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Here I define value as improving market capitalization/employee for a public company. To build an outside-in model, and use new forms of analytics, we must start the discussion with the question of, “what drives value?” In today’s architectures and functional metrics, value optimization does not exist.
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. Freight transportation makes up over 10% of total global carbon emissions.
This is the largest area of investment for the company outside of ERP. While SAP has had procurementanalytics solutions, last year at Spend Connect Live, SAP announced the Spend Control Tower. Daniel Chapman, the senior director of process transformation for procure to pay at Warner Music, was a keynote speaker.
The adoption of AI in supply chain automation is enabling companies to make more accurate decisions, reduce cycle times, and better manage complexity. AI in supply chain automation is gradually reshaping how core functions operate, particularly in procurement, warehousing, and logistics.
During my current supply chain planning market research, I have received briefings from several SCP companies. Solvoyo has a metric they call the user acceptance rate. But when he presents this to many companies, they don’t believe it. “I You don’t act on a forecast; you act on what you purchase. You route a truck.
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.
Road freight alone accounts for approximately 7% of global CO2 emissions, with maritime and air transport further amplifying the environmental burden. Reducing dependency on fossil fuels can mitigate these risks and improve operational predictability. Reducing packaging volume and weight also decreases transportation emissions.
Many large organizations have multiple systems for order, warehouse, or transportation management that are barely integrated frequently not at all. Many companies aim for 95% or higher, which can be a daunting task. For suppliers, the penalties associated with missing OTIF goals can be significant.
A disruption at any point in the global logistics network including the average of 12 touch points from shipment packaging to final delivery can prove disastrous for profits, service levels, customer loyalty, and other key metrics. With the global e-commerce market predicted to reach $8.1
For most CPOs and CFOs, deciding on the right purchasing setup — centralized or decentralized — is no small task. Each model has its perks, and choosing the best fit can feel like walking a tightrope. Keep reading to learn: What is centralized purchasing? What is centralized purchasing?
Procuringtransportation for freight is much different than any other procurement category. Transportationprocurement needs to support both customer service and a company’s internal supply chain goals. One master of freight procurement is Kyle Masters. The freight market is mercurial.
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.
When it comes to executing mode-specific freight moves from origin to destination efficiently, reliably, and cost-effectively, transportation execution and visibility solutions play a critical role. Transportation execution solutions allow shippers to connect to multiple carriers and then tender, track, and pay in the system.
Companies today making a fundamental mistake: they are attempting to automate current processes with AI versus challenging and redefining work. In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Most companies forecast a single stream with a focus on error.
Supply chain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times.
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. Read In Detail About Procurement Department Here 2.
Here we have compiled a list of the top six challenges that CPG companies face in the post-pandemic market. CPG companies that utilize an autonomous supply chain technology see a reduction in their inventory and cost and an increase in revenue. each with discrete plans generated typically in sequential batch runs.
Last mile logistics is among the most misunderstood parts of transportation networks. On the surface, last mile may not seem very important, but it can make up 28 percent of a shipments total cost. Penny Co, reports William B. Existing Companies and Startups Seek to Take a Marketshare, So Shippers Must Act.
When shoppers were asked what would put them off making more ecommerce purchases in the future, 21% indicated they’d had negative delivery experiences, 20% said deliveries were not reliable, and 17% were dissatisfied with the delivery process. Similarly, maintaining a strong chain of custody (e.g.,
Nvidia, Northrup Grumman, PACCAR Inc, PCA (Packaging Corporation of America), ResMed, Rockwell Automation, Ross Stores, Taiwan Semiconductor Manufacturing (TSMC) Company, Tempur-Pedic, TJX, Toro, Toyota, West Pharma, United Tractors, and Urban Outfitters. Most companies are not clear. Congratulations to the 34 winners.
That was one of the primary conclusions of the annual logistics report released last week by the Council of Supply Chain Management Professionals (CSCMP) at a media briefing in New York. This year’s report was entitled “Navigating Through the Fog.” The CSCMP report puts an estimate on what it calls total U.S. billion last year.
In other words, the simple act of providing reports to executives and upper-level managers could be considered a form of data visualization, and better reporting will be a fundamental improvement in supply chains throughout 2018, explains Craig Guillot of Supply Chain Dive. Service Supply Chains Will Dominant the Market.
Companies are stuck at the intersection of inventory turns and operating margin. Most companies have designed supply-centric processes from the inside-out. Most companies have designed supply-centric processes from the inside-out. In companies, there is no standard model for demand processes. It is evolving.
Expand the “FLOW” program for logistics information sharing to forecast transportation flow. In short, resilience is what keeps things running during a disruption — and what helps companies get back on track afterward. Under the Defense Production Act, force all public network companies to interoperate.
