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Dive into our curated list of the top 12 blogs from 2024 that will elevate your supply chain knowledge and give you a competitive edge. However, it covers key differences between purchasing and procurement, explores common contract types, and emphasizes the importance of strategic sourcing, supplier relationships, and risk management.
But the truth is, when these two functions join forces, the results can be game-changing: lower costs, faster responses, and a more resilient operation overall. This blog explores procurement vs supply chain strategy and looks at how aligning the two leads to operational excellence. The problem? It doesnt have to be that way.
Is inventory bloating your costs? Identify Bottlenecks & Opportunities: Quickly spot areas that are underperforming and need attention or areas where you’re excelling. Control Costs: Track value beyond just the purchaseprice and manage inventory effectively. Are you truly getting the best value?
Definition: Vendor relations is a strategic practice of cultivating productive, long-term relationships with suppliers. When done right, it’s beneficial for both sides: vendors get a reliable client, while companies benefit from a stable supply chain, consistent product quality, better pricing, and room to grow and collaborate.
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. Personalization is no longer the sole purview of marketing it’s also a logistics differentiator.
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?
This process is a fundamental part of any retail company, and it’s crucial to its success, as it allows them to respond to changing customer demands, reduce costs and increase profitability. Price; this needs to be competitive. By far the biggest cost is the Cost of Goods or COGS. Then we have in-store logistics.
The term refers to the entire journeyfrom finding suppliers and negotiating contracts to finalizing agreements and making the final payment for goods. Big data and digital technologies support the aggregation of purchases across business units to improve performance, provide better spend analysis, and drive business value.
Within this setup, an ERP procurement module helps companies make purchases and manage suppliers. It helps manage purchasing, supplier relationships, and order processing while integrating procurement with finance, inventory, and other core business functions.
Over the last 10-15 years, outsourcing of logistics activities to third-party logistics service providers has become increasingly popular. Research indicates that up to 75% of firms report positive impacts from outsourcing to logistics service providers (Langley J, Capgemini 2007). But what of the balance?
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. Without a scalable system in place, these complexities quickly result in inefficiencies and uncontrollable operational costs. ThroughPut.AI
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. Without a scalable system in place, these complexities quickly result in inefficiencies and uncontrollable operational costs. ThroughPut.AI
The cost of inefficient inventory management extends beyond storage fees—it impacts cash flow, slows growth, and can damage hard-won customer relationships. This approach reduces excess inventory, minimizes storage costs, and enhances operational efficiency. Even a single stockout can result in permanent customer loss.
From accelerated investments in AI and digital technologies that redefine innovation to a strategic move towards insourcing critical functions for greater control and security, businesses are reimagining processes across the board.”[3] More supply chain diversification. Continued reshoring, nearshoring, and friend-shoring.
So say the analysts at Gartner in a new blog post on logistics technology. Gartner says that, with the exception of high-performing organizations, 40% of logistics leaders cite the struggle to realize value from existing technology investments What do you say? Supply Chain Digest Says. Supply Chain Digest Says.
Aronow says to start by investing in organizational storytelling skills. Planner skill sets can also be an issue. Aronow says to start by investing in organizational storytelling skills. Supply Chain Digest Says. Use them to align plans with your company’s longer-term North Star strategies. What do you say?
Carsten Baumann Strategic Alliance Manager, Schneider Electric Posted on: Aug, 19 2016 The IoT Platform in this year's (2016) Hype Cycle is on the ascending side, entering the "Peak of Inflated Expectation" area. Supply Chain Digest Says. The Reshoring Initiative Can Help.
The growing level of robotic automation has driven productivity gains at Amazon facilities, which reduces fulfillment costs, which in turn also helps the company deal with labor shortages and high turnover levels at its fulfillment centers. And did you know Amazon has already deployed more than one million warehouse robots of multiple types?
Carsten Baumann Strategic Alliance Manager, Schneider Electric Posted on: Aug, 19 2016 The IoT Platform in this year's (2016) Hype Cycle is on the ascending side, entering the "Peak of Inflated Expectation" area. The Reshoring Initiative Can Help. link] Robert Transportation Manager, N/A Posted on: Aug, 30 2016 Good article!
He or she truly respects the employees’ knowledge and their dedication to finding the best answer. Carsten Baumann Strategic Alliance Manager, Schneider Electric Posted on: Aug, 19 2016 The IoT Platform in this year's (2016) Hype Cycle is on the ascending side, entering the "Peak of Inflated Expectation" area.
NMFTA says the new “Cybersecurity Cargo Crime Reduction Framework” is an actionable guide for shippers, carriers, third-party logistics providers and brokers that It outlines key steps parties can take to reduce cargo theft risk. See More Bad News on US Cargo Theft.) Supply Chain Digest Says. What do you say?
The on-going conflict creates risks to critical raw materials and the continued flow of finished goods, Garter says, requiring supply chains to conduct cost-benefit analyses of mitigation actions in partnership with finance leaders. Prepare CFOs for continued supply chain cost volatility 3. Supply Chain Digest Says. What do you say?
Drewry notes that for a spot-rate shipper exporting or importing on the East-West routes will find that, on average, a container shipment’s cost can vary by about $1,400. Drewry notes that for a spot-rate shipper exporting or importing on the East-West routes will find that, on average, a container shipment’s cost can vary by about $1,400.
Carsten Baumann Strategic Alliance Manager, Schneider Electric Posted on: Aug, 19 2016 The IoT Platform in this year's (2016) Hype Cycle is on the ascending side, entering the "Peak of Inflated Expectation" area. But in 2005 Gartner acquired Meta, and Klappich’s career and industry profile took off.
