steve Keener. “We have a talented group of people who are helping companies in multiple industries become more efficient, proactive, and productive. I want to thank them for all that they’ve done for the business and our clients. We look forward to continuing to produce strong results for clients for years to come.”
River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively.
", "content_plain": "October 20, 2022 — Cleveland, OH — River Rock Advisors (RRA), a value chain management consultancy for manufacturing and distribution companies, has received the 2022 Weatherhead 100 Award in the Upstart category. The awards are issued by the Weatherhead School of Management at Case Western Reserve University in Cleveland, Ohio. Upstart award winners are fast-growing companies with 15 or fewer employees and net sales of less than $5 million in the previous year. The History of the Weatherhead 100 Upstart Award The Weatherhead 100 awards were established in 1988 and recognize for-profit organizations that are leading the way in growth in key Northeast Ohio counties. Winners are determined by the percentage of growth over the past five years. “The past few years have been strong for River Rock Advisors,” said RRA Partner and Co-Founder Gary Jones. “Our clients have experienced a variety of unprecedented changes, and as a result have had a greater need than ever to better understand and forecast demand in an increasingly complex economic environment. Their trust in our team is what led to this award, and we’re truly grateful for their partnership.” Along with other award recipients, River Rock Advisors will attend this year’s Weatherhead 100 celebration on Thursday, December 8, 2022 in downtown Cleveland. “We’re extremely proud of all that our team has accomplished since we were founded in 2013,” said RRA Partner and Co-Founder Steve Keener. “We have a talented group of people who are helping companies in multiple industries become more efficient, proactive, and productive. I want to thank them for all that they’ve done for the business and our clients. We look forward to continuing to produce strong results for clients for years to come.” About River Rock Advisors River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively.", "image": "https://riverrockadvisors.com/wp-content/uploads/2022/09/RRA-Weatherhead-2022.png", "modified": "2025-04-28T09:32:50-05:00", "mapped_entity": "Article" }, { "id": 4306, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/a-flock-of-black-swans-planning-ahead-despite-constant-change/", "title": "A Flock of Black Swans: Planning Ahead Despite Constant Change", "h1": "A Flock of Black Swans: Planning Ahead Despite Constant Change", "summary": "In this article for Supply & Demand Chain Executive, River Rock Advisors' Steve Keener explores the changing definitions of best practices in supply chain management.", "content": "(This article was originally published by Supply Chain & Demand Executive. It was submitted by Steve Keener from River Rock Advisors and is being reprinted here.)
It’s likely that in today’s environment, supply chain executives and leaders view their work and discipline from two perspectives that carry a great deal of contrast: “before the pandemic” and “today.” Unfortunately, there is no “after the pandemic” when it comes to supply chain best practices — at least not yet. As this article will explore, the reason for this is that no one can define what that means.
Before the pandemic, many organizations believed they had achieved supply chain best practices capabilities. Inventory levels were lean and managed using just-in-time (JIT) approaches that reduced costs and prevented excess goods in warehouses and distribution centers. Sources of supply were plentiful, allowing organizations to explore options that enabled them to further optimize efforts. Manufacturers were able to continuously replenish customer inventories without unexpected lead times.
These upstream advantages allowed organizations to offer a more diversified portfolio of products to a broader audience, at a competitive price, and with high availability — meaning in-stock rates were strong as were associated customer service metrics. Unfortunately, as we all know, this situation was about to change dramatically — and it would continue changing in ways supply chain professionals didn’t expect.
A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. They are characterized by their extreme rarity, severe impact, and the widespread insistence — in hindsight — that they were obvious. The term has an extensive history, but it is perhaps best known from statistician and author Nassim Taleb, whose books Fooled by Randomness and The Black Swan discuss the concept in-depth.
While the potential of a pandemic has been statistically predicted for years, its size, rapid worldwide spread, and ongoing presence were clearly not taken seriously or prepared for by the now clearly-seen-as-fragile global system.
Then the pandemic enabled a number of other “lesser” black swans. Supply chain professionals around the world likely would have overcome these lesser events had they occurred on their own. However, it’s the collective, cumulative impact of these events that has made doing so virtually impossible.
Depending on the industry and nature of the business, manufacturing either stopped or slowed dramatically, and the same occurred in the shipping sector. Retail stores and restaurants closed or operated at dramatically reduced capacity. Consumers also shifted their preferences and demands as well as the channels through which they fulfilled them. E-commerce skyrocketed along with demand for key goods, placing extreme pressure on manufacturers as they watched the backlog grow larger and larger. Consumers shifted from purchasing services to goods, and as inflation roars, appear to recently be shifting back to services.
As the world navigated the pandemic and these rapid, large-scale shifts in demand and consumer preference, other lesser black swan events arose. These include the well-known raw material shortages that stopped manufacturers in chemicals, chips, and others, which in turn led to manufacturers stopping or slowing the production of downstream goods. And of course, almost simultaneously, the Great Resignation and labor shortage further impacted the ability of manufacturers to maintain what production they could. These black swans then led to overloaded ports, creating further delays and shortages that continued to compound the challenges for manufacturers and their customers.
The impact of these interconnected black swan events has changed the world for years to come, if not forever. The methods and data points by which organizations and supply chain professionals defined previous best practices no longer support the flexibility needed today. For example, near-term historical sales were often relied upon as the best predictor of future demand. But as the black swans have revealed, this data is far too variable to be utilized in this way, and data from before the pandemic is — for many firms — ancient history.
Organizations that had achieved lean inventory levels no longer have a buffer against future disruption due to ongoing uncertainty. If demand were to spike, they could find themselves in situations similar to last year. Sole-sourced, imported manufacturing with extensive lead times won’t be able to support the rapidly shifting consumer preferences. Such practices would put the organization at risk of excess inventory or not enough — creating a reactionary environment that undermines demand planning entirely. And the methods by which products flow from suppliers through distribution channels to retailers and then on to consumers must become more reliable — and cost-effective.
Organizations looking to regain some semblance of “best practices” today must be willing to embrace greater variation while also expanding the boundaries of the supply chain function. Whereas optimizing an existing supply chain was a greater focus before the black swans, risk management and scenario planning will enable greater long-term flexibility and resilience.
Demand planning must also become more collaborative. Historically, demand planning focused on statistical forecasting using the previous one to three years and stayed within the four walls of the organization, without considering outside variables such as suppliers, complementary business partners, and customers themselves. Communication between the organization and these external influencers will provide greater insight into and understanding of the factors that stand to impact the organization.
Strategic and split sourcing, with a distinct focus on agility and resilience, will help organizations choose the right suppliers and partners while procuring materials and goods in a way that best supports demand. For example, it may be advantageous for an organization to pay more now for a faster, shorter-term solution that allows them to meet current demand. But conversely, being able to flexibly shift to a longer-term, lower-cost alternative when needed will be essential.
Business segmentation should also be considered to best align efforts with what will produce the most value. Before our black swans, organizations may have kept certain products or materials in inventory that weren’t significant revenue drivers or weren’t high in demand. Today, these products may no longer move the needle. Sales, procurement, operations, and other teams may need to focus their efforts and priorities on products that are more in the organization’s wheelhouse or where they can best meet customer demand to keep moving forward.
SIOP (sales, inventory, and operations planning) must also become more agile, factoring in all of the above to make the best, most informed decisions possible. In the past, teams often went on sales forecasts, but as the black swans have made painfully clear, the sales data of the past couple of years should no longer inform this strategic planning process.
The pace of world change has been increasing each decade. That appears to be now into ever shorter cycles of change and in a state of large and unpredictable events. Supply chain resilience and agility in the face of adversity is now becoming more of the watch word than general tactical responses to one-off surprises.
", "content_plain": "(This article was originally published by Supply Chain & Demand Executive. It was submitted by Steve Keener from River Rock Advisors and is being reprinted here.) Previous best practice definitions will never be the same. It’s likely that in today’s environment, supply chain executives and leaders view their work and discipline from two perspectives that carry a great deal of contrast: “before the pandemic” and “today.” Unfortunately, there is no “after the pandemic” when it comes to supply chain best practices — at least not yet. As this article will explore, the reason for this is that no one can define what that means. Before the pandemic, many organizations believed they had achieved supply chain best practices capabilities. Inventory levels were lean and managed using just-in-time (JIT) approaches that reduced costs and prevented excess goods in warehouses and distribution centers. Sources of supply were plentiful, allowing organizations to explore options that enabled them to further optimize efforts. Manufacturers were able to continuously replenish customer inventories without unexpected lead times. These upstream advantages allowed organizations to offer a more diversified portfolio of products to a broader audience, at a competitive price, and with high availability — meaning in-stock rates were strong as were associated customer service metrics. Unfortunately, as we all know, this situation was about to change dramatically — and it would continue changing in ways supply chain professionals didn’t expect. The black swans take flight A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. They are characterized by their extreme rarity, severe impact, and the widespread insistence — in hindsight — that they were obvious. The term has an extensive history, but it is perhaps best known from statistician and author Nassim Taleb, whose books Fooled by Randomness and The Black Swan discuss the concept in-depth. While the potential of a pandemic has been statistically predicted for years, its size, rapid worldwide spread, and ongoing presence were clearly not taken seriously or prepared for by the now clearly-seen-as-fragile global system. Then the pandemic enabled a number of other “lesser” black swans. Supply chain professionals around the world likely would have overcome these lesser events had they occurred on their own. However, it’s the collective, cumulative impact of these events that has made doing so virtually impossible. Depending on the industry and nature of the business, manufacturing either stopped or slowed dramatically, and the same occurred in the shipping sector. Retail stores and restaurants closed or operated at dramatically reduced capacity. Consumers also shifted their preferences and demands as well as the channels through which they fulfilled them. E-commerce skyrocketed along with demand for key goods, placing extreme pressure on manufacturers as they watched the backlog grow larger and larger. Consumers shifted from purchasing services to goods, and as inflation roars, appear to recently be shifting back to services. As the world navigated the pandemic and these rapid, large-scale shifts in demand and consumer preference, other lesser black swan events arose. These include the well-known raw material shortages that stopped manufacturers in chemicals, chips, and others, which in turn led to manufacturers stopping or slowing the production of downstream goods. And of course, almost simultaneously, the Great Resignation and labor shortage further impacted the ability of manufacturers to maintain what production they could. These black swans then led to overloaded ports, creating further delays and shortages that continued to compound the challenges for manufacturers and their customers. Previous best practices definitions will never be the same The impact of these interconnected black swan events has changed the world for years to come, if not forever. The methods and data points by which organizations and supply chain professionals defined previous best practices no longer support the flexibility needed today. For example, near-term historical sales were often relied upon as the best predictor of future demand. But as the black swans have revealed, this data is far too variable to be utilized in this way, and data from before the pandemic is — for many firms — ancient history. Organizations that had achieved lean inventory levels no longer have a buffer against future disruption due to ongoing uncertainty. If demand were to spike, they could find themselves in situations similar to last year. Sole-sourced, imported manufacturing with extensive lead times won’t be able to support the rapidly shifting consumer preferences. Such practices would put the organization at risk of excess inventory or not enough — creating a reactionary environment that undermines demand planning entirely. And the methods by which products flow from suppliers through distribution channels to retailers and then on to consumers must become more reliable — and cost-effective. It’s time to embrace the new variable normal Organizations looking to regain some semblance of “best practices” today must be willing to embrace greater variation while also expanding the boundaries of the supply chain function. Whereas optimizing an existing supply chain was a greater focus before the black swans, risk management and scenario planning will enable greater long-term flexibility and resilience. Demand planning must also become more collaborative. Historically, demand planning focused on statistical forecasting using the previous one to three years and stayed within the four walls of the organization, without considering outside variables such as suppliers, complementary business partners, and customers themselves. Communication between the organization and these external influencers will provide greater insight into and understanding of the factors that stand to impact the organization. Strategic and split sourcing, with a distinct focus on agility and resilience, will help organizations choose the right suppliers and partners while procuring materials and goods in a way that best supports demand. For example, it may be advantageous for an organization to pay more now for a faster, shorter-term solution that allows them to meet current demand. But conversely, being able to flexibly shift to a longer-term, lower-cost alternative when needed will be essential. Business segmentation should also be considered to best align efforts with what will produce the most value. Before our black swans, organizations may have kept certain products or materials in inventory that weren’t significant revenue drivers or weren’t high in demand. Today, these products may no longer move the needle. Sales, procurement, operations, and other teams may need to focus their efforts and priorities on products that are more in the organization’s wheelhouse or where they can best meet customer demand to keep moving forward. SIOP (sales, inventory, and operations planning) must also become more agile, factoring in all of the above to make the best, most informed decisions possible. In the past, teams often went on sales forecasts, but as the black swans have made painfully clear, the sales data of the past couple of years should no longer inform this strategic planning process. The pace of world change has been increasing each decade. That appears to be now into ever shorter cycles of change and in a state of large and unpredictable events. Supply chain resilience and agility in the face of adversity is now becoming more of the watch word than general tactical responses to one-off surprises.", "image": "https://riverrockadvisors.com/wp-content/uploads/2022/09/iStock-1319941084.jpg", "modified": "2023-10-25T10:36:27-05:00", "mapped_entity": "Article" }, { "id": 4305, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/rra-partner-steve-keener-weighs-in-on-trade-and-education-publishing-challenges/", "title": "RRA Partner Steve Keener Weighs in on Trade and Education Publishing Challenges", "h1": "RRA Partner Steve Keener Weighs in on Trade and Education Publishing Challenges", "summary": "In this article from Publishers Weekly, author Ken Brooks explores how publishers can leverage S&OP to prepare a demand plan and turn that into a corresponding supply plan for action.", "content": "As a result of ongoing supply chain challenges, publishers are facing more difficulty than ever getting the materials they need to produce the books their customers need. This has led to publishers ordering at higher volumes — creating capacity shortages and perpetuating longer lead times for the industry as a whole.
To combat this, some publishers are looking to integrated sales and operations planning (S&OP) to gain better visibility into the volume they’ll actually need to have produced.
In this article from Publishers Weekly, author Ken Brooks explores how publishers can leverage S&OP to prepare a demand plan and turn that into a corresponding supply plan for action. River Rock Advisors partner Steve Keener also shares insights into the firm’s expertise in supporting trade and education publishers.
Read the full article on Publishers Weekly.
", "content_plain": "As a result of ongoing supply chain challenges, publishers are facing more difficulty than ever getting the materials they need to produce the books their customers need. This has led to publishers ordering at higher volumes — creating capacity shortages and perpetuating longer lead times for the industry as a whole. To combat this, some publishers are looking to integrated sales and operations planning (S&OP) to gain better visibility into the volume they’ll actually need to have produced. Explore Ken Brooks’ Article in Publishers Weekly In this article from Publishers Weekly, author Ken Brooks explores how publishers can leverage S&OP to prepare a demand plan and turn that into a corresponding supply plan for action. River Rock Advisors partner Steve Keener also shares insights into the firm’s expertise in supporting trade and education publishers. Read the full article on Publishers Weekly.", "image": "https://riverrockadvisors.com/wp-content/uploads/2022/03/publsihers-weekly-article-featuring-steve-keener.jpg", "modified": "2025-04-28T09:48:28-05:00", "mapped_entity": "Article" }, { "id": 3, "type": "page", "url": "https://riverrockadvisors.com/privacy-policy/", "title": "Privacy Policy", "h1": "Privacy Policy", "summary": "", "content": "Effective date: 1/14/2025
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August 9, 2021 — Cleveland, Ohio — Boutique value chain management firm River Rock Advisors (RRA) has been recognized by SupplyChainBrain for the fourth consecutive year on its list of the Top 100 Great Supply Chain Partners.
SupplyChainBrain is a comprehensive resource on supply chain management information for executives and leaders in multiple global industries that covers the latest innovations, industry best practices, and supply chain strategies and trends. The list has been published annually for the past 19 years with winners’ clients nominating them based on their experiences, the value delivered, and overall performance.
“For 19 years running, SupplyChainBrain has published our much-anticipated list of 100 Great Supply Chain Partners — a select group of companies whose customers recognize them for providing outstanding solutions and services,” said SupplyChainBrain publisher Brad Berger.
“Our six-month online poll of supply chain professionals requires a qualified response, asking them to nominate vendors and service providers whose solutions have made a significant impact on their company’s efficiency, customer service, and overall supply chain performance. This year’s field of nominees was highly competitive and overall excellent — coming from all sectors of supply chain management. River Rock Advisors will appear in the August 2021 issue of SupplyChainBrain magazine and on SupplyChainBrain.com as an honored member of this year’s 100 Great Supply Chain Partners.”
“To achieve this recognition a fourth time is an outstanding accomplishment, supportive of our customer intimacy value proposition and a symbol of the dedication our team puts into each opportunity,” said RRA Partner and Co-founder Steve Keener. “The past year was certainly challenging for our clients and for our industry, but despite that, we continued to deliver solutions and results for our clients. We’re grateful for their trust and look forward to supporting them for years to come.”
“With everything 2020 threw at us — tariffs, the pandemic, supply chain challenges — it’s humbling that we’ve once again received this recognition,” said RRA Partner and Co-founder Gary Jones. “It’s a testament to the team’s capabilities and to our clients for working with us to solve their most pressing supply chain concerns.”
In addition to providing advisory and analytical services for clients’ supply chain challenges, River Rock Advisors also provides execution support through its Operational Performance division. The Operational Performance team implements the recommendations and strategies developed by the RRA team, ensuring that clients can quickly realize their benefits. Those interested can learn more at OperationalPerformance.com.
River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively.
", "content_plain": "August 9, 2021 — Cleveland, Ohio — Boutique value chain management firm River Rock Advisors (RRA) has been recognized by SupplyChainBrain for the fourth consecutive year on its list of the Top 100 Great Supply Chain Partners. SupplyChainBrain is a comprehensive resource on supply chain management information for executives and leaders in multiple global industries that covers the latest innovations, industry best practices, and supply chain strategies and trends. The list has been published annually for the past 19 years with winners’ clients nominating them based on their experiences, the value delivered, and overall performance. “For 19 years running, SupplyChainBrain has published our much-anticipated list of 100 Great Supply Chain Partners — a select group of companies whose customers recognize them for providing outstanding solutions and services,” said SupplyChainBrain publisher Brad Berger. “Our six-month online poll of supply chain professionals requires a qualified response, asking them to nominate vendors and service providers whose solutions have made a significant impact on their company’s efficiency, customer service, and overall supply chain performance. This year’s field of nominees was highly competitive and overall excellent — coming from all sectors of supply chain management. River Rock Advisors will appear in the August 2021 issue of SupplyChainBrain magazine and on SupplyChainBrain.com as an honored member of this year’s 100 Great Supply Chain Partners.” “To achieve this recognition a fourth time is an outstanding accomplishment, supportive of our customer intimacy value proposition and a symbol of the dedication our team puts into each opportunity,” said RRA Partner and Co-founder Steve Keener. “The past year was certainly challenging for our clients and for our industry, but despite that, we continued to deliver solutions and results for our clients. We’re grateful for their trust and look forward to supporting them for years to come.” “With everything 2020 threw at us — tariffs, the pandemic, supply chain challenges — it’s humbling that we’ve once again received this recognition,” said RRA Partner and Co-founder Gary Jones. “It’s a testament to the team’s capabilities and to our clients for working with us to solve their most pressing supply chain concerns.” In addition to providing advisory and analytical services for clients’ supply chain challenges, River Rock Advisors also provides execution support through its Operational Performance division. The Operational Performance team implements the recommendations and strategies developed by the RRA team, ensuring that clients can quickly realize their benefits. Those interested can learn more at OperationalPerformance.com. About River Rock Advisors River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively.", "image": "https://riverrockadvisors.com/wp-content/uploads/2021/08/RRA-SCB-Graphic.png", "modified": "2025-04-28T09:57:01-05:00", "mapped_entity": "Article" }, { "id": 4406, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/crm-and-sop/", "title": "White Paper: CRM and S&OP", "h1": "White Paper: CRM and S&OP", "summary": "", "content": "Download NowRiver Rock Advisors Partner Dave Nelson explores the concept of using customer relationship management tools and processes in sales and operations planning for greater accuracy.
Learn whether this concept will work for your business.
Explore how to segment customers and pilot this approach.
Tailor the approach for greater results over time.
River Rock Advisors is a leading value chain management firm that specializes in optimizing business performance and transforming organizations from the inside out. We provide clients with insights and analytics as well as customized solutions to help drive and improve decision-making. Put our decades of industry expertise to work for your organization? Download our free CRM for S&OP ebook today.
Welcome to our four-part series on utilizing customer relationship management (CRM) data to inform and enhance your sales and operations planning (S&OP) process. Over the next few posts, we’ll explore this concept for leadership decision-making that leverages data not often considered in operations and demand planning.
First, we introduced the concept of leveraging CRM in demand planning — underscoring the need for a new way of thinking about demand planning in light of the ongoing concern over the pandemic and the uncertainty it instilled in manufacturers and distributors around the world. Second, we outlined how to determine if this approach was viable in your organization. Third, we explored the steps needed to pilot this strategy while testing and monitoring it along the way as well as taking steps to improve demand reliability.
If you’ve completed the pilot program, conducted the recommended assessment, and have made a decision to continue, you can begin to explore new ways to expand the pilot to new customer and product segments, involve new teams from across the organization, and more. The purpose of this is to continually build out your CRM data and further refine how this data is used in S&OP. Let’s explore these new focus areas as well as a few others.
With the initial customer segment complete, you can begin to identify new customers and products for which you want to better understand future demand. However, before including these customers and products in your S&OP forecasting, it would be wise to take another pilot-type approach. Just because the pilot worked for a specific segment of the business doesn’t mean it will work for another.
If you recall from our first post, not every customer and product type is ideal for this approach. You want to focus on customers and products for which there is a more in-depth sales cycle requiring greater involvement from sales, operations, and supply chain teams. Customers that purchase smaller quantities from you at more frequent intervals may not generate the data you need for more accurate S&OP forecasting.
Since your pilot program was focused on a specific segment of your overall customer base, it understandably didn’t involve people from outside of the organization. However, now that you’ve decided to broaden the program for expanded S&OP forecasting capability, it may be appropriate to include external partners whose involvement with your products and customers may provide new CRM data and insight for planning.
For example, consider involving your channel partners in S&OP discussions and preparations, such as your distributors. These partners play a significant role in your ability to meet customer demands and expectations, so gaining their input will help you further refine this approach.
Another recommendation is to involve supply chain professionals from your key customers in your planning. This doesn’t mean actively involving them in your internal discussions of course, but instead consider having a regular cadence of calls with production planners, buyers, and other purchasing/supply chain professionals (if you’re not already). This will help you to catch any upcoming changes in their production plans, which in turn may impact your own planning.
Because the initial approach has been validated, you can begin to gather and include additional information about customers and products into overall reporting and decision-making. While the content of this data depends on your industry, business, customers, and products, examples might include:
S&OP forecasting teams should evaluate the type of data being factored into this approach to ensure it is relevant, supportive of the overall strategy, and that it will contribute to increasingly accurate demand planning.
Throughout this approach, you’ll be faced with two specific demand-related datasets: actual demand and forecasted demand. The goal of this approach is to refine your forecasted demand repeatedly until it reflects actual demand. This is an ongoing process that requires consistent review during S&OP meetings to ensure progress is being made.
To ensure S&OP teams have the information needed to evaluate demand, the mechanisms you’re using to provide feedback should continue to grow and be refined themselves. While much information will be available in CRM tools and processes, what other solutions are available to you? Are you leveraging business intelligence tools — which can and should be integrated with CRM tools — to provide even deeper analysis and forecasting capability? Evaluate the tech stack available to you, and should you identify any gaps or new opportunities to enhance it, consider doing so.
We hope this series on leveraging CRM for S&OP demand planning has been informative to you as you consider your own approach for the road ahead. As a leading value chain optimization firm supporting manufacturers and distributors in multiple industries, River Rock Advisors is uniquely positioned to help you develop a strategy for improvement and execute it through our Operational Performance team.
Whether you’re just beginning to explore the opportunities available to you for more reliable demand planning or already have an approach in place that you feel could be enhanced, our team has decades of expertise in driving successful results for our clients — and we’re ready to do the same for you.
", "content_plain": "Welcome to our four-part series on utilizing customer relationship management (CRM) data to inform and enhance your sales and operations planning (S&OP) process. Over the next few posts, we’ll explore this concept for leadership decision-making that leverages data not often considered in operations and demand planning. Using CRM Data to Improve Your S&OP Process Can CRM Fit Into Your S&OP Demand Planning? Defining Next Steps: Implementing Your S&OP Strategy The Strategy Has Landed — Now It’s Time to Expand We’ve covered a lot of ground throughout our exploration of the connection between CRM tools and processes and demand-focused supply and operations planning (S&OP). Here’s how to take it further. First, we introduced the concept of leveraging CRM in demand planning — underscoring the need for a new way of thinking about demand planning in light of the ongoing concern over the pandemic and the uncertainty it instilled in manufacturers and distributors around the world. Second, we outlined how to determine if this approach was viable in your organization. Third, we explored the steps needed to pilot this strategy while testing and monitoring it along the way as well as taking steps to improve demand reliability. If you’ve completed the pilot program, conducted the recommended assessment, and have made a decision to continue, you can begin to explore new ways to expand the pilot to new customer and product segments, involve new teams from across the organization, and more. The purpose of this is to continually build out your CRM data and further refine how this data is used in S&OP. Let’s explore these new focus areas as well as a few others. Start Piloting CRM Data for Other Products and Customers With the initial customer segment complete, you can begin to identify new customers and products for which you want to better understand future demand. However, before including these customers and products in your S&OP forecasting, it would be wise to take another pilot-type approach. Just because the pilot worked for a specific segment of the business doesn’t mean it will work for another. If you recall from our first post, not every customer and product type is ideal for this approach. You want to focus on customers and products for which there is a more in-depth sales cycle requiring greater involvement from sales, operations, and supply chain teams. Customers that purchase smaller quantities from you at more frequent intervals may not generate the data you need for more accurate S&OP forecasting. Involve External Partners as Appropriate Since your pilot program was focused on a specific segment of your overall customer base, it understandably didn’t involve people from outside of the organization. However, now that you’ve decided to broaden the program for expanded S&OP forecasting capability, it may be appropriate to include external partners whose involvement with your products and customers may provide new CRM data and insight for planning. For example, consider involving your channel partners in S&OP discussions and preparations, such as your distributors. These partners play a significant role in your ability to meet customer demands and expectations, so gaining their input will help you further refine this approach. Another recommendation is to involve supply chain professionals from your key customers in your planning. This doesn’t mean actively involving them in your internal discussions of course, but instead consider having a regular cadence of calls with production planners, buyers, and other purchasing/supply chain professionals (if you’re not already). This will help you to catch any upcoming changes in their production plans, which in turn may impact your own planning. Collect More Detailed Data from New and Existing Pilots Because the initial approach has been validated, you can begin to gather and include additional information about customers and products into overall reporting and decision-making. While the content of this data depends on your industry, business, customers, and products, examples might include: Additional sales-related data to further improve probability scores More in-depth supply chain information such as vendor costs Amount of inventory kept on hand for a customer (if applicable) Logistics information and costs from historic orders S&OP forecasting teams should evaluate the type of data being factored into this approach to ensure it is relevant, supportive of the overall strategy, and that it will contribute to increasingly accurate demand planning. Expand the Feedback Mechanisms for Comparing Demand Throughout this approach, you’ll be faced with two specific demand-related datasets: actual demand and forecasted demand. The goal of this approach is to refine your forecasted demand repeatedly until it reflects actual demand. This is an ongoing process that requires consistent review during S&OP meetings to ensure progress is being made. To ensure S&OP teams have the information needed to evaluate demand, the mechanisms you’re using to provide feedback should continue to grow and be refined themselves. While much information will be available in CRM tools and processes, what other solutions are available to you? Are you leveraging business intelligence tools — which can and should be integrated with CRM tools — to provide even deeper analysis and forecasting capability? Evaluate the tech stack available to you, and should you identify any gaps or new opportunities to enhance it, consider doing so. Our Expertise, Your S&OP Forecasting Success We hope this series on leveraging CRM for S&OP demand planning has been informative to you as you consider your own approach for the road ahead. As a leading value chain optimization firm supporting manufacturers and distributors in multiple industries, River Rock Advisors is uniquely positioned to help you develop a strategy for improvement and execute it through our Operational Performance team. Whether you’re just beginning to explore the opportunities available to you for more reliable demand planning or already have an approach in place that you feel could be enhanced, our team has decades of expertise in driving successful results for our clients — and we’re ready to do the same for you. Connect with us today to learn more about this approach and how we can put it to work for your success.", "image": "https://riverrockadvisors.com/wp-content/uploads/2021/01/sop-forecasting.jpg", "modified": "2023-10-25T10:31:00-05:00", "mapped_entity": "Article" }, { "id": 4302, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/defining-next-steps-implementing-your-sop-strategy/", "title": "Defining Next Steps: Implementing Your S&OP Strategy", "h1": "Defining Next Steps: Implementing Your S&OP Strategy", "summary": "You understand the concept. You know whether it’ll work for your business. Now, it’s time to implement it into your S&OP strategy. Learn more here.", "content": "6.5-Minute Read
Welcome to our four-part series on utilizing customer relationship management (CRM) data to inform and enhance your sales and operations planning (S&OP) process. Over the next few posts, we’ll explore this concept for leadership decision-making that leverages data not often considered in operations and demand planning.
