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Instead, I would like to see us redefine work to improve decisions for the global multi-national. To build an outside-in model, and use new forms of analytics, we must start the discussion with the question of, “what drives value?” I believe we need to rethink supply chain processes to focus on value. You are right.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. Error is error, but is it the most important metric? My answer is no.
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.
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. You don’t act on a forecast; you act on what you purchase.
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. What’s the technology behind autonomous procurement agents? You may also have heard of Agentic AI.
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. What’s the technology behind autonomous procurement agents? You may also have heard of Agentic AI.
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 cost savings percentage and procurement cycle time.
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than ever—juggling cost control, compliance, supplier risk, and internal complexity, all while trying to modernize outdated systems.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.
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 digital procurement and the capabilities that matter most.
The logistics and supply chain industry is a critical component of global trade, responsible for moving goods and materials efficiently to meet consumer and business demands. Road freight alone accounts for approximately 7% of global CO2 emissions, with maritime and air transport further amplifying the environmental burden.
A disruption at any point in the global logistics network including the average of 12 touch points from shipment packaging to final delivery can prove disastrous for profits, service levels, customer loyalty, and other key metrics. With the global e-commerce market predicted to reach $8.1 billion to $23.07
The formula for OTIF is: Measuring a supply chain against OTIF metrics is a key strategy that helps decision makers attach a tangible value to the success of their fulfillment and allows them to determine key strategies. Organizations are ready to implement AI and ML-driven prediction and productivity gains.
The Covid-19 pandemic tested the global supply chain. Next Steps: Start to model demand based on market data to align the organization on baseline demand. Resist the temptation to place deeper analytics on top of existing data models. Instead, rethink the model and the approach. What are functional metrics?
At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) Understanding this relationship requires modeling. (A A Case Study.
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.
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?
Interview for Metrics That Matter. My kitchen table is piled high with interviews for the upcoming book, Metrics That Matter. As background, Peter Gibbons is the Executive Vice President, Global Supply Chain for Mattel, Inc. I recently interviewed him for my upcoming book, Metrics that Matter, that publishes in August 2014.
In today’s interconnected global economy, supply chains play a vital role in the success of businesses. It is crucial for organizations to understand the importance of Purchase Order collaboration to effectively manage their direct spend, optimize operations, and mitigate risks.
In the supply chain team analysis, note the 21% gap between procurement and manufacturing teams, the 35% gap between sales and operations and the 21% gap between finance and operations. Layering CRM and SRM on top of ERP made sales and procurement more efficient but less effective in working with trading partners and serving the organization.
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.
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.
What is procurement? In simple terms business procurement is the process of locating and acquiring goods and services from external sources for the business to use. Procurement activities include planning, sourcing, and negotiation, along with risk management, legal and value analysis. Procurement in 2021 and beyond.
In today’s dynamic and unpredictable business environment, companies face various challenges such as changing consumer demands, global uncertainty, and the impact of natural and man-made events. This approach results in inefficiencies, higher costs, and missed opportunities.
In the height of the e-commerce craze, the marketplace offerings started with a focus on e-procurement. The widely-held view was that the e-procurement market would fuel the next generation of marketplace applications. The rebirth of marketplace offerings is not on the back of e-procurement or ERP. The debates were heated.
Sure, supply chain cost reduction is important in reducing the cost of goods sold (COGS) and increasing profit, but there are other measurements which should not be forgotten. 3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 10 Soft Metric Considerations in Measuring Supply Chain Performance.
Wikipedia In 2014, I was exploring methods to publish what is now the Supply Chains To Admire report. The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. We purchase data from Y charts. (A We have archived corporate reporting from Y charts for 1982-2023.
By embedding analytics across logistics, sourcing, and fulfillment, businesses gain the visibility and foresight needed to stay competitive.Analytics-driven leadership is no longer a luxury; it’s the foundation of operational survival in todays volatile business environment. Analytics allows organizations to move beyond intuition.
There is so much data, and to make use of it, we need to use data mining and analytics to drive meaningful insights that can be put to some good use. ABC analysis creates product segments by grouping products with similar sales volume or purchase frequency to enable category managers to focus on what matters most.
BOSTON, February 16, 2022 : ToolsGroup , a global leader in supply chain planning and optimization software, has partnered with Planalytics to integrate their weather-driven demand (WDD) analytics with ToolsGroup’s retail planning solutions, enabling customers to isolate, measure, and manage the influence of weather on their businesses.
As an old gal, with over forty-years of supply chain experience, writing this report for ten years taught me many lessons. And, that the same techniques used in planning for a regional company could work for a global multi-national. I find in the orbit chart analysis that 45% of companies in the report are unconsciously incompetent.
How aligned do you believe your organization is to drive these metrics? This research, completed in 2006, was during the transformation of multi-national to global supply chains. See the World Kitchen case study in the Agility Report. In assessing the health of the plan, what do you measure? Is your plan feasible?
The global supply chain industry has by default, a large environmental impact, through its carbon footprint. As part of the CMA CGM Group, CEVA Logistics has a global reach, which means that we can make a global difference. We pledge to adopt better ways of doing business with the aim of becoming an industry standard.
This blog explains The Key MRP Metrics in Supply Chain whcih every supply chain professional in Manufacturing or Distribution Businesses. The metrics that underpin MRP could be described as the balls in this juggling act. This article takes an in-depth look at the crucial metrics every supply chain professional needs to know.
The consulting team pitches a theme–vision of supply chain best practices, big data analytics, or demand-driven value networks– to the executive team, and a new project is initiated. I am speaking at their global kick-off. In addition, I am now done with the page proofs for my new book, Metrics that Matter.
He had a load full of cotton bales, and while idling away hours at a shipyard watching stevedores load other cargo onto ships he dreamed up containers that transformed global supply chains. Containerization eventually reduced shipping and loading costs by at least 75%. The myth of the “perfect plan”.
In a major advancement for global supply chain technology, project44 has launched Movement, a comprehensive Decision Intelligence Platform that transforms how businesses manage their supply chains. This extensive connectivity has resulted in impressive metrics: 1.2
Metrics used to evaluate these new books are as below, 1) Citation count from Google Scholar 2) Number of reviews found on Amazon.com 3) Editorial Opinion Citation count is a standard way to evaluate any publication. So, customer''s review on Amazon.com (3 stars or more) is also used as a metric.
According to McKinsey survey of global supply chain leaders , only 53% of respondents describe the quality of data in their supply chain planning systems as “sufficient” or “high.” By setting benchmarks for metrics, analysts can recognize unsettling trends and take preventive measures on time.
Some supply chain companies are leaning on the power of analytics to help streamline their processes and get ahead of their competitors. But many companies have struggled to embrace the relationship between using analytics and implementing changes that can improve business performance. The simpler the model, the more likely the use.
According to a July 2014 supply chain research study from Accenture focused on Big Data and supply chain risk management, most organizations have high hopes for using big data analytics in their supply chain but many have had challenges in deploying it.
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.
They face challenges on how, when, or if, to react to changes in global trade relationships, tariffs, sanctions and economic forecasts. Issuances of common shares, net of issuance costs 3.6 The purchase price for the acquisition was approximately $112.7 Additions to property and equipment (1.9) Net change in cash (59.7)
The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ). Cost of quality. The definition of this metric is similar to the way it sounds.
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