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To build an outside-in model, and use new forms of analytics, we must start the discussion with the question of, “what drives value?” ” Traditional planning models optimize functional processes to improve cost and customer service. You are right. Or the use of AI to improve supply chain planning.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. To manage continuous improvement, companies need a clear definition of excellence and organizational alignment to that goal. What Drives Value?
However, this approach ignores real purchasing behavior, such as customers buying complete sets of four tires. Probabilistic demand forecasting, in contrast, provides a full probability distribution, revealing actual purchasing patterns and enabling inventory planners to align stock levels with demand realities.
Next Steps: Start to model demand based on market data to align the organization on baseline demand. Resist the temptation to place deeper analytics on top of existing data models. Instead, rethink the model and the approach. Out of desperation, they turned to the use of descriptive analytics. Next Steps.
Dive into our curated list of the top 12 blogs from 2024 that will elevate your supply chain knowledge and give you a competitive edge. 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.
Today, supply chain excellence matters more than ever. Until there are clear answers, business leaders should avoid buying software from companies with deep investments by venture capitalists. In this blog, I share my thoughts on recent announcements. Kinaxis Purchase of Rubikloud. Kinaxis Purchase of Rubikloud.
The latest ML algorithms can detect subtle shifts in consumer sentiment that precede actual purchasing behavior changes by weeks or even months. Mastering Extreme or Complex Seasonality Basic demand planning software can account for simple seasonality, such as the predictable rise in ice cream sales during summer.
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Ask a procurement or transportation professional if they have a good demand signal and expect a laugh. Next week, I will be launching the Large Language Model–Ask Lora.
I try to post weekly on this blog. I see a preponderance of reports and white papers that have lots of pages but say little. Optimization engines to improve functional metric performance resulted in an exploding number of planners. days to receive a purchase order confirmation. The average purchased order changes 3.5
When you look behind the scenes of a global business operation, procurement strategy and supply chain management are usually top priorities, though theyre not always working in sync. But the truth is, when these two functions join forces, the results can be game-changing: lower costs, faster responses, and a more resilient operation overall.
Understanding how your Procurement and Supply Chain KPIs are performing isn’t just a nice-to-have; it’s essential for survival and growth. Is inventory bloating your costs? Why You Need Visibility of Supply Chain and Procurement KPIs? Running procurement and supply chain without metrics is like driving blindfolded.
Top 3 Procurement Technologies to Embrace in 2025 Staying ahead of key procurement technology and advancements is essential for CPOs who want to improve spend cost reduction, drive strategic value, and navigate the increasingly complex procurement landscape.
Opportunities for Procurement Technology As we look toward 2025, European businesses are reshaping their supply chains to navigate an increasingly complex global landscape. A recent report by Maersk and Reuters Events highlights that 68% of companies are making supply chain visibility and monitoring solutions a top priority.
In a recent blog post, I was challenged by Anna. ” Anna, this blog post is for you. ” Anna, this blog post is for you. I know that your primary focus is procurement. The issues are largely rooted in politics and the lack of clarity on supply chain excellence. Or planned orders to purchase orders?)
In the realm of efficient procurement management, understanding the various types of procurementreports becomes paramount. These reports serve as navigational tools, offering insights into different facets of the procurement process.
In part 1 of my blog on Planning the Value Chain and Decision Making in Times of Disruption, the focus was on the ability to react and execute amidst the unpredictability of demand. Part 2 in the series explores the “analytical scenario exercise” and how decisions based on certain scenarios heavily impact each aspect of the value chain.
The consulting team pitches a theme–vision of supply chain best practices, big data analytics, or demand-driven value networks– to the executive team, and a new project is initiated. It was also the preference of the consulting partners because the projects were longer, more costly and better aligned with the consulting model.
I think about this discussion with Keith often as I work on the Supply Chain Index and edit the chapters of Metrics That Matter. Our current processes and dependencies on Excel spreadsheets cannot get us to our goal. E2open last week announced the purchase of Serus. I believe that value is what you create. 3) Risky Business?
I never republished the report, because not enough has changed to warrant it.) The report centers on the concept of moving from inside-out to outside-in technologies. An inside-out model, based on testing, is weeks, and often months, out of step with what is happening in the market. To this end, I welcome your participation. (We
So, I thought that I would write a blog to answer what seems like a simple question. They excel in the four Ps of marketing. In contrast, a market-driven organization connects bidirectionally market-to-market to orchestrate the signals to shape demand and mitigate risk (buy-side to sell-side and back). I could not. Absolutely!
In this blog, I’ll try to shed more light on it with examples from our work with our customers. Well, we also know that many legacy systems will not be able to support all these changes quickly and cost-effectively. In this blog, I’ll focus on the Q-commerce case. Composability as an Enabler of Agility & Resilience.
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. How often do your purchase orders change?
The term integrated planning, as used in this blog, defines the relationship between Enterprise Resource Planning (ERP ) and Supply Chain Planning (SCP). (It The implementations were longer, the purchasecosts were higher, and the functionality was less robust and lacking flexibility. It makes no sense to me. I did not see it.
