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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. 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. Click here!
Supply chain excellence is easier to say than to explain. Keith led the work to move P&G from a regional to a global manufacturer opening up the Warsaw center of planning excellence and outsourcing IT to HP. Keith was an undisputed leader in building talent to drive manufacturing excellence. The reason? Discontinued in 2011.
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Supply chain was defined in 1982 as interoperability between source, make and deliver. The ripple effects are pervasive. Why is a reinvention needed?
Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.
This team is not buying the message. The team was organized around the functional silos of source, make and deliver. So much so, that three years ago, I founded a research company to focus on understanding supply chain excellence. When we started benchmarking companies, Deborah and I had a friendly wager. I was wrong.
Organizations then convert those demand forecasts to the associated quantities of raw materials to purchase, goods to be manufactured, or finished products to ship. It is important to benchmark forecast accuracy and similar supply chain metrics against your peers. forecasting product sales at 10,000 stores.
Not only will this help optimize operations, but it will allow for performance to be benchmarked across sites, helping drive continuous improvement and the sharing of best practices. Create a facilities “Center of Excellence.” Digitize the periphery of the yard. The returns on these kinds of efforts will be swift and tangible.
Ed argued that instead of buying new packaging equipment that we should work with R&D to have a base flavor and add the color and flavoring at the head of the machine. While companies speak for the need to drive agility and resilience, the real focus is operational excellence. The patterns are distinctive by sector.
The older tools from CAPS Logistics, SNO from Oracle, and Manugistics Network Planning are giving way to new technologies like the Logictools product (purchased from IBM), the Solvoyo product for concurrent planning, the Quintiq technology for concurrent optimization, and the Llamasoft technology platform for optimization and simulation.
A slight change within a function–in sourcing or manufacturing, or along the chain–can greatly impact the outcomes of cost, customer service, or working capital. Bonuses and incentives align with functions and are often counter productive to driving supply chain excellence. Let’s take a closer look at sourcing.
However, none of the three companies knew this before the benchmarking activity. This includes the automation of path-to-purchase for consumer products, active shaping of demand through price, channel incentives and promotions, eCouponing and mobile commerce for retail, and product proliferation for all. It constantly amazes me.
In parallel, PE/venture capitalists purchased/consolidated network solutions, slashing R&D and delaying investment, reducing industry capabilities. If you, like most, are running your supply chain based on ERP and Excel spreadsheet data, you are not prepared. – Technology Evolution Outpaced Adoption. No one knows. What to do?
They need visibility across multiple internal systemslike ERP, CRM, and financial platformsand even external sources shared with suppliers, partners, and customers. Modern platforms pull data from a wide array of sources: ERPs, relational databases, Excel files, cloud apps, third-party providers, and beyond.
The network senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time data to align sell, deliver, make and sourcing organizations outside-in. The translation of independent demand into cycle stock reduction in production planning and material buying in demand-driven MRP.
He is very passionate about developments in the Supply Chain arena and is always seeking excellence in his drive for efficiency & innovation in Supply Chain operations” – a quality that is very relevant to face up to the many Supply Chain challenges in our path! My passion for Logistics and Supply Chain is founded from.
Ethical Sourcing & Labor Standards As due diligence frameworks evolve, so too does the scrutiny placed on labor practices across the supply chain. Ethical sourcing ensures that suppliers adhere to human rights principles, prohibit forced or child labor, and operate with fair wages and safety policies.
Source: Sea-Intelligence Source: Sea-Intelligence The number of blank sailings are at the lowest we have seen since the pandemic started. Supply chain managers require visibility to track the necessary components from a purchase order for production or to fulfill a customer order.
Benchmarking. While it may seem simple, or mundane, benchmarking the digital solutions on the market should be the first step to any kind of digitalization. This is why benchmarking is a crucial part of going digital. Without benchmarking one can very easily shoot way too high, or aim far too low.
eAuctions are online real-time dynamic discussions between one purchasing organization and a group of pre-qualified vendors competing for the purchaser’s trade. eAuctions technology can reduce the cost of purchasing products and services by up to 20%. Introduction to Strategic Sourcing. . Macfarlane, 2017).
Benchmark against your industry average for best insight. Improve demand forecasting and align purchasing with actual sales trends Use sell-through rate analysis to right-size future buys Monitor slow movers and take action early (e.g., It supports smarter buying by showing which categories or products deliver the best ROI.
Last week, I interviewed Robert Byrne, founder of Terra Technology on his demand planning benchmarking study. I enjoy creating the podcast series, and Rob’s findings in his benchmark study are always thought-provoking. Data sourced from the Terra Technology 2014 Benchmarking Study.
Demand latency is the time cycle to translate a channel purchase to an order.) I ask, “What happened to the better design of supply chains and the bi-directional orchestration of constraints across source, make, and deliver outside of lead time (the tactical horizon)?”
Buyers are expected to scrutinize every aspect of the purchasing process to identify ways to reduce their carbon footprint, source sustainable materials, and promote diversity. As the sourcing function evolves, digital procurement technologies have become crucial tools for buyers to capture and report their sustainability achievements.
