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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 today’s architectures and functional metrics, value optimization does not exist. Align functional metrics to reliability to deliver value.
Solvoyo has a metric they call the user acceptance rate. This metric measures the percentage of time the planners accept replenishment, transportation, or inventory plans as they are without any change in the timing of the delivery or the quantity to be delivered. Forecasting is not an actionable item.”
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. Freight transportation makes up over 10% of total global carbon emissions.
During his tenure in the industry, he built innovative pricing and forecasting models, leveraging internal and external data sources to improve internal decision-making and increase profitability. He leads a team of market experts who study every facet of the logistics industry to bring the best available insight to customers.
For instance, advanced factory scheduling solutions use predictive maintenance inputs, which rely on sensor data to forecast equipment failures. Short-term forecasting relies on POS and other forms of downstream data. Not all the transactional data, just the data required to calculate a metric or make a decision.
Many large organizations have multiple systems for order, warehouse, or transportation management that are barely integrated frequently not at all. Ability to Meet Fulfillment Goals According to the survey, only a mere 1% of respondents achieve 80% or higher for their OTIF metrics, with the average percentage of OTIF being a mediocre 62.21%.
Road freight alone accounts for approximately 7% of global CO2 emissions, with maritime and air transport further amplifying the environmental burden. Key strategies include: Electrification of Transport: The use of electric vehicles (EVs) for freight and last-mile delivery reduces emissions and operational costs.
Functional Metrics and the Lack of Alignment to Strategy. Process-based companies continue to focus on manufacturing efficiency (OEE) and discrete on procurement (PPV) without designing the supply chain to balance transportation, manufacturing, and procurement to a balanced scorecard. The Lovefest with Shiny Objects. Clarity on Value.
Political instability has disrupted transportation corridors. When a new tariff is proposed, companies using AI-based forecasting tools are often able to adjust their sourcing or logistics strategies well before the policy takes effect. Metrics must reflect the new priorities. Trade tensions have led to abrupt tariff hikes.
Samuel Parker and Joe Lynch discuss DAT iQ: the metrics that matter. Key Takeaways: DAT iQ: The Metrics that Matter In the podcast interview, Samuel Parker gave a freight market overview based on DAT’s database of $150 billion in annual market transactions. He lives in Denver, Colorado with his wife and son.
I’ve always maintained that improving demand forecast accuracy, as helpful as it can be, shouldn’t be the end goal itself, but simply a means to the end. A recent report from Gartner agrees, focusing specifically on the challenge of building a better business case for improved forecast accuracy.
System Integration and Data Visibility Orchestration requires connecting warehouse systems, transportation platforms, and ERP data so that status updates, inventory levels, and shipping exceptions are visible without needing to log in to separate systems. The system also contributes to better forecasting accuracy.
With freight transport accounting for a significant share of global emissions, efforts to improve logistics now extend beyond operational metrics to include resilience, regulatory compliance, and climate performance. CEVA Logistics, a CMA CGM subsidiary, uses Googles AI tools for warehouse management and demand forecasting.
Transportationmetrics saw little change in May as capacity, utilization and pricing remained in expansion territory, according to a monthly survey of supply chain professionals. reading for transportation capacity during May, which was roughly in line with April. SONAR: Logistics Managers’ Index (Transportation Prices).
Managing OTR transportation through disruption is a complex process. We’re sharing seven best practices to improve OTR transportation management, enabling shippers to stay competitive in the face of disruption. Forecast Demand?with?Analytics. Analytics provides visibility into your transportation network and operations.
Over my 25+ year supply chain career I have worked for several distribution-intensive companies and every single one of them had a focus on improving forecast accuracy. Achieving a high SKU level forecast accuracy is a top goal for supply chain planning teams regardless of industry, size, location, etc.
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Do Embrace Technology and Data : Use real-time data for demand forecasting, inventory management, and route optimization. A well-equipped distributor is an extension of your brand and a key to market penetration.
Supply chain optimization is crucial for enhancing efficiency and cost-effectiveness by providing end-to-end visibility, aligning with demand forecasts, and continuously improving processes through technology and analytics. Demand Forecasting: Analyze past data to predict future needs.
In early 2020, the market forecast for freight looked bright. The post What Are the Most Important 2020 Freight Metrics to Know? The post What Are the Most Important 2020 Freight Metrics to Know? appeared first on Transportation Management Company | Cerasis. The turmoil of the U.S.-China It is only a matter of time.
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. Transportation and Logistics: The goal here is to minimize delivery costs while maintaining reliable service levels.
In my first classes, I taught the group how to speak the language of demand—forecastability, Forecast Value Added (FVA), backcasting, demand and market latency, and market drivers. 40-50% of items are not forecastable at an item/location level. Lack of aligned metrics. Instead, we need to Jump. The So What?
When it comes to executing mode-specific freight moves from origin to destination efficiently, reliably, and cost-effectively, transportation execution and visibility solutions play a critical role. Transportation execution solutions allow shippers to connect to multiple carriers and then tender, track, and pay in the system.
