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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.
A data gateway is essentially a connective tissue across your supply chain, providing unified access to supply chain data from various sources, including enterprise systems, data feeds, data warehouses, data lakes, data marts, and business entities. Public Sector : Government agencies are engaged with supply chains from multiple perspectives.
Edge Hardware: The battle for edge hardware also intensified in 2024, as companies sought to deploy AI capabilities closer to the source of data. ChatGPT Search : This feature gives users a way to get answers from relevant web sources.
In response to these challenges, a leading heavy equipment manufacturer selected GEP to redesign its source-to-contract processes and implement a convergent data model to help manage procurement data across its multiple locations.
A data gateway is essentially a connective tissue across your supply chain, providing unified access to supply chain data from various sources, including enterprise systems, data feeds, data warehouses, data lakes, data marts, and business entities. Public Sector : Government agencies are engaged with supply chains from multiple perspectives.
Environmental, social and governance issues are increasingly finding their way into trade policy. Procurement managers are now asked to address ESG issues in their sourcing and foreign manufacturing operations. A company’s reporting requirements include data on the environmental, social, and governance impacts of their activities.
Companies leaning heavily on global sourcing? manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. Consequently, when shortages emerged, they had already secured alternative sources, thereby averting a significant disruption to production. For example, U.S.-based
These are big data platforms that monitor news sources and assorted databases from governments, financial institutions, ESG NGOs, and other sources to detect when an adverse event has occurred or may be about to occur. It is well known that ChatGPT can hallucinate. These platforms need high-fidelity signals that can be trusted.
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.
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.
Add emerging compliance requirementssuch as sustainability, transparency, and Environmental, Social, and Governance (ESG) regulationsto the mix and youve got an unprecedented, complex global trade environment. Its a rollercoaster for logistics and supply chain leaders operating in global markets.
Source: mainebiz.biz In today’s rapidly evolving logistics and supply chain sector, warehouses are increasingly turning to innovative technologies to gain a competitive edge. Furthermore, solar energy is a clean and renewable source of power, which helps reduce greenhouse gas emissions and combat climate change.
Businesses will need to ensure accurate data reporting across core operations such as sourcing, procurement, and transactions. Mexico-Canada Agreement (USMCA), which governs $1.8 Consequently, demand for robust GTC solutions will continue to rise. Adding to the uncertainty, recent comments from a new U.S. from Canada and Mexico.
In today’s interconnected world, ethical sourcing has transitioned from a “nice-to-have” to a critical imperative for businesses across all sectors. The global market for sustainable products is projected to reach $150 billion by 2025 , indicating a robust demand for ethically sourced goods across various sectors.
From sourcing and bid evaluation to warehouse slotting and dynamic routing, AI tools support faster and more consistent outcomes by processing large volumes of operational data and identifying patterns that human decision-makers may overlook. Integration allows seamless transitions from data insights to purchase approvals and execution.
auto parts are sourced from Mexico, making the tariff impact immediate and severe. government is expanding farm subsidies to offset revenue losses from reduced trade. Approximately 40% of U.S. Vehicle production costs in the U.S.
In an era where digital transformation is reshaping industries, government procurement is no exception. The UAE, a leader in government digitalization, continues to set new benchmarks by integrating AI-powered procurement solutions that streamline sourcing, supplier management, and contract execution.
Data governance is critical. trillion records from 47 data sources in the Cognite platform. It accesses, transforms, and harmonizes data from multiple sources to make it usable and actionable for various business use cases. A knowledge graph creates relationships across previously siloed data sources. Celanese has 2.5
Source: US DoD. The US government, private entities, and news outlets provide select insights and periodic updates about the Covid-19 distribution process. Government to date. Although Pfizer does not state the source of this capability, I assume the technology is provided by FedEx, UPS, and McKesson.
As organizations look for reducing dependencies on concentrated sources of supply, Eastern Europe, Mexico, and South Asian countries will start providing viable alternatives to the current manufacturing powerhouse countries. American Supply Chain Resilience Act and the German Supply Chain Act are just two examples of this.
About Kearney Since 1926, Kearney has been a leading management consulting firm and trusted partner to three-quarters of the Fortune Global 500 and governments around the world. Suketu is frequently published on operations transformation topics in outlets such as HBR, MIT Sloan Management Review, and The Wall Street Journal.
In Part One of the series , Michael observed that standard sourcing solutions struggle in efforts to support direct materials sourcing because of specific challenges in the software design and why. Much of this has to do with needs for deep integration and two way flow of data streams.
