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Companies leaning heavily on global sourcing? Theyre feeling the heat most, as sudden trade policy curveballs throw procurement plans into chaos. manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. What Is Agile Procurement? Agile procurement is your lifeline.
In this type of environment, traditional procurement software and manual processes are insufficient – and many procurement teams are looking to artificial intelligence (AI) for answers. Key Takeaways Understand the potential impact of AI – including Generative AI & AI Agents – in procurement.
From sourcing and bid evaluation to warehouse slotting and dynamic routing, AI tools support faster and more consistent outcomes by processing large volumes of operational data and identifying patterns that human decision-makers may overlook. These capabilities are now being integrated into mainstream TMS, WMS, and ERP platforms.
Strategic sourcing and innovative solutions are often viewed as two distinct procurement tools, but they should not be seen in isolation. Think of them as apples and gearseach essential and effective on its own, yet when combined; they create a formidable mechanism for achieving procurement excellence.
Harvard Business Review recently published an article, “ To Build Resilience, CEOs Need to Become Supply-Chain Experts ”. In this article, we wanted to discuss one aspect of supply chain that is often not given enough attention – building strategic relationships and shared value with direct spend suppliers.
Procurement and supply chain management are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. Misaligned priorities, siloed systems, and unclear ownership can directly impact key performance indicators like cost savings percentage and procurement cycle time.
Procurement and purchasing are often used interchangeably, but they serve distinct roles within any successful organization.While both involve acquiring goods and services, their workflows, objectives, and impact on enterprise risk management differ significantly. Procurement vs. Purchasing: What’s the Difference? What is Procurement?
In the vast sea of supply chain information, which SCMDOJO supply chain article truly stands out? 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.
This article outlines key factors driving supply chain change, the limitations of outdated strategies, and how Walmart is restructuring its supply chain using AI and automation. The COVID-19 pandemic and ongoing geopolitical shifts demonstrated the risks of relying on single-source suppliers and minimal inventory buffers.
For example, if I improve the cost structure in transportation, procurement, manufacturing and sales independently, what decision support framework decides the right trade-offs? The data outcome is open source and can be used to improve project outcomes. You are right. The goal is to give back and help business leaders drive value.
Companies find it difficult to fully trust the data from suppliers, complicating efforts to ensure product authenticity, safety, and ethical sourcing. FDAs Drug Supply Chain Security Act (DSCSA) and global standards like ISO 20400 for sustainable procurement are driving companies to adopt blockchain for improved compliance and accountability.
Procurement and Supply Chain Management are essential functions that can help companies navigate these challenges, but they are often siloed and operate in separate departments. Their metrics are often misaligned as well – supply chain focuses on service and procurement focuses on the cost of acquiring materials and services.
Featuring Our 12 Best ProcurementArticles! However, before you can bring your vision to life, you need to source everything needed for your nightclub to run smoothly. Develop a Plan Before you can source anything for your nightclub, it’s important to develop a plan. appeared first on Supply Chain Game Changer™.
Today’s article is the fifth part in a series featuring surveys from APQC on supply chain topics including ESG in supply chain , environmental sustainability , last mile , digital transformation. Survey respondents are second most likely to have implemented Robotic Process Automation in sourcing and procurement (20 percent).
This article comes from Greg Quirk, Product Marketing Manager at Kinaxis and looks at AI in supply chains. Collaborate across departments: Engage stakeholders from different departments within the organization – not just supply chain management including logistics and procurement but sales, marketing, and finance. sensors, RFID tags).
Responsible sourcing is the incorporation of ethical, sustainable and socially conscious principles into sourcing, procurement and overall supply chain management practices. Responsible sourcing requires a shift in thinking and priorities. provide source]. Key Elements of a Responsible Sourcing Strategy.
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. By identifying these gaps, you can create sourcing events to close them.
This article is from Michael Balint at Solvoyo and looks at the fresh produce supply chain. In a Sept 2022 Deloitte article, they maintain that “perishability is still relevant but now more of a pocketbook issue. Sourcing is not only from traditional farms but also from controlled environment agriculture (e.g.,
This article comes from Solvoyo and looks at the importance of a control tower. One of the most powerful tools in modern supply chain management is the Control Tower, which offers a comprehensive, real-time view of the entire supply chain and is the single source of truth for the latest developments on the demand and supply side.
As we move towards a new decade is the emphasis in the procurement world changing – are we going to see a new age, where the Art of Procurement comes to the fore? Technology has radically changed procurement activities and procurement roles across virtually all our spheres of activity.
Strategic sourcing is more than a buzzwordits a sourcing strategy that can transform how organizations purchase goods and services. If youre involved in procurement or supply chain management, youve likely heard the term tossed around. But what is strategic sourcing, really, and why should you care? Lets dive in.
Procurement is often an overlooked area within organizations, working behind the scenes to ensure businesses have the goods and services they need to operate at their best. Considering its importance, it makes sense that modern procurement teams have a structured approach to developing essential skills and capabilities.