By this point, you’ve come to understand the importance of accurate demand forecasting and planning as your organization navigates the new abnormal. That, and you should now have greater insight into whether leveraging the customer relationship management (CRM) function in your S&OP strategy is a valuable process to undertake. Be sure to revisit the first and second posts in this series if you need a refresher or are unsure.
All set? Outstanding. Now you might be wondering: what happens next? Of course, you wouldn’t kick this off throughout your organization right away. Just as with any other major initiative or change, it’s important to consider a pilot approach to assess viability.
Once you’ve evaluated the questions in the second post in this series and feel confident about proceeding, the first step is segmenting your customer base to create a pilot group. Now, this initial segmentation is not just any group of customers — remember, this must be a group that a) is driving your demand, b) you’re constantly engaging with, and c) you have a more thorough relationship with than you would with B2C customers.
Recently, we mentioned an aircraft manufacturer as a potential candidate for this type of S&OP strategy. The manufacturer’s parts business features a shorter, less predictable sales cycle from more — and sometimes fewer — customers because the demand isn’t consistent. While certain parts will need to be replaced to ensure safety and performance, there’s no precise way of predicting when this will happen. Segmenting customers around parts won’t be as accurate for this approach. It’s more likely that the dominant revenue from parts sales would come via new aircraft construction.
In the finished aircraft area of the manufacturer’s business, things are much more predictable. The sheer investment needed for an order of completed aircraft requires extensive conversations, planning, and of course, time. Aircraft tend to have consistent life cycles as well, not only due to wear and tear but also due to regulations and safety. This means that a company would need to consider placing a new order for aircraft some years down the line, whereas the parts business is sporadic.
Here is a quick breakdown of steps you can take once you’ve identified the appropriate segment.
Using the finished aircraft business segment (or a smaller subset, such as for a specific model), set up the appropriate dashboards or views in your systems and begin to monitor data as it comes in. Remember to monitor everything — not just the high-level order or model but all related customization requests or additional needs, as those will impact demand. Communication with the sales team is critical throughout the pilot — they must assign a logical probability to the deal to provide accurate data for demand planning.
Allow time for the pilot to produce meaningful data. While the finished aircraft business has a long sales cycle, your segment might need less time (or more). As teams meet for S&OP sessions, pilot program data should be evaluated separately from other demand needs. This is to prevent mix-ups and help the team focus on the program.
Eventually, CRM data will reveal whether the pilot program is worth continuing, has provided the data needed, or needs to be revisited. As data comes in, be sure to make decisions. Additionally, ensure CRM data is being reviewed for accuracy throughout the pilot period. Probabilities should become firmer over time; if sales is shifting them or important details aren’t funneling in, leaders may need to act.
When you’ve reached the end of the pilot program or have otherwise come to a decision on the effectiveness of the approach for your segment, it’ll be time to do an assessment. Was CRM data accurate? Of the sales that closed, which indicated the greatest chance of closing? Did they shift frequently throughout the cycle? Was it more accurate earlier, in the middle, or toward the end? Determine this, and you’ll know whether leveraging CRM data in your S&OP strategy is the right approach for your business.
As you see the impact of your CRM data on your demand, be prepared to make new decisions and adjustments. Don’t hesitate to revisit the data to ask “why” — keeping in mind that what made sense a year ago is by no means a justifier for operations today. The goal of this approach is to give your organization a path forward through this complex and ever-changing time, but that doesn’t mean that it’ll be the right path for your business. It’s only an option based on the data that you’ve built over time and an effort to use that data in the most reliable and forward-thinking way.
As you move forward, also consider how you can continue to improve demand reliability. Perhaps evaluating how CRM tools and processes gather data and what that data lacks would be worthwhile. What additional data points do you need to make more informed decisions? What data is needed despite lacking present utility? What data points are no longer valid? What data would be good to have in the future if it can’t be gathered today (and thus informing an expansion of CRM tools and processes to get it)?
Also, consider how your sales and operations teams view this whole procedure. Sales views customers and planning as revenue opportunities, whereas operations is focused on what they need to do on the backend to keep up with demand and fulfill customers’ needs. As we discussed earlier in this series, greater alignment between these two key functions is critical to the success of this initiative and your organization as a whole.
Consider how your sales team is being incentivized so they can contribute to more accurate data capture rather than focusing on the data that will help them earn more commissions or hitting certain benchmarks. Help your operations team understand the importance of aligning their backend work with supporting new and changing demand. And remember that you’re not alone in this process.
River Rock Advisors is a leading value chain optimization firm focusing on helping manufacturers and distributors identify opportunities for immediate and long-term improvement and implement them via our Operational Performance execution team. If you’ve been looking for ways to more accurately forecast your demand, we’re ready to assist. We’ve helped numerous mid-market and Fortune 500 companies implement solutions for improved performance, and we can do the same for you.
Contact us to learn more about our capabilities and how we can help you.
", "content_plain": "6.5-Minute Read Welcome to our four-part series on utilizing customer relationship management (CRM) data to inform and enhance your sales and operations planning (S&OP) process. Over the next few posts, we’ll explore this concept for leadership decision-making that leverages data not often considered in operations and demand planning. Using CRM Data to Improve Your S&OP Process Can CRM Fit Into Your S&OP Demand Planning? Defining Next Steps: Implementing Your S&OP Strategy (this post) You’ve Come a Long Way — Now It’s Time to Implement Your S&OP Strategy By this point, you’ve come to understand the importance of accurate demand forecasting and planning as your organization navigates the new abnormal. That, and you should now have greater insight into whether leveraging the customer relationship management (CRM) function in your S&OP strategy is a valuable process to undertake. Be sure to revisit the first and second posts in this series if you need a refresher or are unsure. All set? Outstanding. Now you might be wondering: what happens next? Of course, you wouldn’t kick this off throughout your organization right away. Just as with any other major initiative or change, it’s important to consider a pilot approach to assess viability. Segment Once you’ve evaluated the questions in the second post in this series and feel confident about proceeding, the first step is segmenting your customer base to create a pilot group. Now, this initial segmentation is not just any group of customers — remember, this must be a group that a) is driving your demand, b) you’re constantly engaging with, and c) you have a more thorough relationship with than you would with B2C customers. Recently, we mentioned an aircraft manufacturer as a potential candidate for this type of S&OP strategy. The manufacturer’s parts business features a shorter, less predictable sales cycle from more — and sometimes fewer — customers because the demand isn’t consistent. While certain parts will need to be replaced to ensure safety and performance, there’s no precise way of predicting when this will happen. Segmenting customers around parts won’t be as accurate for this approach. It’s more likely that the dominant revenue from parts sales would come via new aircraft construction. In the finished aircraft area of the manufacturer’s business, things are much more predictable. The sheer investment needed for an order of completed aircraft requires extensive conversations, planning, and of course, time. Aircraft tend to have consistent life cycles as well, not only due to wear and tear but also due to regulations and safety. This means that a company would need to consider placing a new order for aircraft some years down the line, whereas the parts business is sporadic. Pilot Here is a quick breakdown of steps you can take once you’ve identified the appropriate segment. Start (or ensure you are) capturing your pilot demand in CRM at the appropriate level of detail necessary for good S&OP decisions — e.g. for our aircraft example above, each CRM opportunity should specify not only the model but any expected customer-requested options for interior, avionics, etc. Be sure your CRM process assigns real probabilities to this sale in terms of value and timing — don’t simply use a generic probability based on sales stage. We really want to know what the sales team believes will objectively happen. Ensure that the CRM info related to these pilot opportunities is being used in S&OP sessions — and that it is properly separated from other demand to avoid double-counting. One way to do this is by cross-referencing entries in the CRM and S&OP tools. Make sure the CRM data is being reviewed and refined on a regular basis — i.e. as we move closer to the expected sales close date, the level of detail should be getting firmer, as should the probabilities. If not, then the sales leadership needs to challenge their teams to do so. If not already in place, make plans to evaluate how well your CRM data actually reflected final customer demand. That will help determine at what stage in the sales process, such data can reasonably be relied upon for S&OP consideration. Monitor Using the finished aircraft business segment (or a smaller subset, such as for a specific model), set up the appropriate dashboards or views in your systems and begin to monitor data as it comes in. Remember to monitor everything — not just the high-level order or model but all related customization requests or additional needs, as those will impact demand. Communication with the sales team is critical throughout the pilot — they must assign a logical probability to the deal to provide accurate data for demand planning. Allow time for the pilot to produce meaningful data. While the finished aircraft business has a long sales cycle, your segment might need less time (or more). As teams meet for S&OP sessions, pilot program data should be evaluated separately from other demand needs. This is to prevent mix-ups and help the team focus on the program. Eventually, CRM data will reveal whether the pilot program is worth continuing, has provided the data needed, or needs to be revisited. As data comes in, be sure to make decisions. Additionally, ensure CRM data is being reviewed for accuracy throughout the pilot period. Probabilities should become firmer over time; if sales is shifting them or important details aren’t funneling in, leaders may need to act. When you’ve reached the end of the pilot program or have otherwise come to a decision on the effectiveness of the approach for your segment, it’ll be time to do an assessment. Was CRM data accurate? Of the sales that closed, which indicated the greatest chance of closing? Did they shift frequently throughout the cycle? Was it more accurate earlier, in the middle, or toward the end? Determine this, and you’ll know whether leveraging CRM data in your S&OP strategy is the right approach for your business. Focus on Improving Demand Reliability As you see the impact of your CRM data on your demand, be prepared to make new decisions and adjustments. Don’t hesitate to revisit the data to ask “why” — keeping in mind that what made sense a year ago is by no means a justifier for operations today. The goal of this approach is to give your organization a path forward through this complex and ever-changing time, but that doesn’t mean that it’ll be the right path for your business. It’s only an option based on the data that you’ve built over time and an effort to use that data in the most reliable and forward-thinking way. As you move forward, also consider how you can continue to improve demand reliability. Perhaps evaluating how CRM tools and processes gather data and what that data lacks would be worthwhile. What additional data points do you need to make more informed decisions? What data is needed despite lacking present utility? What data points are no longer valid? What data would be good to have in the future if it can’t be gathered today (and thus informing an expansion of CRM tools and processes to get it)? Also, consider how your sales and operations teams view this whole procedure. Sales views customers and planning as revenue opportunities, whereas operations is focused on what they need to do on the backend to keep up with demand and fulfill customers’ needs. As we discussed earlier in this series, greater alignment between these two key functions is critical to the success of this initiative and your organization as a whole. Consider how your sales team is being incentivized so they can contribute to more accurate data capture rather than focusing on the data that will help them earn more commissions or hitting certain benchmarks. Help your operations team understand the importance of aligning their backend work with supporting new and changing demand. And remember that you’re not alone in this process. Let Us Build the S&OP Strategy Framework for You River Rock Advisors is a leading value chain optimization firm focusing on helping manufacturers and distributors identify opportunities for immediate and long-term improvement and implement them via our Operational Performance execution team. If you’ve been looking for ways to more accurately forecast your demand, we’re ready to assist. We’ve helped numerous mid-market and Fortune 500 companies implement solutions for improved performance, and we can do the same for you. Contact us to learn more about our capabilities and how we can help you.", "image": "https://riverrockadvisors.com/wp-content/uploads/2020/12/sop-strategy.jpg", "modified": "2023-10-25T10:31:30-05:00", "mapped_entity": "Article" }, { "id": 4301, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/can-crm-fit-into-your-sop-demand-planning/", "title": "Can CRM Fit Into Your S&OP Demand Planning?", "h1": "Can CRM Fit Into Your S&OP Demand Planning?", "summary": "In our newest post on using CRM for greater S&OP demand planning, we explore six questions to ask to see if this approach can work for your organization.", "content": "6.5-Minute Read
Welcome to our four-part series on utilizing customer relationship management (CRM) data to inform and enhance your sales and operations planning (S&OP) process. Over the next few posts, we’ll explore this concept for leadership decision-making that leverages data which is typically not considered in operations and demand planning. Follow along:
In our last post, we discussed the idea of using customer relationship management (CRM) procedures and tools in your sales and operations planning (S&OP) process. The aim is to better understand future demand patterns during this volatile time. While some industries boomed as a result of the pandemic, many others didn’t. The historical methods of forecasting demand are no longer accurate predictors for what’s ahead, particularly as the pandemic continues to surge. However, before this concept can be put into practice, some fundamental questions must be asked to determine whether CRM can fit into S&OP demand planning.
One of the key requirements of integrating CRM into your S&OP demand planning is customer data. Without it, you won’t be able to understand historical patterns and dig into the information you need to make new decisions for the weeks and months ahead. But which customers are the ones driving your demand? More importantly, are you actively engaged with those customers throughout the year (either through your sales team or some other team that engages with customers frequently)?
In terms of engagement, more consistent touchpoints, sales, and other activities are more likely to be the case for B2B relationships than B2C relationships. This is because the latter is high volume. While consumer-direct sales certainly produce data and insights, you’re not necessarily building the same kind of relationship with those customers as you are with business contacts. Sales and other teams will learn more about the business’ plans, activities, needs, and so on as they communicate with their contacts, place and manage orders, etc.
Note that this is for both the process of customer relationship management as well as a system. One does not necessarily include the other — they must both be developed and in active use in order for the CRM–S&OP strategy to be effective (and possible). If so, your next step is to determine whether this system is capable of being used to support S&OP demand planning.
If you don’t have a CRM process or system, this strategy simply won’t be effective because there is no data to utilize nor is there a process for acquiring and acting on it. But if you do, you likely have the capability to put CRM to use for demand planning. A related question here, however, is whether you use CRM for new as well as ongoing demand planning.
While the goal of this approach is to figure out what you should expect post-pandemic, there still remains the possibility for rapid and unexpected change. Because of this, it’s worth using this approach for ongoing S&OP demand planning as well. This way, you ensure that any shifts are more quickly accounted for and acted upon, rather than finding yourself in trouble one month after your demand planning process has been completed.
Made it this far? Outstanding — you have the necessary engagement with your customers and also have a CRM process and system in place to understand and manage those relationships. Here’s the next challenge: are you able to understand customer demand at a level of detail that’s meaningful to your operations team? Remember, virtually every piece of information about a customer is important and informative for sales and service teams, but for operations, the focus is on how and why this matters for S&OP demand planning.
Data that is particularly important for operations teams is detailed information on products, product families, customer locations, and of course, certain time frames. These criteria should be combined to provide more accurate detail to augment “top-down” or statistical forecasted sales numbers that are typically input to S&OP sessions.
While you may have an arrangement where certain parts are produced and delivered on a consistent basis, it’s likely that your customers have distinct buying habits. For example, do your customers tend to place orders consistently with a certain lead time, or are there constantly surprises like rush orders or higher- or lower-than-expected volumes? If you’re unable to meet a larger order due to timing and have to short-ship an order, do they threaten to stop buying products altogether?
This information is critical to understanding how your customers impact the S&OP demand planning process. This information should be available in your CRM along with how you responded and resolved any unique situations. Accounting for this information will enable your sales and operations teams to make more informed decisions as they review it.
You know your customer base better than anyone else — or do you? While one sales team might have some customers that fit the buying behaviors described above, another team might not. Using data in your CRM, consider creating segments or categories of customers that fit certain criteria.
For example, you may have a segment identifier for customers who consistently order last-minute and require rush production. By separating them out, you can better understand the (likely) demand signal from the larger group of customers who aren’t constantly putting out fires (and causing fires for you). This will give you more accurate data and insight as you move forward with S&OP demand planning.
Depending on the processes you have in place now, the demand estimates your sales teams are putting into your CRM system may or may not be accurate. This may be due to how they’re incentivized. Often, total volume and other higher-level metrics are used, when instead, they should be focused on specific segments as identified above and by product (at as granular a level of detail as practical). Narrowing in on this information will enable your team to have a better and more accurate understanding of what is expected from an operations perspective.
Additionally, you should constantly be evaluating demand estimates for accuracy over time. If they’re becoming more accurate, then sales is learning and applying that to what they input. If not, it’s most certainly time to re-evaluate how they’re incentivized, how demand estimates are entered, and so on.
Few companies can consistently say they have the tools, knowledge, and capability to say “yes” to these questions, and that’s OK. You may be able to answer them for specific customers, products, and geographies, but across your entire organization, that might not be the case. There is good news here, however.
Even if you have one portion of your business that exhibits some of these qualities, all is not lost. These smaller slices of your business can serve as pilot tests to help prove the concept of leveraging CRM intelligence in S&OP demand planning. As long as you have some of the pieces discussed above in place, efforts made in testing this approach may just yield the short- and long-term results you’ve been looking for as you move forward in a new world.
River Rock Advisors is a leading value chain optimization firm focusing on helping manufacturers and distributors identify opportunities for immediate and long-term improvement and implement them via our Operational Performance execution team. If your organization has been struggling to understand what comes next with its S&OP demand planning, we invite you to learn how we can help you develop a plan for the future.
Connect with us today to learn more about this approach.
", "content_plain": "6.5-Minute Read Welcome to our four-part series on utilizing customer relationship management (CRM) data to inform and enhance your sales and operations planning (S&OP) process. Over the next few posts, we’ll explore this concept for leadership decision-making that leverages data which is typically not considered in operations and demand planning. Follow along: Using CRM Data to Improve Your S&OP Process Can CRM Fit Into Your S&OP Demand Planning? (this post) Recapping the CRM–S&OP Concept In our last post, we discussed the idea of using customer relationship management (CRM) procedures and tools in your sales and operations planning (S&OP) process. The aim is to better understand future demand patterns during this volatile time. While some industries boomed as a result of the pandemic, many others didn’t. The historical methods of forecasting demand are no longer accurate predictors for what’s ahead, particularly as the pandemic continues to surge. However, before this concept can be put into practice, some fundamental questions must be asked to determine whether CRM can fit into S&OP demand planning. Six Considerations for Using CRM in S&OP Demand Planning 1. Who is Driving Your Demand? One of the key requirements of integrating CRM into your S&OP demand planning is customer data. Without it, you won’t be able to understand historical patterns and dig into the information you need to make new decisions for the weeks and months ahead. But which customers are the ones driving your demand? More importantly, are you actively engaged with those customers throughout the year (either through your sales team or some other team that engages with customers frequently)? In terms of engagement, more consistent touchpoints, sales, and other activities are more likely to be the case for B2B relationships than B2C relationships. This is because the latter is high volume. While consumer-direct sales certainly produce data and insights, you’re not necessarily building the same kind of relationship with those customers as you are with business contacts. Sales and other teams will learn more about the business’ plans, activities, needs, and so on as they communicate with their contacts, place and manage orders, etc. 2. Do You Already Have CRM Capabilities? Note that this is for both the process of customer relationship management as well as a system. One does not necessarily include the other — they must both be developed and in active use in order for the CRM–S&OP strategy to be effective (and possible). If so, your next step is to determine whether this system is capable of being used to support S&OP demand planning. If you don’t have a CRM process or system, this strategy simply won’t be effective because there is no data to utilize nor is there a process for acquiring and acting on it. But if you do, you likely have the capability to put CRM to use for demand planning. A related question here, however, is whether you use CRM for new as well as ongoing demand planning. While the goal of this approach is to figure out what you should expect post-pandemic, there still remains the possibility for rapid and unexpected change. Because of this, it’s worth using this approach for ongoing S&OP demand planning as well. This way, you ensure that any shifts are more quickly accounted for and acted upon, rather than finding yourself in trouble one month after your demand planning process has been completed. 3. Is Customer Demand Data Meaningful to Operations? Made it this far? Outstanding — you have the necessary engagement with your customers and also have a CRM process and system in place to understand and manage those relationships. Here’s the next challenge: are you able to understand customer demand at a level of detail that’s meaningful to your operations team? Remember, virtually every piece of information about a customer is important and informative for sales and service teams, but for operations, the focus is on how and why this matters for S&OP demand planning. Data that is particularly important for operations teams is detailed information on products, product families, customer locations, and of course, certain time frames. These criteria should be combined to provide more accurate detail to augment “top-down” or statistical forecasted sales numbers that are typically input to S&OP sessions. 4. Do You Understand Customers’ Purchasing Characteristics? While you may have an arrangement where certain parts are produced and delivered on a consistent basis, it’s likely that your customers have distinct buying habits. For example, do your customers tend to place orders consistently with a certain lead time, or are there constantly surprises like rush orders or higher- or lower-than-expected volumes? If you’re unable to meet a larger order due to timing and have to short-ship an order, do they threaten to stop buying products altogether? This information is critical to understanding how your customers impact the S&OP demand planning process. This information should be available in your CRM along with how you responded and resolved any unique situations. Accounting for this information will enable your sales and operations teams to make more informed decisions as they review it. 5. Can You Tag Customers and Their Expected Demand by These Characteristics? You know your customer base better than anyone else — or do you? While one sales team might have some customers that fit the buying behaviors described above, another team might not. Using data in your CRM, consider creating segments or categories of customers that fit certain criteria. For example, you may have a segment identifier for customers who consistently order last-minute and require rush production. By separating them out, you can better understand the (likely) demand signal from the larger group of customers who aren’t constantly putting out fires (and causing fires for you). This will give you more accurate data and insight as you move forward with S&OP demand planning. 6. How Reliable Are Sales’ Demand Estimates? Depending on the processes you have in place now, the demand estimates your sales teams are putting into your CRM system may or may not be accurate. This may be due to how they’re incentivized. Often, total volume and other higher-level metrics are used, when instead, they should be focused on specific segments as identified above and by product (at as granular a level of detail as practical). Narrowing in on this information will enable your team to have a better and more accurate understanding of what is expected from an operations perspective. Additionally, you should constantly be evaluating demand estimates for accuracy over time. If they’re becoming more accurate, then sales is learning and applying that to what they input. If not, it’s most certainly time to re-evaluate how they’re incentivized, how demand estimates are entered, and so on. Can’t Answer All of These Questions? Few companies can consistently say they have the tools, knowledge, and capability to say “yes” to these questions, and that’s OK. You may be able to answer them for specific customers, products, and geographies, but across your entire organization, that might not be the case. There is good news here, however. Even if you have one portion of your business that exhibits some of these qualities, all is not lost. These smaller slices of your business can serve as pilot tests to help prove the concept of leveraging CRM intelligence in S&OP demand planning. As long as you have some of the pieces discussed above in place, efforts made in testing this approach may just yield the short- and long-term results you’ve been looking for as you move forward in a new world. Navigate Change with Greater Certainty River Rock Advisors is a leading value chain optimization firm focusing on helping manufacturers and distributors identify opportunities for immediate and long-term improvement and implement them via our Operational Performance execution team. If your organization has been struggling to understand what comes next with its S&OP demand planning, we invite you to learn how we can help you develop a plan for the future. Connect with us today to learn more about this approach.", "image": "https://riverrockadvisors.com/wp-content/uploads/2020/11/SOP-demand-planning.jpg", "modified": "2023-10-25T10:31:16-05:00", "mapped_entity": "Article" }, { "id": 4300, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/using-crm-data-to-improve-your-sop-process/", "title": "Using CRM Data to Improve Your S&OP Process", "h1": "Using CRM Data to Improve Your S&OP Process", "summary": "In the first of a new series on leveraging CRM data for S&OP process decision-making, learn why this approach makes sense, who it’s for, and what to consider.", "content": "6-Minute Read
Welcome to our new series on utilizing customer relationship management (CRM) data to inform and enhance your sales and operations planning (S&OP) process. Over the next few posts, we’ll explore this concept for leadership decision-making that leverages data which is typically not considered in operations and demand planning. Follow along:
As supply chain and operations leaders work to return to “normal” patterns of demand fulfillment, it’s clear that absolutely nothing is business as usual. No company progressed through late Q1 and Q2 on the same paths and using the same projections as they had developed earlier in the year (and even at the end of last year when COVID-19 first arose). As a result, gathering input from the sales organization and using it in the sales and operations planning (S&OP) process is more critical than ever.
While some industries have experienced only minor disruption to their demand and associated operations planning, many manufacturers are grappling with how to effectively account for the major volatility now present in their historic demand patterns. Simply expecting future sales to resemble past sales — perhaps with the usual slight trending or seasonality factors — is not adequate to properly plan for post-coronavirus customer activity. At this point, all demand should be treated as new demand.
So where does that leave the countless manufacturers and distributors who have essentially been forced to hit the reset button? More importantly, where does this leave manufacturers and distributors that had customers controlling a significant portion of their volume, such as those with concentrations of 20% or more? The impact of that demand shift in such a large customer base is immediately visible and challenging to navigate.
Customer relationship management (CRM) processes and tools have traditionally been viewed by supply chain and operations teams as residing exclusively in the marketing, sales, or service domains. Sales input during S&OP process exercises has often been in the form of validating statistical forecasts generated by planners or providing high-level estimates of incremental or decremental business volume associated with customer acquisition or defection. Yet well-managed CRM processes and data can provide a significant improvement in operational forecast accuracy.
CRM tools are designed to track potential future sales by individual customers in a given time period. While many companies may only track incremental sales (i.e., new business) and only at an aggregate revenue level of detail, the systems they use are capable of much greater precision. A well-managed CRM process can — and should — capture both ongoing and incremental (or decremental) sales by customer, by month (at a minimum), and by product family (at a minimum). In fact, many organizations will run incentive programs for their sales teams that are geared around specific customer segments, timing, and product groups and often use their CRM platforms to track such performance.
Of course, CRM data (like any other) is only useful if it is properly maintained. Ongoing run-rate demand estimates may be quite reliable, but any estimates of new or lost sales — especially those that are being used for operations decisions — should be constantly adjusted with the appropriate probability filters. These include the likelihood of gaining (or losing) the business and the likelihood of it occurring in the expected time period(s). This same logic applies as companies attempt to forecast the ramp-up (or permanent loss of business) in the post-coronavirus economy.
An effective CRM process can provide valuable insights (and serve as a validation) for exactly where and when expected demand will occur. Instead of relying solely on a top-line demand estimate for a given product in a given period, CRM data can point to which customers are expected to comprise that volume, and what portions are expected from as-yet-unknown customer purchase activity. Thus, it is an additional tool in a planner’s arsenal for ensuring that supply chain (procurement and production) decisions are based on the most accurate assessment of demand.
When using CRM data to determine which customers have and are likely to generate future demand, it may become clear that certain customers or groups of customers comprise a significant portion of the overall customer base. In fact, this may already be known to your organization simply through day-to-day operations and financial reports. Regardless of whether high customer concentrations were known or come as a surprise, what matters most here is that they represent a risk to your organization.
Virtually every industry saw some downturn in one form or another. Even if your customers were in one of the industries that experienced staggering growth during the past few months due to their products being in high demand, there will still be an impact to your organization that will make planning future demand difficult. Demand will lessen in some segments while others will see significant spikes in demand. It’s important to remember that these shifts don’t represent the new normal, however. Just as everything changed in the span of a few weeks, it can change right back — or into something completely different.
