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In a survey we conducted in October 2020, 91% of our Indago supply chain research community members, who are all supply chain executives from manufacturing, retail, and distribution companies, either Agreed or Strongly Agreed that the time had come to transform the traditional transportationprocurement process.
Supply Chain Knowledge and Risk Mitigation: Suppliers have a direct impact on direct spend with raw material and transportation costs as two big drivers of operating margins. This means involving procurement in the highest levels of strategic planning and decision-making. Moreover, this solution offers substantial value for suppliers.
Now the writing follows the research. I mix the quantitative research with my observations and interviews, and the posts seem to roll from my fingers. If you would like to participate in a current research study, we would love your help and participation in the contract manufacturing study. (If It was a struggle!)
Many companies are getting ready for (or perhaps have already completed) their annual transportationprocurement engagement. But has the time come to transform the transportationprocurement process? Read more TransportationProcurement: Finding an Alternative.
Process-based companies continue to focus on manufacturing efficiency (OEE) and discrete on procurement (PPV) without designing the supply chain to balance transportation, manufacturing, and procurement to a balanced scorecard. In our research, small regional companies outperform large multinationals.
Chris Caplice and Joe Lynch discuss MIT Center for Transportation and Logistics and a wide range of logistics and supply chain topics. Chris is a Senior Research Scientist at MIT and serves as the Executive Director of the MIT Center for Transportation & Logistics (CTL). He received a Ph.D.
The post Discussing the Lessons Learned in TransportationProcurement Management appeared first on Talking Logistics with Adrian Gonzalez. The post Discussing the Lessons Learned in TransportationProcurement Management appeared first on Talking Logistics with Adrian Gonzalez.
Read more The post [Video] Discussing the Lessons Learned in TransportationProcurement Management appeared first on Talking Logistics with Adrian Gonzalez. Read more The post [Video] Discussing the Lessons Learned in TransportationProcurement Management appeared first on Talking Logistics with Adrian Gonzalez.
” When I asked the question, I got an answer from LinkedIn that the research focused on digital maturity with SAP. The research is generated by SAP. Use of order patterns to execute a route guide in Transportation Planning (TMS)–route planning, pooling of less than truckload, and load tender.
We have all our factories, both in-house and outsourced, all of our distribution centers, and our transportation network on the Blue Yonder foundational system. We can run a plan simulation to maximize revenue, maximize shipments, maximize the customer experience, or minimize transportation costs. Lenovo has a huge research team.
The continued focus on functional metrics like Purchase Price Variance (PPV), manufacturing costs, Overall Equipment Efficiency (OEE), and transportation costs throws the supply chain out of balance. Belief in efficient procurement. Investment in indirect procurement hi-jacked investment in building value networks. Mistake #4.
These rates will have natural implications for smaller shippers seeking to lower overall transportation and freight spend, and paired with a “blurred lines between peak shipping and shopping seasons,” shippers will experience increasing trouble when trying to procure full truckload capacity. Conducting annual procurement exercises.
Decoding the Procurement Department: A Comprehensive Guide to Roles and Responsibilities This supply chain article provides a comprehensive overview of the procurement department within an organization. Read In Detail About Procurement Department Here 2.
Transportation is a complex system, and even minor inefficiencies can have a ripple effect. This article explores challenges identified in a research paper by McKinnon (2006) focusing on vehicle utilization and efficiency in the freight industry [1]. We’ll delve into each challenge and explore potential solutions: 1.
And even before they begin, they must realize these problems are too big for any single team—supply chain must connect with finance and procurement to treat the n-tier suppliers as an extended part of their network and become their preferred customer. For this to happen, finance needs to be in lockstep with procurement.
Linkedin Comment Donald Cavin Data Warehousing Consultant at Ohio State University Comprehensive Cancer Center-James Cancer Hospital & Solove Research Institute. In 2004, I joined AMR Research, a Boston Analyst firm. We are making slow progress on transportation visibility, but not supplier visibility. The reason?
In parallel, I am involved in several research projects. In other studies, I am working with data scientists and statisticians to glean insights from over sixty quantitative research projects over the last decade. In short, the research tells me that the manufacturing industries are stuck.
When 2015 rolls in, for me, it will mark a decade of quantitative research focused on understanding the evolution of supply chain management. I like many other gray-haired supply chain professionals reported through a functional organization like manufacturing or transportation. Insights on Supply Chain Organizations.
The Approach to Effective Freight Procurement by LSCMS Shippers’ Council Container shipping procurement faces a multitude of challenges shaped by global events, industry shifts, environmental mandates, and technological advancements. At the heart of it all, an effective procurement strategy remains paramount.
Together, we can offer a complete solution that covers the digital procurement of both spot and contract freight services, across air, ocean, road, and rail. We estimate that tenders account for some 50%-70% of freight procured, at the lower end for air, at the higher end for ocean.
Editor's Note: Today's blog comes from our friend Michael Stoddard who shares the top 10 transportation jobs in the industry. If you happen to find yourself searching for careers in logistics, transportation and supply chains, you'll be happy to know that there's no shortage of positions. Operations Research Analysis Manager.
