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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.
I find that most companies’ understanding of supply chain planning is immature, and that next week, at the Gartner Supply Chain Summit in Orlando, that many will don their Mickey ears to discuss what I consider outdated supply chain planning models. Business leaders see the open sharing of feedback on software as too risky.
Traditional supply chain planning tools rely on deterministic forecasting, generating single-point estimates that often misrepresent real-world complexities. However, this approach ignores real purchasing behavior, such as customers buying complete sets of four tires.
Strategic sourcing and innovative solutions are often viewed as two distinct procurementtools, 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 procurementexcellence.
Technology can change or even improve work. In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. We still plan like it is 1999–when we were bracing for Y2k–versus using new forms of technology to improve planning. What’s missing?
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?
Today, supply chain excellence matters more than ever. While the supply chain technology market lost its allure at the start of the last decade, it is now cool again. Leaders are starting to experiment with new technology approaches giving rise to new spending and interest by Venture Capitalists. Figure 1. The Market Response.
The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team. Engineers could sign up for hour-long blocks to use the new systems. Why Jump Now?
Millions of shoppers, like my Dad, are not going back to their old habits because there are now faster and more convenient ways for buying daily household needs. It excels on a union of E-Commerce mobile apps and last-mile delivery innovations. It is now possible for Q-commerce companies or retailers to use this model.
” Followed by “How are you organized, and what defines functional excellence? And, how do you tie functional excellence to corporate value?” Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. This gap grew over the last decade.
The lack of interoperability between decision support platforms is a problem for companies attempting to improve decisions from the channel to supplier bi-directionally through technology. My Point of View (POV): current processes and technologies are insufficient. When he speaks of the supply chain, he means procurement.
More Resources Home Is AI Hype or a Truly Revolutionary Technology Set to Transform Logistics? (AI Like all innovations, however, developing technology as complex as the human brain requires time and significant investment.Here, too, the journey of AI began as far back as 1956 at a workshop on Dartmouth College’s campus in the U.S
The systems–based on shipment and order data–were out of step with the market. With fixed models and hard-wired data feeds, teams could not adjust the planning systems to use consumption data or market indicators. Next Steps: Start to model demand based on market data to align the organization on baseline demand.
I know that your primary focus is procurement. The issues are largely rooted in politics and the lack of clarity on supply chain excellence. The goal was to teach the impact of system dynamics in a non-linear system that we now call the supply chain. The distribution models were never tested when implemented.
As a developer working on the braking software of an automatic car for the past eight years, he constantly tells me that it is not easy, and all of the estimates are too waaaay too positive. I thought back to the press releases I wrote at prior technology companies, which only had a glimmer of truth. The facts are clear. Next Steps?
For most digital became an excuse to implement more traditional relational database technologies. Most companies invested in enterprise transactional systems, but their networks operate primarily through spreadsheets and email. Most are excited about their new platforms. ” Does the Dog Hunt? I am researcher.
Supply chain software is changing. So should the purchasing process. . RFIs tend to work well for certain industries (like government) or for purchasing equipment and industrial assets, bu t t hey often fall short in helping supply chain teams select a new software vendor. Are there limits to the number of models?” “Can
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.
As businesses become increasingly global, professionals in the supply chain field must keep up with new technologies, trends, and best practices. Summary Table edX Supply Chain Courses vs. SCMDOJO Aspect SCMDOJO edX Focus & Specialization A dedicated platform focused entirely on supply chain management.
These flows are one-to-one– focused on sharing a singular flow of information– lacking a system of record. In addition, a purchase order changes three-to-four times and there is a black hole (data is caught between email systems of trading partners for one-to-two days). Many systems without interoperability.
Supply chain excellence is easier to say than to explain. The supply chain is a complex non-linear system. Understanding this relationship requires modeling. (A The culture is dominated by “lifers” and technology investment is conservative. Business leaders are action-oriented and competitive. The reason?
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.
As an analyst in the supply chain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. Today I am writing my take on the acquisition of Terra Technology by E2open. History of Terra Technology. Terra Technology is 15-years old.
Coupa offers a Business Spend Management (BSM) platform based on a public cloud. The platform connects hundreds of organizations representing the Americas, EMEA, and APAC, with millions of suppliers globally. The visibility to spend allows them to provide excellent benchmarking in several areas. That has recently changed.
