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The most common form of trading partner collaboration is purchase order collaboration. With PO collaboration, buyers send digital purchase orders over the network to suppliers or other trading partners. 18,000 suppliers ship 70,000 different types of parts to 72 Molex manufacturing plants across the globe.
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.
Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Imagine that your child brings home their report card and it’s a mix of good and fair grades.
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. As companies across industries have discovered, a well-optimized supply chain can drive significant improvements throughout their operations.
In companies, there is no standard model for demand processes. New forms of analytics make new capabilities possible. > Unfortunately, companies have invested money in traditional forecasting processes believing that if they make the forecast better that corporate performance will improve. It is evolving. Independent Demand.
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.
We continue our top blog posts of 2014 from our main categories today by focusing on something at Cerasis we are experts in : Logistics. We’ve already listed the top 10 manufacturing blog posts and the top 10 supply chain blog posts last week. Any process or management after the sale of the product involves reverse logistics.
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.
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.
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.
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.
Sure, supply chain cost reduction is important in reducing the cost of goods sold (COGS) and increasing profit, but there are other measurements which should not be forgotten. 3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 10 Soft Metric Considerations in Measuring Supply Chain Performance.
Supply chain leaders must be ready to implement big data and leverage it to improve their companies without any delay or inhibition This may sound impossible and frightening, but they must only understand how big always goes back to these two, simple principles of measurement, review, and action. Distribution of goods prior to purchase.
The process creates efficiencies across all spend categories, minimizes supply chain risks through improved supplier selection and awards, while giving visibility into pricing and forecasting. It is called strategic because it replaces traditional ad hoc approaches to sourcing, which were almost entirely focused on cost savings, item by item.
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 collaboration enables faster response times and cost savings.
Meanwhile, more companies are turning to entities outside of the company, like third-party logistics or integrators (3PLs and 3PIs) to manage omnichannel supply chains , reports Maarten Baltussen of Supply Chain Digital. In fact, third-party companies already have the first step in the bag, and you need to understand why.
How AI is Transforming Manufacturing: Strategies, Benefits, and Use Cases Artificial Intelligence (AI) is a huge topic and one that is constantly changing as research and development efforts push out the boundaries of whats possibleand whats already happening! Manufacturers now generate and own vast volumes of it.
The chief procurement officer (CPO) is a senior executive responsible for developing and implementing their organization’s procurement policies, procedures, and strategies. Making sure these purchases are of high quality and compliant with relevant laws and regulations also falls under the CPO’s responsibilities.
This means developing supplier evaluation frameworks that include carbon metrics, working together on joint emission reduction projects, and incentivising suppliers to meet or beat carbon targets. Also consider on-site renewable energy generation through solar panels or purchasing renewable energy credits (RECs) to offset facility emissions.
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.
Through the use of connected devices and greater abilities to capture data in real time, the concept of end-to-end visibility and improvement thru the use of supply chain analytics has changed. What Do Supply Chain Analytics Have to Do With This Ability?
For AFFLINK's partners and affiliates navigating complex procurement environments, ESG integration reshapes how supply chains are built, evaluated, and optimized. With consumers and investors alike expecting higher accountability, ESG compliance has become a key differentiator in global procurement.
Navigating the intricate web of modern manufacturing can feel like participating in an elaborate puzzle—complex, with lots of moving parts and a grand strategy that need to fit into a complete picture of the business. For midsize manufacturers, finding growth in a competitive landscape is a delicate balance between strategy and execution.
Today I will discuss how a company can sustain a lean culture once they have implemented lean practices in order to achieve continuousimprovement. I use a method I call managing for daily improvement or MDI. How can we ContinuouslyImprove Daily and Sustain a Lean Culture and Behavior? Industry Week, March, 2016).
Category management is a procurement strategy that involves grouping similar products or services together into categories and managing them as a single unit. This approach can help organizations streamline their procurement processes, negotiate better deals with suppliers, and ultimately save money.
Transactional and customer-facing data, such as transportation data and manufacturing and purchase orders, are important for generating demand signals and calculating demand variability. The presence — or absence — of required data is going to have an impact on the metrics being used to measure the success of the project.
