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To build an outside-in model, and use new forms of analytics, we must start the discussion with the question of, “what drives value?” ” Traditional planning models optimize functional processes to improve cost and customer service. At the top of the model is a balanced scorecard. You are right.
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.
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.
AI in supply chain automation is gradually reshaping how core functions operate, particularly in procurement, warehousing, and logistics. Key Insight: The use of AI in supply chain automation is producing tangible benefits across procurement, warehousing, and logistics.
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
Many large organizations have multiple systems for order, warehouse, or transportation management that are barely integrated frequently not at all. Fulfillment costs can significantly impact profit margins, making it crucial for businesses to understand these financial implications and how they influence consumer spend.
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. Out of desperation, they turned to the use of descriptive analytics. Next Steps.
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. In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times.
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.
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Ask a procurement or transportation professional if they have a good demand signal and expect a laugh. The ripple effects are pervasive. This creates waste and destroys human potential.
Decoding the Procurement Department: A Comprehensive Guide to Roles and Responsibilities This supply chain article provides a comprehensive overview of the procurement department within an organization. Read In Detail About Procurement Department Here 2.
Last mile logistics is among the most misunderstood parts of transportation networks. On the surface, last mile may not seem very important, but it can make up 28 percent of a shipments total cost. Penny Co, reports William B. appeared first on Transportation Management Company | Cerasis.
As an old gal, with over forty-years of supply chain experience, writing this report for ten years taught me many lessons. The industry struggles with groupthink. The industry is awash with ex-execs advising companies, speaking at events, and consulting. The group’s response is, “Are these supply chain metrics?”
That was one of the primary conclusions of the annual logistics report released last week by the Council of Supply Chain Management Professionals (CSCMP) at a media briefing in New York. This year’s report was entitled “Navigating Through the Fog.” The CSCMP report puts an estimate on what it calls total U.S. billion last year.
What Contractors Need to Streamline Procurement in 2025 By Ian Summers (pictured) Content Writer 111 Views You’re on-site before dawn, the framing crew’s ready, but the steel shipment’s stuck in limbo, the invoice isn’t approved, and your project management app just pinged you for the fourth time.
Some logistics involves transportation or warehouses or both. In fact, Cerasis performs reverse logistics every day with our customers, but you won’t find a formal page on our website or brochure outlining the details (but as we continue to increase in the automotive aftermarket industry, perhaps we should….). Read the Full Post.
Expand the “FLOW” program for logistics information sharing to forecast transportation flow. So, my question for the President’s task force is, “If the industry is not clear, and you don’t have a definition, how can you deliver your mission?” Wrap-up I witness too much groupthink in the industry.
That’s why staying on top of the latest supply chain planning trends is so important – they can make all the difference when it comes to staying competitive, reducing costs, and meeting your customers’ needs. They are more likely to shop for discounts and sales and may delay purchases of some items.
With the pandemic, consumer loyalty started bleeding in almost every industry. Q-Commerce companies can leverage advanced analytics and automation technologies to make this process almost a no-touch one. How to minimize transportationcosts? And how to optimize the entire transportation network? Route Optimization.
According to a survey by ARC Advisory Group, only 10% of industrial companies are ready to apply artificial intelligence/machine learning. The percentage of industrial companies broadly applying agentic AI and generative AI would be a small fraction of that number. ARC has been actively studying industrial AI for over two years.
This survey included over 400 respondents across a number of industries. Consumer expectations are constantly shifting and challenging the industry. For example, most people expect free next-day delivery for online purchases as a result of Amazon Prime. A recent ARC survey looked at reasons to address sustainability.
In some industries, suppliers account for over 80 percent of the value of the products that are produced. In one McKinsey survey of more than 100 large organizations in multiple sectors, companies that regularly collaborated with suppliers demonstrated higher growth, lower operating costs, and greater profitability than their industry peers.
FourKites CEO, Matt Elenjickal One of the two leaders in the real-time transportation visibility market is FourKites. The company’s customers report that the ETAs provided by these FourKites are more accurate, timely and easier to access than those provided by carriers. That is fast growth. But the message is now much bigger.
Lockdown of cities and manufacturing plants have significantly impacted many industries’ supply chains. Relying on our experience in the industry and academic field, it is worth to say that if everything is urgent, nothing is urgent! Industry 4.0. Cyber Physical Systems (CPSs) are key enablers for Industry 4.0.
When the supply chain is sick, all industries suffer. Background on Ocean Transport. The need for data synchronization increases with the growth of nodes, the increase of the number of parties handling the freight, and the use of multiple modes of transport. Truck drivers report that maintenance issues are a constant nightmare.