<Bear with me… > Here I share a nine-step process in an attempt to help companies unravel the process for buying supply chain planning software. They center on how to make a good decision in the purchase of supply chain planning solutions. Most have purchased software, but are dependent on Excel spreadsheets.
If you are going to be excellent at ecommerce fulfillment, you need to have great perpetual inventory capabilities. The proliferation of the business models is exciting. Some of the packages on the trucks moving right now are the first shipments of Metrics that Matter. Don’t fool yourself. Redefine it. Make it work.
I wrote my first report on Sales and Operations Planning (S&OP) while sitting on the floor in the Atlanta airport in 2005 when I was an AMR Research analyst. I wrote many reports on airport floors in those days–electrical plugs were just too scarce.) Sales and Operations Maturity Model from 2005-2008. My challenge?
In this blog, we will explore and compare the supply chain courses available on both platforms, diving deep into aspects such as focus and specialization, pricing, availability of practical tools, ease of use, and more. Pricing Structure Affordable pricing, with annual access to purchased courses and practical resources through Pro Plan.
The procure to pay focus may continue, but other types of COE activities are layered on top, building on progressively more sophisticated activities such as KPI development, category intelligence support, risk management, contract management, and predictiveanalytics.
As an analyst in the supply chain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. The Terra Technology investment is one of what we believe will be a series of purchases to build inter-enterprise cloud-based software platforms to redefine supply chain planning.
If you’re eyeing a role as a Procurement Manager (or are looking to hire one), you’re in the right place! As a procurement Manager, you’ll play a crucial role in overseeing the purchasing and procurement process for a company or organization, making sure they get the best bang for their buck.
Start Your Year with Cloud-Based ERP: The Ultimate Guide to Operational Excellence Begin your year on a transformative note by embracing the power of Cloud-Based Enterprise Resource Planning (ERP) systems. Real-Time Analytics and Reporting: Offers advanced analytics for real-time insights, empowering decision-makers with data-driven choices.
I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. They also enable the evaluation of networks for both sales and procurement relationships to optimize the flows upstream and downstream. I believe that it matters.
Digital Procurement article, and permission to publish here, provided by Sam Jenks at kodiakrating.com. Navigating the complexity of the global supply chain as a procurement professional can sometimes feel like taking a walk through the Amazon without a compass, or entering into outer space without an oxygen tank. Don’t Panic!
Several customers addressed those questions in excellent case study presentations: Dr. Bernhard Herzog, Oxea GmbH – “Business Impact of a Supply Chain Operating Network”. It’s impossible for me to capture all of the great insights shared by the speakers in a brief blog post, but here are some highlights and key takeaways.
The only bright note is that shipping costs will be a fraction of what they were over the last several years. Theme 2: Online buying will fuel home delivery growth, challenges and new strategies. 2023 call: Consumers will focus on home delivery performance and retailers will focus on home delivery cost reduction or recovery.
in this blog, I am going to rely on the account of the songwriter, that the song is a childhood story about a dragon that lived in Honalee. How do we harness the power of data with new forms of analytics? Today, technology providers are selling analytics. Each survey that I do comes back with data as a major challenge.
That is the role of marketing or sales or procurement. Yes, I believe that supply chain overlays on top of the sales and marketing organizations and the procurement function. This is the focus of this blog post. Overall, total costs of the value network have increased because companies have not owned their networks.
The network senses, translates, and orchestrates market changes (buy and sell-side markets) bi-directionally with near-real time data to align sell, deliver, make and sourcing organizations outside-in. Thoma Bravo purchased Elemica in June 2016. This is a missionary buying market where taxonomies and technologies are not clear.
From stringent quality standards to comprehensive documentation requirements, Class 1 and 2 manufacturers must navigate a complex landscape to ensure compliance and product excellence. ERP analytics enable the reporting and tracking of variances and defects, providing valuable insights to improve the design process.
Guest blog post provided by Milan Vyas. Check out What Exactly Is Procurement? And What is Purchasing? There has been transformation in the Procurement function over the past decade. A Paradigm Shift in the Procurement Function. Strategic Sourcing does exactly the same by addressing the total cost.
” In this blog, I share the insights on the current state of the healthcare value chain and the recommendations of the panelists. (I This data will be combined with the financial ratio data and published in an Open Content Research report in April on the Supply Chain Insights Community. Current State: Costs are rising.
It’s a question that you can answer for yourself at Ivalua Now – The Art of Procurement , being held, appropriately enough, at The Louvre, Paris 10 th – 12 th April. In the process, these advances are enabling procurement leaders to look beyond their traditional remit. Blog first published by our friends at Purchase to Pay Network.
Why Procurement Transformation Can Fail! The duties of procurement managers are diverse, ranging from creating solicitations to collaborating with vendors. The importance of digital procurement is increasing rapidly. Along with cost savings, procurement managers are focusing on optimizing and automating processes.
Bottom Line : In 2021 and beyond, customers are voting with their dollars for the manufacturers who excel at sustainable manufacturing and make a positive contribution to the environment, dominating B2B supply chains and B2C purchasing decisions. of all North American manufacturers have a sustainability policy in place, and 8.3%
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