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While past efforts focused on meeting compliance requirements, organizations are now working to proactively embed environmental, social, and governance (ESG) principles into their sourcing, production, and distribution activities. Building supplier capabilities while maintaining sourcing flexibility requires additional investment.
Regulatory Demands: Governments worldwide are enforcing stricter emissions standards and introducing carbon taxation schemes, pressuring companies to adapt. Proactively adopting cleaner energy sources ensures alignment with these evolving regulations. Transparent sourcing practices build trust among consumers and investors.
We’ve seen AI take over everyday tools and search engines; AI in Sourcing and Procurement is becoming a strategic tool in our kit, At Ivalua, we are helping global procurement teams integrate AI across the Source-to-Pay process, bringing automation, insight, and agility to every step. This is where AI can make a huge difference.
(Inventory is both our most important buffer and greatest source of waste.) Functional metrics align to bonus incentives, but progress in supply chains remains evasive. Muda comes from many sources. Define Agentic AI Governance. Build the governance model. Human Potential. Most likely. Quantify it. Make it visible.
Ethical sourcing is a fundamental aspect of social sustainability. Partnering with NGOs, governments, and industry peers allows organizations to share resources, reduce costs, and amplify the impact of sustainability initiatives. Collaboration has also emerged as a key enabler of economic sustainability.
Optimizing fulfillment requires a series of steps to get a shipment from its source to the end customer. These steps include sourcing and receiving inventory, storing inventory, order processing, picking and packing an order, shipping the order, and returns management. The ability to meet fulfillment goals is impeded by several issues.
Institute supply chain governance fueled by data that only a modern platform can offer. When it comes to supply chain sustainability, responsible organizations don’t just talk – they act by creating a governance structure. Governance for the sustainable supply chain takes collaboration, formalization, and additional mechanisms.
Clear operating strategy and definition of supply chain excellence across plan, source, make and deliver. Governance. A shift from functional metrics to a balanced scorecard. I like the use of growth, margin, inventory turns, Return on Invested Capital, customer service and ESG metrics. Drives Value. Mistakes Made.
They prepare equipment for maintenance, do isolation (disconnect a piece of equipment from the flow of chemicals by closing valves), look at quality or reliability metrics, and do rounds. Data governance is critical. trillion records from 47 data sources in the Cognite platform. Al Syed elaborated. Industrial data is voluminous.
AI is reshaping the way organizations source, manage suppliers, and drive value today. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. For example, agentic AI can analyze supplier data, evaluate contracts, manage purchase orders, or recommend sourcing strategies.
AI is reshaping the way organizations source, manage suppliers, and drive value today. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. For example, agentic AI can analyze supplier data, evaluate contracts, manage purchase orders, or recommend sourcing strategies.
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Do Invest in Distributor Capability Building : Provide training, digital tools, and performance incentives. A well-equipped distributor is an extension of your brand and a key to market penetration.
This blog offers a clear, practical overview of what spend analysis is, how it supports strategic sourcing, and why it matters for both direct and indirect procurement. We’ll walk through key benefits, types of spend analysis, steps to get started, and metrics to track—backed by lessons learned from real-world implementations.
The global supply chain is built on three assumptions: rational government policy, availability of reasonably priced logistics, and low variability. For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. Build in-market sourcing. Over four-hundred days of war in Ukraine.
Environmental, social, and governance (ESG) priorities impact every facet of business and will determine the market leaders of tomorrow. These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. Start with your supply chain.
Functional Metrics. With the implementation of transactional systems, the focus was on measuring and controlling functional metrics like the lowest manufacturing cost or purchase price variance in procurement. La ck of Visibility of Supply Chain Trade-offs to Manage Balance Sheet Impacts. False Beliefs.
Supply Chain Insights recently published a Metrics That Matter report covering both the Semiconductor and Hard Disk Drive (HDD) industries. Semiconductor is poised to consolidate, which will have huge impact on the metrics. Consider that the Chinese and India governments are investing in the semiconductor industry.
Integration of corporate social responsibility metrics in planning. Comprehensive view of source, make and deliver. Most often the focus is on transportation or logistics, but does not take into consideration the trade-offs between make, source and deliver. Focus is on make, source and deliver together. Little clarity.
Identify metrics, analytics and projects to drive business improvements. Determining which technologies to adopt starts with solid project governance and understanding the maturity and readiness of your plant’s ability to accept change. One place to start is in assembling a well-represented, well-formed steering committee.
This guide breaks down the key procurement technologies in use today and the trends reshaping the future, such as AI-driven sourcing, predictive risk management, and deeper integration across the supply chain. What Is Procurement Technology? Here are some of the most important tools teams are already using.
Of the professionals surveyed, 59% saw the gap between procurement/sourcing and supply chain to be a major disconnect, and the most pressing pain point. Both procurement solutions from ERP companies like Oracle or Infor – or business spend management solutions – can help companies enforce these sourcing supplier decisions.