That sad end came to an end after having a market cap of $30 billion at its peak in 2020, when the company was worth – briefly – more that Ford Motor Company, after if signed a strategic partnership deal with General Motors. Consumer package goods giant Procter & Gamble says that it expects additional supply costs in the range of $1.0-1.5
of GDP The Council of Supply Chain Management Professionals (CSCMP) and partners Kearney and Penske Logistics are out last week with the 2025 State of Logistics Report, looking primarily at 2024 data. Again this year, Penske Logistics funded the report development. The second component of USBLC, inventory carrying costs (28.4%
Meanwhile, our supply chain and logistics stock index, which is made up of more than 20 stocks across freight carriers, logistics service providers, and supply chain hardware and software vendors, lagged the S&P, with a gain of just 10.3% In early 2021, SCDigest re-launched this weekly supply chain and logistics stock market index.
In some interesting concluding comments, he adds that “ The effects of tariffs have yet to be fully felt, and although freight rates have started to rise, it is still not enough to offset cost headwinds broadly. Where is a firm's earnings over a period of time determined by sales less product costs and general/adminsitrative costs?
The company had to re-apply the labels in distribution, at enormous costs. Today, improvements in printer and scanner quality and capabilities, and knowledge about bar code media and related issues, have in general made the technical performance problems a rare issue. In the modern world, it costs money to process every piece of data.
Studying economics at Yale, Smith’s 1965 term paper pitched the idea of creating a logistics company that would carry only cargo, and do so for a package’s end-to-end journet, such that a package could be delivered almost anywhere in the US overnight. Fred Smith was the founder of FedEx, Supply Chain Digest Says. What do you say?
Add to that the new battle in the Middle East, with its risk of expansion, potentially impacting oil prices and more, and there is a lot to be worried about. or offshore, the nonprofit Reshoring Initiative's free Total Cost of Ownership Estimator can help corporations calculate the real P&L impact of reshoring or offshoring.
Carsten Baumann Strategic Alliance Manager, Schneider Electric Posted on: Aug, 19 2016 The IoT Platform in this year's (2016) Hype Cycle is on the ascending side, entering the "Peak of Inflated Expectation" area. The Reshoring Initiative Can Help. link] Robert Transportation Manager, N/A Posted on: Aug, 30 2016 Good article!
Carsten Baumann Strategic Alliance Manager, Schneider Electric Posted on: Aug, 19 2016 The IoT Platform in this year's (2016) Hype Cycle is on the ascending side, entering the "Peak of Inflated Expectation" area. Gartner acquired Meta in 2005, and Klappich’s career and industry profile took off.
The Prices Index remained in expansion (or increasing) territory, registering 69.7, reported in May (above 50 = rising prices), so prices rose again but at a somewhat smaller rate). a little up from 48.5 However, the June reading of the Production Index (50.3) percentage points higher than May’s figure of 45.4, recorded in May.
Companies are holding back on large-scale automation investments, wary of shifting trade policies and uncertainty over both their own costs and the fiscal health of customers and vendors.” As a result, many companies are adopting a “wait-and-see” approach, delaying strategic investments in warehouse automation and infrastructure, Sharma says.
After securing access to TuffAir’s materials, Amazon abruptly ceased communications, only to unveil a remarkably similar regional air cargo model within months, based on the same technical, operational and strategic elements TuffAir had disclosed,” the company alleged in its legal filing. No comment as yet on the suit from Amazon.
Carsten Baumann Strategic Alliance Manager, Schneider Electric Posted on: Aug, 19 2016 The IoT Platform in this year's (2016) Hype Cycle is on the ascending side, entering the "Peak of Inflated Expectation" area. The Reshoring Initiative Can Help. link] Robert Transportation Manager, N/A Posted on: Aug, 30 2016 Good article!
In the last decade, many companies, especially those with manufacturing operations, have evolved direct materials sourcing from an administrative function to a strategic procurement process. As a strategic process, transportation procurement may still seem very tedious and challenging.
More Resources Home Is AI Hype or a Truly Revolutionary Technology Set to Transform Logistics? (AI As someone passionate about efficiency and technology in logistics, but not an expert in AI, I was initially very excited about AI’s potential. In logistics, the cost of an error or exception is always where problems start to balloon.
Re-implement demand planning, trade promotion management, and revenue/price management together to improve the baseline demand signal. The Emergence of Logistics as Constraint. Initially, the output was published to procurement to design strategicbuying strategies. Availability of logistics was always assumed.
Technology for All In a retail era dominated by e-commerce giants, customer expectations have shifted towards instant product delivery at no cost. Previously, only large companies such as Amazon and FedEx possessed the network and scale required for cost-effective same-day and next-day shipping.
Richard is Vice President of Strategic Accounts at Intelligent Audit , a cutting-edge logistics and supply chain technology company, dedicated to revolutionizing how businesses manage their shipping and transportation processes. Richard Perry and Joe Lynch and discuss the importance of freight bill audit.
Paul Brashier is Vice President Drayage and Intermodal at ITS Logistics , a third party logistics (3PL) company that offers creative supply chain solutions with an asset-lite transportation division that ranks #21 in North America, a top-tier asset-based dedicated fleet, and a Top 12 intermodal and drayage division.
More Resources Home Is AI Hype or a Truly Revolutionary Technology Set to Transform Logistics? (AI As someone passionate about efficiency and technology in logistics, but not an expert in AI, I was initially very excited about AI’s potential. In logistics, the cost of an error or exception is always where problems start to balloon.
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