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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.
We have found that supply chain metrics are gnarly and complicated.During In our program, cost avoidance, while desirable, does not count towards the metric. We would not have succeeded without a team effort across R&D, the business leaders, and SC disciplines of engineering, procurement, and manufacturing.
Enterprise procurement leaders are under more pressure than ever—juggling cost control, compliance, supplier risk, and internal complexity, all while trying to modernize outdated systems. AI, automation, and generative tools are redefining efficiency, allowing procurement teams to move from reactive to proactive decision-making.
Enterprise procurement teams face growing pressure to deliver strategic value – managing supplier risk, ensuring compliance, and supporting sustainability – all without sacrificing speed or control. This blog explores the most common challenges in digital procurement and the capabilities that matter most.
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Do Invest in Distributor Capability Building : Provide training, digital tools, and performance incentives. A well-equipped distributor is an extension of your brand and a key to market penetration.
I am currently working on a couple of casestudies for this blog on how business leaders used digital twin modeling during the pandemic. Initially, the output was published to procurement to design strategic buying strategies. Procurement became an island–isolated from the demand signal except for MRP.
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). As a B2B company, procurement management is essential.
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.) A CaseStudy. A potential value of a digital twin.). My learning?
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. Customer-Centric Supply Chain.
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.
If you’re evaluating procurement technology or exploring ways to drive more value from existing systems, chances are you’re looking beyond tactical fixes – you want a smarter, scalable strategy. Misaligned priorities across finance, legal, and procurement create friction that delays decision-making and reduces impact.
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.
Conversely, a student who quickly grasps procurement strategies can be challenged with advanced casestudies and leadership projects. For example, a student might work on a project that involves analyzing sales data to predict future product demand, thereby learning how to adjust procurement strategies accordingly.
by Alexa Cheater Avaya: A supply chain management casestudy. Tracking success: Metrics matter. Now Avaya is leading the way, exceeding industry benchmarks in 11 key metrics. Rigorous tracking of these metrics helps Avaya feel confident it’s on track to realize success. Procurement spend analysis.
Webinars Watch: An Alternative to Traditional Battery-Making Technology for EVs Sourcing/Procurement/SRM Watch: Getting Ahead of Customs Compliance Violations Regulation & Compliance Five Ways AI-Enabled Digital Twins Will Shape the Future of Supply Chains Technology Digital Edition SupplyChainBrain 2025 ESG Guide: Is ESG Still Relevant?
As a result, companies are writing new casestudies through their actions or inaction. In this volatile world, efficient procurement led by a CFO is not the answer. Companies driven by functional metrics struggled: they could not adapt quickly to the higher transportation costs.). What is the issue? Conclusion.
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While CPI is normally used within project management and earned value analysis, it has significant application and importance within supply chain contexts, particularly in procurement, logistics and warehousing. Example: If a company planned to procure materials worth $100,000 but ended up spending $120,000. A CPI of 0.83
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. Here I share a cut of the data.
The larger the organization, the more tension with conflicting functional metrics making decisions more difficult. The gap between logistics and procurement; and logistics and customer service increases process latency. Functional metrics need to be abandoned to focus on balanced scorecard outputs. Here is some detail: Planning.
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Supply Chain Finance & Revenue Management Lawyer for 737 Crash Victim Families Slams DOJ Deal with Boeing Quality & Metrics U.S. Featured Product Popular Stories Watch: Why Choose FTZs to Mitigate Tariffs?
Supply Chain Finance & Revenue Management Supply Chain Visibility Quality & Metrics Sourcing/Procurement/SRM Supply Chain Security & Risk Mgmt RELATED CONTENT RELATED VIDEOS Subscribe to our Daily Newsletter! To keep them moving, we can’t afford to ignore what the data is telling us.
Featured Product Popular Stories Lawyer for 737 Crash Victim Families Slams DOJ Deal with Boeing Quality & Metrics Podcast | The Clock’s Ticking: Time to Get Serious About Radio Equipment Cybersecurity Regulation & Compliance Watch: Why Choose FTZs to Mitigate Tariffs? Timely, incisive articles delivered directly to your inbox.
