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In the fast-paced world of modern supply chains, traditional forecasting methods fall short. Probabilistic forecasting is revolutionizing demand forecasting, supply planning, and inventory optimization by significantly improving forecast accuracy and decision-making across distribution networks.
In 2012, when I started Supply Chain Insights , I believed that I could revolutionize the purchase of supply chain planning solutions by initiating a rating and review process across trading partners. Business leaders see the open sharing of feedback on software as too risky. How can I improve the process of software selection?
Manufacturing ERP (Enterprise Resource Planning) software integrates all your core business processes into one powerful platform. Think of it as the central nervous system of your operation, connecting everything from production planning and inventory control to supply chain management and financial reporting.
of revenue on information technology (IT), only six percent of manufacturers drove performance at the intersection of growth and margin. During the pandemic, conventional planning systems were inadequate. Over 85% of companies turned their systems off, turning to spreadsheets and ad hoc manual analysis. Despite spending 1.1%
The lack of interoperability between decision support platforms is a problem for companies attempting to improve decisions from the channel to supplier bi-directionally through technology. The essence of the question is resilience and the ability to forecast in a variable market reliably. For most, this is a market opportunity.
The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team. Engineers could sign up for hour-long blocks to use the new systems.
Millions of shoppers, like my Dad, are not going back to their old habits because there are now faster and more convenient ways for buying daily household needs. It excels on a union of E-Commerce mobile apps and last-mile delivery innovations. I have to forecast my avocado sales, including seasonal patterns and promotional effects.
Top 3 ProcurementTechnologies to Embrace in 2025 Staying ahead of key procurementtechnology and advancements is essential for CPOs who want to improve spend cost reduction, drive strategic value, and navigate the increasingly complex procurement landscape.
Today, supply chain excellence matters more than ever. While the supply chain technology market lost its allure at the start of the last decade, it is now cool again. I forecast that this interest will grow and the market is going to become more confusing. The supply chain technology market is responding. Figure 1.
Experts from North Carolina State University and GEP conducted a survey on supply chain, procurement and IT leaders to determine their challenges and priorities, focusing on examining gaps in the supply chain. The study found that these leaders considered the largest gap to be between supply chain and procurement, citing it as a major issue.
Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.
For most digital became an excuse to implement more traditional relational database technologies. Most companies invested in enterprise transactional systems, but their networks operate primarily through spreadsheets and email. Most are excited about their new platforms. ” Does the Dog Hunt? I am researcher.
Procurement operations are no exception. In fact, 43% of GPOs that took part in the 2023 Global Chief Procurement Officer Survey cited overall procurement risk had increased significantly as compared to 20% in the 2021 study. Keep reading to learn: What is an online procurementsystem?
Technology can have a significant impact on supply chains, but supply chain digitization still lags behind digitization of other areas of business across many industries. Still, there are several technologies that are transforming supply chains for the organizations that adopt them.
A large consumer products manufacturer with nine Enterprise Resource Planning (ERP) instances and several divisions wanted to discuss forecasting. The team was not calibrated on the role of forecasting and the basics around process excellence. ” The next call was with a technology provider. Bear with me.
As an analyst in the supply chain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. Today I am writing my take on the acquisition of Terra Technology by E2open. History of Terra Technology. Terra Technology is 15-years old.
New technologies revolutionizing transportation are creating tremendous opportunities but also unprecedented challenges for tire manufacturers. Leveraging DELMIA’s planning solution, powered by the 3D EXPERIENCE platform, tire manufacturers can realize these benefits: Long-term benefits.
Supply chain software is changing. So should the purchasing process. . RFIs tend to work well for certain industries (like government) or for purchasing equipment and industrial assets, bu t t hey often fall short in helping supply chain teams select a new software vendor. Why RFIs Fall Short .
Supply chain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. Technology integration: Leveraging digital tools to enhance visibility and decision-making.
Given your expertise, I’d love to hear what alternatives you recommend for better demand forecasting and real-time visibility beyond what’s commonly adopted today.” I know that your primary focus is procurement. The issues are largely rooted in politics and the lack of clarity on supply chain excellence. The reason?
Richard is the CEO of LeanDNA , a purpose-built analytics platform for factory inventory optimization. About Richard Lebovitz Richard Lebovitz is the CEO of LeanDNA , a purpose-built analytics platform for factory inventory optimization. Richard Lebovitz and Joe Lynch discuss leading inventory attack teams. acquired by SAP).
CAGR , the global supply chain management software market is expected to touch USD 50 billion by 2032. This one figure speaks volumes about how organizations worldwide want access to the best supply chain management tools to boost efficiency and value in their distribution and logistics network. Growing at an overwhelming rate of 11.1%
At the end of a long day of a strategy session on supply chain excellence with a client, I needed to fill up some time in an agenda. While each installed the technology, they are unclear about what drives a good plan. This large food manufacturer used a popular technology to forecast monthly using orders as an input. (In
At a time that marketplace offerings were super-hyped, I forecasted the doom of ten e-marketplace providers. I asked companies to “Navigate through the hype focusing on the feasibility of scope and technology.” In the height of the e-commerce craze, the marketplace offerings started with a focus on e-procurement.
