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For example, if I improve the cost structure in transportation, procurement, manufacturing and sales independently, what decision support framework decides the right trade-offs? In current systems where Distribution Requirements Planning (DRP) and Transportation Management (TMS) are different models, alignment is impossible.
Supply Chain Dive reports that the last leg of a journey can account for up to 28 percent of a product’s total transportation costs. Grocery retailers that want to excel in this space — while protecting their bottom line — need to optimize their logistics planning. Here’s why: A constantly evolving landscape.
Each executive has a different perspective on the definition of supply chain excellence, but they are never discussed and aligned. His organization purchased an advanced planning technology from well-known best of breed provider, and the implementation should have been successful, but it was not. What Is The Ring of Fire?
Most WMS systems try to determine what will fit in a container, but they don’t factor in transportation costs impact. And there is no support for determining total shipping costs in order entry or purchasing. Only by applying smart cartonization algorithms in a systematic way can transportation costs be controlled.
Revenue management is siloed and distinct from demand management, while Transportation Management (TMS) has nothing in common with Distribution Requirements Planning (DRP). The shifts over the last decade are profound: Is the answer a Supply Chain Center of Excellence? Lack of executive buy-in. I think that the answer is no.
Expand the “FLOW” program for logistics information sharing to forecast transportation flow. Maximize the value of the purchase order flow data already in the existing networks. (A A purchase order changes many times and needs synchronization. Improve cross-government data sharing and analyze resilience.
How Do You Define Excellence? In retrospect, I find that technology is an enabler, but only if we are clear on what defines supply chain excellence. Many believe that an ex-supply chain exec knows the definition of supply chain excellence. Supply Chains to Admire Winners 2023 Examine Your Own Paradigm. I admit it. The reason?
New technologies revolutionizing transportation are creating tremendous opportunities but also unprecedented challenges for tire manufacturers. Provide procurement more negotiation power with suppliers of materials and services, as well as the ability to automate purchasing and production decisions based on real-time price and market data.
Aptean is orchestrating the Blue Yonder/E2open/Infor playbook of buying undervalued assets and milking the maintenance and Software-as-a-Service contracts with existing customers. This is despite the strengths of the recent purchase of Optimity. I expect the company to move more aggressively into the transportation planning market.
In 2012, when I started Supply Chain Insights , I believed that I could revolutionize the purchase of supply chain planning solutions by initiating a rating and review process across trading partners. Buying supply chain planning software is hard. How are people buying software? Here I share how to challenge the status quo.
Supply Chain Dive reports that the last leg of a journey can account for up to 28 percent of a product’s total transportation costs. Grocery retailers that want to excel in this space — while protecting their bottom line — need to optimize their logistics planning. Here’s why: A constantly evolving landscape.
Barry is the Founder of Bear Ventures , a transportation advisory that helps shippers develop high-performance carrier networks. About Barry Aumiller Barry Aumiller ‘s 18-year transportation journey began as an intern at North America’s largest refrigerated trucking company.
Initially, the output was published to procurement to design strategic buying strategies. The focus of the transportation suites was on cost mitigation and price negotiation. Procurement: Purchase price variance and procurement cost. Delivery: Lowest transportation cost, on-time shipment from shipper’s dock.
The classical approach involves functional silos, sequential decisions, and Excel and people to render a plan executable. Big data is used to understand a customer’s propensity to buy, the tendency to return, conversion of clicks to orders, demand sensing signals, individualized promotions, etc.
To remain competitive, retailers and carriers must excel in the crucial last-mile delivery stage. To Build or To Buy Companies looking to implement new or improve existing delivery technology face a crucial decision: should they build an in-house platform or buy an existing solution from a vendor?
Esther is the Chief Revenue Officer at Flowspace , an ecommerce fulfillment platform that helps brands meet their customers’ post-purchase expectations. Flowspace is an ecommerce fulfillment platform that helps brands meet their customers’ post-purchase expectations. About Esther Kestenbaum Prozan. Esther’s LikedIn.
Several factors contribute to customer loyalty, but providing excellent customer service—and a top-notch experience–is one of the most important in driving retention. 6 Examples of Excellent Customer Experiences. When making purchase decisions, brands who demonstrate care for others can offer a competitive advantage.
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 also provides an excellent part-time employment opportunity with flexible shifts.
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Ask a procurement or transportation professional if they have a good demand signal and expect a laugh. The ripple effects are pervasive.
As McCarthy put it, after a customer buys a bed, it’s his responsibility “to make sure we deliver it to their home brilliantly.” During my trip to England earlier this year , I had the opportunity to explore those questions and more with Brian McCarthy, Logistics Director at Dreams , Britain’s leading bed retailer.
So, I smile, catch my dinner partner’s eye and ask, “In our prior conversations, you mentioned the lack of clarity on the definition of supply chain excellence in your current deployments and how this is a barrier to implementing supply chain planning properly. Were the plans feasible? Did the plans reflect all of the constraints?