Because of this potential for another rapid shift, it will be imperative for your sales organization to dig into your segments to truly understand what’s been happening in their businesses, what’s going on right now, and what they expect to see in the future. This data must be represented in your CRM process, but this is just the foundation for the data. To give leadership the insights they need to guide the S&OP process, intelligence platforms should be implemented alongside the CRM process, with data from the latter being pushed into the intelligence tool to provide leaders with a high-level dashboard for decision-making.
Now, this approach isn’t for everyone. If your demand pattern is selling to a larger number of customers fairly consistently, this approach may not yield insights you’re not already aware of. But if your sales lead time is lengthy, and it takes time for you to complete an order, then this approach can yield more actionable insights. For example, aircraft manufacturers only have a finite number of customers. Thus, their customer concentrations are higher — say 30% from one customer, 25% from another, and then three smaller customers at roughly 15%. With such large concentrations, it can be difficult to know what’s coming, from which customer, and when.
Leveraging CRM data from the sales organization into an intelligence tool using the appropriate filters can give leaders the ability to more effectively plan their operations, supply chain, and other critical areas of their business so they don’t become overextended, tying up valuable resources in goods that aren’t going to be moving anytime soon. Conversely, it helps leaders plan for potential surges in demand so they’re not caught off-guard, which can lead to service challenges and customer loss.
River Rock Advisors is uniquely positioned to assist manufacturers and distributors in leveraging their CRM processes and data to make more effective sales and operations planning decisions, including the assessment of CRM data reliability and potential improvement to the overall forecasting processes within the organization. If your organization is struggling with understanding its future demand, our team is here to assist.
Contact us today to learn more about this approach and how we can help.
", "content_plain": "6-Minute Read Welcome to our new series on utilizing customer relationship management (CRM) data to inform and enhance your sales and operations planning (S&OP) process. Over the next few posts, we’ll explore this concept for leadership decision-making that leverages data which is typically not considered in operations and demand planning. Follow along: Using CRM Data to Improve Your S&OP Process (this post) The World Has Changed — So Must Your S&OP Process As supply chain and operations leaders work to return to “normal” patterns of demand fulfillment, it’s clear that absolutely nothing is business as usual. No company progressed through late Q1 and Q2 on the same paths and using the same projections as they had developed earlier in the year (and even at the end of last year when COVID-19 first arose). As a result, gathering input from the sales organization and using it in the sales and operations planning (S&OP) process is more critical than ever. While some industries have experienced only minor disruption to their demand and associated operations planning, many manufacturers are grappling with how to effectively account for the major volatility now present in their historic demand patterns. Simply expecting future sales to resemble past sales — perhaps with the usual slight trending or seasonality factors — is not adequate to properly plan for post-coronavirus customer activity. At this point, all demand should be treated as new demand. So where does that leave the countless manufacturers and distributors who have essentially been forced to hit the reset button? More importantly, where does this leave manufacturers and distributors that had customers controlling a significant portion of their volume, such as those with concentrations of 20% or more? The impact of that demand shift in such a large customer base is immediately visible and challenging to navigate. How CRM Can Fit Into the S&OP Process Customer relationship management (CRM) processes and tools have traditionally been viewed by supply chain and operations teams as residing exclusively in the marketing, sales, or service domains. Sales input during S&OP process exercises has often been in the form of validating statistical forecasts generated by planners or providing high-level estimates of incremental or decremental business volume associated with customer acquisition or defection. Yet well-managed CRM processes and data can provide a significant improvement in operational forecast accuracy. CRM tools are designed to track potential future sales by individual customers in a given time period. While many companies may only track incremental sales (i.e., new business) and only at an aggregate revenue level of detail, the systems they use are capable of much greater precision. A well-managed CRM process can — and should — capture both ongoing and incremental (or decremental) sales by customer, by month (at a minimum), and by product family (at a minimum). In fact, many organizations will run incentive programs for their sales teams that are geared around specific customer segments, timing, and product groups and often use their CRM platforms to track such performance. Of course, CRM data (like any other) is only useful if it is properly maintained. Ongoing run-rate demand estimates may be quite reliable, but any estimates of new or lost sales — especially those that are being used for operations decisions — should be constantly adjusted with the appropriate probability filters. These include the likelihood of gaining (or losing) the business and the likelihood of it occurring in the expected time period(s). This same logic applies as companies attempt to forecast the ramp-up (or permanent loss of business) in the post-coronavirus economy. An effective CRM process can provide valuable insights (and serve as a validation) for exactly where and when expected demand will occur. Instead of relying solely on a top-line demand estimate for a given product in a given period, CRM data can point to which customers are expected to comprise that volume, and what portions are expected from as-yet-unknown customer purchase activity. Thus, it is an additional tool in a planner’s arsenal for ensuring that supply chain (procurement and production) decisions are based on the most accurate assessment of demand. The Concentration Problem When using CRM data to determine which customers have and are likely to generate future demand, it may become clear that certain customers or groups of customers comprise a significant portion of the overall customer base. In fact, this may already be known to your organization simply through day-to-day operations and financial reports. Regardless of whether high customer concentrations were known or come as a surprise, what matters most here is that they represent a risk to your organization. Virtually every industry saw some downturn in one form or another. Even if your customers were in one of the industries that experienced staggering growth during the past few months due to their products being in high demand, there will still be an impact to your organization that will make planning future demand difficult. Demand will lessen in some segments while others will see significant spikes in demand. It’s important to remember that these shifts don’t represent the new normal, however. Just as everything changed in the span of a few weeks, it can change right back — or into something completely different. Taking CRM Insights Higher Because of this potential for another rapid shift, it will be imperative for your sales organization to dig into your segments to truly understand what’s been happening in their businesses, what’s going on right now, and what they expect to see in the future. This data must be represented in your CRM process, but this is just the foundation for the data. To give leadership the insights they need to guide the S&OP process, intelligence platforms should be implemented alongside the CRM process, with data from the latter being pushed into the intelligence tool to provide leaders with a high-level dashboard for decision-making. Now, this approach isn’t for everyone. If your demand pattern is selling to a larger number of customers fairly consistently, this approach may not yield insights you’re not already aware of. But if your sales lead time is lengthy, and it takes time for you to complete an order, then this approach can yield more actionable insights. For example, aircraft manufacturers only have a finite number of customers. Thus, their customer concentrations are higher — say 30% from one customer, 25% from another, and then three smaller customers at roughly 15%. With such large concentrations, it can be difficult to know what’s coming, from which customer, and when. Leveraging CRM data from the sales organization into an intelligence tool using the appropriate filters can give leaders the ability to more effectively plan their operations, supply chain, and other critical areas of their business so they don’t become overextended, tying up valuable resources in goods that aren’t going to be moving anytime soon. Conversely, it helps leaders plan for potential surges in demand so they’re not caught off-guard, which can lead to service challenges and customer loss. Is This the Right Approach for Your Business? River Rock Advisors is uniquely positioned to assist manufacturers and distributors in leveraging their CRM processes and data to make more effective sales and operations planning decisions, including the assessment of CRM data reliability and potential improvement to the overall forecasting processes within the organization. If your organization is struggling with understanding its future demand, our team is here to assist. Contact us today to learn more about this approach and how we can help.", "image": "https://riverrockadvisors.com/wp-content/uploads/2020/11/SOP-process.jpg", "modified": "2023-10-25T10:30:23-05:00", "mapped_entity": "Article" }, { "id": 4299, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/river-rock-advisors-receives-third-consecutive-supplychainbrain-recognition/", "title": "River Rock Advisors Receives Third Consecutive SupplyChainBrain Recognition", "h1": "River Rock Advisors Receives Third Consecutive SupplyChainBrain Recognition", "summary": "River Rock Advisors has for the third time been recognized on the 100 Great Supply Chain Partners list by SupplyChainBrain. Learn more about this recognition.", "content": "August 10, 2020 — Cleveland, Ohio — For the third consecutive time, boutique value chain management firm River Rock Advisors (RRA) has been recognized by SupplyChainBrain on its 100 Great Supply Chain Partners list. SupplyChainBrain is a comprehensive supply chain management information resource covering best practices, innovation, strategies and trends across global industries.
“For 18 years running, SupplyChainBrain has published our much-anticipated list of 100 Great Supply Chain Partners — a select group of companies whose customers recognize them for providing outstanding solutions and services,” said SupplyChainBrain publisher Brad Berger.
“Our six-month online poll of supply chain professionals requires specific criteria to nominate vendors and service providers whose solutions have made a significant impact on their company’s efficiency, customer service and overall supply chain performance. This year’s field of nominees was competitive and inspiring — coming from all sectors of supply chain management.”
“Our team is grateful to SupplyChainBrain for this recognition, but even more so to our clients and partners that see value in our advisory recommendations,” said RRA partner Steve Keener. “We’ve been hard at work the past year — not only in finding new ways to help our clients improve their value chain but also in our own firm. Our recent launch of our subsidiary Operational Performance LLC is the next evolution of what this recognition is all about: being a results-oriented, reliable supply chain partner to those we serve.”
“When Steve and I started this business, we never thought we’d be recognized on this scale,” said RRA partner Gary Jones. “As a lead-from-behind business, it’s always about putting our clients’ success front and center. We’re grateful to them for putting us forward for this recognition and to our team for their hard work in delivering the results our clients deserve.”
RRA will appear in the 2020 August issue of SupplyChainBrain magazine and on SupplyChainBrain.com as an honored member of this year’s 100 Great Supply Chain Partners.
River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively. To learn more, visit www.riverrockadvisors.com.
", "content_plain": "August 10, 2020 — Cleveland, Ohio — For the third consecutive time, boutique value chain management firm River Rock Advisors (RRA) has been recognized by SupplyChainBrain on its 100 Great Supply Chain Partners list. SupplyChainBrain is a comprehensive supply chain management information resource covering best practices, innovation, strategies and trends across global industries. About SupplyChainBrain “For 18 years running, SupplyChainBrain has published our much-anticipated list of 100 Great Supply Chain Partners — a select group of companies whose customers recognize them for providing outstanding solutions and services,” said SupplyChainBrain publisher Brad Berger. “Our six-month online poll of supply chain professionals requires specific criteria to nominate vendors and service providers whose solutions have made a significant impact on their company’s efficiency, customer service and overall supply chain performance. This year’s field of nominees was competitive and inspiring — coming from all sectors of supply chain management.” “Our team is grateful to SupplyChainBrain for this recognition, but even more so to our clients and partners that see value in our advisory recommendations,” said RRA partner Steve Keener. “We’ve been hard at work the past year — not only in finding new ways to help our clients improve their value chain but also in our own firm. Our recent launch of our subsidiary Operational Performance LLC is the next evolution of what this recognition is all about: being a results-oriented, reliable supply chain partner to those we serve.” “When Steve and I started this business, we never thought we’d be recognized on this scale,” said RRA partner Gary Jones. “As a lead-from-behind business, it’s always about putting our clients’ success front and center. We’re grateful to them for putting us forward for this recognition and to our team for their hard work in delivering the results our clients deserve.” RRA will appear in the 2020 August issue of SupplyChainBrain magazine and on SupplyChainBrain.com as an honored member of this year’s 100 Great Supply Chain Partners. About River Rock Advisors River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively. To learn more, visit www.riverrockadvisors.com.", "image": "https://riverrockadvisors.com/wp-content/uploads/2020/08/supplychainbrain-2020-scaled-1.jpg", "modified": "2025-04-28T10:16:49-05:00", "mapped_entity": "Article" }, { "id": 4423, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/white-paper-tariff-strategy/", "title": "White Paper: Tariff Strategy", "h1": "White Paper: Tariff Strategy", "summary": "", "content": "Download NowLearn how to efficiently descale your costs and operations while planning a smart inventory strategy that takes future costs and strategy into consideration.
Learn how to identify costs that you can easily reduce or eliminate to stabilize operations.
How you approach inventory strategy matters more than ever. Learn what to consider.
You must adapt to manage change with agility. But be cautious in your approach.
Learn how River Rock Advisors can assist you as you continue to navigate uncertainty.
River Rock Advisors is a leading value chain management firm that specializes in optimizing business performance and transforming organizations from the inside out. We provide clients with insights and analytics as well as customized solutions to help drive and improve decision-making. Download our tariff strategy white paper now to put our expertise to work for your organization.
Here we are, two years since the tariff battle began, and the back-and-forth isn’t letting up. While both the United States and China have reduced the tariffs on certain subsets of goods imported on either side, other tariffs have been implemented and expanded. These include tariffs on goods that use steel and aluminum — not just steel and aluminum themselves. While deals have been negotiated and progress is being made, the situation doesn’t show any sign of letting up anytime soon — making it difficult for companies that are accounting for tariff costs to make certain strategic decisions.
For manufacturers and distributors, the tariffs have become a guessing game. Should companies scale up inventories despite potentially lower consumer demand in the event that the tariffs conclude and demand returns? Or should companies scale inventories down, preferring instead to risk low stock, service issues, and customer frustration in an effort to save on costs? Whichever route a company chooses, how can it be done efficiently to minimize the impact? When the tariff battle concludes, how can inventory be scaled back up?
Recently, we explored the concept of accounting for tariff costs through efficient inventory descaling. This descaling isn’t accomplished through inventory itself, but rather by identifying reductions in variable costs and fixed costs. While the latter is often difficult to reduce and later reinstitute because they deal with longer-term needs (like buildings and employees), variable costs present a faster solution in that they are tied to sales and production. When production and sales are down, reorders of specific materials and other expenses like advertising can be reduced as well. These are often much easier to reinstitute as well, though, when it comes to certain parts and supplies, advance planning is necessary as they may take some weeks or even months to arrive.
While this approach does provide some relief for manufacturers and distributors, inventory strategy itself must still be addressed. Even if a company decided to scale its inventory up or down, some long-term approach is required to keep the company going. Ideally, organizations would take our recommended inventory approach by purchasing lower volumes of components, parts, or products at a more frequent rate.
The thinking behind this strategy is that the benefit of not being overly invested in inventory in a low demand environment outweighs the short-term downside of higher transactional and per-unit costs. If companies were to scale inventories up, they run the risk of sitting on that inventory for a long time. By buying less but more frequently, companies can better match inventory to existing demand. Margins will shrink some, but this is still preferable to sitting on inventory that simply isn’t moving out the door.
Since we seem to be in a never-ending tennis match, it’s now important to take this strategy a step further. These recommendations still hold their own, but as the headlines are proving with each passing day, the tariffs are going nowhere. So how can companies hedge against what they think will happen versus what might actually happen? In such an uncertain tariff environment, what matters most is that companies place themselves in a position to protect what margins they can while maintaining service.
Let’s jump back to our recommendation of buy-fewer-more-frequently. While this will shrink profit margins due to the absence of price breaks that come with larger orders, existing demand can be satisfied. Service levels can still be maintained because parts or products will still be coming in, though at more frequent intervals. Conversely, by buying more products or parts as a reaction without demand, precious resources are tied up in the warehouse. And because orders aren’t being replenished as frequently, service issues could arise. Either the demand won’t be there to consume inventory, or inventory will be consumed with far too much time between now and the next restock to maintain service.
Another consideration here is that the drawn-out nature of these negotiations means that companies must pay close attention to global matters. While many tariffs have already been implemented or expanded, as recent headlines have proven, any other type of tariff could become a reality in little to no time. That means companies must monitor market headlines and start accounting for tariff costs in their planning.
For example, if it starts to appear that a tariff on a specific material or good will not be decreasing from its current level, companies must be prepared to take action immediately. If the tariff were to increase unexpectedly, the financial impact to a company could be severe — and virtually immediate. In this situation, it might benefit a company to increase its inventory at the current tariff price rather than after the tariff increase. A tariff increase could reduce demand further but make it even more difficult for a company to replenish as that inventory ships out over time. It would be better to stock up ahead of the price increase to ensure sufficient supply, that service levels could be maintained, and to preserve the margin that currently exists on the part or product.
Conversely, if it appears that a tariff on a product or material will be decreasing, it makes sense to hold off on ordering new inventory to avoid paying the current price. However, there is a key strategic consideration here. With the tariff decrease could come an increase in demand from competitors for the same products or goods that a company is looking to reorder for its customers. This will put strain on the supplier and could result in each company that placed an order experiencing a delay, which could further impact sales and service. What companies decide to do in this situation should take their inventory levels into careful consideration. Companies should consider their runway for their existing inventory: will it last long enough to eventually place a reorder at a lower price? Or do we need to reorder now and accept the existing tariff price in order to meet demand?
Another consideration for companies in this situation is to start evaluating other sources of supply. Perhaps another provider has solutions and processes for producing the goods needed at lower price points regardless of the tariffs. Not only might the per-unit price drop, but it might reduce enough to justify a reorder at the current tariff level, allowing companies to replenish inventory, meet demand, and preserve service. However, there is a dangerous pitfall here that is important to keep in mind.
With every new supplier comes costs beyond unit production costs. It will take the supplier some time to produce the new products, particularly if their production environment isn’t already set up to produce it (e.g., if a mold needs to be built for manufacturing). It will also take some time to set up the distribution network between the company and their new supplier, which also adds to the lists of new costs incurred as a result of a new relationship. Any organization considering a supplier switch should conduct a cost analysis to determine if the lower part/product price is worth the time and cost of switching — and what the payback period or break-even point on the move will be.
We hope you have enjoyed our series on the tariffs and the recommendations we’ve made throughout each post. As a refresher, you can read our recommendations on efficient descaling here as well as our thoughts on the buy-fewer-more-frequently inventory strategy here. If any of the points, challenges, or recommendations expressed throughout these three posts have connected with you and your organization’s inventory management challenges in light of the tariffs, know that River Rock Advisors is here to help.
We have worked with numerous global organizations to help them solve their most pressing and complex inventory management challenges. Through our unique approach, we can develop strategic recommendations that not only put your organization in a stronger position to succeed in the long run but also give you key advantages over your competitors. All it takes to get started is a conversation.
Contact us to learn how we can help with accounting for tariff costs and more.
", "content_plain": "Making Changes When Nothing Changes Here we are, two years since the tariff battle began, and the back-and-forth isn’t letting up. While both the United States and China have reduced the tariffs on certain subsets of goods imported on either side, other tariffs have been implemented and expanded. These include tariffs on goods that use steel and aluminum — not just steel and aluminum themselves. While deals have been negotiated and progress is being made, the situation doesn’t show any sign of letting up anytime soon — making it difficult for companies that are accounting for tariff costs to make certain strategic decisions. For manufacturers and distributors, the tariffs have become a guessing game. Should companies scale up inventories despite potentially lower consumer demand in the event that the tariffs conclude and demand returns? Or should companies scale inventories down, preferring instead to risk low stock, service issues, and customer frustration in an effort to save on costs? Whichever route a company chooses, how can it be done efficiently to minimize the impact? When the tariff battle concludes, how can inventory be scaled back up? Let’s Recap Our Previous Recommendations Recently, we explored the concept of accounting for tariff costs through efficient inventory descaling. This descaling isn’t accomplished through inventory itself, but rather by identifying reductions in variable costs and fixed costs. While the latter is often difficult to reduce and later reinstitute because they deal with longer-term needs (like buildings and employees), variable costs present a faster solution in that they are tied to sales and production. When production and sales are down, reorders of specific materials and other expenses like advertising can be reduced as well. These are often much easier to reinstitute as well, though, when it comes to certain parts and supplies, advance planning is necessary as they may take some weeks or even months to arrive. While this approach does provide some relief for manufacturers and distributors, inventory strategy itself must still be addressed. Even if a company decided to scale its inventory up or down, some long-term approach is required to keep the company going. Ideally, organizations would take our recommended inventory approach by purchasing lower volumes of components, parts, or products at a more frequent rate. The thinking behind this strategy is that the benefit of not being overly invested in inventory in a low demand environment outweighs the short-term downside of higher transactional and per-unit costs. If companies were to scale inventories up, they run the risk of sitting on that inventory for a long time. By buying less but more frequently, companies can better match inventory to existing demand. Margins will shrink some, but this is still preferable to sitting on inventory that simply isn’t moving out the door. Accounting for Tariff Costs in the Long Term Since we seem to be in a never-ending tennis match, it’s now important to take this strategy a step further. These recommendations still hold their own, but as the headlines are proving with each passing day, the tariffs are going nowhere. So how can companies hedge against what they think will happen versus what might actually happen? In such an uncertain tariff environment, what matters most is that companies place themselves in a position to protect what margins they can while maintaining service. Let’s jump back to our recommendation of buy-fewer-more-frequently. While this will shrink profit margins due to the absence of price breaks that come with larger orders, existing demand can be satisfied. Service levels can still be maintained because parts or products will still be coming in, though at more frequent intervals. Conversely, by buying more products or parts as a reaction without demand, precious resources are tied up in the warehouse. And because orders aren’t being replenished as frequently, service issues could arise. Either the demand won’t be there to consume inventory, or inventory will be consumed with far too much time between now and the next restock to maintain service. Pay Attention to the News Another consideration here is that the drawn-out nature of these negotiations means that companies must pay close attention to global matters. While many tariffs have already been implemented or expanded, as recent headlines have proven, any other type of tariff could become a reality in little to no time. That means companies must monitor market headlines and start accounting for tariff costs in their planning. For example, if it starts to appear that a tariff on a specific material or good will not be decreasing from its current level, companies must be prepared to take action immediately. If the tariff were to increase unexpectedly, the financial impact to a company could be severe — and virtually immediate. In this situation, it might benefit a company to increase its inventory at the current tariff price rather than after the tariff increase. A tariff increase could reduce demand further but make it even more difficult for a company to replenish as that inventory ships out over time. It would be better to stock up ahead of the price increase to ensure sufficient supply, that service levels could be maintained, and to preserve the margin that currently exists on the part or product. Conversely, if it appears that a tariff on a product or material will be decreasing, it makes sense to hold off on ordering new inventory to avoid paying the current price. However, there is a key strategic consideration here. With the tariff decrease could come an increase in demand from competitors for the same products or goods that a company is looking to reorder for its customers. This will put strain on the supplier and could result in each company that placed an order experiencing a delay, which could further impact sales and service. What companies decide to do in this situation should take their inventory levels into careful consideration. Companies should consider their runway for their existing inventory: will it last long enough to eventually place a reorder at a lower price? Or do we need to reorder now and accept the existing tariff price in order to meet demand? Consider Other Sources of Supply, But… Another consideration for companies in this situation is to start evaluating other sources of supply. Perhaps another provider has solutions and processes for producing the goods needed at lower price points regardless of the tariffs. Not only might the per-unit price drop, but it might reduce enough to justify a reorder at the current tariff level, allowing companies to replenish inventory, meet demand, and preserve service. However, there is a dangerous pitfall here that is important to keep in mind. With every new supplier comes costs beyond unit production costs. It will take the supplier some time to produce the new products, particularly if their production environment isn’t already set up to produce it (e.g., if a mold needs to be built for manufacturing). It will also take some time to set up the distribution network between the company and their new supplier, which also adds to the lists of new costs incurred as a result of a new relationship. Any organization considering a supplier switch should conduct a cost analysis to determine if the lower part/product price is worth the time and cost of switching — and what the payback period or break-even point on the move will be. Use Our Expertise for Peace of Mind We hope you have enjoyed our series on the tariffs and the recommendations we’ve made throughout each post. As a refresher, you can read our recommendations on efficient descaling here as well as our thoughts on the buy-fewer-more-frequently inventory strategy here. If any of the points, challenges, or recommendations expressed throughout these three posts have connected with you and your organization’s inventory management challenges in light of the tariffs, know that River Rock Advisors is here to help. We have worked with numerous global organizations to help them solve their most pressing and complex inventory management challenges. Through our unique approach, we can develop strategic recommendations that not only put your organization in a stronger position to succeed in the long run but also give you key advantages over your competitors. All it takes to get started is a conversation. Contact us to learn how we can help with accounting for tariff costs and more.", "image": "https://riverrockadvisors.com/wp-content/uploads/2020/04/accounting-for-tariff-costs-1.jpg", "modified": "2025-04-28T11:11:08-05:00", "mapped_entity": "Article" }, { "id": 4295, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/gary-jones-receives-supply-demand-chain-executive-2020-pros-to-know-award/", "title": "Gary Jones receives Supply & Demand Chain Executive 2020 Pros to Know Award", "h1": "Gary Jones receives Supply & Demand Chain Executive 2020 Pros to Know Award", "summary": "River Rock Advisors is pleased to announce that partner Gary Jones has received a 2020 Pros to Know award from Supply & Demand Chain Executive.", "content": "April 8, 2020 — Cleveland, OH — River Rock Advisors is pleased to announce that founding partner Gary Jones has received a 2020 Pros to Know award from Supply & Demand Chain Executive magazine, a publication for leadership at manufacturing and non-manufacturing organizations covering a variety of supply chain operations topics and events.
Now in its 20th year of recognizing supply chain executives as well as manufacturing and non-manufacturing enterprises for their leadership and excellence, the Pros to Know awards are provided to those who have led initiatives to prepare their organizations’ supply chains for the increasingly complex challenges of today’s business climate. Supply & Demand Chain Executive received more than 500 entries for this year’s awards.
“The supply chain profession is ever-changing, with transformative technologies and evolutionary best practices driving greater efficiencies and innovations for companies,” said John R. Yuva, editor-in-chief for Supply & Demand Chain Executive. “At the heart of it all are supply chain professionals. Supply & Demand Chain Executive congratulates the 2020 Pros to Know recipients who are setting the bar for supply chain excellence.”
“I’m honored to receive this award from Supply & Demand Chain Executive,” Jones said. “The entire River Rock Advisors team makes it a point to remain ahead of the curve when it comes to supply chain and inventory management strategy, and this award is a testament to their hard work and dedication to helping our clients remain competitive and strong despite any challenges that arise.”
Supply & Demand Chain Executive is the executive’s user manual for successful supply and demand chain transformation, utilizing hard-hitting analysis, viewpoints and unbiased case studies to steer executives and supply management professionals through the complicated yet critical world of supply and demand chain enablement to gain competitive advantage. Visit us on the web at www.SDCExec.com.
River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively. To learn more, visit www.riverrockadvisors.com.
", "content_plain": "April 8, 2020 — Cleveland, OH — River Rock Advisors is pleased to announce that founding partner Gary Jones has received a 2020 Pros to Know award from Supply & Demand Chain Executive magazine, a publication for leadership at manufacturing and non-manufacturing organizations covering a variety of supply chain operations topics and events. Now in its 20th year of recognizing supply chain executives as well as manufacturing and non-manufacturing enterprises for their leadership and excellence, the Pros to Know awards are provided to those who have led initiatives to prepare their organizations’ supply chains for the increasingly complex challenges of today’s business climate. Supply & Demand Chain Executive received more than 500 entries for this year’s awards. “The supply chain profession is ever-changing, with transformative technologies and evolutionary best practices driving greater efficiencies and innovations for companies,” said John R. Yuva, editor-in-chief for Supply & Demand Chain Executive. “At the heart of it all are supply chain professionals. Supply & Demand Chain Executive congratulates the 2020 Pros to Know recipients who are setting the bar for supply chain excellence.” “I’m honored to receive this award from Supply & Demand Chain Executive,” Jones said. “The entire River Rock Advisors team makes it a point to remain ahead of the curve when it comes to supply chain and inventory management strategy, and this award is a testament to their hard work and dedication to helping our clients remain competitive and strong despite any challenges that arise.” About Supply & Demand Chain Executive Supply & Demand Chain Executive is the executive’s user manual for successful supply and demand chain transformation, utilizing hard-hitting analysis, viewpoints and unbiased case studies to steer executives and supply management professionals through the complicated yet critical world of supply and demand chain enablement to gain competitive advantage. Visit us on the web at www.SDCExec.com. About River Rock Advisors River Rock Advisors is a leading value chain management firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively. To learn more, visit www.riverrockadvisors.com.", "image": "https://riverrockadvisors.com/wp-content/uploads/2020/04/supply-demand-scaled-1.jpg", "modified": "2025-04-28T11:38:56-05:00", "mapped_entity": "Article" }, { "id": 4420, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/white-paper-operational-strategy/", "title": "White Paper: Operational Strategy", "h1": "White Paper: Operational Strategy", "summary": "", "content": "Download NowGet expert insights into planning, implementing, executing, and measuring operational strategies that produce real business value. Download our free white paper now.
