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A Long Road Ahead for Procurement Professionals Managing Their Supply Chains

ModusLink Corporation

Procurement experts face transportation costs, customer demands, and high pressure on global container and air freight rates. Container rates in late July 2023 reached $1323 per TEU, significantly surpassing the late-2019 rates of $1236.87 But what does that mean for future strategies in procurement ?

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Is Procurement Drowning in Data?

Supply Chain Game Changer

Featuring Our 12 Best Procurement Articles! Procurement drowning in data article and permission to publish here provided by Sam Jenks at kodiakrating.com. Trillion USD, reported in 2018 ( wto.org 2019 ). Meanwhile, 60% of procurement teams have no tools or rely primarily on improvised systems for Supplier Management.

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Trends 2019: Manufacturing

Enterra Insights

Look for this trend to accelerate in 2019 as the fastest-growing manufacturers who have succeeded in winning new customers turn to robotics to fulfill the high volume orders of their new, and often foreign-based customers.”[4]. Accordingly, manufacturing supply chains will become more intelligent in 2019, as well.”[6].

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Inefficient Procurement processes are costing UK businesses almost £2m per year, reveals research

ivalua

At the same time, two-thirds (66%) of businesses admitted they were still reliant on such processes as part of their Procurement or supplier management function. The research, conducted by Vanson Bourne on behalf of Ivalua, found that 71% of respondents believed the rate of digitisation in Procurement is low.

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2024: Planning for Success Amid the Uncertainty

Logistics Viewpoints

Five Year Performance on Business Goals (2019 – 2023) Looking at 2024 Priorities When it comes to organizational priorities across supply chain functions for 2024, APQC finds that supply chain planning remains in the top spot for the fifth year (selected by 90 percent of organizations).

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Predictive Analytics and Future Supply Chains

Enterra Insights

That’s why spending on supply chain advanced analytics is on the rise. Analysts from River Logic write, “The importance of supply chain analytics is demonstrated by predictions that the market will grow at a CAGR of 17.3% between 2019 to 2024, more than doubling in size. Business has always been a numbers game.

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Supply Chain Performance Declined In the Last Decade. The Question is Why?

Supply Chain Shaman

Yes, companies held more inventory (measured in days of inventory) in 2019 than at the start of the 2007 recession. Belief in efficient procurement. Investment in indirect procurement hi-jacked investment in building value networks. Over the decade, procurement became more of an island. Mistake #5.