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Background Most of the clients that I am working with are working on two large supply chain initiatives: Implementation of SAP RISE and Compliance with the EU Digital Product Passport initiative. To build an outside-in model, and use new forms of analytics, we must start the discussion with the question of, “what drives value?”
Fragmented systems, rising cost pressures, and shifting risk profiles are making it harder than ever to manageprocurement effectively. But what does it actually take to regain control and build a procurement strategy that’s both resilient and scalable? How do you begin developing a procurement strategy?
Fragmented systems, rising cost pressures, and shifting risk profiles are making it harder than ever to manageprocurement effectively. But what does it actually take to regain control and build a procurement strategy that’s both resilient and scalable? How do you begin developing a procurement strategy?
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 digitalprocurement and the capabilities that matter most.
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 costsavings percentage and procurement cycle time.
AI is reshaping the way organizations source, manage suppliers, and drive value today. As supply chains become more interconnected and risks more dynamic, traditional procurement tools fall short. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle.
AI is reshaping the way organizations source, manage suppliers, and drive value today. As supply chains become more interconnected and risks more dynamic, traditional procurement tools fall short. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle.
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. Sustainability is high on the list of favorite corporate buzzwords.
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.
In this type of environment, traditional procurement software 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.
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.
Strategic sourcing and innovative solutions are often viewed as two distinct procurement tools, but they should not be seen in isolation. Think of them as apples and gearseach essential and effective on its own, yet when combined; they create a formidable mechanism for achieving procurement excellence. Click here!
Subscribe Strategic Supplier Relationship Management – Do’s and Don’ts At any given time, working with the resources of any business depends on procuring the right materials at the right time and at the right cost.
Subscribe DigitalProcurement Improves Supply Chain! And so are your procurement responsibilities. Sometimes, unforeseen disruptions, whether a natural disaster or an internal planning issue, can throw your procurement process off course. Effective lead time management is essential to avoid operational disruptions.
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.
If you’re evaluating procurement technology or exploring ways to drive more value from existing systems, chances are you’re looking beyond tactical fixes – you want a smarter, scalable strategy. Misaligned priorities across finance, legal, and procurement create friction that delays decision-making and reduces impact.
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?
What is Vendor Relationship Management (VRM) and Why It’s Essential for Your ERP and Inventory Software? Strong vendor relationships are critical for business success, especially when it comes to managing inventory and procurement. Why is Vendor Relationship Management Important?
Definition: Procurementtransformation is the strategic overhaul of how a business buys goods and services. This approach focuses on changing procurement holistically beyond minor tweaks, starting from strategies to organizational structures. Procurementtransformation has several objectives.
In today’s dynamic market, procurement is far more than just a buying and purchasing center. Forward-thinking organizations have transformed the department into an untapped gold mine that creates value for the entire end-to-end manufacturing process—from design and sourcing to production and delivery.
Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.
The landscape of public sector procurement has undergone significant transformation in recent years, driven by advancements in technology, evolving regulatory frameworks, and an increasing emphasis on sustainability. Predictiveanalytics powered by ML helps organizations anticipate procurement trends and identify potential risks.
Looking to improve operations and achieve costsavings within your procurement processes? Perhaps you already have a process audit report, or are interested in discovering how it could benefit you and streamline your operations. What is the Purpose of a Process Audit Report?
Today’s fast-moving supply networks demand more than intuition; they require systems thinking, digital fluency, and strong data skills. A Masters in Management Information Systems, especially earned online, offers a practical edge. Blending IT and management concepts, the degree helps them design leaner, more adaptable operations.
Simply by searching for a pair of shoes within an intuitive user interface, users are given a seemingly limitless amount of choices each with prices, photos, measurements, and any other metric a shopper could desire. Worse yet, their responsibilities are far more important than purchasing a pair of sporty sneakers.
Definition: Category management is a systematic way to organize and supervise groups of products or services within a company. Businesses often use it in retail and purchasing. In category management, you sort items with similar characteristics and treat each group as a separate unit.