Adapt To Fluctuating Inventory and Supply Chain Demand If your business faces seasonal demand changes or unpredictable customer buying patterns, accurately predicting inventory levels can be a struggle. Below, we outline three ways blind shipping can help optimize your logistics, keep inventories healthy and save you money!
Managing yard and warehouse operations has long been one of the thornier aspects of transportation logistics. Yards are a choke point between transportation and warehousing — and wherever you have choke points, you have a higher risk of inefficiencies that drive up labor costs, detention fees and delivery commitments.
Areas of focus include new market entry, new product development, sales effectiveness, partnerships and alliances, operational excellence, and financial management. Many companies are moving to supply chain partners located in North America to reduce supply chain risk, transportation costs, transportation time, and environmental impact.
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.
Key takeaways Importance of Procurement Procurement vs. Purchasing Key Functions Departmental Structure Role Descriptions The blog emphasizes the significance of a well-structured procurement department with qualified personnel to achieve organizational objectives. Read In Detail About Procurement Department Here 2.
2023 call: Global supply chains will be slightly less busy, congested and chaotic, but cheaper – at least the transportation part. Theme 2: Online buying will fuel home delivery growth, challenges and new strategies. Importantly, port delays remain an issue in 2022, especially for the East and Gulf Coast ports that had record years.
We are making slow progress on transportation visibility, but not supplier visibility. The secondary problem is the lack of definition of process requirements and a buying team that cannot see past simple MRP/MRP II/DDMRP requirements. Projects Being Implemented as Part of a Digital Supply Chain Transformation Project.
Pirelli needed to move from using an army of representatives visiting dealer sites, showing them massive catalogs, and saying to the dealer, “You could buy this or this or this.” In some cases, the company had to buy market data. This was something they could not do with Excel. Supply chain projects depend upon data.
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. They have a global presence and serve clients across North America, Europe, and Asia. The Greenscreens.ai
A company buys these solutions to optimize their business. Rich Sherman – a Senior Fellow in TCS’s Supply Chain Center of Excellence – points out that many companies are building control towers to better manage their supply chains. For example, many companies are struggling to get transportation capacity.
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. Likewise, simplistic sensing of disruptions, to improve resilience is not a network.
The implementations were longer, the purchase costs were higher, and the functionality was less robust and lacking flexibility. The SAP team has built an incredible system of record to enable flows from ERP to SCP, but has failed to deliver a solution to deliver SCP planning excellence. I did not see it.
At the end of a long day of a strategy session on supply chain excellence with a client, I needed to fill up some time in an agenda. The strategy day owner was a global process center of excellence leader. To fill the gap, I needed to get creative to fill the time. The result? The genesis of the River of Demand learning activity.
Nick Lynch is the Global Excellence Manager at Shell Lubricants, a division of Shell Global. The Company implemented SAP Advanced Planner and Optimizer (APO) including the standard functionality of Demand Planning (DP), Supply Network Planning (SNP), and Production Planning and Detailed Scheduling (PPDS), yet many planners also used Excel.
Consumers are also requiring increased visibility into how products are produced, transported and retired. Why DPPs Matter Consumers today expect transparency about the products they purchase. As a result, DPPs are emerging as a straightforward, common sense solution for meeting these needs efficiently.
The visibility to spend allows them to provide excellent benchmarking in several areas. And a new solution, that applies machine learning to making better ongoing transportation routing and mode decisions, is particularly interesting. Initially, this product will focus on the purchase order (PO) acceptance process.
Or agreement on the definition of supply chain excellence. As a result, functional excellence anchors action. The focus is on digitization—automating today’s processes—versus rethinking process excellence based on the art of the possible. We are driving functional excellence and incrementally. (To Moving Forward.
According to a new study from Oracle, 84% of people say delays would cause them to cancel their order and 80% say it would cause them to stop buying from a brand altogether. Existing warehouses can be in locations too far from the market, or will require dependency on strong transportation networks.
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. Thorough analysis allows procurement professionals to surface, visualize, and present purchasing patterns, which are then evaluated by the stakeholders. From whom are we buying?
transportation, warehousing) or materials – direct, indirect, MRO (Maintenance, Repair, and Operations), goods for resale. Bundled offers (if you buy X, Y, and Z from me, I can offer a 10% discount or in case of transportation, grouping of backhaul lanes at a discount along with inbound lanes).
Shippers that fail to consider the implications of returns by refusing to give customers information about returns costs and procedures before purchase could risk alienating up to 67 percent of shoppers. In addition, shippers may lack the resources necessary to push operations beyond availability and reliability of procurement.
Peters and Waterman in their best, sellerIn Search for Excellence identify one of the eight factors of organisational success as sticking to the knitting. Many enterprises have taken heed and determined that inbound and outbound transport and warehousing are consequential processes of their business rather than fundamental or core processes.
In a similar vein, a major 3PL that I spoke to last week at Eye for Transport is considering discontinuing the traditional storage of spare parts and initiating a new service to do 3D printing of parts on demand. I would build an expertise system in the Supply Chain Center of Excellence. I believe that it matters.
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