Learn how to build an action plan that keeps project teams informed and aligned.
Discover the importance of remaining flexible and adapting your strategy to change.
Put your implemented operational strategy into action to start generating results.
Understand how your operational strategy creates real business value — or doesn’t.
River Rock Advisors is a leading value chain management firm that specializes in optimizing business performance and transforming organizations from the inside out. We provide clients with insights and analytics as well as customized solutions to help drive and improve decision-making. Download our operational strategy white paper now to put our expertise to work for your organization.
The tariff battle rages on, and it has never been clearer that manufacturers and distributors need to have a reliable inventory strategy in place to protect themselves now and when the tariffs are resolved. And because that seems far off, companies are doing what they can to stay afloat. During the most recent filing date for tariff exemptions, more than 8,700 requests were submitted by companies claiming they had no alternative options for their production needs.
Yet as the requests for exemptions increased, so too did the denials issued by the Office of the U.S. Trade Representative. In total, nearly 53,000 exemption requests have been filed since the first tranche of tariffs went into effect in mid-2018. In some instances, companies would have been crippled or ruined due to the inability to get certain parts and technology elsewhere. But in others, particularly those where materials parts were available from other sources, the denials were plentiful.
With companies facing more and more uncertainty every day, the need for a scalable inventory strategy must take precedence on companies’ lists of priorities. In reality, such a strategy should have been developed and implemented a year and a half ago. But optimism, indifference, or lack of understanding can easily get in the way of being proactive. In this post, we’ll discuss the impact tariffs have on inventories and what your inventory strategy should be to ensure you’re in the best position possible, both now and when the tariffs are lifted.
By now, the impact that the tariffs have had on companies and their inventories is obvious. Supply chains are changing, companies are restructuring their products and services from the inside out to adapt, and consumers are seeing changes and even delays in the products they rely on every day. For many companies, the tariffs have had effects well beyond just cost.
For example, not only are revenue and profit decreasing, but service departments are also struggling. When inventory is low, customers start calling — adding pressure to everyone in the organization to find a solution, though one simply might not exist. This pressure, coupled with any pre-existing operational or supply chain inefficiency, can quickly create a very painful and hard-to-fix bottleneck in an organization’s ability to match consumer expectations.
While progress is being made in the tariff negotiations, the reality is that they’re still very much ongoing. Specific markets and commodities, such as steel and aluminum, may even see tariff increases. Much is still uncertain, but we appear to be at a point where one key inventory strategy is beginning to make more sense despite its potential downsizes: buying less inventory from suppliers, and buying it more frequently.
An initial reaction to this recommended inventory strategy is that it will result in higher costs, and that would likely be accurate. The transactional costs and the per-unit costs incurred would certainly increase to some extent. However, there’s a key benefit in ordering this way — that it prevents your organization from becoming too heavily invested in inventory. If you were to order in significantly higher quantities, you could save on the per-unit price and could also save on total transaction costs over the long-term, but you’d logically have a higher average inventory that might not align with consumer demand.
But what about stock problems? By buying in smaller quantities, even more frequently, won’t that put you at risk of running low on stock — or running out entirely? There is potential for this to happen, but consider that it might be better to be out of inventory temporarily and lose some sales than to be too heavily invested in highly-tariffed inventory with no customer demand.
In the latter scenario, you’ve already spent the money and paid the tariff dues, and now the goods aren’t being purchased for what little margin you have left. You’re in the hole. In the former scenario, you ordered less, paid less on the tariffs, and sold through that stock. While you made less money overall, you’ve spent significantly less overall, too. Even if you have to expedite smaller orders to catch up, this inventory strategy could be worthwhile. Your margins may not be as favorable, due to higher per-unit and transactional costs, but it would minimize the risk of future inventory obsolescence.
An important consideration with this inventory strategy is consumer demand. Consumers won’t want to pay a higher price as a result of the tariff, so it’s expected that demand will drop during a difficult season such as this, necessitating the inventory strategy we just described. However, if the tariffs were lifted, they would likely expect a price reduction (even though tariff costs weren’t being passed onto them). In this instance, demand could suddenly return to pre-tariff levels, or in some instances, even higher based on a perceived opportunity to save money. And in this situation, your organization might find itself in trouble.
Depending on your industry, what you sell, and who your audience is, your customers may have been experiencing a similar situation to yours. Perhaps you manufacture or sell parts that are just one component of a larger item. If demand for that item has dropped as a result of the tariff, only for the tariff to be lifted and demand return, they might find themselves in a difficult situation had they not maintained a minimum level of inventory. As a result, they would begin pushing on you for your parts — putting you in backlog mode, which creates service problems.
If you’re considering the inventory strategy we’ve outlined here, it’s worth segmenting your inventory types to avoid becoming overinvested in lower priority items and investing appropriately in higher priority items. Spending too much in order to stock up on lower priority items as a response to the tariffs only puts your organization at greater risk of not being able to move that inventory to offset the initial order cost and tariff impact. This requires analysis to understand the demand for certain items compared to others.
For example, if you have three components that consist of 35%, 25%, and 15% of your orders over a given year (together comprising 75% of all orders), and numerous other products that account for the remaining 25% of your orders, you should do what you can to maintain adequate (not excessive) inventory levels of the first three items. These are the items where you have the greatest opportunity to preserve revenue and margins, keep up with order demand, and maintain a solid position for when the tariffs are lifted, which will be important for competitiveness in a post-tariff landscape.
The tariff negotiations are ongoing, and tariffs on new goods are looming on the horizon. Now is the time to give careful consideration not only to your current supply chain and inventory strategy but also to world affairs. Whatever sources you use for information, monitor them closely and frequently. Be informed so you can make adjustments and plan for the impact of global matters accordingly.
Remember, River Rock Advisors is here to assist you. Our advisory team is comprised of individuals with successful careers in supply chain optimization, operational strategy, business management, inventory performance optimization, and more. We would be happy to talk with you about your inventory challenges and develop a strategy to help you navigate the tariff environment with positive long-term outcomes. Fill out the form below to get in touch with our team.
", "content_plain": "More Exemption Requests, More Federal Denials, More Inventory Risk The tariff battle rages on, and it has never been clearer that manufacturers and distributors need to have a reliable inventory strategy in place to protect themselves now and when the tariffs are resolved. And because that seems far off, companies are doing what they can to stay afloat. During the most recent filing date for tariff exemptions, more than 8,700 requests were submitted by companies claiming they had no alternative options for their production needs. Yet as the requests for exemptions increased, so too did the denials issued by the Office of the U.S. Trade Representative. In total, nearly 53,000 exemption requests have been filed since the first tranche of tariffs went into effect in mid-2018. In some instances, companies would have been crippled or ruined due to the inability to get certain parts and technology elsewhere. But in others, particularly those where materials parts were available from other sources, the denials were plentiful. With companies facing more and more uncertainty every day, the need for a scalable inventory strategy must take precedence on companies’ lists of priorities. In reality, such a strategy should have been developed and implemented a year and a half ago. But optimism, indifference, or lack of understanding can easily get in the way of being proactive. In this post, we’ll discuss the impact tariffs have on inventories and what your inventory strategy should be to ensure you’re in the best position possible, both now and when the tariffs are lifted. Buy Less and More Frequently — Considering All Cost Implications By now, the impact that the tariffs have had on companies and their inventories is obvious. Supply chains are changing, companies are restructuring their products and services from the inside out to adapt, and consumers are seeing changes and even delays in the products they rely on every day. For many companies, the tariffs have had effects well beyond just cost. For example, not only are revenue and profit decreasing, but service departments are also struggling. When inventory is low, customers start calling — adding pressure to everyone in the organization to find a solution, though one simply might not exist. This pressure, coupled with any pre-existing operational or supply chain inefficiency, can quickly create a very painful and hard-to-fix bottleneck in an organization’s ability to match consumer expectations. While progress is being made in the tariff negotiations, the reality is that they’re still very much ongoing. Specific markets and commodities, such as steel and aluminum, may even see tariff increases. Much is still uncertain, but we appear to be at a point where one key inventory strategy is beginning to make more sense despite its potential downsizes: buying less inventory from suppliers, and buying it more frequently. Why This Inventory Strategy Makes Sense An initial reaction to this recommended inventory strategy is that it will result in higher costs, and that would likely be accurate. The transactional costs and the per-unit costs incurred would certainly increase to some extent. However, there’s a key benefit in ordering this way — that it prevents your organization from becoming too heavily invested in inventory. If you were to order in significantly higher quantities, you could save on the per-unit price and could also save on total transaction costs over the long-term, but you’d logically have a higher average inventory that might not align with consumer demand. But what about stock problems? By buying in smaller quantities, even more frequently, won’t that put you at risk of running low on stock — or running out entirely? There is potential for this to happen, but consider that it might be better to be out of inventory temporarily and lose some sales than to be too heavily invested in highly-tariffed inventory with no customer demand. In the latter scenario, you’ve already spent the money and paid the tariff dues, and now the goods aren’t being purchased for what little margin you have left. You’re in the hole. In the former scenario, you ordered less, paid less on the tariffs, and sold through that stock. While you made less money overall, you’ve spent significantly less overall, too. Even if you have to expedite smaller orders to catch up, this inventory strategy could be worthwhile. Your margins may not be as favorable, due to higher per-unit and transactional costs, but it would minimize the risk of future inventory obsolescence. Keep Consumer Expectations in Mind An important consideration with this inventory strategy is consumer demand. Consumers won’t want to pay a higher price as a result of the tariff, so it’s expected that demand will drop during a difficult season such as this, necessitating the inventory strategy we just described. However, if the tariffs were lifted, they would likely expect a price reduction (even though tariff costs weren’t being passed onto them). In this instance, demand could suddenly return to pre-tariff levels, or in some instances, even higher based on a perceived opportunity to save money. And in this situation, your organization might find itself in trouble. Depending on your industry, what you sell, and who your audience is, your customers may have been experiencing a similar situation to yours. Perhaps you manufacture or sell parts that are just one component of a larger item. If demand for that item has dropped as a result of the tariff, only for the tariff to be lifted and demand return, they might find themselves in a difficult situation had they not maintained a minimum level of inventory. As a result, they would begin pushing on you for your parts — putting you in backlog mode, which creates service problems. Be Intelligent with Your Inventory Strategy If you’re considering the inventory strategy we’ve outlined here, it’s worth segmenting your inventory types to avoid becoming overinvested in lower priority items and investing appropriately in higher priority items. Spending too much in order to stock up on lower priority items as a response to the tariffs only puts your organization at greater risk of not being able to move that inventory to offset the initial order cost and tariff impact. This requires analysis to understand the demand for certain items compared to others. For example, if you have three components that consist of 35%, 25%, and 15% of your orders over a given year (together comprising 75% of all orders), and numerous other products that account for the remaining 25% of your orders, you should do what you can to maintain adequate (not excessive) inventory levels of the first three items. These are the items where you have the greatest opportunity to preserve revenue and margins, keep up with order demand, and maintain a solid position for when the tariffs are lifted, which will be important for competitiveness in a post-tariff landscape. It All Comes Down to Being Proactive The tariff negotiations are ongoing, and tariffs on new goods are looming on the horizon. Now is the time to give careful consideration not only to your current supply chain and inventory strategy but also to world affairs. Whatever sources you use for information, monitor them closely and frequently. Be informed so you can make adjustments and plan for the impact of global matters accordingly. Remember, River Rock Advisors is here to assist you. Our advisory team is comprised of individuals with successful careers in supply chain optimization, operational strategy, business management, inventory performance optimization, and more. We would be happy to talk with you about your inventory challenges and develop a strategy to help you navigate the tariff environment with positive long-term outcomes. Fill out the form below to get in touch with our team.", "image": "https://riverrockadvisors.com/wp-content/uploads/2020/02/inventory-strategy.jpg", "modified": "2025-04-28T11:00:03-05:00", "mapped_entity": "Article" }, { "id": 4293, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/how-to-handle-tariffs-through-efficient-descaling/", "title": "How to Handle Tariffs Through Efficient Descaling", "h1": "How to Handle Tariffs Through Efficient Descaling", "summary": "Wondering how to handle tariffs? Knowing what to do with your inventory is critical, but so too is knowing how to do it in a way that’s scalable and competitive.", "content": "As more and more news comes in on the U.S.–China trade tariffs, it can be difficult to know what to expect — let alone plan for. Most recently, both countries reached an agreement that provides some tariff relief, but the execution and ultimate impact remain uncertain. While this was a positive sign, manufacturers, distributors, and other organizations are left wondering how to respond to the tariffs, knowing that they can’t base their inventory strategy and other operational decisions solely on the most recent headlines.
While the volatility of these trade negotiations has left many manufacturing and distribution organizations with a feeling of uncertainty, it is important that companies do not become paralyzed as a result. Action is needed, but the question is, what should that action be?
While a common reaction has been to raise prices to account for the tariffs, this has shut down a great deal of consumer demand. For many manufacturers and distributors, demand is what drives volume. But with rising production and material costs and declining consumer demand leading to an erosion of margin and profit, how can they determine the appropriate approach to handling tariff challenges? This depends on whether they think that tariffs will increase or decrease in the future.
Those that believe that the tariffs will increase or remain in effect for a long time are struggling with whether they should build up inventory now to avoid higher costs in the future. While this means more expense to the business now in securing inventory, operations can continue and profitability — hopefully — can be preserved. But this is a gamble in that the company may over-invest in inventory only to see the tariff decrease. And what happens if consumer demand doesn’t pick up?
Those thinking that tariffs will decrease are holding off on bulking up their inventory to avoid the current tariff and maintain their profitability, but this comes with several challenges. Inventory will continue to decline — leading to potential shortages and potentially forcing the company to replenish their inventory at the higher cost they were hoping to avoid. Shortages can also mean service problems, which bring about their own costs and difficulties.
Both scenarios are incredibly difficult, and it’s understandable that they would leave many companies feeling paralyzed. But in order to best know how to handle tariffs, companies should first look to areas where they can reduce costs.
There are two high-level areas where manufacturers and distributors can look to reduce costs as a solution for how to handle tariffs: variable costs and fixed costs. Variable costs are costs that change with business output, whereas fixed costs don’t. While it can be easy to put together a list of such costs that can be reduced, it’s important that these reductions are done in such a way that organizations can quickly scale back up when needed.
Variable costs are expenses that generally trend in relation to sales volume. As an organization sells more goods, it follows that other costs increase in order to meet demand and to help an organization get into a position to increase sales even more. Examples of variable costs include basic raw materials, component parts, salesperson commissions, hourly labor, delivery and shipping charges, and advertising.
When planning for how to handle tariffs, adjusting variable costs is often the first step organizations take because those costs are directly tied to sales. If sales are down, the costs associated with the business must go down as well. Variable costs can also be adjusted more quickly than fixed costs. For example, canceling an advertising campaign or reducing orders of raw materials would not be as time-consuming as eliminating personnel or moving to a new facility.
If the tariffs were to increase, adjusting variable costs gives organizations a faster way to preserve their margin or at least withstand the immediate impact of the tariff increase while finding other ways to reduce costs and maintain operations. If the tariffs were to decrease, the very nature of variable costs means they can be scaled back up to meet increasing demand.
Whereas variable costs are tied to business sales, fixed costs are expenses that are incurred regardless of fluctuations in sales. Sales supports these costs, but they will not change alongside reduced demand or higher production costs. Fixed costs are also more difficult to adjust because they are items that often have a longer-term (e.g., 6–12 months or more) commitment associated with them. Examples of fixed costs include facility rent or loan payments, employee wages, equipment depreciation, certain technology platforms, insurance, and so on.
While not all fixed costs can be reduced right away in order to relieve the pressure on margins, some adjustments can be made that will have a positive impact over time. Making efforts to reduce energy usage and non-production-related materials, not hiring any additional staff (as opposed to eliminating personnel, unless the latter is necessary), and so on can help drive down costs going forward while organizations wait on the outcome of the tariff agreements.
If tariffs increase and demand decreases, the ground made up in reducing fixed costs combined with adjustments to variable costs can help to preserve margin. If the tariffs decrease, companies can consider ramping the company back to where it was if desired. Often, fixed cost reductions are an ongoing effort, as such reductions would help a business increase its margin and profit regardless of tariffs. But, this is dependent on the organization and its goals.
When considering how to react to tariffs, the scalability of the cost reductions that are enacted is critical. Remember, while headlines seemingly change with each passing week, so too does the chance for the tariff negotiations to be concluded. If and when that happens, it’ll be important to start scaling back in the direction of where operations were in the pre-tariff environment.
Finally, the choice between scaling up or scaling down and the related cost adjustments play an important role in the competitive space. Not every organization is going to make the same decision as their competitor will make — or make a decision at all for that matter. Taking action now to get into the most advantageous position possible not only helps to preserve margins and profits but also helps companies emerge from this challenging season ahead of their competition.
Remember, addressing the tariffs is not necessarily a gamble on whether to buy more inventory or sit on current inventory levels. It’s about making intelligent decisions that preserve profit margins in such a way that companies can efficiently scale back up to pre-tariff operations when the circumstances permit.
At River Rock Advisors, we understand that this decision is not one to be made lightly. Our team will work with you to understand your current inventory performance and business objectives and develop a strategy that protects your business now and in the future. If you’d like to learn more about this approach and the recommendations that have been made, River Rock Advisors is here to help. Contact us today to get started or fill out the form below.
", "content_plain": "What’s Better: Scaling Up or Down? As more and more news comes in on the U.S.–China trade tariffs, it can be difficult to know what to expect — let alone plan for. Most recently, both countries reached an agreement that provides some tariff relief, but the execution and ultimate impact remain uncertain. While this was a positive sign, manufacturers, distributors, and other organizations are left wondering how to respond to the tariffs, knowing that they can’t base their inventory strategy and other operational decisions solely on the most recent headlines. While the volatility of these trade negotiations has left many manufacturing and distribution organizations with a feeling of uncertainty, it is important that companies do not become paralyzed as a result. Action is needed, but the question is, what should that action be? While a common reaction has been to raise prices to account for the tariffs, this has shut down a great deal of consumer demand. For many manufacturers and distributors, demand is what drives volume. But with rising production and material costs and declining consumer demand leading to an erosion of margin and profit, how can they determine the appropriate approach to handling tariff challenges? This depends on whether they think that tariffs will increase or decrease in the future. Those that believe that the tariffs will increase or remain in effect for a long time are struggling with whether they should build up inventory now to avoid higher costs in the future. While this means more expense to the business now in securing inventory, operations can continue and profitability — hopefully — can be preserved. But this is a gamble in that the company may over-invest in inventory only to see the tariff decrease. And what happens if consumer demand doesn’t pick up? Those thinking that tariffs will decrease are holding off on bulking up their inventory to avoid the current tariff and maintain their profitability, but this comes with several challenges. Inventory will continue to decline — leading to potential shortages and potentially forcing the company to replenish their inventory at the higher cost they were hoping to avoid. Shortages can also mean service problems, which bring about their own costs and difficulties. Both scenarios are incredibly difficult, and it’s understandable that they would leave many companies feeling paralyzed. But in order to best know how to handle tariffs, companies should first look to areas where they can reduce costs. Descaling Through Cost Reduction There are two high-level areas where manufacturers and distributors can look to reduce costs as a solution for how to handle tariffs: variable costs and fixed costs. Variable costs are costs that change with business output, whereas fixed costs don’t. While it can be easy to put together a list of such costs that can be reduced, it’s important that these reductions are done in such a way that organizations can quickly scale back up when needed. Variable Cost Reductions Variable costs are expenses that generally trend in relation to sales volume. As an organization sells more goods, it follows that other costs increase in order to meet demand and to help an organization get into a position to increase sales even more. Examples of variable costs include basic raw materials, component parts, salesperson commissions, hourly labor, delivery and shipping charges, and advertising. When planning for how to handle tariffs, adjusting variable costs is often the first step organizations take because those costs are directly tied to sales. If sales are down, the costs associated with the business must go down as well. Variable costs can also be adjusted more quickly than fixed costs. For example, canceling an advertising campaign or reducing orders of raw materials would not be as time-consuming as eliminating personnel or moving to a new facility. If the tariffs were to increase, adjusting variable costs gives organizations a faster way to preserve their margin or at least withstand the immediate impact of the tariff increase while finding other ways to reduce costs and maintain operations. If the tariffs were to decrease, the very nature of variable costs means they can be scaled back up to meet increasing demand. Fixed Cost Reductions Whereas variable costs are tied to business sales, fixed costs are expenses that are incurred regardless of fluctuations in sales. Sales supports these costs, but they will not change alongside reduced demand or higher production costs. Fixed costs are also more difficult to adjust because they are items that often have a longer-term (e.g., 6–12 months or more) commitment associated with them. Examples of fixed costs include facility rent or loan payments, employee wages, equipment depreciation, certain technology platforms, insurance, and so on. While not all fixed costs can be reduced right away in order to relieve the pressure on margins, some adjustments can be made that will have a positive impact over time. Making efforts to reduce energy usage and non-production-related materials, not hiring any additional staff (as opposed to eliminating personnel, unless the latter is necessary), and so on can help drive down costs going forward while organizations wait on the outcome of the tariff agreements. If tariffs increase and demand decreases, the ground made up in reducing fixed costs combined with adjustments to variable costs can help to preserve margin. If the tariffs decrease, companies can consider ramping the company back to where it was if desired. Often, fixed cost reductions are an ongoing effort, as such reductions would help a business increase its margin and profit regardless of tariffs. But, this is dependent on the organization and its goals. When considering how to react to tariffs, the scalability of the cost reductions that are enacted is critical. Remember, while headlines seemingly change with each passing week, so too does the chance for the tariff negotiations to be concluded. If and when that happens, it’ll be important to start scaling back in the direction of where operations were in the pre-tariff environment. Competition Factors into How to Handle Tariffs Finally, the choice between scaling up or scaling down and the related cost adjustments play an important role in the competitive space. Not every organization is going to make the same decision as their competitor will make — or make a decision at all for that matter. Taking action now to get into the most advantageous position possible not only helps to preserve margins and profits but also helps companies emerge from this challenging season ahead of their competition. Remember, addressing the tariffs is not necessarily a gamble on whether to buy more inventory or sit on current inventory levels. It’s about making intelligent decisions that preserve profit margins in such a way that companies can efficiently scale back up to pre-tariff operations when the circumstances permit. Plan Your Tariff Strategy with Confidence At River Rock Advisors, we understand that this decision is not one to be made lightly. Our team will work with you to understand your current inventory performance and business objectives and develop a strategy that protects your business now and in the future. If you’d like to learn more about this approach and the recommendations that have been made, River Rock Advisors is here to help. Contact us today to get started or fill out the form below.", "image": "https://riverrockadvisors.com/wp-content/uploads/2020/01/how-to-handle-tariffs.jpg", "modified": "2025-04-28T11:31:12-05:00", "mapped_entity": "Article" }, { "id": 4291, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/evolution-vs-revolution-a-practical-approach-to-inventory-agility/", "title": "Evolution vs. Revolution: A Practical Approach to Inventory Agility", "h1": "Evolution vs. Revolution: A Practical Approach to Inventory Agility", "summary": "Inventory investments are often considered a necessary evil required to satisfy customer service requirements in order to capture maximum revenue.", "content": "Inventory investments are often considered a necessary evil required to satisfy customer service requirements in order to capture maximum revenue. When managed correctly, however, inventory can become a key strategic asset to drive profitable revenue growth and competitive advantage. The challenge is in establishing a sustainable foundation for effective inventory management that rapidly adapts to the constant changes in business dynamics and promotes prioritized continuous improvement.
Many companies pursue a “silver bullet” solution by implementing sophisticated inventory optimization software tools but sometimes find that they do not have adequate data accuracy, user skills, process compliance mechanisms or alignment of goals required by the systems to achieve—let alone sustain—desired results. Experience has shown that an 80% perfect solution that is 100% implemented yields better results than a 100% perfect solution that is only 80% implemented. Therefore, a methodical, evolutionary approach to inventory optimization is recommended.
Inventory management priorities typically vary across departments within an organization based on functional performance metrics. Commercial teams tend to focus on service as a driver for revenue growth and prefer to see an abundance of inventory close to the customer. Finance teams tend to focus on working capital as a lever to fund business investments and prefer to see inventory kept to a minimum. Operations teams tend to be held accountable for costs and seek to manage inventory efficiently—perhaps buying inventory in large quantities to maximize economies of scale or reducing inventory to minimize warehousing costs.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2019/09/competing-priorities-graphic-1024x819-1.png\")
Often, the priorities of a business will change based on recent business performance or a change in leadership and philosophy. The challenge—and the key to success—in navigating these differing priorities is to establish a sustainable balance between service, cost, and capital.
Any one dimension can be improved in a relatively short timeframe, but this is often a recipe for disastrous results (e.g., dramatically reducing inventory levels ultimately erodes customer service and sales, while increasing replenishment and fulfillment expediting costs). Balancing two dimensions can be achieved with focused attention on fundamental principles, but it does not yield sustainable results (e.g., stocking every item in every location can increase customer service and decrease delivery costs by being closer to the customer, but requires higher inventory investments).
A different mindset and approach are required to balance all three dimensions. Consider the analogy of a three-legged stool, where the goal is to keep the seat level through balancing service, cost, and capital.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2019/09/Service-cost-capital-Venn-diagram.png\")
Start Simple, and Keep It LogicalToo often, companies try to take a giant leap toward a best practice solution (process or software application) that has recently captured the headlines. While these are often technically correct and may be successfully implemented at other companies, they are of little use if the organization does not embrace the outputs or recommendations generated by the solution. If users cannot connect the dots between causes and effects, they do not trust the results produced by these “black box” solutions. Additionally, they may not have the foundational understanding necessary to identify and implement continuous improvements. As a result, these investments in new solutions are often lost as people revert to legacy processes that they understand.
Just like with best practice solutions, it is critical to plan and manage inventory based on data-driven analytics and decision support tools. However, each company’s unique characteristics must be taken into account in order for implementation to be successful. The most effective approach is to leverage simple mathematical calculations and simulation tools that enable interactive what-if analysis and cause-and-effect learning by the user. Increased complexity is only added to the solution as the organization “demands” added capability based on challenges or shortcomings identified through experience. In doing so, the organization is then able to better understand the rationale behind the inventory targets and the unique characteristics of their business that have the greatest impact on inventory productivity.
Returning to the stool analogy, the first task is to “level the seat,” then work to “shorten the legs”—do more with less—while maintaining balance. This concept is applied using a calculated statistical curve familiar to inventory management practitioners, which illustrates the exponential inventory investment associated with higher service level goals. The approach begins with an understanding of current inventory performance (service and capital) against the statistical curve. This defines the immediate improvement opportunity available through the adoption of fundamental inventory management principles. Using this baseline as a point of reference, improvement opportunities are then evaluated and prioritized for continuous improvement. Our proven five-step approach:
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2019/09/investment-and-service-level-300x258-1.png\")
Evolution Before RevolutionIt’s easy to realize the importance of optimizing inventory investments in support of achieving overall company goals. The challenge is in determining how to achieve and sustain results — the balance of service, cost, and capital. The magnitude of benefits tends to be directly proportional to the adoption of and organizational alignment around a practical approach, and the passion for continuous improvement that is enabled by a solid understanding of foundational concepts. This is achieved by keeping the solution simple, understandable, and agile while being anchored in an analytical understanding of the cause-and-effect relationships and the key drivers of inventory productivity. Allowing the organization to “pull” the evolution of solution complexity fosters knowledge growth.
![\"\"](\"https://riverrockadvisors.com/wp-content/uploads/2019/09/evolution-of-solution-complexity-300x166-1.png\")
At some point, a company is ready to transition from practical tactics to more advanced solutions enabled by powerful inventory optimization software. However, by first mastering practical tactics, an organization has a much better understanding of the unique inventory productivity drivers of its business and can better define the solution capability requirements of a future enabling system. Remember: Evolution before revolution.