This company leverages AI and automation across multiple layers of its supply chain, including forecasting, replenishment, and transportation logistics. Minimize Manual Forecasting Adjustments : For this manufacturer, planners dont touch the forecast, focusing instead on strategic oversight.
For logistics professionals, this translates to smarter warehouse layouts, more accurate transportation planning, proactive maintenance scheduling, and a new level of resilience through cost-to-serve optimization. This article explores how digital twins are being deployed in transportation, warehousing, and network design.
Companies are stalled on improving customer service and forecast accuracy. Today, I spoke at the Chief Supply Chain Officer conference in Chicago at the Eye for Transport event on the results of the research. It will be nice to be home and to have time to write on this second book, Metrics that Matter. Balance Remains an Issue.
Koganti said this is the fastest-growing use of AI in supply chain, especially when it comes to forecasting, procurement and fulfillment. He sees a near future in which there are multiple agents, each with their own realm of responsibility, such as shipping, pricing and forecasting.
The focus of the transportation suites was on cost mitigation and price negotiation. More and more cargo shifted to ocean transport until the container imbalances resulted in issues with “rolling the freight” from ship to ship despite confirmed bookings. Watermelon Metrics Don’t Drive The Right Results.
While procurement operates as a function within the broader supply chain, it has its own set of priorities for strategic sourcing in procurement, performance metrics, and specialized processes. These agreements often include performance metrics, sustainability requirements, and service-level expectations that are continuously monitored.
The traditional metrics of excellence cost efficiency, on-time delivery while still important, are no longer sufficient in an era defined by volatility, complexity and political changes. Gone are the days of monthly forecasts based solely on historical data. The first is living demand intelligence.
MTSS platforms facilitate hands-on projects where learners can apply statistical methods to identify trends, forecast demand, and optimize inventory levels. Through interactive tutorials and practical exercises, learners can become adept at using software for inventory management, transportation planning, and demand forecasting.
I have to forecast my avocado sales, including seasonal patterns and promotional effects. Crowdsourcing of Drivers and Rider Forecasting. They can optimize courier and order matching, increase visibility, and track important metrics such as order lead time, OTIF, courier performance, and customer satisfaction.
Clear understanding that the focus needs to be on the probability of the forecast, and that the focus needs to be outside-in based on channel data. Use of Forecast-value Add techniques to improve the accuracy of the forecast. Integration of corporate social responsibility metrics in planning. Supply Chain Design.
Concurrent Optimization for Lower Total Cost to Serve Traditional planning systems operate within the scope of classical silo definitions: demand forecasting, inventory optimization, replenishment planning, production planning, materials planning, transportation planning, order fulfillment, etc.,
This configuration screen shows how Solvyouo maps transportation constraints. Here the savings are based on transportation and facility cost savings. The key solutions are demand forecasting/inventory optimization, supply planning, and network design. S upply chain planning requires constraints to be mapped.
Ipsen faced transportation capacity constraints, complications at country borders, and even temporary shutdowns at their own plants. And the linked nature of supply chains mean that collaboration is necessary to ensure that a solution to a problem doesn’t meet the metrics for one link but negatively impact another.
Much talk about sales, automation and improved processes dominate the conversation when considering outsourcing logistics processes to a transport and logistics providers or using a 3PL-based transportation management system (TMS). Immediate upgrades to existing transportation technology systems. What Does 10 Percent Buy?
Keep in mind that a WMS may not be enough and you might need to add an Inventory Management System (IMS) , which focuses specifically on optimizing inventory levels, forecasting demand, and preventing stockouts or overstocking. Data-driven forecasting improves purchasing and cuts storage expenses.
The budget is not sufficient and is often a detrimental input for supply chain forecasting. Why Is the Financial Forecast Not a Good Proxy for a Supply Chain Forecast? There are many reasons why the budget cannot be used as a supply chain forecast. The supply chain forecast is a rolling forecast.
Self-reported projections of the ocean carriers forecast that the industry is posting over $200B in profits. We Assumed that Transportation Would Always Be Available And That We Just Needed to Negotiate Price. When transportation became a bottleneck and a constraint, there was no way for the average shipper to model the impact.
There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Aligned Metrics. Can you help us with what you see in the data?” ” Yes, I said. We see that nine out of ten companies are stuck. Most companies just have too many disconnected projects.).
Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. As the number of items being sold grew, they became increasingly more difficult to forecast. By definition, in traditional MRP, the forecast is input into supply planning, and integrated into MRP. The reason?
Supply chain reports are data-driven documents that provide key metrics and insights into various aspects of your supply chain, including: Inventory Levels Tracking stock levels in real-time to ensure adequate inventory to meet demand while minimizing holding costs. What are Supply Chain Reports?
Advanced analytics can detect inefficiencies, identify high-emission areas, and forecast future emissions trends. AI can integrate with procurement platforms, utility meters, logistics trackers and internet of things sensors to gather real-time data. AI also provides visibility into emissions across the supply chain.
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