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Solvoyo has a metric they call the user acceptance rate. This metric measures the percentage of time the planners accept replenishment, transportation, or inventory plans as they are without any change in the timing of the delivery or the quantity to be delivered. You don’t act on a forecast; you act on what you purchase.
However, as carbon taxes and emissions reporting requirements continue increasing, supply chain professionals face mounting pressures from inside and outside their organizations to measure and improve performance against new, nebulous sustainability metrics. Sustainability is high on the list of favorite corporate buzzwords.
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.
Procuring transportation for freight is much different than any other procurement category. Transportation procurement needs to support both customer service and a company’s internal supply chain goals. One master of freight procurement is Kyle Masters. Simmons Foods Simmons Foods is a farm to fork poultry manufacturer.
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.
In a previous post , I made a case for how the Chief Supply Chain Officer (CSCO) and Chief Procurement Officer (CPO) are smarter together. Accordingly Supply Chain and Procurement will need continuous collaboration. Such sourcing events can be in the context of direct materials or logistics capacity.
All metal fabricators realize that they have to do some analyses before the company purchases equipmen t or hires new people, but now there seems to be a new intensity about the process. Custom fabricators have to cope with highly varying demand cycles from many different steel sales customers, and to do that effectively they need capacity.
Going back to the Industrial Internet of things (IIoT), the use of Internet-connected technology increases risk in manufacturing. billion in 2018 alone, reports Michael Kotelec of Manufacturing.net , and this will bring a strong, robust boost to efficiency and productivity in manufacturing. However, the risk is well worth it.
Data-Driven Decision Making : Using analytics to continuously refine operations. Key Benefits and Business Impact Warehouse optimization offers significant advantages across multiple areas: Cost Reduction: Expect a decrease in operational expenses, lower labor costs, and reduced energy consumption.
As with the logistics category where we featured 15 most popular blog posts vs. the 10 we covered in the top manufacturing blog posts and supply chain blog posts , we write so many transportation blog posts in that category, we are going to feature the 16 most viewed transportation blog posts. Read the Full Blog Post. Read the Full Blog Post.
Operational innovations like the invention of containers led to the huge growth in global value chains, and today 95% of manufactured goods move on ships. Analytical techniques like linear programming can create the mathematically “optimal” plan, but these methods must be implemented well to avoid creating other challenges.
The past few years have created a lasting impact on the way business is conducted, driving many companies to analytics to gain the visibility they need to control and optimize key processes. The Basics of Procurement KPIs. To accomplish this, our clients rely on the built-in data hub of our Stratum reporting application.
Experts from North Carolina State University and GEP conducted a survey on supply chain, procurement and IT leaders to determine their challenges and priorities, focusing on examining gaps in the supply chain. The study found that these leaders considered the largest gap to be between supply chain and procurement, citing it as a major issue.
By embedding analytics across logistics, sourcing, and fulfillment, businesses gain the visibility and foresight needed to stay competitive.Analytics-driven leadership is no longer a luxury; it’s the foundation of operational survival in todays volatile business environment. Analytics allows organizations to move beyond intuition.
At the same time, the Chief Purchasing Officer (CPO) has taken on a pivotal role by securing Personal Protective Equipment (PPE) to protect the workforce and direct materials when primary sources fail. Sourcing and supply chains working in a siloed manner can cause significant delays, resulting in lost revenue upside while escalating costs.
Global Manufacturing PMI Global Trade as a Barometer Clearly domestic business activity is much larger than international trade. The report for August (released in late September) shows negligible changes in the aggregate. ManufacturingPurchasing Managers Indexes The J.P. Source: J.P.
Keeping track of all your moving parts in manufacturing is a tall order. That’s where manufacturing inventory management software comes in. We’re talking real-time tracking, automated purchasing, and a whole lot less stress. Raw materials, works-in-progress, finished goods it’s enough to make your head spin.
Businesses often use it in retail and purchasing. Category management isn’t just another procurement trend. It’s a way for companies to group similar goods or services (like IT infrastructure, facilities, or raw materials) and manage them holistically instead of handling every purchase in isolation.
Higher labor costs and lower package demand resulted in fourth-quarter sales and 2024 guidance that missed analysts expectations. UPS is seeking alternative strategies for its truck brokerage business, which has seen sales plummet amid a freight recession marked by declining rates and over capacity. At American Airlines there was a 34.1
What are Total ManufacturingCosts? Your total manufacturingcosts are essentially an expense analysis that calculates how each of your company’s departments contributed to producing a finalized product. This looks at all stages of the manufacturing process from raw materials to work-in-progress to final result.
In this scenario, by adopting an adaptive supply chain, the retailer uses real-time data analytics to identify emerging trends and collaborate closely with suppliers to quickly adjust production and inventory levels to meet customer demand. This enables better planning and coordination, reducing lead times and improving cost efficiency.
This shortage and sudden uptick in demand weren’t something that most can manufacturers were prepared for. The deepening power crisis has already taken 900,000 tons of smelting capacity offline in North America and Europe. Many breweries were also reported to be paying premiums to purchase cans just to meet their immediate needs.
meters draft, and cargo capacity up to 14,000 twenty-foot equivalent units (TEU); previously, it could only handle vessels up to about 5,000 TEU. Net/Net: The Panama Canal cannot handle the largest ships, and moving a vessel through the Panama canal increases the cost of a container by approximately $8,000. Be A Good Shipper.
