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Theyre feeling the heat most, as sudden trade policy curveballs throw procurement plans into chaos. Traditional procurement, with its long-term contracts and rigid supplier ties, just isnt cutting it anymore. Traditional procurement, with its long-term contracts and rigid supplier ties, just isnt cutting it anymore.
While SAP has had procurement analytics solutions, last year at Spend Connect Live, SAP announced the Spend Control Tower. Daniel Chapman, the senior director of process transformation for procure to pay at Warner Music, was a keynote speaker. My advice,” he concluded, “is just jump in. It is a brilliant tool.”
They follow “if-this-then-that” (IFTTT) logic, meaning that when certain conditions are met, the contract automatically executes an agreed-upon action, such as releasing a payment, updating an inventory record, or verifying a shipment. Inventory counts often require manual audits, which are time-consuming and prone to mistakes.
They are no longer just vendors of goods and services. Below is a checklist of key actions to follow: Dedicate Time to Supplier Relationships Reallocate time and prioritize direct engagement with key suppliers. For instance, suppliers may have strong Vendor Management process expertise that will help reduce working capital.
In the competitive industrial landscape, efficient spare parts inventory management is crucial to maintaining seamless operations and driving profitability. In this sector, the ability to provide timely and reliable spare parts can make or break a company’s reputation.
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.
Sorting through this to make a decision on a new planning solution at this time is tough. For example, if I improve the cost structure in transportation, procurement, manufacturing and sales independently, what decision support framework decides the right trade-offs? .” I agree that the market is a bit of a mess. My advice?
Just-in-time (JIT) inventory models, lean supplier networks, and offshore manufacturing reduced expenses but left companies exposed to disruptions. The COVID-19 pandemic and ongoing geopolitical shifts demonstrated the risks of relying on single-source suppliers and minimal inventory buffers.
But change management is significantly more difficult when the technology deployed is used not just internally, but also by key trading partners. They gain visibility into whether a supplier can fulfill the complete order in the requested time frame or not. People issues are always challenging. But getting there was not easy.
Many organizations are now realizing that resilience is not just a supply chain add-on; it’s a fundamental capability. Sudden tariff increases can quickly make a cost-optimized procurement strategy untenable, leaving companies scrambling to adjust. What if lead times from a key port double?
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.
Theres no shortage of commentary on how companies should respond move production, shift suppliers, and reconfigure operations are just a few common recommendations. The reality is, you cant just uproot a manufacturing facility and move it overnight, as if it were the floating house in the movie Up, carried away by a bunch of balloons.
Traditionally, procurement has been a process weighed down by manual tasks, fragmented systems, and endless paperwork. Today, procurement is undergoing a transformation. While procurement teams have long worked to add strategic value, Artificial Intelligence (AI) amplifies their impact.
Excess inventory weighs down supply chains. These inefficiencies inflate costs and slow response times when customer needs change. Manufacturers are shifting to on-demand production to align output with real-time demand. The Hidden Costs of Traditional Inventory Models Traditional inventory models were built for predictability.
An increasing lineup of advanced digital solutions have given manufacturers the edge to transform and achieve better inventory control. The manufacturing industry is constantly searching for new and inventive ways to improve inventory management. Types of inventory that can be optimized.
Automakers must model dual-path sourcing strategies and reintroduce buffer inventory—not just for parts, but for regulatory flexibility. To minimize risks, AI can simulate the impact of multiple legal outcomes and adjust supply flows in real time. Now, the conversation is shifting from “What tariffs are coming next?”
Automotive: Managing tariffs; overcoming supply constraints and cost surprises For automotive manufacturers , tariffs don’t just impact costs—they create major supply constraints. Automotive businesses can gain a significant edge by implementing real-time scenario planning.
To improve their operations, they installed autonomous mobile robots in their warehouse. According to a survey of 250 global companies by the consulting firm McKinsey, 91% of shippers and 75% of logistics service providers have implemented a warehouse management system. There is a lag before smaller companies begin to implement the technology.
Just last year many were chartering their own cargo ships to get all these goods to their destinations.) While consumers may see some short-term benefit in the form of discounted goods, many retailers have had to reset investor expectations , reflecting the expected hit on margins from carrying so much inventory. All aboard.
As a Principal FMCG Supplier, mastering this balance is essential; not just for growth, but for long-term sustainability. Do Embrace Technology and Data : Use real-time data for demand forecasting, inventory management, and route optimization. Urban vs. rural, modern trade vs. traditional trade—each requires a tailored approach.
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.
In Orlando, thought leaders, procurement professionals, and supply chain executives came together under the theme of building resilient, responsive supply networks. Rising concerns over cash conversion : U.S. This is especially relevant in light of proposed 2025 U.S. tariffs on Chinese goods and reciprocal actions from trading partners.
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. You know there are opportunities hidden in the numbers; the challenge is surfacing them in time to act. Let’s dig in!