Digital procurement streamlines workflows and unifies data, enabling faster sourcing, better collaboration, and improved accuracy. Digital procurement is the use of digital technologies to enhance, automate, and optimize procurement processes across the entire source-to-pay (S2P) lifecycle.
ESG stands for environmental, social, and governance, and is a framework that evaluates a company’s performance and ethical behavior. It’s a set of practices that organizations use to limit negative impacts or increase positive impacts on the environment, society, and governance bodies.
The Power of Source-to-Pay Digital Transformation To put it briefly, source-to-pay refers to the entire process that starts with finding, negotiating with, and contracting the suppliers of materials, goods and services, and culminates in the final payment for those items. Who Should Prioritize an S2P Digital Transformation?
In this guide, we will explore the importance of ERP master data, the challenges organizations face in maintaining its quality and governance, and provide some practical tips to help you improve the quality and governance of your ERP master data. Accuracy Accuracy refers to the degree to which data describes the real-world scenario.
Here we share the answers to the questions that we get the most often about this research: What is the source of data? Which companies were considered in the study? The NAICS designation was developed by the US Federal Government to characterize groups of companies within an industry.
Vishal Patel and Peter Hunt delivered their session ‘Creating Value with Strategic Sourcing’ to discuss how Procurement professionals are recognizing that the fast-paced digital landscape of today demands new approaches to category management and strategic sourcing. The answer is simple – automation. See you soon!
As product flows rapidly shifted and hard baked assumptions about lead times and sourcing locations were put to test, users across many organizations bypassed their planning systems and turned to excel sheets, internal data science teams or non-traditional supply chain vendors who could deliver AI based solutions at a faster turn.
Process: Blueprints for Success This process workstream focuses on blueprinting existing processes, policies, and metrics. Data cleansing techniques can eliminate inconsistencies, and the data workstream should establish governance protocols to ensure data integrity and develop effective management practices.
I would like for us to move past the conventional view of sourcing strategies and globalization to drive improvements to the supply chain in a variable world. The populist narrative of sourcing globalization is only part of the story. Goodman is, “Should the item ever been sourced or scheduled for production?”
In the past few decades, an increasing number of organizations have adopted environmental, social and governance ( ESG ) initiatives to help heal the planet as well as to make cost and efficiency improvements in their supply chain and procurement operations. Next, the enterprise can set targets.
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 ). The definition of this metric is similar to the way it sounds. Cost of quality.
Many-to-many can also refer to many participants in a network accessing many, many sources of event data critical to supply chain operations through a public cloud network. But, if a company wants to work with a new supplier, and that supplier is in the network, metrics on that carrier also exist.
federal environmental, social and governance (ESG) regulations such as the proposed SEC climate rules remain contested, while California (SB 253 ) and New York (A4123 ) have introduced climate disclosure laws. In the U.S., These states alone represent two of the eight largest economies in the world, and more are expected to follow.
Lack of supplier insight can result in your organization violating government regulations; working with providers who don’t share your company values; or getting caught up in trade embargoes, sanctions, and labor and social justice issues. For example, governments may enact new laws that affect worker rights.
To enhance their competitive edge, companies across industries are adopting a key tactic: strategic sourcing. Strategic sourcing is a holistic approach to supply chain management that includes tactics for optimizing the total cost of ownership, improving supplier relationships, and ensuring long-term value creation.
Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The The Supply Chain Metrics That Matter are a portfolio of metrics which correlate to higher market capitalization. One of our first focus areas was global governance.
In the last five years there has been a substantial increase in consumer preferences focused on ethics-based brands (HSBC) as well as rapidly growing shareholder actions based on social and environmental metrics ( HBR.com ) that result in a change in the way that global companies assess performance.
Environmental, Social, and Governance (ESG) considerations are no longer aspirational—they are essential. ESG adds a new layer of strategic value, directly tying environmental sustainability, ethical practices, and robust governance to operational performance and risk mitigation.
2) Poor or Non-Existent Data Governance. CIO Magazine says data governance is a system for defining who within an organization has authority and control over data assets and how those data assets may be used. Be prepared to work hard developing a single source of truth. 3) No Clear Goals. Pick your big 12 and start.
They source from approximately 15,000 suppliers with a sourcing spend of over €7 billion. But even multi-sourcing is not enough. A supply chain is mapped, where components are source from, how they flow through a supply chain to factories and out to customers. Their revenues exceed €25 billion.
Without baseline metrics on what you want to improve on and why, how can you be confident your strategy is working? And because machine learning systems get smarter over time, having a consistent method of measurement is even more important to ensure you can accurately track how outcomes and ROI are improving against established metrics.
Here are the five stages: In Stage 1 the goal is to use data to measure a single metric within a particular function , focused on after-the-fact performance. Companies focus on data harmonization and good data governance so the analytics can leverage end-to-end process data. Data comes from public and unstructured sources and the IoT.
The regulation is designed to provide European consumers with extensive data about the provenance of the items they purchase, all the way back to the sourcing of raw materials. Beyond the promotion of ethical sourcing, it’s also about “how we can extend the life of products,” Balaam says.
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