In other words, manufacturers need analytics from point-of-sale systems, transportationmetrics and more. Furthermore, companies must extend the buying cycle to get as much information as possible from consumers. Essentially, this creates a stronger level of customer service, and it can turn into additional purchases.
More than 30 Q-Commerce companies are currently operating in Europe, and half of them were founded very recently, in 2020. To keep customers like my dad satisfied, RGD and Quick-commerce companies need to invest in new technologies to optimize the supply chain and logistics operations. increase with their sales in the U.S.
I thought back to the press releases I wrote at prior technology companies, which only had a glimmer of truth. On the technology front, optimization is deeper, and the evolution of artificial intelligence enables more flexible sensing and modeling. As shown in Figure 1, the reporting relationships vary. Identify the patterns.
During the company’s Velocity event held in Chicago last week, McCandless emphasized this strategic direction: “In the past ten years, project44 has built the foundation necessary for today’s AI advancements. This extensive connectivity has resulted in impressive metrics: 1.2 A key differentiator is Movement’s approach to data quality.
My head is wobbling with announcements, late-night Friday press releases, company name changes, and executive turnover in the supply chain planning market. Renames the Company Daybreak. No doubt that the company, Noodle.ai, needed a fresh start after burning through $107M in capital of five rounds of financing. Kinaxis and o9.
FourKites CEO, Matt Elenjickal One of the two leaders in the real-time transportation visibility market is FourKites. The CEO – Matt Elenjickal – told me that the company has roughly $100 million in revenue. This allows the company to do some interesting benchmarking. That is fast growth. The network has grown in size.
That’s why staying on top of the latest supply chain planning trends is so important – they can make all the difference when it comes to staying competitive, reducing costs, and meeting your customers’ needs. They are more likely to shop for discounts and sales and may delay purchases of some items.
Background on Ocean Transport. As a result, companies plug along planning based on historic lead times and freight rates which as you can imagine is doomed for failure. The interests of the parties, i.e. ocean container company, truck carrier, shipper and labor unions, are divergent. We are awash in a sea of self-interest.
We continue to see strong interest in our domain expertise and our solutions to help companies navigate the complex trade landscape. We remain committed to growing our business with prudent investments and cost discipline to build the premier network and technology for logistics-intensive businesses." Net change in cash (59.7)
According to PLS Logistics , global companies will install procurement managers in China for entire organizations by 2025. Meanwhile, Brazil, Russia and India will become major suppliers as companies access the remaining untapped resources of the world. Globalization Will Become More Important in Everyday Decisions.
In one McKinsey survey of more than 100 large organizations in multiple sectors, companies that regularly collaborated with suppliers demonstrated higher growth, lower operating costs, and greater profitability than their industry peers. Companies with close collaboration with suppliers outperform their peers.
Within this setup, an ERP procurement module helps companies make purchases and manage suppliers. Numbers speak louder: According to Procurement Tactics’ top procurement trends in 2025 , 83% of CPOs prioritize digitization. Keep reading to learn: What Is ERP in Procurement?
The IT taxonomy for visibility is supply chain analytics. As you implement supply chain analytics and use control theory with well-defined reference data with clear bands for control, process improvement ensues. Process gaps are larger in companies greater than 5B$ in annual revenues. Visibility Maturity Model.
Now, more than ever, companies and countries are looking at their overall carbon footprint and trying to establish a path to be more environmentally friendly. And even looking at those companies that perform in the 75 th percentile, that number is not much higher. But long-haul trucking is also developing electric trucks.
As MIT professor Yossi Sheffi has argued , less inventory in the system makes a company more flexible, actually building resilience. When the pandemic triggered rampant shortages, companies mitigated information latency and uncertainty with inventory – building up stock “just-in-case.”. A change to one link (e.g. on-time delivery).
Among millennials, consumers are willing to pay a premium up to 30-percent more for same-day delivery, reports McKinsey & Company , with an overwhelming majority willing to pay extra for guaranteed delivery, as shown below: Paired with the sudden spike in parcel delivery, last mile delivery will continue to grow 10-percent annually.
As I have written about before, supply chain sustainability , or the notion of going green, is a hot topic as companies and countries look at their overall carbon footprint and look for ways to be more environmentally friendly. Most companies do not look to tackle all 17 SDGs; instead, they focus their efforts on a few targets initially.
Rising costs, supply chain chaos, and economic swings put businesses under enormous pressure to protect their margins. According to McKinsey & Company, procurement accounts for 50% to 80% of a company’s cost base. It cuts costs yet helps maintain product quality and smooth operations.
According to a survey by ARC Advisory Group, only 10% of industrial companies are ready to apply artificial intelligence/machine learning. The percentage of industrial companies broadly applying agentic AI and generative AI would be a small fraction of that number. The company has 55 manufacturing sites across the world.
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. The word quality here covers a range of considerations contributing to value in every aspect of a companys operations.
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