This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
In 2016, we finished a study on continuousimprovement. In the study, when we asked for the top elements of business pain to drive continuousimprovement for companies greater than 5B$ in annual revenue, as shown in Figure 1, we found the largest issues with cross-functional alignment and availability of talent.
At a high level, procurement focuses on sourcing the goods and services an organization needs, while supply chain management oversees the broader flow of those goods, from raw materials to end customers. Supply Chain Management (SCM) involves orchestrating a product’s or service’s entire lifecycle, from sourcing and production to delivery.
AI is reshaping the way organizations source, manage suppliers, and drive value today. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. For example, agentic AI can analyze supplier data, evaluate contracts, manage purchase orders, or recommend sourcing strategies.
AI is reshaping the way organizations source, manage suppliers, and drive value today. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. For example, agentic AI can analyze supplier data, evaluate contracts, manage purchase orders, or recommend sourcing strategies.
We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency. Efficient supply chains strengthen collaborative relationships through automated communication systems and shared performance metrics.
It’s the key to transforming your supply chain from a source of frustration into a well-oiled, profit-generating machine. Implementing Data Analytics for Supply Chain Success Data analytics transforms supply chains with precise insights and real-time monitoring by bringing together multiple data sources. The result?
3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 10 Soft Metric Considerations in Measuring Supply Chain Performance. Twitter Google+ LinkedIn The post 3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance appeared first on Transportation Management Company | Cerasis.
The Power of Source-to-Pay Digital Transformation To put it briefly, source-to-pay refers to the entire process that starts with finding, negotiating with, and contracting the suppliers of materials, goods and services, and culminates in the final payment for those items. Who Should Prioritize an S2P Digital Transformation?
Procurement professionals can contribute significantly to the S&OP process by providing valuable insights into supply chain dynamics, identifying potential risks, and optimizing sourcing strategies. Risk Management: By understanding potential risks, procurement can develop contingency plans to ensure a continuous supply of materials.
Just as the electric light bulb did not come from the continuousimprovement of candles, I believe that supply chain planning improvements will not come from doing more of the same. Current planning taxonomies do not plan across make, source, and deliver answers bi-directionally. My goal is to drive change. Digital Brain.
In simple terms business procurement is the process of locating and acquiring goods and services from external sources for the business to use. Procurement activities include planning, sourcing, and negotiation, along with risk management, legal and value analysis. What is procurement? Undamaged shipment rate.
Production Capacity Analysis While traditional testing methods can be time-consuming and offer incomplete data, focusing on key production metrics within the manufacturing process provides more actionable insights. Consider these essential metrics: Asset Utilization: How efficiently are your machines being used?
I have taken myself off the road to write the book Metrics That Matter. They have a goal to be agile and aligned; however, their continuousimprovement processes are making steady improvement on an efficient supply chain model that is anything but agile or aligned. It is a slow week. Most of my friends are on vacation.
The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ). The definition of this metric is similar to the way it sounds. Cost of quality.
The focus cannot be about only continuousimprovement of existing processes. Culturally companies need to bridge the difference between a traditional focus on continuousimprovement and the need to drive a disruption. Pick five-to-seven balanced metrics and hold all functions accountable to these corporate metrics.
To enhance their competitive edge, companies across industries are adopting a key tactic: strategic sourcing. Strategic sourcing is a holistic approach to supply chain management that includes tactics for optimizing the total cost of ownership, improving supplier relationships, and ensuring long-term value creation.
The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. The analysis needs to be measured through an evaluation of year-over-year improvements. We find that companies can improve one, but not two of the metrics. A Look at History.
It often employs statistical metrics like MAPE (mean average percentage error), which has hit a wall in recent years due to increased demand volatility and this approach's mostly backward-facing nature. Data sources for the forecast can include planned sales orders, customer contracts and intercompany standing orders. Demand Sensing.
They source from approximately 15,000 suppliers with a sourcing spend of over €7 billion. The company also needs to drive cash efficiency and improved productivity. Being able to look at a service failure and get down to root causes is necessary for continuousimprovement. But even multi-sourcing is not enough.
It must also enable continuousimprovement programs and Good Manufacturing Practices (GMP) by helping to identify areas that need improvement and create and manage corrective action plans. To gain efficiency and build resilience, collaboration between these departments should be encouraged.
Enhancing collaboration pays off, both by increasing transparency with suppliers and improving the bottom line through multi-tier supply chain visibility. Leveraging advanced analytics : You can use analytics to identify top-performing suppliers as well as address any issues based on supplier performance metrics.
Managers can control the operation efficiently as the relevant information comes from different sources, timely and all the members have access to its current updates. ContinuousImprovement. Every business tends to enhance its market positions and to improve its processes. A Better Communication Model.
