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Given your expertise, I’d love to hear what alternatives you recommend for better demand forecasting and real-time visibility beyond what’s commonly adopted today.” I know that your primary focus is procurement. Over the last two years, I actively engaged technologists and business leaders to redefine demandplanning.
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.
The waste included: Negative Forecast Value Added (FVA) in demandplanning. In 85% of organizations that I work with, conventional demandplanning processes increase forecast error. This is amplified across the supply chain into an exponential impact on inventory and planned orders for manufacturing. Most likely.
Updated: February 4, 2025 According to Michigan State University , demandplanning is a supply chain management process of forecasting, or predicting, the demand for products to ensure they can be delivered and satisfy customers. Should demandplanning be placed under supply chain management, sales, or finance?
We have not designed the planning systems to serve managers, directors, and vice presidents, aiming to improve decision-making and collaboration across the source, make, and deliver processes. This could all change if we discard our current definitions of supply chain planning and start anew. In short, don’t AI stupid.
Supply chain was defined in 1982 as interoperability between source, make and deliver. Ask a procurement or transportation professional if they have a good demand signal and expect a laugh. The goal should not be making today’s planning processes faster and hands-free. Why is a reinvention needed?
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.
Please note that in the traditional definition of supply chain planning, demandplanning does not synchronize with revenue management (they operate as separate entities), and transportation planning has nothing in common with distribution requirements planning. This is the taxonomy used in the testing.
The following will delve into some of the intricate farm-to-table challenges that supply chains face across sourcing, demandplanning, procurement and inventory management, transportation, and warehousing. Sourcing is not only from traditional farms but also from controlled environment agriculture (e.g.,
What Contractors Need to Streamline Procurement in 2025 By Ian Summers (pictured) Content Writer 111 Views You’re on-site before dawn, the framing crew’s ready, but the steel shipment’s stuck in limbo, the invoice isn’t approved, and your project management app just pinged you for the fourth time.
How Intake and Orchestration AI Are Reshaping Procurement If youve been paying attention to technology developments in procurement, youve probably come across the term Intake & Orchestration. These could be service requests, inquiries, demandplanning, or purchase needs. So, whats it all about?
in turn, is a boutique procurement consultancy. Professionals from procurement, compliance, logistics, sustainability, information-security and several other internal stakeholder all use the solution for different reasons. Klaus: The plan is to build a holistic “one-stop-shop” Control-Tower along all supply chain functions.
Especially grievous are the gaps between finance and operations, manufacturing and procurement, and the operations and commercial teams. In this world of demand volatility, processes need to shift to be outside-in to use market data. Build Strong Supply Chain Sourcing Development Practices. We are to blame.”
Category management isn’t just another procurement trend. What procurement teams need is a clear view of their spend, tighter control, and a strategy that delivers lasting value—exactly what category management provides. The goal is to get the best results from every category. It’s tactical and short-term.
That’s the question we set out to answer in our recent panel discussion with Procurement and Supply Chain experts. For example, a single-stack approach can lead to low user adoption, because the incumbent sourcing solution, for example, fails to meet the needs of various business units. . Demandplanning capabilities.
Procurement has never played such an important role in the increasingly globalised economy. Has procurement fundamentally changed itself in the past 10 years? Strategic Procurement can mean totally different things in different industries and sectors. The time when Procurement was almost a synonym to Purchasing has long gone.
In order to achieve this, demandplanning, inventory planning, supply planning via procurement and/or production planning, along with fulfilment/allocation and even transportation planning need to be integrated. DC procurement is also automated by aggregating the needs of the MFCs.
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.
Primed for transactional efficiency, these legacy architectures based on relational databases drive order-to-cash and procure-to-pay efficiencies. Or a unified data model across source, make, and deliver for planning? TMS and DRP have little in common, and revenue management operates isolated from demandplanning.)
Depending on the nature of your business, your trading partners or your location, this could include procurement strategies, demandplanning, logistics, and global trade management among others. Mastering Direct Spend Management Procurement teams generally do not report to the chief supply chain officer.
They source plastic pellets and then use injection, blow molding, rotational molding, and thermoforming to produce their finished products. In September of 2020, the company hired Jeff Baker to be their Vice President of Procurement and Integrated Supply Chain. That, I commented, was a very fast implementation.
Understanding how your Procurement and Supply Chain KPIs are performing isn’t just a nice-to-have; it’s essential for survival and growth. Why You Need Visibility of Supply Chain and Procurement KPIs? Running procurement and supply chain without metrics is like driving blindfolded. Are materials arriving when needed?