River Rock Advisors is a leading value chain management advisory firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively.
", "content_plain": "Inventory Optimization is a Process Inventory investments are often considered a necessary evil required to satisfy customer service requirements in order to capture maximum revenue. When managed correctly, however, inventory can become a key strategic asset to drive profitable revenue growth and competitive advantage. The challenge is in establishing a sustainable foundation for effective inventory management that rapidly adapts to the constant changes in business dynamics and promotes prioritized continuous improvement. Many companies pursue a “silver bullet” solution by implementing sophisticated inventory optimization software tools but sometimes find that they do not have adequate data accuracy, user skills, process compliance mechanisms or alignment of goals required by the systems to achieve—let alone sustain—desired results. Experience has shown that an 80% perfect solution that is 100% implemented yields better results than a 100% perfect solution that is only 80% implemented. Therefore, a methodical, evolutionary approach to inventory optimization is recommended. Balancing Service, Cost, and Capital is the Key Inventory management priorities typically vary across departments within an organization based on functional performance metrics. Commercial teams tend to focus on service as a driver for revenue growth and prefer to see an abundance of inventory close to the customer. Finance teams tend to focus on working capital as a lever to fund business investments and prefer to see inventory kept to a minimum. Operations teams tend to be held accountable for costs and seek to manage inventory efficiently—perhaps buying inventory in large quantities to maximize economies of scale or reducing inventory to minimize warehousing costs. Often, the priorities of a business will change based on recent business performance or a change in leadership and philosophy. The challenge—and the key to success—in navigating these differing priorities is to establish a sustainable balance between service, cost, and capital. Any one dimension can be improved in a relatively short timeframe, but this is often a recipe for disastrous results (e.g., dramatically reducing inventory levels ultimately erodes customer service and sales, while increasing replenishment and fulfillment expediting costs). Balancing two dimensions can be achieved with focused attention on fundamental principles, but it does not yield sustainable results (e.g., stocking every item in every location can increase customer service and decrease delivery costs by being closer to the customer, but requires higher inventory investments). A different mindset and approach are required to balance all three dimensions. Consider the analogy of a three-legged stool, where the goal is to keep the seat level through balancing service, cost, and capital. Start Simple, and Keep It Logical Too often, companies try to take a giant leap toward a best practice solution (process or software application) that has recently captured the headlines. While these are often technically correct and may be successfully implemented at other companies, they are of little use if the organization does not embrace the outputs or recommendations generated by the solution. If users cannot connect the dots between causes and effects, they do not trust the results produced by these “black box” solutions. Additionally, they may not have the foundational understanding necessary to identify and implement continuous improvements. As a result, these investments in new solutions are often lost as people revert to legacy processes that they understand. Just like with best practice solutions, it is critical to plan and manage inventory based on data-driven analytics and decision support tools. However, each company’s unique characteristics must be taken into account in order for implementation to be successful. The most effective approach is to leverage simple mathematical calculations and simulation tools that enable interactive what-if analysis and cause-and-effect learning by the user. Increased complexity is only added to the solution as the organization “demands” added capability based on challenges or shortcomings identified through experience. In doing so, the organization is then able to better understand the rationale behind the inventory targets and the unique characteristics of their business that have the greatest impact on inventory productivity. Our Evolutionary Approach Returning to the stool analogy, the first task is to “level the seat,” then work to “shorten the legs”—do more with less—while maintaining balance. This concept is applied using a calculated statistical curve familiar to inventory management practitioners, which illustrates the exponential inventory investment associated with higher service level goals. The approach begins with an understanding of current inventory performance (service and capital) against the statistical curve. This defines the immediate improvement opportunity available through the adoption of fundamental inventory management principles. Using this baseline as a point of reference, improvement opportunities are then evaluated and prioritized for continuous improvement. Our proven five-step approach: Calculate the Baseline Curve — Using a commonly-accepted equation, inventory targets for each item-location combination are calculated based on current attributes of demand and supply that best align with business characteristics. Estimates can be used as a substitute for unknown information and later evaluated to assess precision requirements. This baseline establishes a target for the business based on current performance capabilities. Get on the Curve — By comparing historical performance (service and average inventory investment) to the baseline, near-term improvement opportunities to reduce inventory investment, increase service, or realize a combination of both can be quantified. Inventory management processes and control metrics are modified to “right-size” inventory investments in alignment with calculated targets. It is not uncommon to require increased investments for selected items, which is indicative of historical excessive costs in fulfilling demand. Shift the Curve — Perform what-if sensitivity analyses by evaluating the effects of changing demand and supply attributes. For example, what if lead time were reduced by one week? What if supply reliability increased by 10%? What if inventory was replenished twice as often? What if forecast accuracy improved by 5%? These results help identify key leverage points to improve inventory productivity and quantify potential benefits. Shrink the Curve — A logical but difficult task is to reduce the number of items sold and the number of stocking locations, but the benefits can be significant. Items that do not justify their corresponding inventory investments can be rationalized by evaluating their return on investment. Additionally, the implications of consolidating inventory into fewer stocking locations can be evaluated. Move Along the Curve — Not all items are of equal strategic value to a company and, therefore, could have differentiated service level goals. Evaluate (challenge) current service level goals by segmenting products and differentiating objectives for prioritized customers. Each item has a point at which the cost to achieve a high service level exceeds the benefit realized by capturing the incremental sale. Determining this point is critical to move along the curve. Evolution Before Revolution It’s easy to realize the importance of optimizing inventory investments in support of achieving overall company goals. The challenge is in determining how to achieve and sustain results — the balance of service, cost, and capital. The magnitude of benefits tends to be directly proportional to the adoption of and organizational alignment around a practical approach, and the passion for continuous improvement that is enabled by a solid understanding of foundational concepts. This is achieved by keeping the solution simple, understandable, and agile while being anchored in an analytical understanding of the cause-and-effect relationships and the key drivers of inventory productivity. Allowing the organization to “pull” the evolution of solution complexity fosters knowledge growth. At some point, a company is ready to transition from practical tactics to more advanced solutions enabled by powerful inventory optimization software. However, by first mastering practical tactics, an organization has a much better understanding of the unique inventory productivity drivers of its business and can better define the solution capability requirements of a future enabling system. Remember: Evolution before revolution. About River Rock Advisors River Rock Advisors is a leading value chain management advisory firm that partners with manufacturing and distribution organizations worldwide to develop and implement solutions with a specific focus on cross-functional whitespace challenges. Its analytical approach considers industry- and process-specific metrics to help client leadership teams make data-driven decisions and navigate change effectively.", "image": "https://riverrockadvisors.com/wp-content/uploads/2019/09/inventory.jpg", "modified": "2025-04-28T10:55:21-05:00", "mapped_entity": "Article" }, { "id": 4290, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/river-rock-advisors-receives-second-recognition-on-supplychainbrain-100-great-supply-chain-partners-list/", "title": "River Rock Advisors Receives Second Recognition on SupplyChainBrain 100 Great Supply Chain Partners List", "h1": "River Rock Advisors Receives Second Recognition on SupplyChainBrain 100 Great Supply Chain Partners List", "summary": "For the second time, River Rock Advisors has been recognized as a Top 100 Great Supply Chain Partners list by SupplyChainBrain. Learn more about it here.", "content": "In 2018, after four years in business, River Rock Advisors was nominated for and received its first SupplyChainBrain 100 Great Supply Chain Partners recognition. We were grateful for the nomination, which came from one of our satisfied clients who recognized us for our contributions to their organization.
This year, we are again pleased to share that we have been recognized for the second time in a row on this prestigious list of some of the top supply chain organizations.
As a supply chain management information resource, SupplyChainBrain has for two decades been asking organizations around the country to nominate their supply chain partners based on outstanding service and solutions. After a six-month poll, SupplyChainBrain notified our firm that we had again been recognized for this honor.
“Our six-month online poll of supply chain professionals requires a qualified response, asking them to nominate vendors and service providers whose solutions have made a significant impact on their company’s efficiency, customer service, and overall supply chain performance,” said SupplyChainBrain Publisher Brad Berger.
“This year’s field of nominees was competitive and inspiring — coming from all sectors of supply chain management. River Rock Advisors will appear in the 2019 August issue of SupplyChainBrain magazine and on SupplyChainBrain.com as an honored member of this year’s 100 Great Supply Chain Partners.”
We do not take this recognition lightly, as manufacturing and distribution companies worldwide face even greater challenges today than in previous years that extend well beyond their supply chain. The industry is in a rapid state of growth and change, and we are grateful to our clients for taking the time to show their support. More importantly, we are grateful for their trust in partnering with our firm to identify, resolve, and report on their supply chain challenges.
As a boutique value chain advisory firm, our ultimate focus is helping our clients take their supply chain optimization further to create one thing: business value. Often, organizations with a supply chain strategy are trying to get from A to Z but are treating the many steps between those two points simply as items to be checked off. Companies can also quickly lose sight of the importance of those additional steps in relation to the starting point and their goals.
When they reach steps C, J, Q, and V, it’s important to consider whether they’re in alignment with the overall operational and supply chain strategies. Also, are they in alignment with the intended end state? Or will they completely derail the organization’s strategy? While change is expected, it must be carefully managed with respect to the entire strategy in order for the strategy to be successful and for business value to be realized.
Helping our clients approach their supply chain challenges and operational strategies in this manner is our specialty. If your organization is looking to take its operations to the next level, our firm is here to assist. Contact us today to learn more about how we can help you realize true business value from your efforts and align your entire organization around your goals.
", "content_plain": "In 2018, after four years in business, River Rock Advisors was nominated for and received its first SupplyChainBrain 100 Great Supply Chain Partners recognition. We were grateful for the nomination, which came from one of our satisfied clients who recognized us for our contributions to their organization. This year, we are again pleased to share that we have been recognized for the second time in a row on this prestigious list of some of the top supply chain organizations. As a supply chain management information resource, SupplyChainBrain has for two decades been asking organizations around the country to nominate their supply chain partners based on outstanding service and solutions. After a six-month poll, SupplyChainBrain notified our firm that we had again been recognized for this honor. “Our six-month online poll of supply chain professionals requires a qualified response, asking them to nominate vendors and service providers whose solutions have made a significant impact on their company’s efficiency, customer service, and overall supply chain performance,” said SupplyChainBrain Publisher Brad Berger. “This year’s field of nominees was competitive and inspiring — coming from all sectors of supply chain management. River Rock Advisors will appear in the 2019 August issue of SupplyChainBrain magazine and on SupplyChainBrain.com as an honored member of this year’s 100 Great Supply Chain Partners.” We do not take this recognition lightly, as manufacturing and distribution companies worldwide face even greater challenges today than in previous years that extend well beyond their supply chain. The industry is in a rapid state of growth and change, and we are grateful to our clients for taking the time to show their support. More importantly, we are grateful for their trust in partnering with our firm to identify, resolve, and report on their supply chain challenges. It’s All About Adding Value As a boutique value chain advisory firm, our ultimate focus is helping our clients take their supply chain optimization further to create one thing: business value. Often, organizations with a supply chain strategy are trying to get from A to Z but are treating the many steps between those two points simply as items to be checked off. Companies can also quickly lose sight of the importance of those additional steps in relation to the starting point and their goals. When they reach steps C, J, Q, and V, it’s important to consider whether they’re in alignment with the overall operational and supply chain strategies. Also, are they in alignment with the intended end state? Or will they completely derail the organization’s strategy? While change is expected, it must be carefully managed with respect to the entire strategy in order for the strategy to be successful and for business value to be realized. Helping our clients approach their supply chain challenges and operational strategies in this manner is our specialty. If your organization is looking to take its operations to the next level, our firm is here to assist. Contact us today to learn more about how we can help you realize true business value from your efforts and align your entire organization around your goals.", "image": "https://riverrockadvisors.com/wp-content/uploads/2019/08/supplychainbrain-2019.jpg", "modified": "2025-04-28T11:18:30-05:00", "mapped_entity": "Article" }, { "id": 4289, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/turning-operational-strategy-into-results-for-your-business/", "title": "Turning Operational Strategy into Results for Your Business", "h1": "Turning Operational Strategy into Results for Your Business", "summary": "When it’s time to start turning strategy into results, you might be lost on what to look for. Learn what operational strategy results really mean and what to look for.", "content": "You and others in your organization came together to build a plan to put an operational strategy into action. Then, with goals identified and teams aligned, you began the work of implementing your operational strategy — the journey of putting the pieces into place while navigating and adapting to shifting business goals, industry trends, and other unforeseen circumstances. When this was completed, you started to execute on your operational strategy — making decisions and taking action to achieve the desired results.
Depending on your organization, your operational strategy goals, and your industry, this process could’ve taken anywhere from a few months to a few years. Regardless of the time needed to complete these initial steps, you must now assess how the operational strategy has performed. Now, it’s time to turn strategy into results.
Along the way, you may have performed periodic check-ups to monitor progress (part of implementation). You may even have an ongoing dashboard set up to capture progress and provide analytics in real-time through a business intelligence platform like Tableau or Power BI. But the data you produce throughout your operational strategy process doesn’t intuitively measure the type of results the strategy was intended to produce.
Before we begin exploring the process of capturing the results of your operational strategy, we need to review a couple of important details about the strategy as a whole. After all, it’s not just about the destination — it’s about the journey itself.
Mistakes and changes are to be expected when rolling out an operational strategy, but if the respective areas of focus and goals of the action, implementation, and execution phases were lost, forgotten, skipped, ignored, etc., achieving the results you’ve been hoping for will be virtually impossible. That’s because these phases are interdependent.
A clear and well-defined action plan will have been for naught if implementation didn’t put the right pieces into place. All of the hard work of implementation will have been wasted if no one was able to execute on it effectively. And execution will amount to nothing more than confusion and frustration without a strong foundation established in the action plan. Each step sets the stage for the next, and each step is also a reflection of the former. They must be given the proper attention from start to finish to ensure the success of your operational strategy.
The second consideration is that from the beginning, everything you’ve done was intended to achieve one thing: business value. These are the metrics that reveal how your business has performed operationally. They are quantitative measures that lead to qualitative outcomes. It’s rarely the reverse because a business is not an abstraction. It’s a goal-oriented construct that aims to do X to achieve Y and realize Z. You don’t do X to achieve Y for no Z.
For example, if you successfully reduced manufacturing waste by 25 percent, that can lead to several qualitative benefits. These include increased employee satisfaction (from being able to produce the same results with less effort) and increased customer satisfaction (from fewer steps in the production process leading to shorter lead times). But you could not realize a reduction in manufacturing waste by focusing on increased customer satisfaction first. Happier customers don’t make your production shop more efficient. More advanced machines, streamlined processes, and innovative technology do.
And it might go without saying, but your results must be what was called for in the operational strategy all along. If your goal was a 25 percent manufacturing waste reduction, then achieving a 10 percent increase in raw material processing efficiency — rather than the 25 percent waste reduction — doesn’t satisfy the strategic goal. It’s great that you’ve realized the efficiency benefit, but that’s subordinate to your overall goal.
It’s important to remember that the method you use to measure the results of your strategy should have been set in the action plan. After all, how can you set a goal without understanding the criteria for success or failure? You can’t. If your action plan didn’t contain the criteria for future evaluation (subject to changes in implementation, of course), then the action plan itself was a failure and all phases following it won’t succeed.
Note that if the implementation phase produced changes to the action plan, then the criteria for evaluation may have changed as well. Remember, each phase of your operational strategy is a living thing: just because you’ve moved on from action to implementation doesn’t mean the plan can’t or shouldn’t be modified to ensure that the implementation phase matches your organizational objectives. If things change along the way, ensure that you’re revisiting the action plan and making adjustments as necessary.
So what does measurement actually look like? While the tools you have available for managing the strategy and the methods established in your action plan will provide the actual metrics you’ll use and review, what you actually need to measure is the result of the result. Let’s jump back to the 25 percent manufacturing waste reduction. What is the actual result of achieving that? So you’ve cut waste by a quarter — great! What does that mean?
It could mean any number of things, but it has to align with your organization’s objectives. Reducing waste means your warehouse has less unusable scrap or material to deal with. Employees no longer have to haul it away, which saves you time and money. You no longer have to purchase as much raw material from suppliers to meet your production demands, which further reduces your costs. And your machines are technically processing less material for production, which helps reduce equipment wear, downtime, repair costs, and so on. The common theme shared by these examples is cost reduction, which as you know is a common strategic objective.
All of the quantitative and qualitative results of your operational strategy objective of reducing waste by 25 percent have generated meaningful benefit for your business — one that is reasonably easy to measure and quick to realize: less money spent for the same or better output. Congratulations! You’ve successfully turned strategy into results for your business.
While some organizations have dedicated project managers, business intelligence teams, and even strategists and analysts who can lead initiatives like this, the reality is that there are far more businesses that don’t have these specialized employees. According to Deloitte, there are around 29 million small and medium-sized businesses (SMBs) in the U.S. with fewer than 500 employees (representing 99.7 percent of all U.S. businesses), many of which are presumably lacking resources to lead these strategic initiatives. This is where working with an experienced third party can help.
At River Rock Advisors, we assist manufacturers, distributors, and other organizations in developing operational strategy, ensuring internal alignment and progress, and providing comprehensive analysis from start to finish — all for the ultimate goal of delivering business value to our clients. If there’s untapped potential in your value chain, reach out to us today.
", "content_plain": "It’s All Led Up to This You and others in your organization came together to build a plan to put an operational strategy into action. Then, with goals identified and teams aligned, you began the work of implementing your operational strategy — the journey of putting the pieces into place while navigating and adapting to shifting business goals, industry trends, and other unforeseen circumstances. When this was completed, you started to execute on your operational strategy — making decisions and taking action to achieve the desired results. Depending on your organization, your operational strategy goals, and your industry, this process could’ve taken anywhere from a few months to a few years. Regardless of the time needed to complete these initial steps, you must now assess how the operational strategy has performed. Now, it’s time to turn strategy into results. Along the way, you may have performed periodic check-ups to monitor progress (part of implementation). You may even have an ongoing dashboard set up to capture progress and provide analytics in real-time through a business intelligence platform like Tableau or Power BI. But the data you produce throughout your operational strategy process doesn’t intuitively measure the type of results the strategy was intended to produce. So, What Does Turning Strategy into Results Actually Mean? Before we begin exploring the process of capturing the results of your operational strategy, we need to review a couple of important details about the strategy as a whole. After all, it’s not just about the destination — it’s about the journey itself. Everything You’ve Done So Far Has Mattered Mistakes and changes are to be expected when rolling out an operational strategy, but if the respective areas of focus and goals of the action, implementation, and execution phases were lost, forgotten, skipped, ignored, etc., achieving the results you’ve been hoping for will be virtually impossible. That’s because these phases are interdependent. A clear and well-defined action plan will have been for naught if implementation didn’t put the right pieces into place. All of the hard work of implementation will have been wasted if no one was able to execute on it effectively. And execution will amount to nothing more than confusion and frustration without a strong foundation established in the action plan. Each step sets the stage for the next, and each step is also a reflection of the former. They must be given the proper attention from start to finish to ensure the success of your operational strategy. Ultimately, Business Value Was Always the Goal The second consideration is that from the beginning, everything you’ve done was intended to achieve one thing: business value. These are the metrics that reveal how your business has performed operationally. They are quantitative measures that lead to qualitative outcomes. It’s rarely the reverse because a business is not an abstraction. It’s a goal-oriented construct that aims to do X to achieve Y and realize Z. You don’t do X to achieve Y for no Z. For example, if you successfully reduced manufacturing waste by 25 percent, that can lead to several qualitative benefits. These include increased employee satisfaction (from being able to produce the same results with less effort) and increased customer satisfaction (from fewer steps in the production process leading to shorter lead times). But you could not realize a reduction in manufacturing waste by focusing on increased customer satisfaction first. Happier customers don’t make your production shop more efficient. More advanced machines, streamlined processes, and innovative technology do. And it might go without saying, but your results must be what was called for in the operational strategy all along. If your goal was a 25 percent manufacturing waste reduction, then achieving a 10 percent increase in raw material processing efficiency — rather than the 25 percent waste reduction — doesn’t satisfy the strategic goal. It’s great that you’ve realized the efficiency benefit, but that’s subordinate to your overall goal. Measuring the Results of Your Operational Strategy It’s important to remember that the method you use to measure the results of your strategy should have been set in the action plan. After all, how can you set a goal without understanding the criteria for success or failure? You can’t. If your action plan didn’t contain the criteria for future evaluation (subject to changes in implementation, of course), then the action plan itself was a failure and all phases following it won’t succeed. Note that if the implementation phase produced changes to the action plan, then the criteria for evaluation may have changed as well. Remember, each phase of your operational strategy is a living thing: just because you’ve moved on from action to implementation doesn’t mean the plan can’t or shouldn’t be modified to ensure that the implementation phase matches your organizational objectives. If things change along the way, ensure that you’re revisiting the action plan and making adjustments as necessary. So what does measurement actually look like? While the tools you have available for managing the strategy and the methods established in your action plan will provide the actual metrics you’ll use and review, what you actually need to measure is the result of the result. Let’s jump back to the 25 percent manufacturing waste reduction. What is the actual result of achieving that? So you’ve cut waste by a quarter — great! What does that mean? It could mean any number of things, but it has to align with your organization’s objectives. Reducing waste means your warehouse has less unusable scrap or material to deal with. Employees no longer have to haul it away, which saves you time and money. You no longer have to purchase as much raw material from suppliers to meet your production demands, which further reduces your costs. And your machines are technically processing less material for production, which helps reduce equipment wear, downtime, repair costs, and so on. The common theme shared by these examples is cost reduction, which as you know is a common strategic objective. All of the quantitative and qualitative results of your operational strategy objective of reducing waste by 25 percent have generated meaningful benefit for your business — one that is reasonably easy to measure and quick to realize: less money spent for the same or better output. Congratulations! You’ve successfully turned strategy into results for your business. Managing Operational Strategy is a Strategy Itself While some organizations have dedicated project managers, business intelligence teams, and even strategists and analysts who can lead initiatives like this, the reality is that there are far more businesses that don’t have these specialized employees. According to Deloitte, there are around 29 million small and medium-sized businesses (SMBs) in the U.S. with fewer than 500 employees (representing 99.7 percent of all U.S. businesses), many of which are presumably lacking resources to lead these strategic initiatives. This is where working with an experienced third party can help. At River Rock Advisors, we assist manufacturers, distributors, and other organizations in developing operational strategy, ensuring internal alignment and progress, and providing comprehensive analysis from start to finish — all for the ultimate goal of delivering business value to our clients. If there’s untapped potential in your value chain, reach out to us today.", "image": "https://riverrockadvisors.com/wp-content/uploads/2019/07/turning-strategy-into-results.jpg", "modified": "2025-04-28T11:35:55-05:00", "mapped_entity": "Article" }, { "id": 4288, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/importance-of-strategy-execution-what-it-is-and-isnt-within-an-operational-strategy/", "title": "Importance of Strategy Execution: What It Is and Isn’t Within an Operational Strategy", "h1": "Importance of Strategy Execution: What It Is and Isn’t Within an Operational Strategy", "summary": "Wondering what the importance of strategy execution is over strategy implementation? There’s a critical difference. Learn how execution fits in here.", "content": "Welcome to the third post in our series on operational strategy! Thus far, we’ve discussed a couple of critical steps in the process. The first was creating an action plan for your operational strategy, in which we outlined five steps that you need to take to get everyone on the same page and prepare for the rest of the process. The second was taking that action plan and beginning the process of putting the pieces into place via implementation.
To many, these first two steps might seem like all that’s needed to actually take a strategy from start to finish. You’ve outlined the process and who will be involved, determined the goals and metrics around them, and even navigated the changing waters of the actual implementation itself, which may have resulted in a modified or entirely new action plan along the way. These two processes together could have comprised a couple of weeks to perhaps even more than a year depending on your organization and what you’re trying to achieve.
Or is it? While you’ve already created a plan of action for your operational strategy and have perhaps even implemented it, there is actually much more to come. Why? Because now you have to actually achieve what the operational strategy was intended to help you achieve. This is accomplished through operational strategy execution. The importance of strategy execution, as opposed to other steps, can’t be overstated. This is because you’ve finally arrived at the “do” stage. You’ve already completed the “think” and “plan” stages. Now it’s time to act.
Confused? Don’t worry. The common thinking behind operational strategy is that once the implementation process has been completed, the project is complete. Your job — whether you’re a project manager, department head, or executive — is done, right? The strategy has been implemented, and whether you’re the one running the overall project or program, the to-do box next to “operational strategy” can be checked off, right? Sorry, but no.
To better understand the importance of strategy execution, it might be helpful to revisit operational strategy implementation. Remember that implementing an operational strategy is the process of initiating the action plan and then monitoring it. Monitoring is important — it reveals whether the strategy and implementation are running side-by-side. As new information or business changes result in the implementation being modified, the strategy itself changes. The endpoint may be the same (or it might not), but the journey to get there is different.
But this process is only designed to get you to a point where the strategy rollout itself is complete. Again, the implementation process isn’t truly complete until you have achieved the desired business benefit via execution. This is because you may need to make additional changes or process improvements to open the way to that success even after the process of implementing the strategy is done. With that understanding, let’s now move into strategy execution.
Strategy execution is the phase following implementation and consists of the decisions made and activities performed to turn an implemented strategy into a success. With the foundation built, you can begin working toward what the strategy calls for using the systems, steps, processes, and other supporting elements identified in the action plan and established during implementation. Your goal: to realize the benefits of your strategy.
As an example, let’s say your operational strategy calls for a 25 percent reduction in manufacturing material waste within one year. Q1 is spent creating the action plan and who in your organization will participate. When the goal, metrics, timeline, and other details have been established, you and that team begin implementing the strategy.
Throughout Q2, the pieces are all brought together: new equipment that results in less scrap, a redefined inventory management process that cycles material into production sooner, new shop floor software that employees can use on their own mobile devices that reports production data real-time, and much more. When these elements are put in place, the implementation process is complete. Now on to execution. Remember, your goal was to reduce manufacturing waste by 25 percent, and you have Q3 and Q4 to do it.
Execution in this example is the use of the new manufacturing equipment, inventory cycling process, and shop floor software by all the teams involved to produce the result. Throughout Q3, you manage to achieve a 10 percent reduction in waste, but you know that even another few months won’t help you achieve the 25 percent goal. This is an example of how the implementation isn’t entirely complete. You need to make changes.
The equipment is running perfectly, but after careful evaluation, you realize a glitch in the software is telling shop floor workers that they have less material inventory on hand than they actually do, resulting in them slowing down in anticipation of a restock that isn’t coming. The issue is fixed, and production picks up. With increased production comes an increase in overall output at greater efficiency, enabling you to hit your 25 percent goal by the end of Q4.
Congratulations! Your operational strategy is formally executed. You and your team developed an action plan, spent the proper amount of time implementing it and allowing for adjustments, and managed to accomplish the goal while still allowing for the implementation of the operational strategy to change. And yet, while it may seem that the operational strategy is a success, there is a final step. We’ll cover that next time.
For now, remember that execution is an ongoing process just like implementation. It will likely repeat as you move forward, too, as your organization’s leadership may wish to continue this operational strategy the following year with a further reduction in manufacturing waste.
If you’ve ever been tasked with an operational strategy, you’ll know that it’s quite the undertaking. Not all small-to-midsize manufacturing and distribution companies have a reporting or business intelligence team, so this responsibility often falls on the shoulders of operations, purchasing, supply chain, finance, or another related department. And it’s all on top of existing responsibilities and projects. Even if you’re fortunate enough to have an operational strategy assigned to you as a new project at the start of your year, it’s still another significant project that must be managed alongside your current workflow.
At River Rock Advisors, helping companies define, navigate, and measure operational strategy is our focus. Everything we do is designed to help you achieve true business value through optimization — because after all, that is the real end goal. Achieving something that brings real value to your business. If there’s no value, there’s no point. If you’ve been experiencing challenges with your supply chain or processes, or if you see an opportunity for improvement, we’re here to help.