Importers are trying to push 30 percent more thru a system that is running at 70 percent throughput aainst the old level. My thought was to combine my experience working on visibility solutions with Descartes Systems Group and Manugistics with recent research data. We ordered pizza and started working on a visibility maturity model.
Yesterday, @DamarqueViews asked me a question on twitter: “What do you think are the greatest barriers in the adoption of social technology in the supply chain?” I find the evolution of social technologies, and the promise of social, exciting for the supply chain. They excel in the four Ps of marketing.
Front and center in this revolution are the marriage of customer relationship management (CRM) software and capable e-commerce platforms like Shopify. Enter companies like DigitalSuits, a high-tech Shopify development and e-commerce agency that leverages technology and innovation to build end-to-end solutions.
My Perspective and Point of View Traditional supply chain technologies depend on relational database structures. 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?
CAGR , the global supply chain management software market is expected to touch USD 50 billion by 2032. This one figure speaks volumes about how organizations worldwide want access to the best supply chain management tools to boost efficiency and value in their distribution and logistics network. Growing at an overwhelming rate of 11.1%
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.
As we move towards a new decade is the emphasis in the procurement world changing – are we going to see a new age, where the Art of Procurement comes to the fore? The huge growth in the use of technology has been the most visible part of that developing picture.
The world of procurement is constantly evolving, demanding professionals with the right skills and knowledge. Moreover, two popular options often considered are the MCIPS qualification from the Chartered Institute of Procurement & Supply (CIPS) and the Procurement Track offered by SCMDOJO.
Driving an excellent supply chain depends on how people are recruited and managed, processes, and the technology used. The company uses a network design tool from Coupa. This is an important analysis tool for maintaining a well-run supply chain. Ferguson does 20 to 30 studies a year using this tool.
More Resources Home Is AI Hype or a Truly Revolutionary Technology Set to Transform Logistics? (AI Like all innovations, however, developing technology as complex as the human brain requires time and significant investment.Here, too, the journey of AI began as far back as 1956 at a workshop on Dartmouth College’s campus in the U.S
If you're reading this now, then you’ve probably noticed how outdated traditional procurementsystems recede into the past and are replaced by new modern solutions. What is Cloud Procurement? These services include: Software; Analytics; Networking; Data storage; Servers and more. Three Categories of Cloud Procurement.
This is why I host training twice a year to challenge existing technology paradigms. He feels that based on his years of experience with a software provider, he has a whizzbang technology. days to receive a purchase order confirmation. The average purchased order changes 3.5 Yes, the class is now closed.
In addition, poor visibility, unpredictable demand, and disjointed systems worsen the situation further and lead to inefficient procurement, misplaced stock, and emergency orders. Thats why a growing number of organizations are turning to AI software for spare parts inventory management.
With rising costs and declining margins, health systems must become more efficient and productive. Now, of course the systems of healthcare differ but overall the level and growth is certainly a concern. The Path to Supply Chain Excellence. We believe that a key pillar of this transformation is the supply chain.
With the global market expansion and deepening supply chain complexity, the roles of procurement leaders have evolved from tactical to strategic. Nowadays, procurement departments not only focus on the day-to-day buying operations but also search for the most efficient ways to go about them. From whom are we buying?
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?
As I wrote earlier this year in Is Your Business Model Safe? , I also shared with them my view that companies will ultimately find opportunities for supply chain innovation at the intersection of Software, B2B Connectivity, and Social Networking — a trend best illustrated by the rise of Supply Chain Operating Networks (SCONs).
Alternate Bill of Materials and Alternate Sourcing: The more alternatives that exist through the manufacturing and procurement processes, the easier it is to design the supply chain to absorb cost and supplier variability. Q: You mention that Executive Buy-in is the biggest stumbling block. Streamline Horizontal Processes.
Supply chain software is changing. So should the purchasing process. . RFIs tend to work well for certain industries (like government) or for purchasing equipment and industrial assets, bu t t hey often fall short in helping supply chain teams select a new software vendor. Are there limits to the number of models?” “Can
Note that network enablement is not possible from most ERP platforms. My definition of a network is the bi-directional information exchange of manufacturing, procurement, quality, and transportation signals across multiple tiers of trading partners in a many-to-many trading partner information exchange with minimal latency.
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