A review of the key elements in supplier management for manufacturers and how Source-to-Pay procurement technology can support the journey towards supply chain resilience and agility in times of crisis. As the COVID-19 pandemic disrupts global supply chains, procurement organizations around the world are scrambling to react.
Koganti urged the procurement audience to look for whats referred to as “foresight function” in planning tools, which is capable of enhancing data analysis, scenario generation and trend identification , allowing for more informed and proactive decision-making, albeit with human oversight.
I provided a glimpse of the study content in an article in October that lists the top 20 warehouse automation suppliers , based on ARC’s estimates of 2021 revenues. Together, these two articles provide a substantial quantitative and qualitative overview of the global warehouse automation market. Growth Inhibitors. Plans for the 2.8
This article describes how to incorporate simulation techniques into optimization, build a stochastic optimization model, and end up with a more resilient supply chain model. Optimal sourcing plant is different for different periods A baseline optimization model shows that depending on the period (month), the optimal sourcing location varies.
They write, “This includes tackling bigger issues such as compliance, supplier relationship management, risk and disruption, responsible sourcing, and transparency. “AI allows you to integrate real-time data from various sources, helping you devise more efficient delivery routes and schedules.
Way back in June 2007, the Wall Street Journal published an article titled Boeing’s Nuts-and-Bolts Problem that highlighted how Boeing was facing a shortage of fasteners at the time to complete its first orders of the 787 Dreamliner. The unexpected lack of fasteners marks the sort of test Boeing will face in coming years as.
Procurement, activities such as strategic sourcing, are one of the main processes in the supply chains that can generate a positive impact on companies by giving them a competitive advantage in the market. Strategic sourcing can help supply chain leaders identify potential risk factors and develop procurement mitigation plans.
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.
By the time I have finished writing this article, and certainly before it is published, the situation will have changed. Supply chain management typically does not fit very well with procurement, which is a challenge at the best of times, and can be a disaster in difficult times. Procurement must adjust accordingly.
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. Greater return on investments. Researchers from the Hackett Group discovered that these organizations – a majority of which are world-class – often had lower operating costs.
The discipline, first defined in 1982, includes source, make, deliver, and planning functions. As a part of this due diligence, I interviewed the Company, participated in briefings, and talked to references and employees to write this article. Coupa is well funded and performed well in the indirect procurement software market.
Companies often push aside procurement compliance to focus on more pressing issues. No wonder—procurement often gets tedious and burdened with time-consuming processes. However, ignoring procurement compliance is like ignoring a ticking time bomb. Scroll down to find out: What is procurement compliance?
In this article, we’ll explain what centralized purchasing is, the challenges it tackles, the benefits of centralized procurement, and the types of companies that can benefit most from it. That’s when a centralized procurement organization structure proves beneficial.
This article is derived from our newest SRM White Paper, “One Platform, One Vision – The Benefits of a Unified AI-Driven Supply Chain Planning & Procurement Decision-Making Platform” Ask a procurement leader and a supply chain planner about their biggest priorities, and you’ll likely hear two very different answers.
Strong vendor relationships are critical for business success, especially when it comes to managing inventory and procurement. Vendor Relationship Management (VRM) helps businesses manage supplier interactions, track performance, and ensure smooth procurement processes. In This Article Why is Vendor Relationship Management Important?
Tesco and Walmart have announced procurement policies aimed at reducing carbon emissions and promoting sustainability throughout their extended supply chains. AI can integrate with procurement platforms, utility meters, logistics trackers and internet of things sensors to gather real-time data. Retailers are following suit.
I am a big believer in procurement getting involved as early as possible in new product development based on all the market knowledge available. The worst-case scenario is product engineering developing a new product, selecting a supplier and then telling procurement to get on with negotiation.
Featuring Our 12 Best ProcurementArticles! Procurement operations are the backbone of every company’s supply chain. Fundamental to procurement is the acquisition of goods and services from a party that’s further up the supply chain. This document is the first legal contract in the operational procurement process.
They explain, “Rising tariffs, export restrictions and a lack of supplier diversity are making rare metals more expensive and difficult to procure. Chinas dominance in rare metal exports poses a significant challenge for companies seeking alternative sources.” ” Reputational risk. ” Value at Risk.
Procurement has never played such an important role in the increasingly globalised economy. Has procurement fundamentally changed itself in the past 10 years? Strategic Procurement can mean totally different things in different industries and sectors. The time when Procurement was almost a synonym to Purchasing has long gone.
Article - May 19, 2025 A Bitter Pill: Americas Dangerous Dependence on China-Made Pharmaceuticals How Global Supply Chains, Strategic Rivals, and Quality Breakdowns Threaten U.S. The third-largest prescription provider for Medicaid procures pharmaceutical products from companies tied to forced labor and Chinese state ownership.
As the COVID-19 pandemic disrupts global supply chains, procurement organizations around the world are scrambling to react. Many of these organizations are already using Source-to-Pay technology and are now realizing more than ever that technology is a “must have” to ensure their supply chain remains resilient and agile throughout a crisis.
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