Often, we are able to work alongside our clients’ existing operational strategies — serving as an objective, independent guide that keeps your operational strategy moving in the right direction. We ensure all involved parties are aligned on the process and objectives and assist in the critical adjustment phases that can occur with implementation and execution. And all along the way, helping you realize business value through your work, as defined by you, remains our goal.
Reach out to start a conversation with our talented team today.
", "content_plain": "We’ve Come So Far Welcome to the third post in our series on operational strategy! Thus far, we’ve discussed a couple of critical steps in the process. The first was creating an action plan for your operational strategy, in which we outlined five steps that you need to take to get everyone on the same page and prepare for the rest of the process. The second was taking that action plan and beginning the process of putting the pieces into place via implementation. To many, these first two steps might seem like all that’s needed to actually take a strategy from start to finish. You’ve outlined the process and who will be involved, determined the goals and metrics around them, and even navigated the changing waters of the actual implementation itself, which may have resulted in a modified or entirely new action plan along the way. These two processes together could have comprised a couple of weeks to perhaps even more than a year depending on your organization and what you’re trying to achieve. Now, the End Is In Sight Or is it? While you’ve already created a plan of action for your operational strategy and have perhaps even implemented it, there is actually much more to come. Why? Because now you have to actually achieve what the operational strategy was intended to help you achieve. This is accomplished through operational strategy execution. The importance of strategy execution, as opposed to other steps, can’t be overstated. This is because you’ve finally arrived at the “do” stage. You’ve already completed the “think” and “plan” stages. Now it’s time to act. Confused? Don’t worry. The common thinking behind operational strategy is that once the implementation process has been completed, the project is complete. Your job — whether you’re a project manager, department head, or executive — is done, right? The strategy has been implemented, and whether you’re the one running the overall project or program, the to-do box next to “operational strategy” can be checked off, right? Sorry, but no. Let’s Revisit Implementation To better understand the importance of strategy execution, it might be helpful to revisit operational strategy implementation. Remember that implementing an operational strategy is the process of initiating the action plan and then monitoring it. Monitoring is important — it reveals whether the strategy and implementation are running side-by-side. As new information or business changes result in the implementation being modified, the strategy itself changes. The endpoint may be the same (or it might not), but the journey to get there is different. But this process is only designed to get you to a point where the strategy rollout itself is complete. Again, the implementation process isn’t truly complete until you have achieved the desired business benefit via execution. This is because you may need to make additional changes or process improvements to open the way to that success even after the process of implementing the strategy is done. With that understanding, let’s now move into strategy execution. Strategy execution is the phase following implementation and consists of the decisions made and activities performed to turn an implemented strategy into a success. With the foundation built, you can begin working toward what the strategy calls for using the systems, steps, processes, and other supporting elements identified in the action plan and established during implementation. Your goal: to realize the benefits of your strategy. An Example of Operational Strategy Execution As an example, let’s say your operational strategy calls for a 25 percent reduction in manufacturing material waste within one year. Q1 is spent creating the action plan and who in your organization will participate. When the goal, metrics, timeline, and other details have been established, you and that team begin implementing the strategy. Throughout Q2, the pieces are all brought together: new equipment that results in less scrap, a redefined inventory management process that cycles material into production sooner, new shop floor software that employees can use on their own mobile devices that reports production data real-time, and much more. When these elements are put in place, the implementation process is complete. Now on to execution. Remember, your goal was to reduce manufacturing waste by 25 percent, and you have Q3 and Q4 to do it. Execution in this example is the use of the new manufacturing equipment, inventory cycling process, and shop floor software by all the teams involved to produce the result. Throughout Q3, you manage to achieve a 10 percent reduction in waste, but you know that even another few months won’t help you achieve the 25 percent goal. This is an example of how the implementation isn’t entirely complete. You need to make changes. The equipment is running perfectly, but after careful evaluation, you realize a glitch in the software is telling shop floor workers that they have less material inventory on hand than they actually do, resulting in them slowing down in anticipation of a restock that isn’t coming. The issue is fixed, and production picks up. With increased production comes an increase in overall output at greater efficiency, enabling you to hit your 25 percent goal by the end of Q4. Congratulations! Your operational strategy is formally executed. You and your team developed an action plan, spent the proper amount of time implementing it and allowing for adjustments, and managed to accomplish the goal while still allowing for the implementation of the operational strategy to change. And yet, while it may seem that the operational strategy is a success, there is a final step. We’ll cover that next time. For now, remember that execution is an ongoing process just like implementation. It will likely repeat as you move forward, too, as your organization’s leadership may wish to continue this operational strategy the following year with a further reduction in manufacturing waste. Take Your Strategy Execution to the Next Level If you’ve ever been tasked with an operational strategy, you’ll know that it’s quite the undertaking. Not all small-to-midsize manufacturing and distribution companies have a reporting or business intelligence team, so this responsibility often falls on the shoulders of operations, purchasing, supply chain, finance, or another related department. And it’s all on top of existing responsibilities and projects. Even if you’re fortunate enough to have an operational strategy assigned to you as a new project at the start of your year, it’s still another significant project that must be managed alongside your current workflow. At River Rock Advisors, helping companies define, navigate, and measure operational strategy is our focus. Everything we do is designed to help you achieve true business value through optimization — because after all, that is the real end goal. Achieving something that brings real value to your business. If there’s no value, there’s no point. If you’ve been experiencing challenges with your supply chain or processes, or if you see an opportunity for improvement, we’re here to help. Often, we are able to work alongside our clients’ existing operational strategies — serving as an objective, independent guide that keeps your operational strategy moving in the right direction. We ensure all involved parties are aligned on the process and objectives and assist in the critical adjustment phases that can occur with implementation and execution. And all along the way, helping you realize business value through your work, as defined by you, remains our goal. Reach out to start a conversation with our talented team today.", "image": "https://riverrockadvisors.com/wp-content/uploads/2019/05/importance-of-strategy-execution.jpg", "modified": "2025-04-28T11:44:15-05:00", "mapped_entity": "Article" }, { "id": 4286, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/staying-the-changing-course-implementing-an-operational-strategy/", "title": "Staying the (Changing) Course: Implementing an Operational Strategy", "h1": "Staying the (Changing) Course: Implementing an Operational Strategy", "summary": "Implementing operational strategy is a critical step in your overall strategic journey, but it’s less about “doing” and more about being prepared for change.", "content": "For our second post in our series on operational strategy, we need to explore a critical part of the process: implementation. This might sound like the act of simply doing, but implementing an operational strategy is a far more elaborate and dynamic portion of the endeavor than the words themselves convey. Recently, we covered the beginning stage of this process: turning your operational strategy into action.
In that post, we outlined five steps for setting your plan into motion. As with any other strategy, the process must be outlined in-depth and prepared for — particularly to ensure that everyone understands what the goal is, what the resources are, what the approach will be, who will be involved and in what capacity, what the controls are, and what the requirements for reviewing and adjusting the strategy are. With these items identified and established, you can begin implementing your operational strategy.
Before we get into the particulars of implementation, we should first explain the nature by which an operational strategy comes into play. It all starts from the top–down. Business leaders define the corporate strategy, to which all other strategies are subordinate and should reflect and support in whatever they seek to accomplish. From there, business units (i.e., departments) develop their respective business strategies. There may be one or more depending on the company and its needs in accomplishing the corporate strategy. Within the business strategy is an operational strategy — the methods by which you’ll achieve your goal(s).
This hierarchy is important to note because everything that the operational strategy does must support a strategic layer above it, which in turn must support the strategic layer above it, too. Keeping this hierarchy in mind will be helpful during the implementation process as it provides a framework for action and even provides boundaries within which everyone can operate. With this understanding, we can dig into implementation.
At its core, implementation is 1) initiating an action plan and 2) monitoring and adjusting it as you move forward. While your responsibility as a participant in the operational strategy implementation is to focus on item one, it’s item two where you — and the others working on the implementation with you — will face the most challenges.
This ties back into the hierarchical nature of your corporate, business, and operational strategies. An operational strategy will be subject to change based on shifts in the business strategy above it. This is to be expected. After all, everything in the world is subject to change: markets, industries, regulations, consumer preferences, supply, and so on. These changes force companies to respond to and change with them in order to survive. Thus, our strategies must change as well to ensure that survival.
While your focus should be to follow through on the operational strategy action plan you’ve outlined and agreed upon prior to implementation, everyone involved must be prepared to make adjustments in alignment with constantly evolving corporate and business strategies.
One thing to remember when implementing an operational strategy is the fact that a strategy cannot truly be considered implemented until you have achieved the goals, state, and outcomes desired. This is because those endpoints are what the strategy called for in the first place. However, there’s practically no chance that the roadmap you outlined to get from A to B will be the exact route you take. There may be a C, D, E, F, and so on along the way. Your true north may still remain true, but the route to get there will most likely adjust. Because of this, your strategy must constantly evolve based on both internal and external factors.
This is where the controls that you and the rest of the team outlined in your strategy to action process will come in handy. There are many mechanisms that can be put in place to ensure that everyone stays on the same page even when changes occur (internally or externally). At River Rock Advisors, we meet frequently with the parties involved to ensure alignment around the common goal. If even one party goes off course, it can become a domino effect that can quickly bring a project to its knees. These alignment checks, along with periodic metrics reviews, are a great way to ensure everyone stays in alignment.
Unfortunately, internal and external change creates a natural gap between where you are now as an organization and where your strategy calls for you to be. Implementing operational strategy is thus an effort to close that gap within the established timeframe, budget, and quality parameters. This is itself a challenge because of the difficulty in achieving all three on a regular basis.
Your takeaway from this is not some secret step or hack to successfully implement an operational strategy. It’s simply being prepared for and responsive to change throughout the implementation. Knowing this will help you flexibly redirect your action plan to ensure you and those working on the strategy with you can continue making progress while minimizing interruptions and revisions.
Yes, this will be challenging. Staying the course during implementation — particularly if you’re working with cross-functional teams — can become more like an out-of-control circus without proper guidance and close management to established goals and metrics. Coordinating these efforts isn’t just about keeping all the pieces together and progress flowing — it’s also about doing what will maximize business value at every step.
And that is what every project, program, and portfolio should strive for: creating, sustaining, and growing business value for an organization. Aligning your implementation strategy, the changes you’ll face, and what creates the most long-term value is the ultimate goal. This is often where execution comes into play as well.
Often mistaken for implementation, execution is the next phase of your operational strategy. We’ll be sharing more on that topic soon. For now, if your organization has been struggling with keeping everyone involved in a project on the same page, or you’re not even sure where to start, working with a reliable partner can provide the independent guidance needed to maintain progress.
River Rock Advisors has been helping manufacturing and distribution companies across the country align their teams around shared business objectives to achieve goals and gain true business value from them. If you’re ready to learn more about our unique approach, how we measure every step with metrics relevant to your line of work, and how we can help you succeed in implementing your operational strategy, contact our team today.
", "content_plain": "Recapping Strategy to Action For our second post in our series on operational strategy, we need to explore a critical part of the process: implementation. This might sound like the act of simply doing, but implementing an operational strategy is a far more elaborate and dynamic portion of the endeavor than the words themselves convey. Recently, we covered the beginning stage of this process: turning your operational strategy into action. In that post, we outlined five steps for setting your plan into motion. As with any other strategy, the process must be outlined in-depth and prepared for — particularly to ensure that everyone understands what the goal is, what the resources are, what the approach will be, who will be involved and in what capacity, what the controls are, and what the requirements for reviewing and adjusting the strategy are. With these items identified and established, you can begin implementing your operational strategy. The Hierarchy of Strategy Implementation Before we get into the particulars of implementation, we should first explain the nature by which an operational strategy comes into play. It all starts from the top–down. Business leaders define the corporate strategy, to which all other strategies are subordinate and should reflect and support in whatever they seek to accomplish. From there, business units (i.e., departments) develop their respective business strategies. There may be one or more depending on the company and its needs in accomplishing the corporate strategy. Within the business strategy is an operational strategy — the methods by which you’ll achieve your goal(s). This hierarchy is important to note because everything that the operational strategy does must support a strategic layer above it, which in turn must support the strategic layer above it, too. Keeping this hierarchy in mind will be helpful during the implementation process as it provides a framework for action and even provides boundaries within which everyone can operate. With this understanding, we can dig into implementation. Implementing Operational Strategy is Navigating Change At its core, implementation is 1) initiating an action plan and 2) monitoring and adjusting it as you move forward. While your responsibility as a participant in the operational strategy implementation is to focus on item one, it’s item two where you — and the others working on the implementation with you — will face the most challenges. This ties back into the hierarchical nature of your corporate, business, and operational strategies. An operational strategy will be subject to change based on shifts in the business strategy above it. This is to be expected. After all, everything in the world is subject to change: markets, industries, regulations, consumer preferences, supply, and so on. These changes force companies to respond to and change with them in order to survive. Thus, our strategies must change as well to ensure that survival. While your focus should be to follow through on the operational strategy action plan you’ve outlined and agreed upon prior to implementation, everyone involved must be prepared to make adjustments in alignment with constantly evolving corporate and business strategies. Those Changes Can Be Internal as well as External One thing to remember when implementing an operational strategy is the fact that a strategy cannot truly be considered implemented until you have achieved the goals, state, and outcomes desired. This is because those endpoints are what the strategy called for in the first place. However, there’s practically no chance that the roadmap you outlined to get from A to B will be the exact route you take. There may be a C, D, E, F, and so on along the way. Your true north may still remain true, but the route to get there will most likely adjust. Because of this, your strategy must constantly evolve based on both internal and external factors. This is where the controls that you and the rest of the team outlined in your strategy to action process will come in handy. There are many mechanisms that can be put in place to ensure that everyone stays on the same page even when changes occur (internally or externally). At River Rock Advisors, we meet frequently with the parties involved to ensure alignment around the common goal. If even one party goes off course, it can become a domino effect that can quickly bring a project to its knees. These alignment checks, along with periodic metrics reviews, are a great way to ensure everyone stays in alignment. Unfortunately, internal and external change creates a natural gap between where you are now as an organization and where your strategy calls for you to be. Implementing operational strategy is thus an effort to close that gap within the established timeframe, budget, and quality parameters. This is itself a challenge because of the difficulty in achieving all three on a regular basis. The Key to Successfully Implementing Operational Strategy Your takeaway from this is not some secret step or hack to successfully implement an operational strategy. It’s simply being prepared for and responsive to change throughout the implementation. Knowing this will help you flexibly redirect your action plan to ensure you and those working on the strategy with you can continue making progress while minimizing interruptions and revisions. Yes, this will be challenging. Staying the course during implementation — particularly if you’re working with cross-functional teams — can become more like an out-of-control circus without proper guidance and close management to established goals and metrics. Coordinating these efforts isn’t just about keeping all the pieces together and progress flowing — it’s also about doing what will maximize business value at every step. And that is what every project, program, and portfolio should strive for: creating, sustaining, and growing business value for an organization. Aligning your implementation strategy, the changes you’ll face, and what creates the most long-term value is the ultimate goal. This is often where execution comes into play as well. Often mistaken for implementation, execution is the next phase of your operational strategy. We’ll be sharing more on that topic soon. For now, if your organization has been struggling with keeping everyone involved in a project on the same page, or you’re not even sure where to start, working with a reliable partner can provide the independent guidance needed to maintain progress. Work with Operational Strategy Leaders River Rock Advisors has been helping manufacturing and distribution companies across the country align their teams around shared business objectives to achieve goals and gain true business value from them. If you’re ready to learn more about our unique approach, how we measure every step with metrics relevant to your line of work, and how we can help you succeed in implementing your operational strategy, contact our team today.", "image": "https://riverrockadvisors.com/wp-content/uploads/2019/04/implementing_operational_strategy.jpg", "modified": "2025-04-28T10:42:13-05:00", "mapped_entity": "Article" }, { "id": 4285, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/operational-strategy-turning-strategy-into-action/", "title": "Operational Strategy: Turning Strategy Into Action", "h1": "Operational Strategy: Turning Strategy Into Action", "summary": "An operational strategy cannot be achieved without definition, planning, alignment, control, and flexibility. Learn more about how you can put yours into action.", "content": "Welcome to a new series on operational strategy! Over the next four posts, we’ll explore how organizations can put their operational strategies into action, successfully implement them, go about executing them, and ultimately achieve the results those strategies are aiming for. We’ve broken down each one of these — action, implementation, execution, and results — into separate discussions because operational strategy itself is no simple endeavor.
As different departments within an organization have their own goals, processes, and strategies, it can be difficult to zoom out to see how they function together as part of an operational strategy. Often, developing, enacting, and measuring an operational strategy requires an independent consultant to manage on behalf of an organization so that departments can continue their respective projects while also staying in alignment with the overall operational strategy.
It’s also important to note that operational strategy is different from a business strategy or competitive strategy. By the time an organization is working on its operational strategy, the latter two should already have been developed and be well underway. However, an operational strategy does touch on them since “operations” is the action of a company and without action, the business cannot do what it set out to do and compete with others in its industry.
First, let’s set some groundwork. What is an operational strategy? It’s the methods that organizations use to achieve their goals. While the strategy is essentially a roadmap, it forces companies to inspect the ways they’re using capital, their employees, and the processes that connect them all together. There are a number of other components that go into operational strategy, but those are more tactical than strategic. We’ll touch on them, but for now, let’s dig into taking the first step in any operational strategy.
Before anything can be done with your operational strategy, it must be planned. Such a plan should be a framework for how the operational strategy is developed, how the parties involved should use it, what its goals are, how it should be evaluated, and how adjustments should be made. These aren’t easy tasks and require the participation, adoption, and support of everyone involved in order for the strategy to work. We’ve outlined five areas of focus for such a group to get started.
So you want to have an operational strategy? Great! But why? What are you trying to achieve? Some common goals of an operational strategy might be to reduce warehouse operational costs, improve the productivity of a distribution facility, or reduce the time of a distribution cycle. These are great and worthy goals, but they must be specific. There must be something to aim for, and it must be realistic. Remember, you can always adjust goals or develop a “phase two” if you discover along the way that your goals could be pushed further. The use of the SMART system — specific, measurable, achievable, relevant, and timely — is appropriate for developing these goals.
A better example of goals in an operational strategy based on the SMART system might be to decrease warehouse operation costs by 15 percent, increase distribution output by 10 percent, reduce the average distribution cycle time from five business days to three — all by the end of Q2 in 2019. These are basic examples that don’t account for the many nuances of the business, but by being specific (stating the goal), measurable (quantifying), achievable (not too lofty), relevant (appropriate), and timely (defining when it should happen), the business can accomplish its overall strategy of improving its distribution system. At River Rock Advisors, we use a variety of models and methods to help you achieve goals such as these as part of an operational strategy.
Once you have your goals, you and the other stakeholders can jump in, right? Not unless you want to descend immediately into anarchy and confusion. You must outline your approach so that everyone understands what needs to happen first, what should be happening in conjunction, who is responsible for what, and what the requirements are. This is a component of overall project management, where the financial, time, and quality parameters are set, along with accountabilities and other factors.
Your action plan should establish who will be doing what, how, and over what period of time. It should account for crossover, potential risks and changes, future knowns, and other possibilities that cannot be immediately foreseen. Once the action roadmap has been developed, the process of alignment can occur.
With the goals defined and roadmap set, it will be time to share the operational strategy with everyone involved. This is critical and, if possible, should not be kept confidential. By empowering departments, teams, and individuals with the knowledge of what is being undertaken, everyone can understand why certain things are happening that differ from everyday tasks. Communication leads to clarity, clarity leads to understanding, and understanding leads to adoption. You’ll need all parties doing their best.
Ensuring alignment between all parties is not a one-time effort, however. In our work for our clients, we maintain consistent alignment checks to ensure work completed and work scheduled are in alignment with the overall operational strategy. Think of it as a check-up. Going to the doctor once doesn’t guarantee that everything will be fine one month or one year from now. Consistent check-ups are needed to ensure your health. The same goes for your operational strategy. If things appear to be derailing, you’ll be glad you checked.
Controls are important to numerous aspects of a business. For an operational strategy, controls ensure that the efforts that are being put forth to achieve the strategy do not derail. The alignment checks we just discussed are one such control but at a higher level. Controls for an operational strategy, such as improving distribution efficiency, might involve other tools, resources, or processes to keep an eye on performance and make adjustments as needed.
For example, controls might include dashboards and reporting mechanisms to monitor the increase in output on a weekly basis. Ideally, the output would increase at a steady level, culminating in the 10 percent that the operational strategy called for. Even better would be to define these periodic increases quantitatively, so that sudden increases or decreases could be evaluated. Say a bi-weekly increase of one percent was called for, but one week, it was five percent. That might appear as a positive thing, but there may be cause for concern. Is the reason for the increase sustainable? Or will it revert just as quickly?
Even with defined goals, an action roadmap, team alignment, and a system of controls, things can change. Large-scale influencers such as political trade agreements, material shortages, and other uncontrollable factors could necessitate a shift in strategy. To account for this, a system of regular reviews and adjustments, with clearly defined leadership and decision authority, should be followed to ensure the strategy is moving along as needed and to make changes where necessary.
What this looks like is dependent on your organization’s culture and existing processes, but remember that the operational strategy must be factored into those in order for it to succeed. Not every team or individual needs to be involved; leadership can perform these reviews and adjustments. But remember, if something changes, the cycle must repeat. How will changes affect the goals? Will the roadmap change, too? Will teams need to be realigned? Will the system of controls change?
These elements, along with others, create the fuel that will drive your operational strategy forward. Once the foundation is set, you can take action and begin to implement your strategy. We’ll discuss the concept of implementation next time. But for now, if your organization has been evaluating its operational strategy, doesn’t have one at all, or has achieved limited success with strategies of the past, we’d love to hear from you.
Let us know where your operational strategy stands, and where we might be able to help.
", "content_plain": "What an Operational Strategy Is and Where It Fits With Other Strategies Welcome to a new series on operational strategy! Over the next four posts, we’ll explore how organizations can put their operational strategies into action, successfully implement them, go about executing them, and ultimately achieve the results those strategies are aiming for. We’ve broken down each one of these — action, implementation, execution, and results — into separate discussions because operational strategy itself is no simple endeavor. As different departments within an organization have their own goals, processes, and strategies, it can be difficult to zoom out to see how they function together as part of an operational strategy. Often, developing, enacting, and measuring an operational strategy requires an independent consultant to manage on behalf of an organization so that departments can continue their respective projects while also staying in alignment with the overall operational strategy. It’s also important to note that operational strategy is different from a business strategy or competitive strategy. By the time an organization is working on its operational strategy, the latter two should already have been developed and be well underway. However, an operational strategy does touch on them since “operations” is the action of a company and without action, the business cannot do what it set out to do and compete with others in its industry. First, let’s set some groundwork. What is an operational strategy? It’s the methods that organizations use to achieve their goals. While the strategy is essentially a roadmap, it forces companies to inspect the ways they’re using capital, their employees, and the processes that connect them all together. There are a number of other components that go into operational strategy, but those are more tactical than strategic. We’ll touch on them, but for now, let’s dig into taking the first step in any operational strategy. Putting the Pieces of Operational Strategy into Place Before anything can be done with your operational strategy, it must be planned. Such a plan should be a framework for how the operational strategy is developed, how the parties involved should use it, what its goals are, how it should be evaluated, and how adjustments should be made. These aren’t easy tasks and require the participation, adoption, and support of everyone involved in order for the strategy to work. We’ve outlined five areas of focus for such a group to get started. 1) Understand and Define Your Goals So you want to have an operational strategy? Great! But why? What are you trying to achieve? Some common goals of an operational strategy might be to reduce warehouse operational costs, improve the productivity of a distribution facility, or reduce the time of a distribution cycle. These are great and worthy goals, but they must be specific. There must be something to aim for, and it must be realistic. Remember, you can always adjust goals or develop a “phase two” if you discover along the way that your goals could be pushed further. The use of the SMART system — specific, measurable, achievable, relevant, and timely — is appropriate for developing these goals. A better example of goals in an operational strategy based on the SMART system might be to decrease warehouse operation costs by 15 percent, increase distribution output by 10 percent, reduce the average distribution cycle time from five business days to three — all by the end of Q2 in 2019. These are basic examples that don’t account for the many nuances of the business, but by being specific (stating the goal), measurable (quantifying), achievable (not too lofty), relevant (appropriate), and timely (defining when it should happen), the business can accomplish its overall strategy of improving its distribution system. At River Rock Advisors, we use a variety of models and methods to help you achieve goals such as these as part of an operational strategy. 2) Develop an Action Plan Once you have your goals, you and the other stakeholders can jump in, right? Not unless you want to descend immediately into anarchy and confusion. You must outline your approach so that everyone understands what needs to happen first, what should be happening in conjunction, who is responsible for what, and what the requirements are. This is a component of overall project management, where the financial, time, and quality parameters are set, along with accountabilities and other factors. Your action plan should establish who will be doing what, how, and over what period of time. It should account for crossover, potential risks and changes, future knowns, and other possibilities that cannot be immediately foreseen. Once the action roadmap has been developed, the process of alignment can occur. 3) Aligning Everyone Involved With the goals defined and roadmap set, it will be time to share the operational strategy with everyone involved. This is critical and, if possible, should not be kept confidential. By empowering departments, teams, and individuals with the knowledge of what is being undertaken, everyone can understand why certain things are happening that differ from everyday tasks. Communication leads to clarity, clarity leads to understanding, and understanding leads to adoption. You’ll need all parties doing their best. Ensuring alignment between all parties is not a one-time effort, however. In our work for our clients, we maintain consistent alignment checks to ensure work completed and work scheduled are in alignment with the overall operational strategy. Think of it as a check-up. Going to the doctor once doesn’t guarantee that everything will be fine one month or one year from now. Consistent check-ups are needed to ensure your health. The same goes for your operational strategy. If things appear to be derailing, you’ll be glad you checked. 4) Maintaining Controls Controls are important to numerous aspects of a business. For an operational strategy, controls ensure that the efforts that are being put forth to achieve the strategy do not derail. The alignment checks we just discussed are one such control but at a higher level. Controls for an operational strategy, such as improving distribution efficiency, might involve other tools, resources, or processes to keep an eye on performance and make adjustments as needed. For example, controls might include dashboards and reporting mechanisms to monitor the increase in output on a weekly basis. Ideally, the output would increase at a steady level, culminating in the 10 percent that the operational strategy called for. Even better would be to define these periodic increases quantitatively, so that sudden increases or decreases could be evaluated. Say a bi-weekly increase of one percent was called for, but one week, it was five percent. That might appear as a positive thing, but there may be cause for concern. Is the reason for the increase sustainable? Or will it revert just as quickly? 5) Review and Adjust Even with defined goals, an action roadmap, team alignment, and a system of controls, things can change. Large-scale influencers such as political trade agreements, material shortages, and other uncontrollable factors could necessitate a shift in strategy. To account for this, a system of regular reviews and adjustments, with clearly defined leadership and decision authority, should be followed to ensure the strategy is moving along as needed and to make changes where necessary. What this looks like is dependent on your organization’s culture and existing processes, but remember that the operational strategy must be factored into those in order for it to succeed. Not every team or individual needs to be involved; leadership can perform these reviews and adjustments. But remember, if something changes, the cycle must repeat. How will changes affect the goals? Will the roadmap change, too? Will teams need to be realigned? Will the system of controls change? When the Foundation is Set, You’re Ready to Rock These elements, along with others, create the fuel that will drive your operational strategy forward. Once the foundation is set, you can take action and begin to implement your strategy. We’ll discuss the concept of implementation next time. But for now, if your organization has been evaluating its operational strategy, doesn’t have one at all, or has achieved limited success with strategies of the past, we’d love to hear from you. Let us know where your operational strategy stands, and where we might be able to help.", "image": "https://riverrockadvisors.com/wp-content/uploads/2019/03/operational-strategy.jpg", "modified": "2025-04-28T11:21:05-05:00", "mapped_entity": "Article" }, { "id": 4284, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/struggling-with-inventory-management/", "title": "Struggling with Inventory Performance? Stop Trying to Please Everyone and Get a Fresh Perspective", "h1": "Struggling with Inventory Performance? Stop Trying to Please Everyone and Get a Fresh Perspective", "summary": "Does your organization struggle with inventory management? It doesn’t have to. Learn how to overcome outside pressures and achieve balance.", "content": "Managing inventory performance often seems like a never-ending battle between the separate departments of your organization. Despite its obvious definition, inventory means something different to the people in each department. It’s easy to see how that can be — each one has distinct goals and wants to make their work toward achieving them as simple and effective as possible.