Whether you''re a manufacturing company in China, a sourcing agent in London or a world''s leading company in Silicon Valley, we''re all in a global supply chain networks. Research from APQC’s Open Standards Benchmarking in procurement shows that organizations without formal SRM programs report 121 percent longer supplier lead times.
Planting the Seeds of Resilience Most companies understand that accurate forecasts are critical to minimizing inventory, maximizing production efficiency, streamlining purchasing, optimizing distribution, minimizing waste, and projecting future performance confidently.
Thirdly I have set up global raw material supply (GMS), a supply entity that consolidates CAN’s global purchase orders and global vendors to plan and deliver raw materials for our manufacturing sites. Our buyers are purchasing micro ingredients, such as vitamins, additives, minerals, etc. All three should be in balance.”.
As legislation focuses ever more heavily on environmental protection though, and consumers increasingly consider sustainability in their purchasing decisions, all supply chain organisations will need to find the way forward. This is where sustainability benchmarking can really help you home in on where improvement is most needed.
I was an avid student of supply chain excellence; and in this role, I watched as best-of-breed solution after best-of-breed solution replaced with more complicated technology. In my analysis of the supply chain planning benchmarking data, I can see it. Buying patterns are changing quickly, and the insights are multi-dimensional.
From the Purchase Order (PO) Status Report to the RFQ Performance Report, each report is dissected to provide a clear definition and a deeper understanding of its significance. Total Cost: The overall cost of the purchase order, calculated based on quantities and unit prices.
Think for instance of a Source Optimization app for your retail company – a custom solution that helps you understand how and when to source your supplies, foresee possible supplier issues and adapt your plans accordingly. With “Samurai” solutions you get clear benchmarks, predictability, control and reliability.
We have one source of truth, and that stems from Crisp.”. We have one source of truth, and that stems from Crisp.” For his own use, Dan loves Crisp’s Outbound Connector for Excel , which automatically refreshes the latest retail insights directly into his frequently used Excel files. Launching the next big thing.
In the procurement phase, documentation begins with purchase orders and supplier contracts. To actively reduce manual errors and benchmark performance, SCMDOJO’s Logistics KPIs Excel Template offers a ready-to-use tool that tracks efficiency metrics directly tied to documentation quality.
Think for instance of a Source Optimization app for your retail company – a custom solution that helps you understand how and when to source your supplies, foresee possible supplier issues and adapt your plans accordingly. With “Samurai” solutions you get clear benchmarks, predictability, control and reliability.
As a young assistant professor at Michigan State University in 1992, I was part of a group called the Global Procurement Benchmarking Initiative. This initiative benchmarked over 300 global companies, and set forth many of the principles for what we called “World Class Supply Chains”.
Companies tripped over themselves to build ecommerce portals, and one-click purchasing grew in relevance. Compliance audits, best practices, and benchmarks provide a governing framework for sustainable supply chain operations and ensure clarity around the environmental impact of specific actions. Agility is the name of the game.
As legislation focuses ever more heavily on environmental protection though, and consumers increasingly consider sustainability in their purchasing decisions, all supply chain organisations will need to find the way forward. This is where sustainability benchmarking can really help you home in on where improvement is most needed.
The inherent buying patterns of consumers are also changing. Purchases in the center store of the grocery store are in decline, and apparel tastes are shifting. By building demand management processes to focus on channel movement, companies can cut demand latency and model independent demand–customer purchases.
The halal trust of a brand is measured through a consumer survey, analysing the consumer perception of the halal logo, excellence, transparency, halal authenticity, and intention. The halal trust assessment could be conducted for one brand, but can also be benchmarked with selected competing brands.
When CPG organizations lack a unifying retail data foundation let alone when they still rely on manual reporting or even just syndicated and outdated market reports it can be hard to devise winning pitches with full company buy-in and transparency. Against competitive benchmarks? Hugo Lopez, UNFI, Nestl USA | Read the case study 3.
This data can be used to identify areas for improvement and make informed decisions about sourcing, production, and distribution. Procurement Procurement involves sourcing and acquiring the materials or products needed for production. Communicate with suppliers to source materials, negotiate pricing, and ensure timely deliveries.
From reducing the quantity of on hand foodstuffs to JIT inventory control – or less food delivered more frequently – optimising inventory control assists businesses to better manage food waste and reduce it at the source. Coffee waste is also an excellent substrate for mushroom cultivation.
Environmentally friendly practices, such as ethical sourcing or moving towards net zero, are now not just preferred but expected. This might seem straightforward, but a thorough assessment can uncover areas where you can consolidate purchases, standardize specifications or negotiate better terms.
Sustainability and CSR Negotiation: Negotiating terms related to sustainability, corporate social responsibility (CSR), and ethical sourcing. Alternative Sourcing Negotiation: This negotiation explores alternative sourcing options when necessary. E-Sourcing Platforms: E-sourcing platforms exist to ease the negotiation process.
Market research is one of the main sources of data for financial forecasts, especially those focused on sales and industry trends. Most methods either rely on historical data (quantitative methods) or research and expert knowledge (qualitative), with some picking from both sources (hybrid). Do investors want to see forecasts?
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