How Kechie ERP Software Transforms Operations Across Key Business Sectors How are companies managing the external and internal challenges that increase the complexity of their operations every day? That solution is Kechie ERP, a configurable, user-friendly tool designed to support businesses of all sizes. It truly covers it all.
The systems–based on shipment and order data–were out of step with the market. With fixed models and hard-wired data feeds, teams could not adjust the planning systems to use consumption data or market indicators. Initially, the output was published to procurement to design strategic buying strategies.
Driving an excellent supply chain depends on how people are recruited and managed, processes, and the technology used. The company uses a network design tool from Coupa. This is an important analysis tool for maintaining a well-run supply chain. Ferguson does 20 to 30 studies a year using this tool.
ERP systems form the backbone of efficient operations for many organizations. They integrate finance, HR, sales, and supply chain management into one complex platform. Within this setup, an ERP procurement module helps companies make purchases and manage suppliers. Keep reading to learn: What Is ERP in Procurement?
As Allyson presented her story of working for multiple consumer products companies, with very advanced technologies (demand sensing, advanced automation of forecasting, data lakes and descriptive analytics), she spoke of why at the end of the day, the most important technology that she uses is Excel.
With the global market expansion and deepening supply chain complexity, the roles of procurement leaders have evolved from tactical to strategic. Nowadays, procurement departments not only focus on the day-to-day buying operations but also search for the most efficient ways to go about them. From whom are we buying?
From harvest to hands, the food & beverage (F&B) industry leaves no room for guesswork, especially without supply chain optimization software. The key to creating an effective market-driven demand plan is access to rich forecasts based on inputs from multiple sources. And that’s pretty astonishing.
Q: Is it only inventory disrupting the agility resulting from inaccurate forecasts by S&OP? Alternate Bill of Materials and Alternate Sourcing: The more alternatives that exist through the manufacturing and procurement processes, the easier it is to design the supply chain to absorb cost and supplier variability. Is it S&OP?
I find technology providers pitching old–often wrapped in the cloak of ‘digital transformation.’ Recent releases of Advanced Planning Solutions (APS) refined but did not transform initial software concepts. Little modernization despite the evolution of new technologies to enable: 1) Demand Sensing. Let’s reflect.
Concurrent macro forces–material shortages, war, shifts in consumer buying patterns, logistics constraints, inflation/recession, and climate change– are reshaping today’s reality necessitating the need for a supply chain reset button. ” Most have the same values in the system as when it was installed.
Brand loyalty is no longer the driver for consumer purchasing decisions. People simply want to purchase products from businesses which provide a more transparent and streamlined service, and who deliver on their customer promise, even if it means inflated prices to obtain it. Internal data alone won’t cut it.
Current technologies and processes focus on volume trade-offs. The Chief Financial Officer gained more presence with procurement and IT reporting to finance. Ironically, technology innovation is the highest that I have ever seen. Today, only 4% of companies are the first to buy new technology—a 40% decline from post Y2K in 2001.
Manufactures are continuously faced with the challenge of forecasting how much (raw material) to purchase and how much (finished goods) to produce. To manage this delicate balance of demand and supply, manufacturers often use statistical forecasting techniques to predict future demand by looking at historical sales data.
The Lean journey should focus on straightforward activities that everyone can see and understand because the tools take on a life of their own, causing the operation to lose sight of the simple goal of waste elimination. One company had an empty automated storage and retrieval system (ASRS), calling it the “epitome of a monument to waste.”
The chief procurement officer (CPO) is a senior executive responsible for developing and implementing their organization’s procurement policies, procedures, and strategies. Making sure these purchases are of high quality and compliant with relevant laws and regulations also falls under the CPO’s responsibilities.
At the time, I was fascinated how the most mature teams bucked the system. However, this mature team found the technology insufficient. Tight coupling of the supply chain forecast to the financial forecast will improve value. Demand latency is two-eight weeks delayed from consumption purchase to translate to an order.
Hence, leveraging the right technologicaltools becomes not only beneficial. It is also a means to maintain a competitive edge and operational excellence. This comprehensive guide highlights software that stands out. For each recommended software, we will delve into the key features that set it apart.
Supply chain software is changing. So should the purchasing process. . RFIs tend to work well for certain industries (like government) or for purchasing equipment and industrial assets, bu t t hey often fall short in helping supply chain teams select a new software vendor. Why RFIs Fall Short .
Insiders joke (quite fairly, as it turns out) about billion-dollar procurement-management-disposition cycles that are managed in spreadsheets. Some larger organizations try to use ERP systems, which are often ill-suited to supply chain workflows, while a fortunate few enterprises host game-changing custom control tower systems.
To truly harness the power of POS data, CPG manufacturers must implement systems and processes that translate data into strategic improvements in sales, marketing, and operations. Depending on the retailer, this can involve manually downloading files or using automated tools to pull the data into a centralized system.
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