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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.
In today’s architectures and functional metrics, value optimization does not exist. And, when procurement and tactical planning operate in isolation, there is no decision support framework to guide the trade-offs especially when the functions are tethered to different and conflicting metrics. 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.
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.
How much value could you add? This framework explains how application enhancements can extend your product offerings. Just by embedding analytics, application owners can charge 24% more for their product. Brought to you by Logi Analytics.
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.
However, AI-powered demand forecasting software like ToolsGroup has transformed this process by incorporating early indicators from diverse data sources: Web analytics and search trends Product attribute similarities to existing items Social media engagement and sentiment analysis Competitive product performance data Early order patterns and consumer (..)
What is the Perfect Delivery Metric? Improving on this metric will always involve a focus on people and processes, but often also includes implementing new, more robust, supply chain applications. The wrong metrics drive suboptimal behaviors and metrics can often be manipulated. You can watch the full video below.
The issue is that when companies optimize functional metrics, they throw the supply chain out of balance and sub-optimize value. We have not designed the planning systems to serve managers, directors, and vice presidents, aiming to improve decision-making and collaboration across the source, make, and deliver processes.
We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. The question was on “how to improve performance.”
Network Analytics: Shippers gain granular visibility into capacity, helping them optimize sourcing and manage their transportation network more efficiently. RateView Analytics: DAT helps manage transportation costs with accurate market data, allowing shippers to set realistic budgets and adjust rates during volatile conditions.
In this final blog on agility and why you should consider becoming an agilist to survive the new completion (of the continuous mention) of the application of enterprise decision management systems (EDMS) from Taylor and Raden cited in the first blog, I turn to the metric of agility and a new ROI metric of decision yield.
Thanks to changes in technology and digital storage capabilities, companies are now able to collect and amass a huge amount of data from many disparate sources. The question is how to develop and deploy the right data analysis tools and techniques to mine intelligence from that data.
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.
Here’s a look at some of the Procure- to-Pay metrics procurement leaders should watch in order to better understand their digital progress. This metric closely aligns with digital transformation progress. This metric also impacts others like speed, visibility, and cost savings. . #2
It’s the key to transforming your supply chain from a source of frustration into a well-oiled, profit-generating machine. You’ll learn how to leverage data to streamline operations, reduce costs, improve efficiency, and exceed customer expectations. That’s where data analytics comes in. The result?
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. The traditional leader values cost reduction but is blind on how to value time. Build in-market sourcing. Rationalize global strategies to focus on building markets based on in-market sourcing. Shift in cycles.
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.
Drawing on real-world use cases and proven frameworks, we highlight what separates high-performing teams from the rest, and how to build a foundation for smarter, more agile procurement. Digital procurement streamlines workflows and unifies data, enabling faster sourcing, better collaboration, and improved accuracy.
Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. 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.
Failing to meet expectations can result in: Chargebacks Loss of preferred vendor status Smaller or fewer orders Strained retailer relationships These scorecards are not just internal metrics. One of the most important metrics on a retailer scorecard is OTIF , which stands for On Time, In Full. What Is OTIF and Why Does It Matter?
The cost was 60% more in than average; but even more unfortunate, they never got a good understanding of how to use the planning system. Bias and error are selectively measured and the organization is unclear on how to improve demand processes. Integration of corporate social responsibility metrics in planning.
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.
The idea was so novel and counter to my project direction that I did not know how to react. Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. The second step is to align metrics to the strategy. The So What?
In this blog post, we’ll explore the challenges of inventory management in today’s manufacturing landscape , discuss the importance of a “single source of truth” for global inventory, and introduce a powerful solution that can help manufacturers transform their operations and drive profitability. Wondering how to be prepared?
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. What is procurement? Undamaged shipment rate.
By the end of this blog post, you will be able to not only understand what cost performance index is, but also know how to calculate it. What contexts can it be used in and how, as well as the benefits of using cost performance index in supply chain contexts. What is the Cost Performance Index (CPI)? The research paper by Winanda et.
Answering the questions that the business has may require gathering additional data, purchasing data from third parties, or reformatting existing data sources. Phone * Company * Job Title * Zip Code * Source Asset Source Download ID. Models are useless unless users know how to use them correctly. Manage the model.
For example, a student might work on a project that involves analyzing sales data to predict future product demand, thereby learning how to adjust procurement strategies accordingly. Similarly, performance metrics courses can guide learners in establishing key performance indicators (KPIs) to monitor and improve supply chain efficiency.
Editor’s Note: This is the first in a three-part series on Supplier Quality Management processes and how to evaluate your suppliers from Chuck Intrieri of The Lean Supply Chain. Therefore, it is paramount for you as a logistics and supply chain professional to have a keen sense of how to properly evaluate a supplier.
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?”
Let’s take a closer look at how to turn these practices into action. When you track transportation metrics and KPIs like transit time, on-time pickups, and percent of truckload capacity utilized across your carrier partners, you can identify trends and opportunities for streamlined OTR transportation management.
The major challenge faced by customers of real-time visibility data had always been how to operationalize what could quickly become overwhelming quantities of fast-changing information. This extensive connectivity has resulted in impressive metrics: 1.2 A key differentiator is Movement’s approach to data quality.
Running procurement and supply chain without metrics is like driving blindfolded. Decoding the Metrics: What Are They Telling You? A lower TCO indicates better value sourcing, even if the initial purchase price isn’t the absolute lowest. Do you rely on a single source for critical items?
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.
Whether you’re managing a distribution center, coordinating fleet operations, or shaping global supply strategy, understanding how to deploy and scale digital twins may be your next competitive edge. Mitigation best practices include cross-functional pilots, strong executive sponsorship, and early wins tracked with business metrics.
How to Breakthrough Lean Culture Plateaus. Leader standard work in order to create accountability within the team structure; Problem-solving thinking; how to align your organization so that the right problems are solved at the right level. Practices and learns how to apply Lean tools. Ask yourself, "Has the Lean team plateaued?
Smarter, Not Harder: How to Climb Every Peak in Supply Chain Planning Supply chain planning is like a grand mountaineering expedition. Even before importing and selling any item, every step addresses complex challenges amplified by regulations dictating the origin of goods and ethical sourcing and labor practices.
Over the next several weeks, I’ll outline these issues and discuss some ideas around how to avoid these practices. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. One very good source of supply chain training is APICs (American Production and Inventory Control Society).
Process: Blueprints for Success This process workstream focuses on blueprinting existing processes, policies, and metrics. You can connect with Vishal on Linkedin You May Also Like Source to Pay (S2P) What is Source to Pay Best Practice? An Analysis by Ivalua Read More : What is Source to Pay Best Practice?
They need visibility across multiple internal systemslike ERP, CRM, and financial platformsand even external sources shared with suppliers, partners, and customers. Modern platforms pull data from a wide array of sources: ERPs, relational databases, Excel files, cloud apps, third-party providers, and beyond. Why does that matter?
Apple Inc purchases raw materials from various sources then get them shipped to an assembling plant in China. Some components are currently obtained from the single or limited sources. So this section will explain some characteristics of Apple Supply Chain through various metrics and compare them with Amazon Supply Chain.
The pandemic tested the supply chain across all industries, so how can medical device supply chain leaders implement strategies and plan for potential risks in the post pandemic “new normal”? Broadening Multi-Sourcing and the Use of Near Shore Suppliers. Expanding supplier relationships.
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