This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
The logistics and supply chain industry is a critical component of global trade, responsible for moving goods and materials efficiently to meet consumer and business demands. Reducing dependency on fossil fuels can mitigate these risks and improve operational predictability.
From balancing cost-efficiency with ethical sourcing to enhancing transparency and integrating corporate social responsibility (CSR), businesses face mounting pressure to align their operations with sustainability, technology, and energy practices.
For senior leaders, understanding and integrating the three pillars of sustainability—environmental, social, and economic—into supply chain strategies is essential. Reducing carbon emissions is a cornerstone of this effort. Meanwhile, advances in AI-driven route optimization reduce unnecessary mileage, cutting emissions and costs.
The DOE is still issuing large federal loans to startup companies, Novonix a synthetic graphite startup just received a $755 million loan to support its mission and reach its goal of producing 31,500 metric tonnes of synthetic graphite. Department of Energy to build a synthetic graphite facility in Chattanooga, Tennessee.
Oracle’s recent global survey, No Planet B: How Can Businesses and Technology Help Save the World? These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Start with your supply chain.
Read on to explore key AI use cases in procurement, the challenges businesses face, strategies to overcome them, and the exciting opportunities AI brings for the future. Contract analysis AI in sourcing and procurement is transforming contract management by automating key tasks like contract review, compliance tracking, and renewal alerts.
Supply Chain Resilience: Strategic partnerships with reliable suppliers guarantee consistent material availability, regardless of production scale. Dependencies on suppliers who cant meet increased demand can lead to material shortages and production delays. This reliability prevents bottlenecks and keeps production flowing smoothly.
It’s the key to transforming your supply chain from a source of frustration into a well-oiled, profit-generating machine. You’ll learn how to leverage data to streamline operations, reduce costs, improve efficiency, and exceed customer expectations. That’s where data analytics comes in. Ready to get started?
Procurement professionals can contribute significantly to the S&OP process by providing valuable insights into supply chain dynamics, identifying potential risks, and optimizing sourcingstrategies. Keep Reading to unlock a 50% discount code! Click here to learn more and register today!
That’s why organizations zero in on strategies to achieve procurement cost reduction. The key thing to remember is that cost reduction in procurement isn’t just about slashing expenses. This article will give you practical procurement cost-saving ideas and tips to avoid common pitfalls.
Their metrics are often misaligned as well – supply chain focuses on service and procurement focuses on the cost of acquiring materials and services. By working closely with suppliers, organizations can improve the quality and reliability of their in-bound supply chains, reduce costs, and increase their overall efficiency.
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.
This article explores the disruptive nature of supply chain disruptions, the significance of collaboration in managing direct spend, the role of Purchase Order (PO) Collaboration in tracking materials throughout the order cycle, and real-world challenges faced in PO Collaboration.
By maximizing space utilization, improving inventory control , and boosting workflow efficiency, you can unlock significant cost savings and elevate your customer service game. In this comprehensive guide, we’ll explore the key elements of warehouse optimization and provide actionable strategies you can implement today.
The client leaned across the table and asked, “Is a customer-centric supply chain strategy the same as a demand-driven supply chain strategy?” Drawing from the Whiteboard: Building Customer-Centric Supply Chain Strategies. It had been a long night. However, I had little time to be tired. ” I smiled.
GEP and the North Carolina State University (NCSU) Supply Chain Resource Cooperative surveyed supply chain, procurement and IT professionals across a range of industries to gain insight into their priorities and strategies regarding supply chain resilience and optimization. Networks and Sourcing. Supplier Due Diligence.
Risk events that happen in one part of the supply chain can cause a disruptive effect that is amplified multi-fold given the complex connectivity of labor, raw materials, and capacity. Balancing supply and demand by orchestrating the flow of materials and information is a key requirement for managing operational risks.
At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) Understanding this relationship requires modeling. (A A Case Study.
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. The traditional leader values cost reduction but is blind on how to value time. Order cycles–the requested time from order to delivery–decreased while supply cycles –the time to procure materials– increased.
Supply chains must be connected and collaborative so all links can align to business strategy and oriented toward a common set of the most important metrics (and not functional metrics that drive siloed behavior). Reduce waste and aim for circular, not linear, designs. The future of supply chain can be full of blooms.
For instance, a student struggling with inventory management concepts can receive supplementary materials, interactive simulations, and one-on-one tutoring sessions tailored to their needs. Conversely, a student who quickly grasps procurement strategies can be challenged with advanced case studies and leadership projects.
The point of the virtual summit was to discuss how streamlining the order-to-fulfillment process achieves perfect delivery, improves customer loyalty, and reduces costs. What is the Perfect Delivery Metric? The wrong metrics drive suboptimal behaviors and metrics can often be manipulated. Third is to deliver on time.
Are you looking for some reading material to pass the time on your next flight? Even if you’re not you should check out Supply Chain Insights, Supply Chain Metrics That Matter. Think about those design, sourcing and delivery challenges. by Bill DuBois. The report uses the Boeing 747-8 International as an example.
