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I laugh when business leaders tell me that they are going to replace their current supply chain planning technologies with “AI.” Each supply chain planning technology at the end of 2024, went through disruption–change in CEO, business model shift, layoffs, re-platforming and acquisitions. You are right.
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than ever—juggling cost control, compliance, supplier risk, and internal complexity, all while trying to modernize outdated systems.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.
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.
As supply chains become more interconnected and risks more dynamic, traditional procurementtools fall short. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. This refers to AI systems that act with autonomy and are programmed to accomplish specific goals.
As supply chains become more interconnected and risks more dynamic, traditional procurementtools fall short. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. This refers to AI systems that act with autonomy and are programmed to accomplish specific goals.
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.
In this type of environment, traditional procurementsoftware and manual processes are insufficient – and many procurement teams are looking to artificial intelligence (AI) for answers. Key Takeaways Understand the potential impact of AI – including Generative AI & AI Agents – in procurement.
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.
The global supply chain landscape is undergoing significant transformations, influenced by rapid technological advancements, shifting consumer expectations, and the intricacies of international commerce. Conversely, a student who quickly grasps procurement strategies can be challenged with advanced case studies and leadership projects.
Home Introducing Freightos Enterprise: End-to-End Procurement, Benchmarking, and Management Freightos Enterprise unifies market intelligence, tender management, and shipment operations into one solution, enhancing logistics efficiency for large import-export businesses.
Despite the evolution of technology, none of the 28 industry segments I follow can drive improvement at the intersection of operating margin and inventory turns. Investment in Legacy Technologies. The industry continues to invest in technology architectures that are inside-out and limited. A failed blogger.” The reason?
The DOE is still issuing large federal loans to startup companies, Novonix a synthetic graphite startup just received a $755 million loan to support its mission and reach its goal of producing 31,500 metric tonnes of synthetic graphite.
If you’re evaluating procurementtechnology or exploring ways to drive more value from existing systems, chances are you’re looking beyond tactical fixes – you want a smarter, scalable strategy. But when spend is scattered across systems, business units, and suppliers, finding those insights is easier said than done.
Traditionally, procurement has been a process weighed down by manual tasks, fragmented systems, and endless paperwork. Today, procurement is undergoing a transformation. While procurement teams have long worked to add strategic value, Artificial Intelligence (AI) amplifies their impact.
While demand is high, ongoing product shortages continue to cause supply chain disruptions, create unpredictable shopping behaviors and drive rapid delivery expectations. If there’s a bright spot anywhere it’s the fact that, as logistics challenges have grown, so has the availability of advanced technologies to manage these challenges.
Samuel Parker and Joe Lynch discuss DAT iQ: the metrics that matter. DAT iQ provides freight intelligence to inform your budget and procurement strategies so you can navigate market volatility with greater confidence and agility. Source capacity with precision using supply and demandmetrics and forecasts.
The waste included: Negative Forecast Value Added (FVA) in demand planning. In 85% of organizations that I work with, conventional demand planning processes increase forecast error. When we measure the bullwhip impact (in my class on outside-in process thinking), the bullwhip between manufacturing and procurement is 2-3X.
Thats why modern BI systems are quickly becoming the go-to solution for data-driven enterprises. They integrate, align, and activate data across the business to drive better, faster decisions unlike legacy reporting tools that can’t. But lets be clear: not all BI platforms are created equal. Why does that matter?
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. Technology integration: Leveraging digital tools to enhance visibility and decision-making.
Small companies outperform large companies, and the marquee customers of major supply chain planning technology providers underperform. The issue is that when companies optimize functional metrics, they throw the supply chain out of balance and sub-optimize value. Let me explain. Fundamental Shifts. Which makes me ask, why AI Stupid?
Good forecasting leads to good demand planning —and good demand planning means better profitability. That’s why it’s essential to be sure you’re equipping your organization with the right demand planning software. Here are our answers to some of the most common questions about demand planning software.
Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. The financial teams, and the Information Technology (IT) groups, did not see alignment gaps, but the supply chain teams felt them and viewed them as a critical performance issue. Functional Metrics.
Procuring transportation for freight is much different than any other procurement category. There are different tools, goals, and market dynamics. Transportation procurement needs to support both customer service and a company’s internal supply chain goals. One master of freight procurement is Kyle Masters.