The supply chain planning industry is fraught with big claims with little substance. There is no magic ball on design: the organization’s reporting structures vary by culture and size. As shown in Figure 1, the reporting relationships vary. Supply Chain Reporting Structures. What do after-action reviews reveal?
Within this setup, an ERP procurement module helps companies make purchases and manage suppliers. Numbers speak louder: According to Procurement Tactics’ top procurement trends in 2025 , 83% of CPOs prioritize digitization. Keep reading to learn: What Is ERP in Procurement?
Digitization Supply Chain Management, like many other industries in the past decade, has iteratively undergone transformational periods of digitization — shifts to digital processes essential for remaining competitive and profitable in the global marketplace.
Among millennials, consumers are willing to pay a premium up to 30-percent more for same-day delivery, reports McKinsey & Company , with an overwhelming majority willing to pay extra for guaranteed delivery, as shown below: Paired with the sudden spike in parcel delivery, last mile delivery will continue to grow 10-percent annually.
Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. The impact of the elongation of payables on receivables varies by industry, but on average across the industries increased eighteen days when comparing the past five years to the pre-recession years.
following the reporting of fourth-quarter results. This is despite the strengths of the recent purchase of Optimity. The OMP industry-principles will continue to lead the vision for strong industry domain expertise for small, regional players. In short, there is no substitute for visionary leadership. from previous close.
Issuances of common shares, net of issuance costs 3.6 Acquisition of 3GTMS On March 24, 2025, Descartes acquired all of the shares of 3GTMS, a leading provider of transportation management solutions. The purchase price for the acquisition was approximately $112.7 Additions to property and equipment (1.9) Net change in cash (59.7)
Logistics consolidation will have a resounding effect on the industry in 2019. As the industry attempts to compensate with better wages and if it’s for drivers and long-haul shipments, the industry will continue to suffer from stress. The Move to LTL Digital Shipping.
Supply chain management typically does not fit very well with procurement, which is a challenge at the best of times, and can be a disaster in difficult times. It is now a matter of planning the procurement system and the supply management system outside-in and then look at the true demand to minimize the latency.
It can take miles out of the transportation journey, air from a carton or box, or reduce trips to a specific neighborhood or house. The company has established long-term power purchase agreements at the country level. For supply chains, sustainability is symbiotic with profitability. This means money can be saved.
This graphic shows the true scope of impact of big data in the Transportation, SupplyChain & Logistics industries. . But nearly all of these processes revolve around a few common factors, reports DHL Customer Solutions & Innovation, and you need to understand what they mean for the supply chain and transportationindustries.
But cross-border trade is an important part of the global economy and much of this trade is in physical goods that must be stored, shipped, transported, and eventually consumed. The report for August (released in late September) shows negligible changes in the aggregate. However, imports of industrial supplies appear to be declining.
Supply chains around the country are in great need of warehouse and transportation workers. Furthermore, COVID-19 exacerbated the existing shift from retail store purchases to e-commerce transactions, with a 32 percent increase in 2020 US e-commerce sales, according to the US Census Bureau. Logistics Real Estate Growth.
Rising costs, supply chain chaos, and economic swings put businesses under enormous pressure to protect their margins. According to McKinsey & Company, procurement accounts for 50% to 80% of a company’s cost base. That’s why organizations zero in on strategies to achieve procurementcost reduction.
The IT taxonomy for visibility is supply chain analytics. As you implement supply chain analytics and use control theory with well-defined reference data with clear bands for control, process improvement ensues. The team was seeking analytics to monitor process compliance. Visibility Maturity Model.
Digital commerce efficiently requires the digitalization of many customer-facing operations and sourcing and procurement. The First Step: Bring all the data together and ensure analytics and planning can happen on the same platform. . Accurate and timely reconciliation of purchase orders with receipts.
Going back to the Industrial Internet of things (IIoT), the use of Internet-connected technology increases risk in manufacturing. billion in 2018 alone, reports Michael Kotelec of Manufacturing.net , and this will bring a strong, robust boost to efficiency and productivity in manufacturing. Adoption of Analytics Will Increase.
In the end-to-end source-to-pay (S2P) process , strategic sourcing is the link between spend analytics, category management and contracts management, and is supported by supplier intelligence. Spend Analytics – Strategic sourcing starts with an analysis of product categories and spending patterns within the company.
Suppliers of steel fabrication and metal working equipment and technology are looking forward to a significant rise in demand from the region’s resurgent construction sector, one of the key demand drivers for the fabrication industry. Look for the steel fabrication industry to want to add capacity to gear up for the unexpected.
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