Building optionality in the supply chain through collaborative sourcing: Supply chain teams can proactively identify choke points within the existing network by leveraging emerging technologies such as digital twins and advanced analytics, and modeling their end-to-end supply chains. This can in turn benefit Tier 2 suppliers and beyond.
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?
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.
In todays complex and often volatile global environment, procurement leaders face mounting pressure to cut sourcing costs while navigating geopolitical instability, inflation, tariffs and talent shortages. The truth is, sourcing smarter isnt just about softwareits about strategy, support, and best practices.
The US government, private entities, and news outlets provide select insights and periodic updates about the Covid-19 distribution process. Government to date. Although Pfizer does not state the source of this capability, I assume the technology is provided by FedEx, UPS, and McKesson. Supporting Supply Chain Technology.
GTC solutions automate the discovery, creation, retention, analysis, and communication of information about international supply chains that is of importance to customs and other government authorities responsible for regulation and taxation of cross-border trade. But paying the right tariffs is far from simple.
Their vision is to be logistics’ trusted partner in driving innovation, reducing complexity, and delivering network efficiencies through standards, technology, and effective governance. Farelanes Gold: Aimed at shippers, offering comprehensive pricing insights.
Supply chains are in the news, on governments’ agendas, and in the spotlight. Sourcing and procurement comes in close second at 88 percent, followed by innovation at 87 percent. Sourcing and Procurement In sourcing and procurement, the top focus area for 2024 continues to be supplier/vendor relationship management (SRM).
China's Production of Impacted Minerals Source: Bloomberg In recent years, China restricted the exports of several other critical minerals. Material shortages : Given China’s substantial share in the production of these metals, global shortages are possible until alternative sources are identified. It is not clear whether U.S.
For the Government, supplier diversity programs are something procurement professionals in the United States (US) have accepted as a key element to their procurement success. Governments and dedicated organizations across the globe are acting to mandate, encourage, and support diversity. Building Business Cases and Momentum.
What is the role of make, source, and deliver? Define a proactive approach and the value/economies of scale of planning manufacturing/transportation and sourcing together. Be purposeful in building a global coalition and defining governance. In small, regional distributors, the goal may be better replenishment.
Within hours of the export ban announcement, Exiger was called on by key clients within the Defense Industrial Base (DIB), Capitol Hill, and multiple government agencies to do a quick-turn analysis of impacts on critical supply chains. Alternative sourcing: Identify additional suppliers to mitigate dependencies.
Improve cross-government data sharing and analyze resilience. Source: Supply Chain Insights ASCM defines resilience in the SCM Supply Chain Dictionary as the ability of a supply chain to anticipate, create plans to avoid or mitigate, and to recover from disruptions to supply chain functionality.
In these times of global turmoil, there are five (5) important megatrends shaping supply chain innovations in the coming years, namely in e-fulfillment, sourcing, food and agriculture, labour intensive operations, and halal supply chain management. From global to local and regional sourcing. Marco Tieman – CEO, LBB International.
Nonetheless, the direction of travel of European governments is clear: companies need to do more to identify their exposure to unethical practices, human rights abuses, and significant adverse environmental issues , across their value chain. The EU CSDDD has had a difficult journey, facing delays, changes, and hurdles to overcome.
Despite their best efforts, current events and market dynamics caught up with them, leading to issues managing their suppliers and sourcing the materials needed for their products. If nothing else, the last few years highlighted the importance of sourcing strategically. Upcoming Recession? Price Volatility.
Environmental, social, and governance (ESG) priorities impact every facet of business and will determine the market leaders of tomorrow. From product design, sourcing and operations planning, to manufacturing, logistics and warehousing, there are many opportunities for improved efficiency at each stage of the process.
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!
Recent changes by the US government have made things even more challenging. The US government is using tariffs in a bid to protect local industries and influence trade. To understand this developing situation, it’s important to know a few things: Why Tariffs Are Used : Governments use tariffs for various reasons.
Launched by the Saudi government in 2016, the Saudi Vision 2030 Program is a sweeping reform initiative with the aim of diversifying the country’s economy and reducing its reliance on oil production. However, implementing category strategies for successful sourcing and supplier management can be challenging without the right tools.
At the same time, the Chief Purchasing Officer (CPO) has taken on a pivotal role by securing Personal Protective Equipment (PPE) to protect the workforce and direct materials when primary sources fail. As disruptions become the norm, Supply Chain Planning and Source-to-Pay (S2P) cycles need to be increasingly dynamic and intertwined.
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