For example, commercial teams such as sales and customer service will want as much inventory on hand as possible to ensure they have goods to pull from to maintain high levels of satisfaction and service. But as you know, more inventory means more money tied up in goods that are just sitting there, tying up space and working capital, potentially costing interest fees and not earning money until they move.
Operations teams are efficiency-focused — pushing supply chain, purchasing, and material resources teams to acquire inventory intelligently so as to keep costs down. This sounds great — until inventory starts to run low, orders get delayed, and customers get antsy (all three of these require time to address, or expedite actions costing you even more).
Then we have finance, which wants as little inventory as possible to better utilize working capital. Their aim is to keep costs down so capital can be allocated elsewhere. But just like operations, too little inventory opens the door to another set of challenges.
So how can your organization establish the right level of inventory to help each department focus on what it needs to do (and hopefully stay out of your inbox so you can do the same)?
In the presentation below, delivered by River Rock Advisors partner Gary Jones, we discuss why the focus shouldn’t be on satisfying these groups, but instead on achieving an optimal balance of three dimensions to get a better picture of your inventory — and how to do it. Fill out the form now to get started.
", "content_plain": "Managing inventory performance often seems like a never-ending battle between the separate departments of your organization. Despite its obvious definition, inventory means something different to the people in each department. It’s easy to see how that can be — each one has distinct goals and wants to make their work toward achieving them as simple and effective as possible. For example, commercial teams such as sales and customer service will want as much inventory on hand as possible to ensure they have goods to pull from to maintain high levels of satisfaction and service. But as you know, more inventory means more money tied up in goods that are just sitting there, tying up space and working capital, potentially costing interest fees and not earning money until they move. Operations teams are efficiency-focused — pushing supply chain, purchasing, and material resources teams to acquire inventory intelligently so as to keep costs down. This sounds great — until inventory starts to run low, orders get delayed, and customers get antsy (all three of these require time to address, or expedite actions costing you even more). Then we have finance, which wants as little inventory as possible to better utilize working capital. Their aim is to keep costs down so capital can be allocated elsewhere. But just like operations, too little inventory opens the door to another set of challenges. How to Improve Inventory Performance So how can your organization establish the right level of inventory to help each department focus on what it needs to do (and hopefully stay out of your inbox so you can do the same)? In the presentation below, delivered by River Rock Advisors partner Gary Jones, we discuss why the focus shouldn’t be on satisfying these groups, but instead on achieving an optimal balance of three dimensions to get a better picture of your inventory — and how to do it. Fill out the form now to get started. ", "image": "https://riverrockadvisors.com/wp-content/uploads/2019/01/inventory-optimization.jpg", "modified": "2025-04-28T11:26:17-05:00", "mapped_entity": "Article" }, { "id": 4283, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/why-capital-allocation-should-exist-at-the-portfolio-level/", "title": "Why Capital Allocation Should Exist at the Portfolio Level", "h1": "Why Capital Allocation Should Exist at the Portfolio Level", "summary": "This is a guest post written by Ken Brooks, Chief Content Officer of Wiley Knowledge & Learning. Connect with Ken on LinkedIn and visit the Wiley website to learn more. It’s All About Alignment Like most organizations, you have a …", "content": "
This is a guest post written by Ken Brooks, Chief Content Officer of Wiley Knowledge & Learning. Connect with Ken on LinkedIn and visit the Wiley website to learn more.
Like most organizations, you have a long-term goal that you strive to achieve by undertaking and (hopefully) completing a number of initiatives. Those endeavors turn into programs and projects managed through different departments and leaders. Often, achieving your goal means going from A to Z by doing 1, 2, and 3 (and 4, and 5, and so on).
But as we all know, it’s rarely that simple — not only because executing the projects and programs that comprise the overall strategy takes time, but because those initiatives are often interdependent. One can’t be started, completed, or implemented without another. And of course, none of it can occur without capital.
This is where capital allocation comes into play. It’s more than just deciding what and how many resources to give one project or program. It’s about funding the projects and programs that will help you achieve the greatest value in the most efficient manner possible — all in a way that generates the most immediate, measurable, and meaningful value for your business.
This might seem overwhelming, particularly for project and program managers who are responsible for one or more slices of a business goal — not everything. That’s a fair reaction, as ensuring business value is a high-level focus that rests on the shoulders of the C-suite. But executives’ responsibilities can exist even above this, in the realm of long-term organizational strategy or in tasks that remove them from the progress of project and program managers.
So when capital must be allocated in a way that puts projects and programs in a strategic position to succeed quickly and effectively, what is an organization to do? Keep in mind, capital allocation is not just about providing resources to get work done, but about helping an organization achieve value in a way that also satisfies an objective or goal. It all begins with a critical role that stands at the top of the project management column in your organization.
A portfolio manager has two functions. First, the portfolio manager is responsible for all of the programs and projects within a portfolio. Second, the portfolio manager is responsible for aligning those programs and projects with the overall objective of delivering business value. (Learn more about the difference between project, program, and portfolio management.)
Alignment is key here. Without it, resources assigned to separate initiatives may result in redundancies or clashing end-states…or conflict with existing priorities and budgets. When this happens, there’s no value delivery. Only more work to be done and costs to incur in solving what could’ve been avoided through alignment. Thus, the portfolio manager is responsible for allocating capital in a way that keeps priorities and initiatives aligned toward the goal. It’s more than just choosing what capital to invest where. It’s about funding programs and projects in a complementary, strategic way.
What capital will it take to bring Program A to a position where Program B and its projects can begin, if they can’t begin simultaneously? If Program C is lagging due to some unforeseeable setback, can resources from Program A be re-allocated to push it along (and how will it impact Program B if both are required for Program C)? This is a simple illustration, but you see how this can quickly spiral out of control — derailing not only individual projects but also entire programs and potentially the portfolio itself.
Thankfully, a trained, experienced portfolio manager will navigate these challenges efficiently, keeping all the projects and programs not only in alignment with their workloads, but also with the capital being used to fund them. However, it’s not always beneficial to an organization to a) burden a lone portfolio manager with this high-level fiscal responsibility (it may even be out of the portfolio manager’s control anyway) and b) allow such significant financial decisions to rest with a single person. This is where investment review boards come into play.
An investment review board (IRB) is exactly what it sounds like: a decision-making body within an organization that’s dedicated to reviewing where resources are spent to ensure they’re in alignment with organizational goals. While IRBs exist in numerous industries, especially government, they’re particularly useful to organizations undergoing change at a portfolio or program level. Note that investment can mean many things, but we’re using the term in the sense of capital allocation — how resources are allotted to the different components of a portfolio and the subsequent programs and projects that comprise it.
An example IRB for a manufacturing organization might include the portfolio manager along with leaders from supply chain or purchasing, finance, and other involved departments. It may also include an executive or officer responsible for the initiative and perhaps the program manager(s) working with the portfolio manager. Together, they would review where resources should be allocated and for what purpose. But there’s another aspect to this that many organizations miss that we’ve touched on: aligning resources with the purpose of creating and measuring business value. This requires something on another level.
A continuous improvement council (CIC) is the value-focused evolution of an investment review board. In addition to the capital allocation tasks of an investment review board, a CIC includes another layer of consideration: business value — particularly focused on the extent to which incremental cash flow exceeds the cost of the incremental cash invested. A portfolio and its programs and projects should not be undertaken simply because there is a belief that they should. There must be an intentional, defined focus on delivering value to the organization and quantifying that value considering the cumulative effect of incremental investment, incremental revenue, and incremental costs required to achieve the basket of projects selected and how they may affect not only future capital spending but also current and future operating and revenue budgets
This is where a CIC shines. Allocating capital where it will be the most strategically useful and advantageous is important, but doing so in a way that leads to business value on an ongoing basis (even beyond a project or program’s implementation) is just as important. A CIC is a component of program value management (PVM) — a discipline that connects and considers portfolio management (and its subordinate disciplines), change management, and more — all with the ultimate goal of delivering consistent business value.
So what does a CIC actually do? CICs focus on seeking cross-functional alignment, prioritizing initiatives, removing barriers, assigning talent, and adjusting operating budgets — all while providing the support, authority, alignment, direction, and funding that an organization and its portfolio, program, and project management professionals need to achieve the overall goal. Note the emphasis on funding and operating budgets; without these, not much is going to happen.
This is why capital allocation should exist at the portfolio level: so that from the beginning, at the highest order, and in the most strategic method, capital can be allocated where it will deliver the greatest value and achieve the goal in the best way possible. The CIC is the governing body for this, as the portfolio manager who retains the ultimate responsibility of keeping all parties aligned will have the right people together at the right time focusing on the right priorities.
Consider Tetris. You stack and align the different pieces so that they cancel one another out, preventing them from reaching the top and ending the game (all with a time limit, naturally). Capital allocation is the opposite — the intent is to put the pieces (each consisting of investment, revenue, and cost — i.e., value) where they need to be: not so they cancel out, but so they function together and collectively build up to what is not the end, but the finish line, leaving no gaps between. It’s harmony in pursuit of purpose and value.
Capital allocation is one of the most significant drivers of value creation. It is the fuel of an organization’s efforts to move toward and eventually achieve success. If your organization is struggling with completing initiatives in a timely, efficient, and cost-effective manner, it may be time to consider your capital allocation methodology. Learn more here.
", "content_plain": "This is a guest post written by Ken Brooks, Chief Content Officer of Wiley Knowledge & Learning. Connect with Ken on LinkedIn and visit the Wiley website to learn more. It’s All About Alignment Like most organizations, you have a long-term goal that you strive to achieve by undertaking and (hopefully) completing a number of initiatives. Those endeavors turn into programs and projects managed through different departments and leaders. Often, achieving your goal means going from A to Z by doing 1, 2, and 3 (and 4, and 5, and so on). But as we all know, it’s rarely that simple — not only because executing the projects and programs that comprise the overall strategy takes time, but because those initiatives are often interdependent. One can’t be started, completed, or implemented without another. And of course, none of it can occur without capital. This is where capital allocation comes into play. It’s more than just deciding what and how many resources to give one project or program. It’s about funding the projects and programs that will help you achieve the greatest value in the most efficient manner possible — all in a way that generates the most immediate, measurable, and meaningful value for your business. This might seem overwhelming, particularly for project and program managers who are responsible for one or more slices of a business goal — not everything. That’s a fair reaction, as ensuring business value is a high-level focus that rests on the shoulders of the C-suite. But executives’ responsibilities can exist even above this, in the realm of long-term organizational strategy or in tasks that remove them from the progress of project and program managers. So when capital must be allocated in a way that puts projects and programs in a strategic position to succeed quickly and effectively, what is an organization to do? Keep in mind, capital allocation is not just about providing resources to get work done, but about helping an organization achieve value in a way that also satisfies an objective or goal. It all begins with a critical role that stands at the top of the project management column in your organization. The Portfolio Manager A portfolio manager has two functions. First, the portfolio manager is responsible for all of the programs and projects within a portfolio. Second, the portfolio manager is responsible for aligning those programs and projects with the overall objective of delivering business value. (Learn more about the difference between project, program, and portfolio management.) Alignment is key here. Without it, resources assigned to separate initiatives may result in redundancies or clashing end-states…or conflict with existing priorities and budgets. When this happens, there’s no value delivery. Only more work to be done and costs to incur in solving what could’ve been avoided through alignment. Thus, the portfolio manager is responsible for allocating capital in a way that keeps priorities and initiatives aligned toward the goal. It’s more than just choosing what capital to invest where. It’s about funding programs and projects in a complementary, strategic way. What capital will it take to bring Program A to a position where Program B and its projects can begin, if they can’t begin simultaneously? If Program C is lagging due to some unforeseeable setback, can resources from Program A be re-allocated to push it along (and how will it impact Program B if both are required for Program C)? This is a simple illustration, but you see how this can quickly spiral out of control — derailing not only individual projects but also entire programs and potentially the portfolio itself. Thankfully, a trained, experienced portfolio manager will navigate these challenges efficiently, keeping all the projects and programs not only in alignment with their workloads, but also with the capital being used to fund them. However, it’s not always beneficial to an organization to a) burden a lone portfolio manager with this high-level fiscal responsibility (it may even be out of the portfolio manager’s control anyway) and b) allow such significant financial decisions to rest with a single person. This is where investment review boards come into play. The Investment Review Board An investment review board (IRB) is exactly what it sounds like: a decision-making body within an organization that’s dedicated to reviewing where resources are spent to ensure they’re in alignment with organizational goals. While IRBs exist in numerous industries, especially government, they’re particularly useful to organizations undergoing change at a portfolio or program level. Note that investment can mean many things, but we’re using the term in the sense of capital allocation — how resources are allotted to the different components of a portfolio and the subsequent programs and projects that comprise it. An example IRB for a manufacturing organization might include the portfolio manager along with leaders from supply chain or purchasing, finance, and other involved departments. It may also include an executive or officer responsible for the initiative and perhaps the program manager(s) working with the portfolio manager. Together, they would review where resources should be allocated and for what purpose. But there’s another aspect to this that many organizations miss that we’ve touched on: aligning resources with the purpose of creating and measuring business value. This requires something on another level. The Continuous Improvement Council A continuous improvement council (CIC) is the value-focused evolution of an investment review board. In addition to the capital allocation tasks of an investment review board, a CIC includes another layer of consideration: business value — particularly focused on the extent to which incremental cash flow exceeds the cost of the incremental cash invested. A portfolio and its programs and projects should not be undertaken simply because there is a belief that they should. There must be an intentional, defined focus on delivering value to the organization and quantifying that value considering the cumulative effect of incremental investment, incremental revenue, and incremental costs required to achieve the basket of projects selected and how they may affect not only future capital spending but also current and future operating and revenue budgets This is where a CIC shines. Allocating capital where it will be the most strategically useful and advantageous is important, but doing so in a way that leads to business value on an ongoing basis (even beyond a project or program’s implementation) is just as important. A CIC is a component of program value management (PVM) — a discipline that connects and considers portfolio management (and its subordinate disciplines), change management, and more — all with the ultimate goal of delivering consistent business value. So what does a CIC actually do? CICs focus on seeking cross-functional alignment, prioritizing initiatives, removing barriers, assigning talent, and adjusting operating budgets — all while providing the support, authority, alignment, direction, and funding that an organization and its portfolio, program, and project management professionals need to achieve the overall goal. Note the emphasis on funding and operating budgets; without these, not much is going to happen. This is why capital allocation should exist at the portfolio level: so that from the beginning, at the highest order, and in the most strategic method, capital can be allocated where it will deliver the greatest value and achieve the goal in the best way possible. The CIC is the governing body for this, as the portfolio manager who retains the ultimate responsibility of keeping all parties aligned will have the right people together at the right time focusing on the right priorities. Consider Tetris. You stack and align the different pieces so that they cancel one another out, preventing them from reaching the top and ending the game (all with a time limit, naturally). Capital allocation is the opposite — the intent is to put the pieces (each consisting of investment, revenue, and cost — i.e., value) where they need to be: not so they cancel out, but so they function together and collectively build up to what is not the end, but the finish line, leaving no gaps between. It’s harmony in pursuit of purpose and value. Where Are You Falling Short? Capital allocation is one of the most significant drivers of value creation. It is the fuel of an organization’s efforts to move toward and eventually achieve success. If your organization is struggling with completing initiatives in a timely, efficient, and cost-effective manner, it may be time to consider your capital allocation methodology. Learn more here.", "image": "https://riverrockadvisors.com/wp-content/uploads/2018/12/capital-allocation.jpg", "modified": "2025-07-09T11:06:03-05:00", "mapped_entity": "Article" }, { "id": 4282, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/transforming-a-business-case-for-action-into-a-usable-business-value-plan/", "title": "Transforming a Business Case for Action into a Usable Business Value Plan", "h1": "Transforming a Business Case for Action into a Usable Business Value Plan", "summary": "Achieving a Goal is One Thing, Learning Its Benefits is Another As a business executive that authorizes programs and projects, it can be frustrating to get a business case for action with a great ROI, then never understand much about …", "content": "As a business executive that authorizes programs and projects, it can be frustrating to get a business case for action with a great ROI, then never understand much about the result of the program other than the fact that it maybe came in on time and on budget.
The story is often that the business dynamics have changed since the business case was authorized and the proposed solution was implemented. Because program leaders and business directors don’t want their long days of hard work invalidated, they may have several reasons why the results can’t be measured — plucked from a long list that’s been used untold times before.
As a program or project manager, the day-to-day responsibility of keeping the wheels on the project often means delaying benefit reporting until the end of the project when the solution is about to be turned on. Only then does it become obvious that it’s too late to capture the benchmarking data needed to compare new solution results to previous process results.
Often on the list of benefit opportunities is the “quick hits” line, which is intended to help “self-fund” the project or program. These will often be set aside with the project approval, as they can mean interim process changes and the time spent implementing those interim changes can appear as wasted effort since the process will be changed again with the end solution.
People often also try to link process metrics with direct impacts on resultant or corporate measures. For example, reducing cycle times may have no impact on business results if time compression isn’t an issue. Reducing rework or error rates won’t have a business impact if headcount isn’t reduced/re-assigned to more productive areas or more revenue is able to be handled by the same amount of staff.
Generally, the impacts on process measures require a management step to be made before they become a business value impact. This calls for connecting the approved business case for action to a trackable business value plan.
A business value plan should be the time-phased embodiment of the business case used to gain project approval.
But more than substantiating the authorization that program and project managers need from executive leadership, a business value plan establishes a kind of roadmap for how a business leader affected by the project is going to align business activities with the overall strategic goals of the organization. There is much more to this concept, and business value plans are early drivers of the overall strategy, but they’re still a foundational element.
But just as executives are often left without insight into the result of a program or project beyond the knowledge that it satisfied standard project health metrics (scope, duration, budget), program and project managers often emphasize an endpoint rather than the end goal (and there is a difference).
It’s understandable. Even at the program level, work just needs to get done. But it’s not advisable. Moreover, it’s a mistake — one that not only deprives the organization of valuable retrospective process and performance data, but also insights into the future of the organization. Completing a goal doesn’t necessarily mean things are going to improve — only that a milestone has been reached or checkbox has been checked.
Program and project managers need to account for the potential changes and planned benefits between approval and completion, and more importantly, how this relates to gaining true business value.
A business value plan provides an account for the business change gray area and time period between authorization and implementation, which for you as an executive or business leader can mean the difference between approving a program or project worth undertaking and approving one that doesn’t move the business closer to the objective. (A combination of P&L and balance sheet planned impacts versus actual can quickly give comfort or give insight to corrective action.)
What’s key to a business value plan is the ability to re-plan — and re-plan the re-plans. The business world doesn’t hold still, and program leadership should be able to show executive sponsors that they’ve maintained control of their program throughout the business’s changes.
With data visualization platforms such as Tableau, PowerBI, and others, program reporting can be readily structured to be easily updated and compare initial plans, actuals, and re-plans. With this high-level oversight, as well as the flexibility to make adjustments, program and project managers will be in a better position to continually report on the planned impact of their work — despite changes to scope, price, time metrics (confining as they are), and other key metrics.
More importantly, it can provide the drill-down capability needed to understand why results may appear differently than what was anticipated at the time of program authorization. There is a positive perspective here: By segmenting the “reality” of program or project performance over time, everyone can gain a sense of benefit delivery during that period in relation to the anticipated delivery at program implementation.
For example, if the program manager discovers three months into a year-long program that benefits are taking hold sooner than expected, this can be reported to executive leadership. The original business value plan projected a steady incline in benefit delivery over the year, but with program benefits taking hold sooner than expected (and with the data to prove their validity), leadership teams and the program manager can make adjustments to the program immediately. The program may be shortened, fewer resources allocated to further save costs (or conversely, more resources allocated to exponentiate the benefit), and so on.
What matters here is that the business value plan, in conjunction with the business case for action, gave everyone the insight needed to actually focus on delivering benefits to the organization and gaining business value while accounting for change and impact along the way.
Many organizations experience this frustration with their programs due to inexperience with formal program management and inexperience with business value plan development. This no fault of their own; it’s a learning- and experience-based solution. Imagine trying to develop a process to build a house without knowing anything about what goes into building a house. You simply wouldn’t know.
The good news is that you’ve already found someone who does. If your organization has gone through a program or project to be left with a solution and no or minimal insight into the benefit it provided along the way (and will provide in the future), we’d like to hear your story.
", "content_plain": "Achieving a Goal is One Thing, Learning Its Benefits is Another As a business executive that authorizes programs and projects, it can be frustrating to get a business case for action with a great ROI, then never understand much about the result of the program other than the fact that it maybe came in on time and on budget. The story is often that the business dynamics have changed since the business case was authorized and the proposed solution was implemented. Because program leaders and business directors don’t want their long days of hard work invalidated, they may have several reasons why the results can’t be measured — plucked from a long list that’s been used untold times before. As a program or project manager, the day-to-day responsibility of keeping the wheels on the project often means delaying benefit reporting until the end of the project when the solution is about to be turned on. Only then does it become obvious that it’s too late to capture the benchmarking data needed to compare new solution results to previous process results. There Are Shortcuts, but Tracking Resultant Metrics is Critical Often on the list of benefit opportunities is the “quick hits” line, which is intended to help “self-fund” the project or program. These will often be set aside with the project approval, as they can mean interim process changes and the time spent implementing those interim changes can appear as wasted effort since the process will be changed again with the end solution. People often also try to link process metrics with direct impacts on resultant or corporate measures. For example, reducing cycle times may have no impact on business results if time compression isn’t an issue. Reducing rework or error rates won’t have a business impact if headcount isn’t reduced/re-assigned to more productive areas or more revenue is able to be handled by the same amount of staff. Generally, the impacts on process measures require a management step to be made before they become a business value impact. This calls for connecting the approved business case for action to a trackable business value plan. What is a Business Value Plan? A business value plan should be the time-phased embodiment of the business case used to gain project approval. But more than substantiating the authorization that program and project managers need from executive leadership, a business value plan establishes a kind of roadmap for how a business leader affected by the project is going to align business activities with the overall strategic goals of the organization. There is much more to this concept, and business value plans are early drivers of the overall strategy, but they’re still a foundational element. But just as executives are often left without insight into the result of a program or project beyond the knowledge that it satisfied standard project health metrics (scope, duration, budget), program and project managers often emphasize an endpoint rather than the end goal (and there is a difference). It’s understandable. Even at the program level, work just needs to get done. But it’s not advisable. Moreover, it’s a mistake — one that not only deprives the organization of valuable retrospective process and performance data, but also insights into the future of the organization. Completing a goal doesn’t necessarily mean things are going to improve — only that a milestone has been reached or checkbox has been checked. Program and project managers need to account for the potential changes and planned benefits between approval and completion, and more importantly, how this relates to gaining true business value. A business value plan provides an account for the business change gray area and time period between authorization and implementation, which for you as an executive or business leader can mean the difference between approving a program or project worth undertaking and approving one that doesn’t move the business closer to the objective. (A combination of P&L and balance sheet planned impacts versus actual can quickly give comfort or give insight to corrective action.) What’s key to a business value plan is the ability to re-plan — and re-plan the re-plans. The business world doesn’t hold still, and program leadership should be able to show executive sponsors that they’ve maintained control of their program throughout the business’s changes. Use Data Visualization Tools to Support the Business Value Plan With data visualization platforms such as Tableau, PowerBI, and others, program reporting can be readily structured to be easily updated and compare initial plans, actuals, and re-plans. With this high-level oversight, as well as the flexibility to make adjustments, program and project managers will be in a better position to continually report on the planned impact of their work — despite changes to scope, price, time metrics (confining as they are), and other key metrics. More importantly, it can provide the drill-down capability needed to understand why results may appear differently than what was anticipated at the time of program authorization. There is a positive perspective here: By segmenting the “reality” of program or project performance over time, everyone can gain a sense of benefit delivery during that period in relation to the anticipated delivery at program implementation. For example, if the program manager discovers three months into a year-long program that benefits are taking hold sooner than expected, this can be reported to executive leadership. The original business value plan projected a steady incline in benefit delivery over the year, but with program benefits taking hold sooner than expected (and with the data to prove their validity), leadership teams and the program manager can make adjustments to the program immediately. The program may be shortened, fewer resources allocated to further save costs (or conversely, more resources allocated to exponentiate the benefit), and so on. What matters here is that the business value plan, in conjunction with the business case for action, gave everyone the insight needed to actually focus on delivering benefits to the organization and gaining business value while accounting for change and impact along the way. Hindsight is 20-20, but Foresight Can Be, Too Many organizations experience this frustration with their programs due to inexperience with formal program management and inexperience with business value plan development. This no fault of their own; it’s a learning- and experience-based solution. Imagine trying to develop a process to build a house without knowing anything about what goes into building a house. You simply wouldn’t know. The good news is that you’ve already found someone who does. If your organization has gone through a program or project to be left with a solution and no or minimal insight into the benefit it provided along the way (and will provide in the future), we’d like to hear your story.", "image": "https://riverrockadvisors.com/wp-content/uploads/2018/11/business-value-2.jpg", "modified": "2025-04-28T12:16:30-05:00", "mapped_entity": "Article" }, { "id": 4281, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/top-100-great-supply-chain-partners-list-by-supplychainbrain/", "title": "River Rock Advisors Named a Top 100 Great Supply Chain Partner by SupplyChainBrain", "h1": "River Rock Advisors Named a Top 100 Great Supply Chain Partner by SupplyChainBrain", "summary": "River Rock Advisors is pleased to announce that we have been recognized on the Top 100 Great Supply Chain Partners list by SupplyChainBrain, a supply chain management information resource. For nearly 20 years, SupplyChainBrain has established the list using nominations …", "content": "River Rock Advisors is pleased to announce that we have been recognized on the Top 100 Great Supply Chain Partners list by SupplyChainBrain, a supply chain management information resource. For nearly 20 years, SupplyChainBrain has established the list using nominations from customers who recognize suppliers and service providers for outstanding solutions and service.
SupplyChainBrain conducted a six-month online poll of supply chain professionals asking them to nominate vendors and services whose solutions “have made a significant impact on their company’s efficiency, customer service, and overall supply chain performance.”
“The RRA team uses a unique business- and metrics-first approach to keep the entire team moving productively forward and to put team members in a position to succeed,” said Larry Ley, VP Supply Chain Resources for Bunzl North America. “Their most effective contribution though has been something deceptively simple: it’s evident that RRA cares deeply about our success, and that of the people involved, beyond the end of the project. The greatest compliment we can pay is this: RRA has become part of our team.”
As a boutique supply chain advisor, we believe in not just moving the needle, but redefining what the needle is. Too often, organizations and the program and project professionals within them focus on the traditional metrics that, while important, tend not to reveal meaningful data and insight into why an initiative was undertaken and what its true business value was.
And business value — the measurable benefits an organization receives from its programs and projects — is the final deciding factor in the success of those initiatives. At River Rock Advisors, helping organizations determine, pursue, measure, and attain that value is why we exist.
Putting our collective experience to use in helping organizations implement and monitor metrics that are specific and appropriate to their industry and businesses is a rewarding experience — not only for our team, but also for our clients who achieve success through it.
A key aspect of this approach is leading from behind. As a supply chain advisor, we cannot be the voice or face of success — only its architect and advocate. After all, a coach does not win the game — his or her players do. The coach is the strategist and motivator that moves the players into action that leads to a successful outcome. This is our approach at River Rock Advisors, and we are grateful to have assisted our clients with implementing solutions to complex supply chain challenges.
We congratulate all those organizations who have demonstrated their value to their customers, and in doing so have also been recognized on the SupplyChainBrain Top 100 Great Supply Chain Partners list for 2018. Learn more about the list and view it here.