An article from The Wall Street Journal mentioned a research by the Hackett Group that showed actual financial benefits in business relationships with diverse suppliers. Researchers from the Hackett Group discovered that these organizations – a majority of which are world-class – often had lower operating costs.
” My response, “Sorry Ryan, the research does not support that increased digitalization brought unprecedented levels of connectivity. The research supports that we have not improved supply chain visibility, and we are going backwards in delivering results through supply chain planning.” I am researcher.
Strategic Sourcing Is Smart Procurement Strategic sourcing is thus a smart approach to procurement because it considers each sourcing project to be unique based on analysis, insight and knowledge of the marketplace. Traditional sourcing focuses on high volumes and bulk buying to secure discounts.
According to my research, top-performing supply chains possess three very different qualities. To help the reader, let’s start with definitions used in our research: Efficiency. In Table 1, from our research, I share ten tactics to consider. The design of transportation and supplier networks. What did we find?
Marc is the Co-founder and CEO of Fishtail, a Boston based fintech company that empowers freight forwarders to finance the movement and procurement of goods – for small and medium businesses (SMBs) around the world. Marc Held and Joe Lynch discuss the Fishtail story. About Marc Held. About Fishtail. Key Takeaways: The Fishtail Story.
At Cerasis we work with our shipper customers who procure items every day and have needs for inbound freight management as they secure those products from their vendors. Increasingly, as we work with procurement folks at these companies, we are hearing that technology for better communication and to create more efficiency.
”[1] He added, “More than half of companies surveyed by Ventana Research say they have limited or no ability to understand complex trade-offs across their supply chain.” This reduces fuel consumption, lowers delivery times, and enhances overall transportation efficiency.” ” Manufacturing optimization.
In research study after study, we see that the greatest challenge to achieving supply chain excellence is the understanding of the supply chain by the leadership team. Functions, when they operate in isolation against functional targets, will not be aligned and supply chain planning can make this worse if there is not clear leadership.
I am wrapping up my Transportation Management Systems market study which looks at the total size of the market, the forecasted growth through 2025, and the leading suppliers across a number of categories including industry, region, and customer size. Transportation management systems include 2 types of solutions. A Proven ROI.
ARC’s research shows the SCCN market is over $3 billion in size and is projected to grow at double digit rates for the next five years. Network analytics – A good example of this occurs with public cloud transportation management systems (TMS). How Can the SCCN Market Be Largely Unknown?
Supply Chain Improvement is based on the work that we completed with an Arizona State University Operations Research team to determine the Supply Chain Index. Attending the conference was Alexia Howard, Senior Research Analyst – US Foods for Sanford C. We find that this is true of too few companies. Bernstein & Co.,
McKinsey, the global consulting firm, has done research and writing on supply chain collaboration. When it comes to this technology and collaboration, there are several things worth knowing based on ARC’s market research on the supply chain collaboration network market. Networks Have Fistinct Advantages. 20 Things to Know About SCCN.
Within this setup, an ERP procurement module helps companies make purchases and manage suppliers. Numbers speak louder: According to Procurement Tactics’ top procurement trends in 2025 , 83% of CPOs prioritize digitization. Keep reading to learn: What Is ERP in Procurement?
ARC has done research and writing on supply chain collaboration networks. It is these changing constraints, transportation capacity, and bottlenecks across an entire ecosystem that matters. For example, many companies are struggling to get transportation capacity. And this has clearly gotten worse in recent years.
The class discovers the current blackholes of the supply chain (direct procurement and contract manufacturing. Revenue management is siloed and distinct from demand management, while Transportation Management (TMS) has nothing in common with Distribution Requirements Planning (DRP).
According to McKinsey & Company, procurement accounts for 50% to 80% of a company’s cost base. 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.
With a 37-year career, primarily focused on supply chain, he brings vast expertise in areas such as sales, customer service, logistics, distribution, global trade, procurement, sustainability, supplier diversity, and supply chain strategy leadership.
According to data from a recent research survey, the following were on top of the supply chain headaches not addressed by their current systems: Supply shortages due to supplier’s inability to meet expected performance targets. and Master of Engineering degrees in Operations Research and Industrial Engineering from Cornell University.
They had never been in the same room to discuss demand holistically from sales teams to procurement. If you enjoy our research, please help us by filling out our current survey. So, I was stuck at the end of the strategy day with time to fill with a client that saw no reason to change. The large food company operated regionally.
As reshoring continues, more supplies will be needed, which has major implications for procurement professionals, as well as increased demand for new talent and more truck drivers. For example, more manufacturers are likely to begin the process of outsourcing services and transportation to 3PLs. Green Manufacturing Will Go Viral.
The American TransportationResearch Institute (ATRI) continues to rank driver shortages, driver retention, and the costs of extensive regulatory compliance on carrier operations as top concerns for carriers. Improvements at this stage have a downstream effect, leading to better results from execution to final freight payment.
The research that I have conducted has enabled me to look at this holistically. When I left AMR Research I invested over 400K in building a database of supply chain financial ratios to correlate supply chain results. After three years of research, I have just refined the methodology to start to pull the trends. I am an old gal.
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 procurement system?
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