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Spend analysis is often the entry point. This blog offers a clear, practical overview of what spend analysis is, how it supports strategic sourcing, and why it matters for both direct and indirect procurement. Schedule a demo of Ivalua’s Spend Analysis solution today! Let’s dig in!
In today’s architectures and functional metrics, value optimization does not exist. And, when procurement and tactical planning operate in isolation, there is no decision support framework to guide the trade-offs especially when the functions are tethered to different and conflicting metrics. You are right.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. Error is error, but is it the most important metric? My answer is no.
We’ve seen AI take over everyday tools and search engines; AI in Sourcing and Procurement is becoming a strategic tool in our kit, At Ivalua, we are helping global procurement teams integrate AI across the Source-to-Pay process, bringing automation, insight, and agility to every step. This is where AI can make a huge difference.
Just by embedding analytics, application owners can charge 24% more for their product. How much value could you add? This framework explains how application enhancements can extend your product offerings. Brought to you by Logi Analytics.
For companies that want to go beyond the traditional spreadsheet, which cannot handle this ocean of information efficiently, statistical methods such as cluster analysis can help. What is Cluster Analysis? Cluster analysis is a statistical umbrella term for methods that classify data points according to their attributes.
(Inventory is both our most important buffer and greatest source of waste.) Functional metrics align to bonus incentives, but progress in supply chains remains evasive. Hire a consultant to do the analysis. Through the analysis, help the organization to see the fallacy in traditional thinking. Human Potential.
It creates a single source of truth for your rate management, automating RFQs and streamlining the entire procurement process. billion rate data points monthly to provide the most comprehensive view of the market, helping you identify savings opportunities and make data-driven decisions.
He is responsible for driving strategy, customer engagement, and industry analysis. During his tenure in the industry, he built innovative pricing and forecasting models, leveraging internal and external data sources to improve internal decision-making and increase profitability.
Optimizing fulfillment requires a series of steps to get a shipment from its source to the end customer. These steps include sourcing and receiving inventory, storing inventory, order processing, picking and packing an order, shipping the order, and returns management. The ability to meet fulfillment goals is impeded by several issues.
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.
The research methodology for the Supply Chains to Admire compares the performance of a company against its industry peer group for the metrics of Year-over-Year Revenue Growth, Inventory Turns, Operating Margin, and Return on Capital Employed (ROCE). For 80% of industries, the supply chain metrics represent more than 40% impact on value.
For my long-time readers, you know that fewer than 3% of companies outperform their peer group in our Supply Chains to Admire analysis , and that the Gartner Top 25 is essentially a beauty contest for underperformers. Using channel and trading partner signals build outside-in models and orchestrate decisions across source, make and deliver.
Enhanced Promotions and Events Analysis Promotions, advertising campaigns, and trade events are vital components of marketing strategy, but accurately measuring their impact on demand remains challenging. Five Ways Advanced Machine Learning in Demand Planning Is Improving Forecasting 1.
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. Cost-to-Serve Analysis.
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.) The analysis was too short-term. A potential value of a digital twin.).
AI is reshaping the way organizations source, manage suppliers, and drive value today. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. For example, agentic AI can analyze supplier data, evaluate contracts, manage purchase orders, or recommend sourcing strategies.
AI is reshaping the way organizations source, manage suppliers, and drive value today. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. For example, agentic AI can analyze supplier data, evaluate contracts, manage purchase orders, or recommend sourcing strategies.
If you answer the survey, I will gladly give you a custom analysis of your organization against the peer group. In the supply chain team analysis, note the 21% gap between procurement and manufacturing teams, the 35% gap between sales and operations and the 21% gap between finance and operations. Functional Metrics.
Clear operating strategy and definition of supply chain excellence across plan, source, make and deliver. A shift from functional metrics to a balanced scorecard. I like the use of growth, margin, inventory turns, Return on Invested Capital, customer service and ESG metrics. Instead, focus on Forecast Value Added analysis.
It creates a single source of truth for your rate management, automating RFQs and streamlining the entire procurement process. billion rate data points monthly to provide the most comprehensive view of the market, helping you identify savings opportunities and make data-driven decisions.
A disruption at any point in the global logistics network including the average of 12 touch points from shipment packaging to final delivery can prove disastrous for profits, service levels, customer loyalty, and other key metrics. With the global e-commerce market predicted to reach $8.1
It’s the key to transforming your supply chain from a source of frustration into a well-oiled, profit-generating machine. Implementing Data Analytics for Supply Chain Success Data analytics transforms supply chains with precise insights and real-time monitoring by bringing together multiple data sources. The result?
Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. The analysis covers the period from 2010 to 2019. The analysis covers the period from 2010 to 2019. The analysis includes over 700 companies across 28 industry sectors.
Over the last month, I have been working on the 2019 Supply Chains to Admire analysis. The source data for the analysis comes from Ycharts.). We selected these metrics based on correlation work with Arizona State University in 2012. The Supply Chains to Admire analysis is six-years-old. Celebrating Success.
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. I don’t care what you call it, but network design, what-if analysis, simulation and digital twin approaches grow in importance.) Build in-market sourcing. Tougher than most understand.
Digital procurement streamlines workflows and unifies data, enabling faster sourcing, better collaboration, and improved accuracy. Digital procurement is the use of digital technologies to enhance, automate, and optimize procurement processes across the entire source-to-pay (S2P) lifecycle.
Pattern recognition is the ability to discern patterns in data and use the insights for further analysis. The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. Wikipedia In 2014, I was exploring methods to publish what is now the Supply Chains To Admire report.
Here we share the answers to the questions that we get the most often about this research: What is the source of data? We placed them in the industry that they were the most like, e.g., the primary source of revenue. What did you learn in the analysis? How did you select the final list of fifteen companies ?
We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency. Efficient supply chains strengthen collaborative relationships through automated communication systems and shared performance metrics.
I am delving into COV (coefficient of variation) analysis. It is for this reason, that I use COV analysis to type logical supply chain flows. Most supply chain leaders cannot get their groove on because they generalize–the use of the same metric targets and tactics for the supply chain without paying attention to the flows.
Collaborative discussions can help identify relevant data sources and metrics that capture the end-to-end supply chain process and align with overall business goals. Data inventory and assessment: Conduct a comprehensive inventory of available data sources within the organization, including internal systems (e.g.,
While there are many types of visibility (see Figure 1), the most common use case is either sourcing or transportation visibility. The focus is on functional metrics, but are unable to get to overall supply chain metrics. Listening posts use sentiment analysis based on unstructured text mining. Visibility.
IBP is long-range strategic business planning that combines volumetric and financial data into a single, highly visual, comprehensive planning platform that delivers greater global visibility, more powerful multi-scenario analysis over longer planning horizons, tighter collaborative workflows, and a wider spectrum of alerts.
Strategic Sourcing Simplified: Best Practices for Maximizing Value Strategic sourcing goes beyond cost savings its about making informed decisions that drive long-term value. Now well dive into best practices in these critical areas to ensure a more effective and resilient sourcing strategy.
Aligned Metrics. To ensure the management of the complex system, the metrics of operating margin, inventory turns, ROIC, customer service, revenue, and forecast accuracy need to be managed together as a non-linear system. How do you balance the trade-offs between source, make and deliver? Supply Chain Design.
Based on the work with Georgia Tech, we are getting clear on which metrics matter by industry. As companies adopt a balanced scorecard, the functional metrics shift to a focus on reliability. Then take an inventory of all the sources of channel data in the organization. What does an outside-in batch job look like?
This guide breaks down the key procurement technologies in use today and the trends reshaping the future, such as AI-driven sourcing, predictive risk management, and deeper integration across the supply chain. What Is Procurement Technology? Here are some of the most important tools teams are already using.
Production Capacity Analysis While traditional testing methods can be time-consuming and offer incomplete data, focusing on key production metrics within the manufacturing process provides more actionable insights. Consider these essential metrics: Asset Utilization: How efficiently are your machines being used?
Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. It combines decisions across sell, deliver, make and source processes to drive value based outcomes. Metrics Alignment. Most companies operate well within functions, but struggle to build strong horizontal processes.
Unlike traditional tools that often operate in isolation or rely on rigid workflows, AI connects the dots between disparate data sources, providing a more comprehensive view of procurement activities. AI in procurement use cases : Automating contract analysis, flagging compliance issues, and managing renewals.
Financial reengineering focuses on the optimization of short-term results that are usually based on a functional analysis of source, make, or deliver. Few consultants understand the interrelationships between source, make and deliver. Snow fell last night as I worked on my last Supply Chain Metrics That Matter report.
Process: Blueprints for Success This process workstream focuses on blueprinting existing processes, policies, and metrics. You can connect with Vishal on Linkedin You May Also Like Source to Pay (S2P) What is Source to Pay Best Practice? An Analysis by Ivalua Read More : What is Source to Pay Best Practice?
Thus, organizations must make sure that data are complete, accurate, timely, and consistent as well as capture the required metrics. Understanding the data, metrics and benchmarks can help the organization collaborate with suppliers to set meaningful, actionable and quantifiable goals. Next, the enterprise can set targets.
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