As we close the year of 2015, we want to take a look at some manufacturing trends for 2016. We look at 6 core areas that manufacturing companies will take a long look at as they gear up for a successful 2016. E-Commerce for Manufacturing. Manufacturers will seek custom (or specifically tailored) e-commerce solutions.
Ronan Stephens, the Senior Vice President of Supply Chain Management and External Manufacturing, explained how the company set out on a journey to improve customer service while also reducing costs. It was thought that the company probably did need to improve their supply chain planning (SCP) capabilities.
We have talked a great deal about the evaulation of suppliers on our blog and this post continues that great tradition. When you choose a company to transport your freight or to supply you with the materials you need to manufacture a product, you are putting your hard work and reputation in their hands. Cost of quality.
As physical stores opened, shut down and re-opened again, consumers became more flexible in the way they shop for, and purchase, just about every product. According to a recent article in Forbes , 48% of consumers today prefer a hybrid shopping model that combines online and in-store components.
The percentage of purchases made and fulfilled through digital commerce has exploded in the past two years, advancing a pre-pandemic trend by as much as 10 years according to some industry watchers. The accelerated shift of buying behavior in both B2C and B2B markets also is playing a huge role in redefining our landscape.
Beyond automation, digital systems like Manufacturing Execution Systems (MES) provide real-time visibility into production activities. These insights support predictive maintenance and help avoid unplanned downtime. It improves coordination across departments and makes it easier to adjust plans without losing momentum.
For procurement professionals, systemizing and optimizing cost centers is not just a matter of financial management; it's a strategic task for driving efficiency, controlling costs, and enhancing overall performance. In this article, we delve into the intricacies of cost centers and explore strategies for improvement.
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!
Across the globe, manufacturing businesses are navigating economic uncertainties with increasing sophistication. Insights gleaned from robust data analytics enable core business areas to identify opportunities for risk reduction, enhance operational efficiencies, and foster strategic initiatives that drive business growth.
With digital business-to-business (B2B) enhancements, industrial manufacturers can find prospective customers, research new suppliers, alert buyers to shipping delays and foster deeper trading partner relationships. It feeds analytics and fosters collaboration and insights for continuousimprovement and high operational efficiency.
As if the largest economic crisis since the Great Depression wasn’t enough of a challenge to the supply chain industry, the introduction of the smartphone and advanced analytics into the marketplace disrupted the industry further by providing an exponentially growing consumer base and easy access to goods and information.
However, with most of our customer base in the manufacturing field, with the remaining in distribution and other industries, we thought it was vital that we featured some of the other manufacturing blog posts that were also popular in 2014. Well, manufacturing companies who ship freight in North America. We hope you enjoy!
Lean manufacturing involves 13 core principles – many more than the ‘five principles’ that are often associated with this popular manufacturing system. The lean concept originally came from manufacturing, but it has gained in popularity and is now used widely across different industries and sectors.
The 3PL gets to know the shippers'/customers' engineers, manufacturing or supply chain experts in the supplin order to eliminate points of failure down the road. This paradigm shift to an embedded 3PL relationship or supplier model requires significant changes in thinking, behavior, culture, and compensation. What’s In It For Me?).
Depending on who you ask, the answer can be anything from low costs and efficiency to a delicate balance between profitability and customer service. Companies must define objectives, acquire the right tools and technology, prepare the data infrastructure, implement AI models, and continuouslyimprove the system.
Say, for example, you’re a bag manufacturer and you purchase hardware from a company that you know is sustainable, however you fail to conduct any due diligence on its suppliers. For example, you may want to require a supplier to allocate a certain percentage of its procurement spending to sustainability companies.
.” He continued, “Great mass marketing used be our differentiator, but now the barriers to entry have changed. Through digital marketing, small brands are cropping up all over, and it is sentiment analysis and digital content driving purchases. Their focus is on continuousimprovement of current processes.
Ecosystem in Practice: Building a Best-In-Class Manufacturing Tech Stack Full Transcript Below: Rony Kubat All right. We found that a lot of our customers have just kind of started doing the smart manufacturing and digitization of operations, so these partnerships are new. Good afternoon, everyone. My name is Rony Kubat.
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