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Strategic sourcing and innovative solutions are often viewed as two distinct procurement tools, but they should not be seen in isolation. Strategic Sourcing: The Foundation of Effective Procurement Strategic sourcing is far more than simply choosing suppliers. Done well, it can become a key driver of competitive advantage.
We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. Reward teams for cross-functional metrics. Customer-Centric Supply Chain.
What is the Perfect Delivery Metric? Improving on this metric will always involve a focus on people and processes, but often also includes implementing new, more robust, supply chain applications. The wrong metrics drive suboptimal behaviors and metrics can often be manipulated. You can watch the full video below.
Procurement professionals can contribute significantly to the S&OP process by providing valuable insights into supply chain dynamics, identifying potential risks, and optimizing sourcing strategies. Discuss bottlenecks in the supply of raw materials or alternate sources to procure balance and level production plans.
They had seen my videos on the website and needed a speaker for their global kick-off meeting. The team was organized around the functional silos of source, make and deliver. Today, 60% of sourcing organizations and 45% of manufacturing organizations report through the supply chain organization.” What do you think?
The traditional metrics of excellence cost efficiency, on-time delivery while still important, are no longer sufficient in an era defined by volatility, complexity and political changes. To get a quick understanding, please review this video on how logistics teams benefit from end-to-end visibility and execution, and contact us.
In manufacturing-based companies, 70-80% of costs are in the processes of source, make and deliver. While the practices of finance are over 200 years old, in contrast, supply chain as a cross-functional practice (the combination of make, source and deliver) was recently defined in 1982. Is talent a cost or an asset?
Unfortunately, many retailers are jumping in without a plan — that is, they are taking a short-term, silo’ed approach to transportation sourcing and execution, and as a result, are failing to meet their desired outcomes. Also, is multi-functional engagement important and, how does omni-channel impact transportation sourcing?
Running procurement and supply chain without metrics is like driving blindfolded. Decoding the Metrics: What Are They Telling You? A lower TCO indicates better value sourcing, even if the initial purchase price isn’t the absolute lowest. Do you rely on a single source for critical items?
Generative AI can use models with billions or even trillions of parameters trained on massive datasets (think the size of the internet), enabling it to produce increasingly complex outputs such as speech, text, and videos. It can then generate new content using prompts that resemble the original training data.
Vendor scorecards based on performance metrics help ensure better sourcing decisions when used to assess and compare vendors and assist with onboarding. Accurate and up-to-date supplier data is required to verify all sources supplying raw materials, components or finished goods throughout all supply chain tiers.
According to the UN Environment Program’s Food Waste Index, 923 million metric tons of food is wasted globally every year. Source: [link]. By creating greater transparency throughout food supply chains, manufacturers can identify where the wastage happens and solve the problem at the source.
blockchain), and video-based collaboration/content sharing. Strategic product segmentation, sourcing and inventory management. Analyzing real-time insights and historical performance using AI, delivers key metrics on availability and service levels. Effective pricing and promotions management.
Source: BluJay Solutions. Instead of giving a keynote presentation this year, I brought Talking Logistics to the conference, where I conducted several video interviews with BluJay customers focused on — you guessed it — the growing importance of customer experience. Source: Adelante SCM / BluJay Solutions Research Study.
Jump to sales, marketing, and finance demo videos here Traditional Demand Planning Challenges: Current demand planners can get bogged down in the daily grind of gathering, organizing, and analyzing the sales history for an accurate forecast. They are managing complex spreadsheets populated by multiple sources and stored in too many locations.
Christian Heinrich, Co-Founder and Managing Director, c arbmee The 80% Challenge I was recently delighted to participate in a JAGGAER live webinar focused on the introduction, in recent years, of carbon emissions measurement as a factor in strategic sourcing. Find the top hotspots and incentivize suppliers to switch to green energy sources.
28% of global retailers have tried to find alternative sourcing options due to supply chain issues (RetailNext, 2020). Source: Consultancy.UK. Image source: Fortune. Within a week of Russian troops crossing into Ukraine, the benchmark for thermal coal prices reached a record high of $446 per metric ton. Consultancy UK).
Source: Adelante SCM poll of MercuryGate clients. The progress here is also mixed: Source: Adelante SCM poll of MercuryGate clients. Source: Adelante SCM poll of MercuryGate clients. Source: Adelante SCM poll of MercuryGate clients. Source: Adelante SCM poll of MercuryGate clients.
Rather than jump into the fray with more arguments and more acronyms, consider this: the most recent of the sources cited above is seven years old ! Challenge yourself to think beyond the traditional Available-to-Promise metric and ask if an action meets the criterion of Profitable-to-Promise.
Image source: APA. For example, as of March 2022, 81% of Americans say the supply chain is a significant source of stress. Image source. Image source: APA. The following experts share eight sources of stress at work. And plenty of us are feeling that stress at work. In…and out…there you go!)
Source: “Competing on Customer Experience: The Driving Force Behind Supply Chain Innovation,” Adelante SCM & BluJay Solutions, August 2018. Source: “Competing on Customer Experience: The Driving Force Behind Supply Chain Innovation,” Adelante SCM & BluJay Solutions, August 2018. and 51.5%, respectively).
Proven Techniques from Source to Contract By Georg Roesch, VP Direct Procurement In our recent guest article, Prof. In this follow-up article, let’s discuss some practical ways companies can integrate measures within their source-to-contract processes to reduce your Scope 3 emissions. from source to contract).