This type of software is used by businesses to plan and oversee routine operations, such as supply chain management, manufacturing, services, project management, customer relationship management, risk management, compliance, accounting and procurement. CaseStudy #1: Noble Biomaterials. CaseStudy #2: Veoneer.
Time to Start Preparing for the Digital Product Passport Supply Chain Visibility Five Ways AI-Enabled Digital Twins Will Shape the Future of Supply Chains Technology Digital Edition SupplyChainBrain 2025 ESG Guide: Is ESG Still Relevant?
In today’s fast-paced and competitive business landscape, organizations across industries are realizing the immense value of effective procurement practices. Procurement professionals play a vital role in driving operational efficiency, cost savings, and strategic decision-making. But how do you get started? Do not worry!
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Digital commerce efficiently requires the digitalization of many customer-facing operations and sourcing and procurement. Customer Satisfaction scores side by side with the service level and availability metrics. For businesses of all sizes, the digital transformation of supply chain planning became the most important initiative. .
If a major customer leaves, an AS/RS investment could become a stranded asset that sits on the balance sheet and drags down financial metrics such as return on asset (RoA) or other profitability measures. Risk Mitigation and Financial Stability The same flexibility helps mitigate longer-term financial risk.
Daily, we see business continuity casestudies as headline news in the Wall Street Journal. The focus needs to move from functional metrics to balanced scorecard outcomes. Functional metrics insulate organizations and throw the supply chain out of balance. For example, a “buy plan” for procurement.
Webinars Container Ship Explodes, Catches Fire Off Coast of India Global Gateways Europe’s Steel Industry in Jeopardy, Says ThyssenKrupp Exec Global Trade & Economics Watch: Supply Chain Planning in Times of Disruption Artificial Intelligence Digital Edition SupplyChainBrain 2025 ESG Guide: Is ESG Still Relevant?
Key elements to include: Sustainability Goals and Metrics: Define clear sustainability goals aligned with the company’s overall objectives. Introduce relevant metrics for measuring environmental impact like carbon emissions, water usage, and waste generation.
These awards celebrate the innovative ways our customers leverage our technology to transform their procurement operations and drive business value. These procurement leaders are identified and highlighted for others to seek out during the REV2025 event.
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). As a B2B company, procurement management is essential.
The procurement Summit 2016. Building on the huge success of eWorld Procurement & Supply – which has been running bi-annually in London since 2001 – the new Procurement Summit will bring together 150 purchasing and finance professionals from across the commercial, public and third sectors. Procurement Automation.
No metric should be measured in isolation, and functional metrics should be replaced with the balanced scorecard metrics shown in Figure 2. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance.
List of Top 10 Supply Chain Analytics Books 1) Supply Chain Metrics that Matter (Wiley Corporate F&A) 1st Edition This book offers an in-depth guide to understanding the link between corporate financials and supply chain maturity, evaluating the progress of over a hundred companies from 2006-2013.
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” (The use of the term “basics” is usually code for the implementation of Enterprise Resource Planning (ERP) to improve order-to-cash and procure-to-pay.). End-to-End Definition Implementation of enterprise data architectures to improve order-to-cash and procure-to-pay. Background. Investment in control towers.
Several customers addressed those questions in excellent casestudy presentations: Dr. Bernhard Herzog, Oxea GmbH – “Business Impact of a Supply Chain Operating Network”. How are companies using SCONs in the real world? What benefits are they achieving? Ralf Kahre and Patrick Gött, BASF – “End-to-End Business Process Management”.
Whether it is creating tailored learning plans that tackle individual, unique skillsets or measuring ROI with a specific set of metrics, let’s deep dive into what makes a procurement training program drive team efficiency and achieve organizational objectives. Well-trained professionals will ultimately make better decisions.
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