Blog » Procurement on the Thames: Ivalua’s London Summer Symposium June 26, 2023 | | Thought Leadership by Eloise Barnum As businesses navigate through supply chain disruptions, high inflation, and sustainability initiatives, procurement, and supplier management has taken center stage in driving change.
The Failure of Existing Demand Planning Solutions. During the pandemic, supply chain leaders turned off their demand planning solutions. The systems–based on shipment and order data–were out of step with the market. Next Steps: Start to model demand based on market data to align the organization on baseline demand.
Sales & Operations Planning (S&OP) is an established industry process that aims at finding a balance between demand and supply and streamlining cross-functional collaboration. Procurement People should learn the Sales & Operations Planning (S&OP) Process.
In this article, we’ll explain what centralized purchasing is, the challenges it tackles, the benefits of centralized procurement, and the types of companies that can benefit most from it. On top of that, we’ll break down how to approach selecting the right centralized purchasing system for your business needs.
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. During the pandemic, companies struggled with planning systems turning off the optimizers, and using the technology as a system of record. The order is a poor proxy for demand. Tougher than most understand.
Do Invest in Distributor Capability Building : Provide training, digital tools, and performance incentives. Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. A well-equipped distributor is an extension of your brand and a key to market penetration.
I asked companies to “Navigate through the hype focusing on the feasibility of scope and technology.” In the height of the e-commerce craze, the marketplace offerings started with a focus on e-procurement. At the time, the popular belief was that Enterprise Resource Planning (ERP) technologies would build multi-tier capabilities.
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. These technologies are often invisible to the end-user but make a big difference in keeping the promises about product availability, freshness, and speed of delivery.
The Demand for Carbon Accounting The push for sustainability isn’t new, but it has reached a tipping point. Tesco and Walmart have announced procurement policies aimed at reducing carbon emissions and promoting sustainability throughout their extended supply chains. Retailers are following suit.
By combining leadership and technology, I believed that we had the opportunity to create a better supply chain. The gap is the result of the stewpot of corporate politics, misguided consultants, and over-hyped technologies. The demand error is high, and their ability to model is low. My focus was simple. I was wrong. The reason?
As the state of the trucking market evolves and innovations improve , OTR freight management technologies and logistics service providers offer transportation management optimization to help businesses avoid significant supply chain disruption. Just a few years ago, many faced repeated price increases of more than 10-15 percent over .
The supply chain is a complex non-linear system. 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.)
There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. A big bang technology focus has not worked. Enlightened leadership that focuses on the management of the supply chain as a complex system. Aligned Metrics. Outside-in Processes.
Promotion Management is defined as optimizing the utilization of tools, strategies, and resources to promote a product that will generate additional demand. During promotional management, especially for big events around special days and holidays, inventory levels need to be adjusted to meet the peaks in demand.
In today’s dynamic and unpredictable business environment, companies face various challenges such as changing consumer demands, global uncertainty, and the impact of natural and man-made events. All the products and services purchased by procurement and supply chain organizations can be categorized into this two-by-two matrix.
Connected technology transforms traditional supply chains into dynamic systems capable of real-time decisions and proactive problem-solving. Demand Forecasting: Analyze past data to predict future needs. Route Optimization: Calculate the most efficient delivery routes based on several factors.
Despite two decades of advancement in supply chain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. I believed that the first generation of supply chain systems would improve operations to a greater degree than actually happened. I am an old gal.
Especially grievous are the gaps between finance and operations, manufacturing and procurement, and the operations and commercial teams. The Order Is A Poor Indicator of Demand. Traditional supply chain practices model demand based on historic order patterns. The gaps between business leaders grew. We are to blame.”
With the shift of power to the retailer, both have had to add headcount to manage the increased demands for sales to staff account-specific teams to better manage against retailer expectations. Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. It must be managed as a system.
Supply chain and procurement executives should urgently pay heed to the need to make sure it is distributed to them, said Jay Koganti, vice president supply chain at the Center of Excellence of Estée Lauder , during a presentation titled “ AI Trends Transforming Supply Chain – and How Leaders Should Respond,” at the DPW New York conference June 11.
As regulations across the globe strengthen, the pressure to collect, report, and organize emission-related metrics has never been higher. This will urge companies to verify their emissions upstream, internally, and downstream to meet regulatory needs and the increased demands for verifiable data for their downstream customers.
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