Robotic Process Automation Deployment According to the APQC data, organizations are exploring Robotic Process Automation across a number of supply chain areas, including supply chain planning, sourcing and procurement, logistics and warehousing, and manufacturing.
I just went live this year with a Fortune 25 company, and their factories book against their orders online. ” Followed by, “We just implemented an end-to-end solution at Unilever; the results are impressive.” Feasible plan for tactical manufacturing planning (outside of lead time) reflecting actual constraints.
At the same time, feeding your AI models too much data can also be a problem. Like Goldilocks’ quest for the perfect bowl of porridge, to leverage AI in your supply chain you need to identify which data is ‘just right’ for your business. Data is the lifeblood of AI in the supply chain. ERP, CRM, SCM), external sources (e.g.,
Throughout this process, a single part may cross borders several times before becoming part of a finished vehicle. For example, aluminum raw material is cast into a piston in Canada, then shipped to Detroit for machining incurring a 25% tariff based on the piston’s value. without additional tariffs under the USMCA agreement.
The technology is ready to go; now is the time to use it.”[1] But its a bit like unpacking a box of Christmas lights to find theyre hopelessly tangled it will take time to sort out the mess, but the results will be illuminating.”[3] The answer: One bite at a time, of course! Quite the opposite.
In this article, we’ll explain what centralized purchasing is, the challenges it tackles, the benefits of centralized procurement, and the types of companies that can benefit most from it. That’s when a centralized procurement organization structure proves beneficial.
At the time, many business leaders did not know how to type and had no idea how to use a computer. Taxonomy of Outside-in Planning Based on the Art of the Possible To accomplish this goal, we need to discard the current crawl, walk, and run models and just jump. During the 1980s, I was on a management team for a large manufacturer.
In our work with Georgia Tech using data from 1982-2023, we find that the R² of the Regression analysis of Cost-of-Goods Sold/Inventory Turns when compared to correlations of Operating Margin/Inventory turns to Market Capitalization/employee is 40-65% lower. Reflection A month has passed since my last post.
The demand must be embraced as a flow, not an analysis of time-phased data, to drive better insights. In the Global Supply Chain, there are More Constraints To Address Than Just Manufacturing. With the rise of logistics and procurement constraints, an analysis of only manufacturing does not yield a feasible plan. Let me explain.
Given your expertise, I’d love to hear what alternatives you recommend for better demand forecasting and real-time visibility beyond what’s commonly adopted today.” I know that your primary focus is procurement. In a recent blog post, I was challenged by Anna. ” Anna, this blog post is for you.
Inventory Management vs. Warehouse Management. Original article: Inventory Management vs. Warehouse Management. That may be because a company might already have an inventory system and wonders what additional capabilities they will get with a new WMS. Inventory Management vs Warehouse Management: Main Differences.
Understanding how your Procurement and Supply Chain KPIs are performing isn’t just a nice-to-have; it’s essential for survival and growth. Is inventory bloating your costs? Why You Need Visibility of Supply Chain and Procurement KPIs? Are you truly getting the best value? Are materials arriving when needed?
When you look behind the scenes of a global business operation, procurement strategy and supply chain management are usually top priorities, though theyre not always working in sync. This blog explores procurement vs supply chain strategy and looks at how aligning the two leads to operational excellence. It doesnt have to be that way.
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.
Opportunities for Procurement Technology As we look toward 2025, European businesses are reshaping their supply chains to navigate an increasingly complex global landscape. This blog explores the key insights from the report and reflects on how procurement technology can be a game-changer in addressing these pressing priorities.
Just as technology has the potential to transform other major industries, its also having a major impact on procurement. One thing that is often overlooked in procurement, however, is the need to develop staff that are capable of using these technologies. Digital contract management Procurement contracts can be complex.
Boost Your Business Profits with Efficient Procurement and Inventory Management Software Are you searching for ways to enhance your business’s profitability? One area with significant potential for improvement is procurement. You can evaluate supplier performance based on on-time delivery, quality of goods, and pricing.
Retailers also took steps to contain costs and preserve margins as they reoriented toward e-commerce like never before, including putting solutions in place to more effectively navigate carrier capacity caps and improve the visibility, accessibility, and mobility of inventory. According to Digital Commerce 360 , U.S. Meet the basic needs.
In today’s dynamic market, procurement is far more than just a buying and purchasing center. Our latest e-book, “ Is Manufacturing Missing Out On Procurement’s Value Add? Our latest e-book, “ Is Manufacturing Missing Out On Procurement’s Value Add? Here are some key insights from the e-book.
Image: iStock/JuSun June 18, 2025 Helen Atkinson, Managing Editor “The future is already here; it’s just not evenly distributed,” wrote William Gibson in his 1984 novel Neuromancer. The eternal problem is that you can receive timely, accurate information, but it’s tricky to know what to actually do with it. trillion to U.S.
We had just recovered from a recession, and my goal was to help supply chain leaders create a better supply chain by the end of the decade. At that time, Supply Chain 2020 seemed so far away. Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns.
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