A problem does not get solved through inaction. It only gets more and more difficult and complex. Often, problems exist beyond inventory and distribution — in the “white spaces” between departments, teams, and functions. If your organization is facing challenges related to supply chain and distribution, we are here to assist you in addressing them. It all starts with a simple conversation.
[activecampaign form=8]
", "content_plain": "River Rock Advisors is pleased to announce that we have been recognized on the Top 100 Great Supply Chain Partners list by SupplyChainBrain, a supply chain management information resource. For nearly 20 years, SupplyChainBrain has established the list using nominations from customers who recognize suppliers and service providers for outstanding solutions and service. SupplyChainBrain conducted a six-month online poll of supply chain professionals asking them to nominate vendors and services whose solutions “have made a significant impact on their company’s efficiency, customer service, and overall supply chain performance.” “The RRA team uses a unique business- and metrics-first approach to keep the entire team moving productively forward and to put team members in a position to succeed,” said Larry Ley, VP Supply Chain Resources for Bunzl North America. “Their most effective contribution though has been something deceptively simple: it’s evident that RRA cares deeply about our success, and that of the people involved, beyond the end of the project. The greatest compliment we can pay is this: RRA has become part of our team.” A Supply Chain Advisor that Reveals True Business Value As a boutique supply chain advisor, we believe in not just moving the needle, but redefining what the needle is. Too often, organizations and the program and project professionals within them focus on the traditional metrics that, while important, tend not to reveal meaningful data and insight into why an initiative was undertaken and what its true business value was. And business value — the measurable benefits an organization receives from its programs and projects — is the final deciding factor in the success of those initiatives. At River Rock Advisors, helping organizations determine, pursue, measure, and attain that value is why we exist. Putting our collective experience to use in helping organizations implement and monitor metrics that are specific and appropriate to their industry and businesses is a rewarding experience — not only for our team, but also for our clients who achieve success through it. A key aspect of this approach is leading from behind. As a supply chain advisor, we cannot be the voice or face of success — only its architect and advocate. After all, a coach does not win the game — his or her players do. The coach is the strategist and motivator that moves the players into action that leads to a successful outcome. This is our approach at River Rock Advisors, and we are grateful to have assisted our clients with implementing solutions to complex supply chain challenges. We congratulate all those organizations who have demonstrated their value to their customers, and in doing so have also been recognized on the SupplyChainBrain Top 100 Great Supply Chain Partners list for 2018. Learn more about the list and view it here. Nothing Changes if Nothing Changes A problem does not get solved through inaction. It only gets more and more difficult and complex. Often, problems exist beyond inventory and distribution — in the “white spaces” between departments, teams, and functions. If your organization is facing challenges related to supply chain and distribution, we are here to assist you in addressing them. It all starts with a simple conversation. [activecampaign form=8]", "image": "https://riverrockadvisors.com/wp-content/uploads/2018/10/supply-chain-advisor.jpg", "modified": "2023-10-25T10:34:57-05:00", "mapped_entity": "Article" }, { "id": 4280, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/navigating-the-limitations-of-project-management-metrics/", "title": "Navigating the Limitations of Project Management Metrics", "h1": "Navigating the Limitations of Project Management Metrics", "summary": "Traditional Project Management Metrics are Confining Program and project managers know the constraints involved with their roles. Each endeavor is a dynamic relationship between the amount of time needed to make things happen, the scope that defines its parameters, and …", "content": "Program and project managers know the constraints involved with their roles. Each endeavor is a dynamic relationship between the amount of time needed to make things happen, the scope that defines its parameters, and the budget needed to complete it. These constraints are also the project management metrics used to evaluate a project’s health and success afterward.
And while they’d prefer their projects to be a harmonious balance of these three, the classic statement is, “Pick two, and the third will be determined by the two selected.”
If budget and timing are the most important, then the span of the project and depth of the detail have to meet those constraints. If budget and functionality are the most important, then the time to implement can be extended to provide participants working outside of their normal obligations an opportunity to complete work.
Budget is often the primary project management metric, as businesses don’t have an open checkbook. However, if the second or third consideration is time to initial implementation, shouldn’t it actually be time to value (TTV) or time to ROI?
For a major initiative, a business case is generally created with the functionality required (people and roles impacted, process change, enabling technology), the time to deliver the new initiative required (including change management), and a budget for internal and external resources, along with capital costs.
The project then often becomes a program — although it likely won’t be called that. Multiple work tracks are performed by different pieces of the business with the intent of everything coming together smoothly at the end to begin delivering business value.
Trained project management professionals track budgets carefully during the project to avoid overruns. But who’s tracking the interim benefits and TTV benefit plans? This is one of the difficulties of project management metrics. Too often in the time and capacity crunch of getting the project done, the “win” is that the capability has been implemented or functions properly, rather actually delivering upon the actual benefit plan.
Allowing programs to only have project management metrics of “on time” and “on budget” as success criteria devalues why the program was started in the first place.
Your program or project managers may have found themselves in a situation similar to the one described. They put so much effort into managing the three critical components of a project — components they were trained to manage — and in the end, it’s like nothing happened at all. You were frustrated, they were frustrated, and those whom the project was intended to provide a solution for are as inefficient as they were before (possibly more).
That’s because programs have greater success when there’s a broader focus that includes metrics that affect more than one business area. Otherwise, it would likely just be a project. Project and program managers are familiar with budget, scope, and time — metrics commonly known as project health metrics. But there are a variety of other metrics that should be tracked — not because we simply want to overload you with tasks, but for a vastly more important reason: delivering real business value.
Process metrics track, assess, and improve operational performance. Often they’re tracking items such as error rates, cycle times, and schedule adherence rates. While program health metrics will end with the program, process metrics should continue to assess improvement and whether processes are “backsliding” to previous behaviors.
For example, in the difference between project, program, and portfolio management, we explored ECI’s decision to invest in a CRM for sales and marketing. Cycle times for contracting with a customer and accessing a customer’s information might be process measures captured.
While process metrics are great indicators of a process in control and improving, generally they don’t translate into items that the executive team thinks about. Those are resultant metrics. Process metrics would determine a level of success in that both sales and marketing will be spending less time on common tasks, saving the money and moving the needle on overall goals.
Resultant metrics are measures of the ongoing performance of a program or project. In distribution and supply chain, common conflicting resultant metrics range from customer service (e.g., customer fill rates) and logistics cost to revenue lift and inventory (working capital). These are the operational language of the company’s executives.
Like process metrics, there are a number of resultant metrics that can be included in a project or program evaluation. Not all will apply to their circumstances and goals, but rely on your advisor, program manager, or project manager to identify those that should be included.
In the case of ECI, TTV for a customer is a strong metric — i.e., how quickly can the organization get a new customer onboarded and generating revenue?
The last group of metrics is corporate metrics — measures that assess progress toward an organization’s financial goals. Metrics such as PBIT (profit before interest and taxes), ROCE (return on capital employed), and cash flows are common operational corporate metrics tracked.
As we all well know, these measures are impacted by the entire business and the constantly evolving landscape. Thus, the impact can be difficult to determine. However, that doesn’t mean that the program should not undertake the effort to compare program-resulting corporate impacts with the business case approved and prioritized before the program was undertaken.
Bottom line: every project and program must deliver business value. Employing project health metrics that many project managers are trained on and expected to report on doesn’t move the needle in a meaningful, long-term way. It only tells you that the needle got to where it was going and whether it got there as expected.
If you’re an executive not getting the value from your programs that you believe you should be, we’d love to hear from you. Maybe you haven’t dipped your feet into these metrics and how to tie them with programs and/or projects just yet. Maybe you’re unsure how to put them to use for your organization. Or, maybe you simply haven’t been given the opportunity to ask for the information you actually need to see.
Whatever the situation, whatever your experience, reach out — and let’s see how we can get you there.
", "content_plain": "Traditional Project Management Metrics are Confining Program and project managers know the constraints involved with their roles. Each endeavor is a dynamic relationship between the amount of time needed to make things happen, the scope that defines its parameters, and the budget needed to complete it. These constraints are also the project management metrics used to evaluate a project’s health and success afterward. And while they’d prefer their projects to be a harmonious balance of these three, the classic statement is, “Pick two, and the third will be determined by the two selected.” If budget and timing are the most important, then the span of the project and depth of the detail have to meet those constraints. If budget and functionality are the most important, then the time to implement can be extended to provide participants working outside of their normal obligations an opportunity to complete work. Budget is often the primary project management metric, as businesses don’t have an open checkbook. However, if the second or third consideration is time to initial implementation, shouldn’t it actually be time to value (TTV) or time to ROI? For a major initiative, a business case is generally created with the functionality required (people and roles impacted, process change, enabling technology), the time to deliver the new initiative required (including change management), and a budget for internal and external resources, along with capital costs. The project then often becomes a program — although it likely won’t be called that. Multiple work tracks are performed by different pieces of the business with the intent of everything coming together smoothly at the end to begin delivering business value. Trained project management professionals track budgets carefully during the project to avoid overruns. But who’s tracking the interim benefits and TTV benefit plans? This is one of the difficulties of project management metrics. Too often in the time and capacity crunch of getting the project done, the “win” is that the capability has been implemented or functions properly, rather actually delivering upon the actual benefit plan. Allowing programs to only have project management metrics of “on time” and “on budget” as success criteria devalues why the program was started in the first place. Put Other Project Management Metrics to Use Your program or project managers may have found themselves in a situation similar to the one described. They put so much effort into managing the three critical components of a project — components they were trained to manage — and in the end, it’s like nothing happened at all. You were frustrated, they were frustrated, and those whom the project was intended to provide a solution for are as inefficient as they were before (possibly more). That’s because programs have greater success when there’s a broader focus that includes metrics that affect more than one business area. Otherwise, it would likely just be a project. Project and program managers are familiar with budget, scope, and time — metrics commonly known as project health metrics. But there are a variety of other metrics that should be tracked — not because we simply want to overload you with tasks, but for a vastly more important reason: delivering real business value. Process Metrics Process metrics track, assess, and improve operational performance. Often they’re tracking items such as error rates, cycle times, and schedule adherence rates. While program health metrics will end with the program, process metrics should continue to assess improvement and whether processes are “backsliding” to previous behaviors. For example, in the difference between project, program, and portfolio management, we explored ECI’s decision to invest in a CRM for sales and marketing. Cycle times for contracting with a customer and accessing a customer’s information might be process measures captured. While process metrics are great indicators of a process in control and improving, generally they don’t translate into items that the executive team thinks about. Those are resultant metrics. Process metrics would determine a level of success in that both sales and marketing will be spending less time on common tasks, saving the money and moving the needle on overall goals. Resultant Metrics Resultant metrics are measures of the ongoing performance of a program or project. In distribution and supply chain, common conflicting resultant metrics range from customer service (e.g., customer fill rates) and logistics cost to revenue lift and inventory (working capital). These are the operational language of the company’s executives. Like process metrics, there are a number of resultant metrics that can be included in a project or program evaluation. Not all will apply to their circumstances and goals, but rely on your advisor, program manager, or project manager to identify those that should be included. In the case of ECI, TTV for a customer is a strong metric — i.e., how quickly can the organization get a new customer onboarded and generating revenue? Corporate Metrics The last group of metrics is corporate metrics — measures that assess progress toward an organization’s financial goals. Metrics such as PBIT (profit before interest and taxes), ROCE (return on capital employed), and cash flows are common operational corporate metrics tracked. As we all well know, these measures are impacted by the entire business and the constantly evolving landscape. Thus, the impact can be difficult to determine. However, that doesn’t mean that the program should not undertake the effort to compare program-resulting corporate impacts with the business case approved and prioritized before the program was undertaken. Are You Getting Real Business Value from Your Projects? Bottom line: every project and program must deliver business value. Employing project health metrics that many project managers are trained on and expected to report on doesn’t move the needle in a meaningful, long-term way. It only tells you that the needle got to where it was going and whether it got there as expected. If you’re an executive not getting the value from your programs that you believe you should be, we’d love to hear from you. Maybe you haven’t dipped your feet into these metrics and how to tie them with programs and/or projects just yet. Maybe you’re unsure how to put them to use for your organization. Or, maybe you simply haven’t been given the opportunity to ask for the information you actually need to see. Whatever the situation, whatever your experience, reach out — and let’s see how we can get you there.", "image": "https://riverrockadvisors.com/wp-content/uploads/2018/09/project-management-metrics-1.jpg", "modified": "2023-10-25T10:33:27-05:00", "mapped_entity": "Article" }, { "id": 4279, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/difference-between-project-program-portfolio-management/", "title": "Understanding the Difference Between Project, Program, and Portfolio Management", "h1": "Understanding the Difference Between Project, Program, and Portfolio Management", "summary": "Common Use Doesn’t Mean Common Knowledge You’ve likely heard the term project management or project manager many times throughout your career. This is a common function and role in many organizations and industries across the world. Whether project management is …", "content": "You’ve likely heard the term project management or project manager many times throughout your career. This is a common function and role in many organizations and industries across the world. Whether project management is a core component of your professional duties as a manager, director, or executive, or you’re interacting with project managers on a daily basis, this area of focus is responsible for achieving the milestones and completing the tasks that move organizations forward.
You may also be aware of the Project Management Institute — a governing body that provides education and certification on project management. What is less known is that the term project management has specific meaning and is just one of a few disciplines PMI supports. The others are program management and portfolio management. While they sound similar, the difference between project, program, and portfolio management is significant in purpose, scope, and benefit.
According to PMI, project management is “a temporary endeavor undertaken to create a unique product, service or result.” Pretty simple, right? Any project manager would readily disagree that it’s simple. That’s because there are a variety of operations and factors involved with projects along with a defined process that collectively determines the success of the project.
An example might be launching a new CRM system for a distribution services company. There would be a discovery process to determine if an existing platform can be used out of the box or should be customized (e.g., Salesforce, Microsoft Dynamics, etc.), or a new tool built from scratch. From there, a team would be involved in a variety of tasks, such as process design, development, workflow, testing, and more. Then, an implementation team would manage the tasks associated with launching and deploying the software and monitoring its use and efficiency for a set time, making adjustments as needed until the software was optimized and adopted.
Along the way, a project manager would follow the process of initiation, planning, execution, monitoring, and closing to ensure the project is completed with a focus of “on time and on budget.” While this is a specific example of a project, launching a CRM would likely be part of a greater initiative to achieve business benefit such as cost reduction or increased operational efficiency.
This is a key difference between project, program, and portfolio management: scope — and it’s often where the realm of project management ends, and program management begins.
While project management oversees the work of individuals and teams to achieve a specific result, a program consists of several or many projects that collectively produce business value in support of an organization’s strategy. Building on the example above, let’s say the focus of a program at that same company is to improve customer relations and operational efficiency. Here, a program manager might have oversight of the CRM project manager as well as project managers working on other related projects to produce results that support this initiative and collectively drive measurable improvement.
For example, while sales and marketing will make use of the CRM, work still needs to be done in other functions. A new sales organizational approach may be needed to coordinate a newly segmented customer base. Like the CRM, where the organizational and process work may be directed by a non-IT function, this requires discovery, planning, execution, testing, monitoring, and more — all under the oversight of perhaps a different project manager. But this capability and the CRM tool are not independent of one another.
For true efficiency, these projects would need to synchronize or collaborate with one another. Customer information captured from sales, marketing promotions, and other data should be available to back-office employees, so they’re prepared ahead of the customer interaction. Program management would plan for this by looking at the gaps between these two projects and other adjacent projects to find the dependencies and connections that tie them together. Then, the program manager would support the project managers by keeping them on target and coordinated in respect to the business value of customer focus and improving operational efficiency.
A final difference between project and program — particularly at the program level — is the understanding that program management offers benefits that can’t be realized from managing projects individually. In our example, program manager oversight creates unity between CRM project managers and sales organization management project managers. That unity aligns teams and resources for the shared goal of improved efficiency. There may even be a subprogram under this program to streamline accounting practices and another for vendor usage. Together, these projects generate a greater benefit when managed at the program level than if they were managed individually.
But just as a project is a component of change that, along with other projects, can and should be unified under the direction of program management, so too can multiple related programs be unified for a still greater purpose. Most companies do not have unlimited resources to implement all desired business beneficial programs or projects. This rests with portfolio management, under which projects and programs are focused and honed to help an organization achieve its strategy. Let’s continue with Example Company, Inc.
We know that Example Company, Inc. (ECI) has an overarching strategy for profitable revenue growth. But how can it make the most progress and have the greatest impact toward that goal in a world of limited resources? ECI needs to develop and align a portfolio of programs with the strategic initiatives required to achieve their intended goal. This will require them to balance service objectives, cost constraints, and capital investments with the timing and interactions required to achieve their desires. Portfolio management helps to achieve the organization’s goal by providing high-level, centralized oversight and guidance for the company’s programs and the projects within them.
Hopefully, we’ve cleared up the difference between project, program, and portfolio management for you. And while we’ve explored their uses and purposes at all levels of ECI, there’s one last thing that ties them all together. One last thing that can rattle the bones of project, program, and portfolio managers alike if asked without an answer.
Ideally, no project, program, or portfolio manager would undertake their respective workload without having an understanding of how it delivers value to the business beyond the more common metrics of getting work done within budget, on time, and at a high-quality level. And no executive team will fund such efforts. But all too often, those become the only metrics used and tracked.
It’s important to understand that projects are about attaining a goal. They may not have the metrics associated with them — metrics that can only be realized at the program level. For larger efforts that cross functional organizations or business lines, often trackable business impact metrics as well as resultant and process metrics can only be maintained, measured, and tracked at a program level. This is because those metrics address the between-process “whitespace” work: the things project managers and others involved may not be monitoring.
In the end, the difference between project, program, and portfolio management includes a distinction between their operational and strategic focuses, but each also has a specific role to play in how they deliver business value. And if the focus isn’t on the business value received from them, then there is no value.
If this is something your organization is struggling with or considering implementing, we’d love to learn more about it.
", "content_plain": "Common Use Doesn’t Mean Common Knowledge You’ve likely heard the term project management or project manager many times throughout your career. This is a common function and role in many organizations and industries across the world. Whether project management is a core component of your professional duties as a manager, director, or executive, or you’re interacting with project managers on a daily basis, this area of focus is responsible for achieving the milestones and completing the tasks that move organizations forward. You may also be aware of the Project Management Institute — a governing body that provides education and certification on project management. What is less known is that the term project management has specific meaning and is just one of a few disciplines PMI supports. The others are program management and portfolio management. While they sound similar, the difference between project, program, and portfolio management is significant in purpose, scope, and benefit. Project Management According to PMI, project management is “a temporary endeavor undertaken to create a unique product, service or result.” Pretty simple, right? Any project manager would readily disagree that it’s simple. That’s because there are a variety of operations and factors involved with projects along with a defined process that collectively determines the success of the project. An example might be launching a new CRM system for a distribution services company. There would be a discovery process to determine if an existing platform can be used out of the box or should be customized (e.g., Salesforce, Microsoft Dynamics, etc.), or a new tool built from scratch. From there, a team would be involved in a variety of tasks, such as process design, development, workflow, testing, and more. Then, an implementation team would manage the tasks associated with launching and deploying the software and monitoring its use and efficiency for a set time, making adjustments as needed until the software was optimized and adopted. Along the way, a project manager would follow the process of initiation, planning, execution, monitoring, and closing to ensure the project is completed with a focus of “on time and on budget.” While this is a specific example of a project, launching a CRM would likely be part of a greater initiative to achieve business benefit such as cost reduction or increased operational efficiency. This is a key difference between project, program, and portfolio management: scope — and it’s often where the realm of project management ends, and program management begins. Program Management While project management oversees the work of individuals and teams to achieve a specific result, a program consists of several or many projects that collectively produce business value in support of an organization’s strategy. Building on the example above, let’s say the focus of a program at that same company is to improve customer relations and operational efficiency. Here, a program manager might have oversight of the CRM project manager as well as project managers working on other related projects to produce results that support this initiative and collectively drive measurable improvement. For example, while sales and marketing will make use of the CRM, work still needs to be done in other functions. A new sales organizational approach may be needed to coordinate a newly segmented customer base. Like the CRM, where the organizational and process work may be directed by a non-IT function, this requires discovery, planning, execution, testing, monitoring, and more — all under the oversight of perhaps a different project manager. But this capability and the CRM tool are not independent of one another. For true efficiency, these projects would need to synchronize or collaborate with one another. Customer information captured from sales, marketing promotions, and other data should be available to back-office employees, so they’re prepared ahead of the customer interaction. Program management would plan for this by looking at the gaps between these two projects and other adjacent projects to find the dependencies and connections that tie them together. Then, the program manager would support the project managers by keeping them on target and coordinated in respect to the business value of customer focus and improving operational efficiency. A final difference between project and program — particularly at the program level — is the understanding that program management offers benefits that can’t be realized from managing projects individually. In our example, program manager oversight creates unity between CRM project managers and sales organization management project managers. That unity aligns teams and resources for the shared goal of improved efficiency. There may even be a subprogram under this program to streamline accounting practices and another for vendor usage. Together, these projects generate a greater benefit when managed at the program level than if they were managed individually. Portfolio Management But just as a project is a component of change that, along with other projects, can and should be unified under the direction of program management, so too can multiple related programs be unified for a still greater purpose. Most companies do not have unlimited resources to implement all desired business beneficial programs or projects. This rests with portfolio management, under which projects and programs are focused and honed to help an organization achieve its strategy. Let’s continue with Example Company, Inc. We know that Example Company, Inc. (ECI) has an overarching strategy for profitable revenue growth. But how can it make the most progress and have the greatest impact toward that goal in a world of limited resources? ECI needs to develop and align a portfolio of programs with the strategic initiatives required to achieve their intended goal. This will require them to balance service objectives, cost constraints, and capital investments with the timing and interactions required to achieve their desires. Portfolio management helps to achieve the organization’s goal by providing high-level, centralized oversight and guidance for the company’s programs and the projects within them. Hopefully, we’ve cleared up the difference between project, program, and portfolio management for you. And while we’ve explored their uses and purposes at all levels of ECI, there’s one last thing that ties them all together. One last thing that can rattle the bones of project, program, and portfolio managers alike if asked without an answer. What’s the Business Value? Ideally, no project, program, or portfolio manager would undertake their respective workload without having an understanding of how it delivers value to the business beyond the more common metrics of getting work done within budget, on time, and at a high-quality level. And no executive team will fund such efforts. But all too often, those become the only metrics used and tracked. It’s important to understand that projects are about attaining a goal. They may not have the metrics associated with them — metrics that can only be realized at the program level. For larger efforts that cross functional organizations or business lines, often trackable business impact metrics as well as resultant and process metrics can only be maintained, measured, and tracked at a program level. This is because those metrics address the between-process “whitespace” work: the things project managers and others involved may not be monitoring. In the end, the difference between project, program, and portfolio management includes a distinction between their operational and strategic focuses, but each also has a specific role to play in how they deliver business value. And if the focus isn’t on the business value received from them, then there is no value. If this is something your organization is struggling with or considering implementing, we’d love to learn more about it.", "image": "https://riverrockadvisors.com/wp-content/uploads/2018/08/management-differences.jpg", "modified": "2023-10-25T10:32:04-05:00", "mapped_entity": "Article" }, { "id": 1266, "type": "page", "url": "https://riverrockadvisors.com/our-thinking/", "title": "Our Thinking", "h1": "Our Thinking", "summary": "Explore the latest thought leadership, announcements, research, and more from our supply chain and operational improvement experts.", "content": "", "content_plain": "", "image": "https://riverrockadvisors.com/wp-content/uploads/2023/10/Our-Thinking.png", "modified": "2023-10-20T13:05:36-05:00", "mapped_entity": "WebPage" }, { "id": 4297, "type": "post", "url": "https://riverrockadvisors.com/our-thinking/business-post-covid-19-triage-and-rediscovery/", "title": "Business Post-COVID-19: Triage and Rediscovery", "h1": "Business Post-COVID-19: Triage and Rediscovery", "summary": "Preparing for the New Normal It’s no secret that the pandemic will leave a lasting mark on the world. For many manufacturers and distributors, the battle is only halfway over, and post-COVID uncertainty won’t be lifted with stay-at-home orders. With …", "content": "It’s no secret that the pandemic will leave a lasting mark on the world. For many manufacturers and distributors, the battle is only halfway over, and post-COVID uncertainty won’t be lifted with stay-at-home orders. With so much change occurring rapidly on a global scale, demand has and will be shifted to a new normal.
What matters now is agility. Shifting priorities, meeting expectations, and mitigating supply and demand risks come with a higher level of urgency. As a value chain optimization firm, we know the challenges that await manufacturers and distributors when they return. Below are the three stages of post-COVID business recovery.
Throughout March and April, events changed and shifted rapidly. There was little time to plan and get in front of the challenges that arose. Now that time has passed and companies have ensured their people are safe, the time has come to focus on the other aspects of a business that will require attention for a successful post-COVID recovery.
With your house in order, the next stage will be evaluating customer needs and vendor business health. A rapid assessment to capture the quickly evolving, multi-threaded situation will be essential to understand the changing needs of your customers; segment and focus channels, customers, products, vendors, and offerings; and mitigate supplier risks in capability, timing, and price. As many companies are experiencing, demand has shifted that “good enough and available now” are more important than wide selection.
The old normal is being replaced by an evolving new normal. Historical models of customer buying behaviors may now be drastically and permanently changed. Scenario planning and understanding your cost structure will be key in responding to new customer needs. This may also be a time to prepare to capture new business from competitors that were not prepared for the crisis, were unable to adapt to the post-crisis business climate, or had to let go of underperforming business segments.
River Rock Advisors can partner with you to ensure your business is in a strong post-COVID operational position. For companies looking for strategic recovery support, our approach consists of working with you along three business lines:
Contact us today to learn more about our post-COVID recovery support services.
", "content_plain": "Preparing for the New Normal It’s no secret that the pandemic will leave a lasting mark on the world. For many manufacturers and distributors, the battle is only halfway over, and post-COVID uncertainty won’t be lifted with stay-at-home orders. With so much change occurring rapidly on a global scale, demand has and will be shifted to a new normal. What matters now is agility. Shifting priorities, meeting expectations, and mitigating supply and demand risks come with a higher level of urgency. As a value chain optimization firm, we know the challenges that await manufacturers and distributors when they return. Below are the three stages of post-COVID business recovery. 3 Stages for Post-COVID Business Operations Recovery 1. Triage Throughout March and April, events changed and shifted rapidly. There was little time to plan and get in front of the challenges that arose. Now that time has passed and companies have ensured their people are safe, the time has come to focus on the other aspects of a business that will require attention for a successful post-COVID recovery. 2. Tenacity With your house in order, the next stage will be evaluating customer needs and vendor business health. A rapid assessment to capture the quickly evolving, multi-threaded situation will be essential to understand the changing needs of your customers; segment and focus channels, customers, products, vendors, and offerings; and mitigate supplier risks in capability, timing, and price. As many companies are experiencing, demand has shifted that “good enough and available now” are more important than wide selection. 3. Preparation The old normal is being replaced by an evolving new normal. Historical models of customer buying behaviors may now be drastically and permanently changed. Scenario planning and understanding your cost structure will be key in responding to new customer needs. This may also be a time to prepare to capture new business from competitors that were not prepared for the crisis, were unable to adapt to the post-crisis business climate, or had to let go of underperforming business segments. How We Can Support Your Post-COVID Strategy River Rock Advisors can partner with you to ensure your business is in a strong post-COVID operational position. For companies looking for strategic recovery support, our approach consists of working with you along three business lines: Business Advisory Agile sales and operations planning Demand and supply planning Customer, product, and services segmentation Scenario planning Business Analytics Cost to serve Inventory performance, including distribution network resizing Digital Transformation Interim planning models Dashboarding Connectivity portals Contact us today to learn more about our post-COVID recovery support services.", "image": "https://riverrockadvisors.com/wp-content/uploads/1970/01/post-COVID.jpg", "modified": "2025-04-28T10:51:14-05:00", "mapped_entity": "Article" } ] }![](\"//riverrockadvisors.com/wp-content/uploads/2023/11/3D-Ops-Model-1.png\" "\\"3D-Ops-Model\\"")
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