According to the UN Environment Program’s Food Waste Index, 923 million metric tons of food is wasted globally every year. Source: [link]. There already are options such as food sharing and food saving platforms to help reduce the problem of food waste on the consumers’ end. The Right Approach to Food Waste Reduction.
In simple terms business procurement is the process of locating and acquiring goods and services from external sources for the business to use. Procurement activities include planning, sourcing, and negotiation, along with risk management, legal and value analysis. What is procurement?
Covid has also revealed issues like the frailties in many areas of global supply chain: shortages created when raw material needed to complete a product are stuck at a border, and the pandemic holds those materials indefinitely. Identify metrics, analytics and projects to drive business improvements.
That’s why staying on top of the latest supply chain planning trends is so important – they can make all the difference when it comes to staying competitive, reducing costs, and meeting your customers’ needs. They are more likely to shop for discounts and sales and may delay purchases of some items. billion a year.
“When the world changes around you, and when it changes against you, what used to be a tailwind is now a headwind — you need to lean into that and figure out what to do because complaining isn’t a strategy.”. This allows Zara to make products that meet consumer tastes and reduces the number of items they must sell at a discount.
A solid supply chain and logistics strategy is essential for large companies. A global chemical manufacturer recently had to replace ships that transported bulk materials to ports. Using a logistics-oriented strategy helps companies better understand their suppliers, improve customer service, and optimize shipping.
The Power of Source-to-Pay Digital Transformation To put it briefly, source-to-pay refers to the entire process that starts with finding, negotiating with, and contracting the suppliers of materials, goods and services, and culminates in the final payment for those items. Who Should Prioritize an S2P Digital Transformation?
With this mounting pressure to commit to Net Zero and CPOs goals and incorporate sustainability metrics into all aspects of procurement decisions and processes, businesses are looking to elevate ESG strategies with a mind for climate change, ethical social practices and stronger governance models.
Tom, the colorful warehouse manager, constantly heckled Frank for the increasing inventory levels while Ed, the quiet material/logistics manager, constantly questioned if there was a better way. Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance.
In these tricky times, smart cash flow management strategies are essential to bring down costs (or push profits) in controllable areas, offsetting international instability. This is achieved through the implementation and continued improvement of cash flow management strategies. Offer bulk-purchase discounts or throw a 2-for-1 sale.
The report provides a cross-industry perspective on environmental sustainability in logistics including fuel consumption, screening logistics providers, packing material, sales order delivery, and reverse logistics based on 1,157 valid participants. This percentage does not vary much for those respondents at the 25th or even 75th percentiles.
In this blog post, we’ll explore the challenges of inventory management in today’s manufacturing landscape , discuss the importance of a “single source of truth” for global inventory, and introduce a powerful solution that can help manufacturers transform their operations and drive profitability. Supply chain is fickle.
With material costs rising and the drive towards sustainable practices in full swing, the circular supply chain has become an attractive way for manufacturers and sellers to manage their supply chains in a more environmentally friendly way – and save costs in the long term. So how do you close the loop on your supply chain?
The implementation of a Demand-Driven Materials Requirements Planning (DDMRP) using Orchestr8 followed in 2017. The Terra Technology implementation is an example of demand sensing while the DDMRP implementation is an example of demand translation of the probability of demand into materials requirements. Nick does this well. The reason?
This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. When companies look at singular metrics (labor costs or inventory), they have moved backwards. The trade-offs are easier and the value network strategies more straightforward. Aligning metrics matters.
Their responsibilities focus on going beyond cost reduction and achieving broader business goals such as growth, innovation, and customer satisfaction. Align your supplier management strategy with business objectives In many organizations, there is a disconnect between their approach to procurement and the overarching business objectives.
By mastering the five key supply chain capabilities below, you can generate substantial cost savings, improve customer satisfaction, and enhance your overall adaptability to market changes. Select agreed-upon metrics such as material quality or delivery time and monitor as often as possible.
Another benefit is more resilient supply chains that can profitably weather disruptions when the best-laid plans are interrupted. Key Strategies for Enhancing Collaboration From efficiently negotiating terms on a bid to determining supplier capacity in a high-risk category, supplier collaboration works to your advantage.
Year after year, well intentioned people toiled against improving metrics that reduced, not improved, the effectiveness of the supply chain. ERP is valuable to improve transactional accuracy, but I can find no evidence that investments in ERP have reduced inventory or improved cash-to-cash cycles. Don’t get me wrong.
With 52% of respondents working on individual digital projects but lack an overarching corporate strategy. For companies that aim well and execute effectively, the resulting cost reductions could be transformational. Strategic product segmentation, sourcing and inventory management. The same should also be deployed downstream.
Procurement is one core process area being focused to better manage today’s fluctuating change, with key performance metrics leading the way to assessing and managing procurement performance. I also suggest to our clients that they keep the following basic principles in mind relative to their KPI strategies.
We organize all of the trending information in your field so you don't have to. Join 102,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content