VideoSource: [link]. Consumers are the biggest source of food waste in developed countries as they discard at least 20-30% of what they purchase. Table Source: [link]. ” Source: [link]. Check out ReFed’s Roadmap to Reduce Food Waste: VideoSource: [link]. That is over 1.3
There are obvious risks involved in sourcing goods from other countries. Many businesse s today source goods or services from a third party overseas , and there is obvious risk involved. Likewise, throughout your relationship, report cards should be kept to calculate a score card index based on established performance metrics.
Their main priority focused on controlling spending across the whole Source-to-Pay journey. Amrest sought a reliable data source to provide a market comparison between countries as well as a breakdown of the primary factors that influence payments and the outcome of the payments. As showcased in Amrest’s story, the Way You Pay Matters!
Their main priority focused on controlling spending across the whole Source-to-Pay journey. Amrest sought a reliable data source to provide a market comparison between countries as well as a breakdown of the primary factors that influence payments and the outcome of the payments. As showcased in Amrest’s story, the Way you Pay Matters!
Source: Google. This was not a trivial transition because the software industry, until relatively recently, was long fixated on measuring its health and success by new license revenue (sales of products) instead of customer-centric metrics, such as realization of ROI and payback objectives. Where is Descartes today?
These technologies can help organizations aggregate and analyze data from various sources, identify trends and patterns and generate accurate forecasts. Click below for a video demonstration with QAD’s Senior Digital Consultant Charlie Marge. The post Why is Collaboration Important in Supply Chain Management?
Balancing operating costs, and customer service metrics is no easy feat. Single Source of Truth. To overcome the challenge means integrating not just the different data sources, but the actual supply chain processes as well. It can be both that simple and that complex. There’s no denying the power of technology is truly great.
blockchain), and video-based collaboration/content sharing. Strategic product segmentation, sourcing and inventory management. Analyzing real-time insights and historical performance using AI, delivers key metrics on availability and service levels. Effective pricing and promotions management.
I wanted to share their fascinating conversation with our readers – check out the video interview and transcript below: Supply chain planning in the digital age. The data sources and the types of data are exploding, if you look at it. They are absolutely flooded with lot of information. It seems like a tremendous challenge.
Which is why a drone took flight from the stage during Ryan’s keynote address at the Descartes Evolution 2017 Conference a couple of weeks ago and broadcast real-time video of the audience as it flew across the front of the hall. Drones and its future in supply chain and logistics processes. Logistics Excellence: Now & in the eFuture.
Here I want to share eight key procurement challenges that we and consultants are facing in today’s global sourcing world. Global Sourcing – Start-up Basics Nobody could ignore the role that global sourcing plays in today’s procurement world. The good old theory of “total cost of ownership” should always prevail.
The holistic approach requires that accentuates the role of Cost Efficiency vs Cost Effectiveness in every aspect of the supply chain, from planning, sourcing, and operations, to logistics and distribution. Cost and profitability are the vital component of any successful business.
” However, Wong also cautioned that, “in the pursuit of ultimate flexibility and reliability—rushing to hit that on-time shipping metric or accommodating that last-minute order change—there is the risk of compromising quality, leading to a recall or negative brand experience, or letting costs get out of control.”. Source: Nulogy.
The are the 8 Rights of Lean Transportation thinking: Right Materials, Right Quantity, Right time, Right Place, Right Source, Right Price, Right Quantity, and. Metrics and Key Performance Indicators (KPIs) measure how well the shipper-transportation provider does in daily continuous improvement. Right Service. Problem-solving methods.
Modern Demand-Driven Manufacturers are leveraging real-time Cloud-based visualization and collaboration systems to view data from multiple, disparate sources while keeping the data in its original, host environment. Video case study: How Orbital ATK is Leveraging the IIoT and Visual Factory Technology to Drive Continuous Improvements.
For those of you who prefer video to the written word, below is a recent video interview where I wax poetic about the ‘Digital Elevation of Planning and the Planning Executive’ as well as ‘The SCM Company.’
In traditional control tower projects, months can be spent developing data extracts in source systems before loading them into the application. It’s also vital you’ve pre-defined the metrics for adoption, and communicated them to the entire team. Video] Celestica’s Top Priorities for Improving Forecast Accuracy.
“Predictive PO On-Time Delivery uses Resilinc’s EventWatch AI and Multi-tier Mapping capabilities to scan millions of news sources to identify disruptive events and from there identify the region or suppliers that could potentially be impacted,” said Yogesh Akolkar, Resilinc’s Vice President of Engineering. “It
Sourcing has probably been the biggest thing over the last decade or two, coupled with that reduction in local manufacturing of course. Sourcing is now predominantly overseas: China is one of the big sourcing countries of course, along with India, Pakistan and Bangladesh, Vietnam and Thailand.
30 years ago the primary focus was on supply base optimization which sowed the seeds for single source supply bases. What if the supply chain drivers that most affect your business performance were translated into metrics for operations and supply chain accountability? QUESTION: “How have supply chains evolved over your career?”.
When it comes to electronic ordering, real-time order visibility, and the use of mobile apps and technology, Domino’s Pizza is much further up the supply chain maturity curve (see video demonstrating Domino’s Tracker app ).
Essentially, an ERP helps organizations run their business by acting as a single source of truth. Inventory Visibility WATCH THE VIDEO » Current Problems with Traditional ERP and Inventory Management With so many benefits, how come ERP software doesn’t give your organization everything it needs to manage inventory?
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