The second is, Why are companies focused on traditional risk management investments primarily focused on supply/procurement when the more significant opportunity is balancing risk and opportunity in an increasingly complex world? When he speaks of the supply chain, he means procurement. This is his world.
Integration of corporate social responsibility metrics in planning. Comprehensive view of source, make and deliver. Recognition of asset strategies in go-to-market plans. Ad hoc design planning often focused on a function of the supply chain. Focus is on make, source and deliver together. Procurement.
In the global world of businesses, companies often seek help from sourcing agencies to figure out how to get the things they need. But what’s a sourcing agency or sourcing agent and how does it make buying things easier? Let’s explore this world of sourcing agencies and understand what they do.
With the rise of logistics and procurement constraints, an analysis of only manufacturing does not yield a feasible plan. Companies need a planning solution to analyze the trade-offs between make, source, and deliver. This does not exist in conventional planning frameworks. I term this bi-directional orchestration.
My question then centers on how do we drive a probabilistic signal through planned orders to tactical planning and what is the role of the combination of probabilistic planning and the bullwhip effect on the right decision for sourcing? I do not see the testing and definition of engines for this type of decision support.
Now the new norm is constant change, and agility is the name of the game when it comes to supply chain planning. This includes suppliers, logistics providers, sales, and fulfillment locations/channels supporting autonomous planning decisions that take data flowing from various internal and external sources into account.
Decades ago, the ERP market’s first big differentiator was the ability of the ERP to use a bill of materials to translate a demandplan – which forecasts in units – and then transforms those units into tons of raw materials that needed to be sourced. The BOM transformation creates a feasible plan for procurement.
This is combined with data from external sources on weather, logistics lead times, and sustainability performance. They are designed to have minimal impact on the performance of the underlying source systems. Aera is using data crawlers to crawl across billions of rows of transactional data on a monthly basis.
MARCH 2023 – ToolsGroup earned a Higher Performer badge in G2’s DemandPlanning Grid® – G2’s scoring criteria is that products shown on the Grid® for DemandPlanning have received a minimum of 10 reviews/ratings in data gathered by March 07, 2023. Read the press release here.
These complexities, layered with globalization, shorter product life cycles , and associated volatility in demandplanning, has produced the most dynamic supply chain landscape we have ever experienced. Source ] Blockchain can help mitigate these losses and their associated disputes. from the global economy by 2022.
Effective DemandPlanning and Forecasting Accurate demand forecasting is the cornerstone of a resilient supply chain. By leveraging data analytics, businesses can better anticipate customer demand, optimize production schedules, and avoid both stockouts and overstocking.
Digital commerce efficiently requires the digitalization of many customer-facing operations and sourcing and procurement. For businesses of all sizes, the digital transformation of supply chain planning became the most important initiative. . This includes internal and external data sources. and Europe.
Many different terms, such as less-than-truckload (LTL), procurement and transportation management, describe supply chain management processes. Although procurement logistics might sound like it involves the purchasing of manufactured products , it is much more involved. The Definition of Procurement Logistics.
DemandPlanning Models Really Can Learn. A supply chain planning model learns when the planning application takes an output, like a forecast, observes the accuracy of the output, and then updates its own model so that better outputs will occur in the future. So, a plan can be produced that predicts the emissions.
Moller-Maersk Extends Lease at Port of NY and New Jersey Sealand - A Maersk Company Launches Hispaniola Service SupplyChainBrain Women in Procurement Struggle for Equality, Still More from this author Subscribe to our Daily Newsletter! Timely, incisive articles delivered directly to your inbox.
For clarity, the definitions are: -Strategic Planning: The frequency is either monthly or quarterly and the focus is on long-term planning. It combines decisions across sell, deliver, make and source processes to drive value based outcomes. Tactical Planning: This process is usually monthly.
They also have 20 sourcing locations across North America from which they can ship make to stock products. The sourcing centers are key to just-in-time, same-day, next-day deliveries. The sourcing centers shipped over 130,000,000 pounds of product last year. Making refractory products is complicated and challenging.
Mr. Bailey has worked most of his career at VF – as an industrial engineer in facilities, in strategic sourcing, running offshore operations, and now as the person in charge of the company’s entire supply chain. VFC’s supply chain sourced over 410 million units of apparel, footwear, and accessories in their last fiscal year.
Bowman, SupplyChainBrain In the rush to adjust sourcing strategies in line with current trends in international trade, the answer might be to think small. And they can identify alternative sources in the event of a disruption in the primary supply line, whatever the cause. The conversations are becoming real,” he says.
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