Cardinal Health, a global manufacturer and distributor of medical, surgical and laboratory products, is focused on continuousimprovement of service. Global logistics leaders wanted to improve service levels, lower costs, and fortify Cardinal Health’s supply chain planning process.
Unlike traditional tools that often operate in isolation or rely on rigid workflows, AI connects the dots between disparate data sources, providing a more comprehensive view of procurement activities. AI in procurement use cases : Analyzing data from multiple sources to predict demand trends with greater accuracy.
The field of supply chain management–combining source, make and deliver–into a common process started in 1982. Figure 1: Supply Chain Metrics Are a Balancing Act. The metrics shown in Figure 1 are difficult to improve together. Most companies improve singular metrics but are not able to drive portfolio.
Most companies segment their supply chain by breaking it down according to operational and logistical metrics. That’s necessary for continuousimprovement and operational excellence. Editor's Note: There will be no blog post next week. But there is another way to segment supply chains that begins with the customer.
Ethical Sourcing & Labor Standards As due diligence frameworks evolve, so too does the scrutiny placed on labor practices across the supply chain. Ethical sourcing ensures that suppliers adhere to human rights principles, prohibit forced or child labor, and operate with fair wages and safety policies.
In the traditional supply chain world, the processes of sell, deliver, make, source, and plan are separate and distinct. The metrics reward functional thinking. Insights on leadership, continuousimprovement and talent development for emerging markets. This is not an easy transition. Supply Chain 2030.
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).
Therefore, traditional sourcing is often reactive: a procurement manager reviews a purchase request , finds a supplier, negotiates terms, and moves on. Then, create and carry out a specific category strategy through sourcing and contract management. Finally, monitor performance and make ongoing improvements.
By completing this report with the auditor name, signature and date, it can then be revisited when needed to update and amend in line with business changes, ensuring continuousimprovement is always front of mind. It can lead to better supplier selection and improved communication.
This might involve collaborating on capacity planning, logistics optimization, and exploring new sourcing opportunities that align with your expansion strategy. As an innovator you probably rely on suppliers as a source of innovation in their own right, or to contribute to your efforts to develop breakthrough products and services.
The winners drive improvement while posting financial results in the Supply Chain Metrics That Matter ahead of the peer group. A Supply Chain Leader will make progress on both of these key metrics with a very tight and controlled pattern. While sourcing roles are more aggregated, channel support is usually regional.
Geopolitical conflicts, social changes, new market conditions, or adverse weather conditions are sources of disruption in supply chains that must be taken into account. It is about finding both critical points and weaknesses in the chain to implement solutions that lead to improved efficiency and productivity.
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.
We then rated companies on their ability to manage and improve a portfolio of metrics: operating margin, inventory turns and Return on Invested Capital (ROIC). Based on the analysis of supply chain improvement (as measured by the Supply Chain Index ) and supply chain performance, we ranked the supply chain leaders by industry.
There is a great need for improved supply chain analytics. Cloud and open source analytics are fueling new markets giving rise of new software providers in analytics with names like Board, Cloudera, EveryAngle, Enterra Solutions, FusionOps, Halo, Qlik, Spotfire, Transvoyant, Trifecta, and Trufa. New solutions offer great promise.
Select agreed-upon metrics such as material quality or delivery time and monitor as often as possible. Capability 5: Sustainability and Ethical Sourcing Sustainability has, most recently, become one of the most impactful changes in modern supply chain capabilities.
For years, supply chain leaders have struggled to achieve a sophisticated level of supply chain visibility that would drive continuousimprovement, optimize spend and reduce risk. Most systems are flexible enough to merge data from external sources into the algorithm architecture.
ESG Sustainability Reporting As procurement’s intelligent source-to-pay and supplier collaboration platform, JAGGAER One enables customers and stakeholders to achieve their environmental, social, and governance (ESG) objectives by simplifying, automating, and embedding sustainability principles directly into our software solutions.
Operations and manufacturing managers always look at metrics on productivity, schedule adherence, downtime and other critical production data. They can collect data on production processes, inventory levels, machine performance and other relevant metrics. It also enables better demand forecasting and planning.
In doing so, they have improved supplier collaboration and created a greater capacity for resilience, innovation, and continuousimprovement. . When supplier management operates in a silo–disconnected from all other procurement processes (from sourcing to payment), it captures only a fraction of the value.
Consider solar panels and other renewable energy sources. Adopting renewable energy sources reduces reliance on fossil fuels and contributes to a smaller carbon footprint. Remember, successful warehouse optimization is an ongoing process, requiring commitment, continuousimprovement, and a willingness to adapt to change.
Foster continuousimprovement and innovation across teams and processes. COOs must build resilience through supplier diversification, nearshoring, and flexible sourcing strategies. Encourage experimentation with new technologies and develop future-focused operational metrics.
We organize all of the trending information in your field so you don't have to. Join 102,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content