But the rapid shift from retail to online purchasing for staples and the surge for protective equipment, as well as unanticipated products like bread makers and home-schooling items, left many retailers flatfooted. Manufacturing and supply chains couldn’t ramp up fast enough. 2020 Was A Year Of Supply Chain Disruption.
Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. What Distribution Center Metrics Need Tracking? However, the most important metrics can be categorized into the following eight areas. On-Time Shipping.
For 58 years, food and beverage and consumer goods manufacturers have battled for dominance, from chips and wings to soda, beer, party supplies, and even aluminum foil for food storage and DIY trophies. Manufacturers that dont plan ahead will lose the game. That takes a data-driven approach to forecasting, procurement and distribution.
The transportation execution and visibility systems (TES) market has seen significant growth over the last few years due to a variety of factors, including the growth of e-commerce, the strong ROI tied to these solutions, the rise of control towers and visibility requirements, capacity fluctuations, and the expansion of ecommerce.
Dr. Alexandros Skandalakis – the Director Global ManufacturingCapacity, Strategic Assets and Capital Expenditures at Philip Morris Products S.A. This was done at a stock keeping unit level and for the entire manufacturing supply chain. It was predictable. The solution considers projected demand and service level goals.
As we head into the holiday season, supply delays, logistics constraints and inflation are looming over shoppers and retailers—and the manufacturers and distributors who keep them in supply. The following strategies, based on data, analytics, and collaboration, are helping planners around the globe overcome a disrupted supply chain.
Having a strong Sales & Operations Planning (S&OP) strategy ensures that your forecasts, raw materials availability and production capacity all match up and that the factory floor can meet its defined deadlines. Delivery metrics can vary in terminologies, measurement methods, and variables from one company to the next.
Commerce is global and regional at the same time, the world is getting smaller and more interconnected, and Consumer Packaged Goods (CPG) manufacturers operate in this build-anywhere and sell-anywhere market. Here we have compiled a list of the top six challenges that CPG companies face in the post-pandemic market.
In the end-to-end source-to-pay (S2P) process , strategic sourcing is the link between spend analytics, category management and contracts management, and is supported by supplier intelligence. Which Suppliers Are Truly Strategic? Even the largest organizations have limited time and resources.
However, only 30% of CPOs claim they have achieved their cost-saving targets in 2023. One of the ways that procurement teams improve this figure is by tracking and improving the purchase price variance (PPV) metric. Why Is Purchase Price Variance Important?
This blog explains The Key MRP Metrics in Supply Chain whcih every supply chain professional in Manufacturing or Distribution Businesses. This is a fundamental principle of supply chain management, it constitutes a juggling act that is at the heart of any well-orchestrated manufacturing process.
From artificial intelligence to refocusing on procurement, the state of supply chain continued to explode throughout 2016, and you need to understand why. Of course, the human controlling capacity for actual AI is still far from realistic, but the concept of a superior AI did make strides this year. Artificial Intelligence.
Automation is at the center of modern manufacturing businesses, with companies exploring the possibilities of artificial intelligence in improving workflows and profitability. Industrial engineers incorporate these technologies in designing and fabricating advanced manufacturing systems. How AI Is Changing the Manufacturing Industry.
This latest release further enhances our customers’ ability to intelligently adopt and boost adaptive manufacturing capabilities. Adaptive Manufacturing Enterprises can effectively address the increasing pace of change and disruption companies face today.
A combo of pandemic-related increased demand, and the tragic destruction of a key chlorine manufacturer have led to 2022’s swimming pool chlorine shortage. Image source: Cape Analytics. Reports from Costco shoppers indicate that the same brand of chlorine tablets were $129.99 The cause of this tragedy? between 2021 and 2026.The
Luckily, supply chain analytics is here to help! By harnessing the power of data and analytics, companies can uncover valuable insights into their supply chain processes, pinpoint areas in need of improvement, and make informed decisions that can boost their bottom line. Key Takeaways What is Supply Chain Analytics?
The Asia-Pacific region has one of the largest number of fabricated metals manufacturers in the world. Cost efficiency, quality management and traceability are major issues for companies in this region. Many governments are also offering incentives for manufacturers to invest in energy-efficient solutions.
E-commerce is growing faster than ever, and more consumers are leveraging online platforms in making purchasing decisions. In fact, two-thirds of consumer shopping journeys include internet research, reports McKinsey & Company , as well as word-of-mouth recommendations and past experiences.
The manufacturing sector covers such a broad spectrum of products and processes that any discussion about industry trends must take place at a very high level. One of the megatrends that has been driving manufacturing for over a decade is digitization. Manufacturing Trends. And the manufacturing sector overall looks strong.
The number one question that I am asked today by manufacturers across all industries is “How can I improve customer service?” The budget is for a fiscal year with quarter reporting and updates. The direct connection between the two processes increases costs and increases error. Background. Time horizon. Bias and error.
In their time lean manufacturing and just-in-time were game-changing concepts. Sudden demand spikes, precipitous demand drops, supply disruptions, production line shutdowns and other events can only be managed by early prediction and real-time responsiveness. In 2021 it is an entirely new game.
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