Companies often push aside procurement compliance to focus on more pressing issues. No wonder—procurement often gets tedious and burdened with time-consuming processes. However, ignoring procurement compliance is like ignoring a ticking time bomb. Scroll down to find out: What is procurement compliance?
Understanding how your Procurement and Supply Chain KPIs are performing isn’t just a nice-to-have; it’s essential for survival and growth. Is inventory bloating your costs? Why You Need Visibility of Supply Chain and Procurement KPIs? Running procurement and supply chain without metrics is like driving blindfolded.
I am a big believer in procurement getting involved as early as possible in new product development based on all the market knowledge available. The worst-case scenario is product engineering developing a new product, selecting a supplier and then telling procurement to get on with negotiation. How often do your purchase orders change?
Top 3 Procurement Technologies to Embrace in 2025 Staying ahead of key procurement technology and advancements is essential for CPOs who want to improve spend cost reduction, drive strategic value, and navigate the increasingly complex procurement landscape.
Supply chain management typically does not fit very well with procurement, which is a challenge at the best of times, and can be a disaster in difficult times. We need to rewrite these systems and introduce new taxonomies to manage hyper-variability. Procurement must adjust accordingly.
In 1982 Keith Oliver is credited with coining the phrase “Supply Chain Management” As I began my career in 1982 I can attest to the fact that the term Supply Chain was not in general use at that time. Let’s take some time to celebrate the 40th anniversary of Supply Chain Management !
Photo: iStock/South_agency July 2, 2025 Helen Atkinson, Managing Editor How does a retailer stay ahead of the dizzying number of factors that go into whether it can sell what it puts on the shelves at a profit? The company says its new approach uses agentic AI to transform consumer feedback into profitable retail growth strategies.
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. That’s why organizations zero in on strategies to achieve procurementcost reduction.
This shift has pushed supply chain leadership to pivot from reactive management to proactive strategy built on data. Analytics allows organizations to move beyond intuition. With real-time dashboards, predictivemodels, and risk simulations, leaders can identify bottlenecks before they occur.
With international commerce increasingly digitalized and customer requirements continuing to grow, the demands on supply chain professionals to create frictionless, responsive, and cost-effective operations have never been higher. Data Analytics: Does it offer real-time dashboards, forecasting features, and performance metrics?
Time to Start Preparing for the Digital Product Passport SCB FEATURE Selling Into the EU? Time to Start Preparing for the Digital Product Passport Photo: iStock.com/ Alexandros Michailidis June 16, 2025 Robert J. As the EU moves toward full adoption of this regulation, it will foster a more open and responsible marketplace.
Depending on the nature of your business, your trading partners or your location, this could include procurement strategies, demand planning, logistics, and global trade management among others. Mastering Direct Spend ManagementProcurement teams generally do not report to the chief supply chain officer.
In the absence of communication, even the best suppliers can only deliver marginal value at best. For optimal effectiveness, supplier selection, contract management , and supplier development must be supported by consistent, streamlined, and transparent collaboration. Collaboration brings visibility and agility for gaining market share.
That’s where manufacturing inventory management software comes in. The right software can streamline your production, optimize stock levels, and even help you save money. We’re talking real-time tracking, automated purchasing, and a whole lot less stress.
For AFFLINK's partners and affiliates navigating complex procurement environments, ESG integration reshapes how supply chains are built, evaluated, and optimized. Why ESG Matters to Supply Chain Management Modern supply chain strategies extend beyond efficiency and cost containment.
Managing spare parts inventory has always been a delicate balancing act—excess inventory ties up capital, while shortages risk costly downtime and production delays. When a critical part is not available at the right time and/or in the right place, it can halt production lines, delay maintenance, and incur millions in unplanned costs.
Transcription Services Some documentation originates in non-digital formats, like handwritten notes, field logs, or voice recordings. Thus, transcription services convert this content into structured digital documents. Ken from Ditto Transcripts says, “Formatted digital text is easy to archive and share.”
Cost-efficient meaning Cost efficiency is the act of saving money or spending less money by changing a product or process to work in a better way. It is expressed as the ratio of costs incurred to outcomes achieved: cost-effectiveness = total cost ÷ total effect This formula shows the cost per unit of outcome.
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