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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. Achieving these goals requires visibility into the entire supply chain.
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.
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. Achieving these goals requires visibility into the entire supply chain.
Now, ML forecasting is not just monthly or quarterly; weekly and even daily forecasting is now possible. In terms of supply planning, if key parameters (like supplier lead times) are no longer correct, then the planning becomes suboptimal. AI is not a new technology in the supply chain realm; it has been used in some cases for decades.
SAP is embedding its generative Joule across the SAP Ariba source-to-pay solution portfolio to make it easier for their customers to manage routine inquiries, such as status updates, summarization, and frequently asked questions. My advice,” he concluded, “is just jump in. Their copilot-style solution is known as Joule.
They are no longer just vendors of goods and services. Access to Unique Process and Asset Capabilities: Some suppliers offer unique skills, technologies, or processes that are not available in-house or through other sources.
Reducing cost was the primary objective, and most operational decisionsfrom sourcing to fulfillmentreflected that mindset. Many organizations are now realizing that resilience is not just a supply chain add-on; it’s a fundamental capability. What if lead times from a key port double? AI also helps with scenario modeling.
Smart energy management systems further enhance efficiency by tracking and optimizing energy use in real-time. Ethical sourcing is a fundamental aspect of social sustainability. In today’s interconnected global economy, sustainability within supply chains and logistics has become a necessity rather than an option.
Today the question is not just When is the next disruption coming? Artificial intelligence (AI) is not just a buzzword; it has become a critical competency for supply chain and logistics teams today. Five years ago, we all thought the COVID-19 pandemic resulted in the most disrupted supply chain landscape we would ever see.
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.
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?”
Sorting through this to make a decision on a new planning solution at this time is tough. .” I agree that the market is a bit of a mess. Each supply chain planning technology at the end of 2024, went through disruption–change in CEO, business model shift, layoffs, re-platforming and acquisitions. My advice? You are right.
Volatile markets, global disruptions, and the need for real-time insights are pushing traditional systems to their limits. data extractors, search APIs) to perform tasks, enabling them to dynamically adjust to new information and real-time knowledge sources. Typically, these systems consist of standard-task agents (e.g.,
Companies leaning heavily on global sourcing? manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. What Is Agile Procurement?
Balancing forecast accuracy with inventory management gets more challenging every day. Artificial intelligence (AI) and rapidly developing generative AI tools provide complex, real-time, and in-depth insights specific to supply chain management. Traditional approaches often divide departments like sales, marketing, and production.
It requires a streamlined, reliable supply chain, from sourcing gear and managing equipment lifecycles to ensuring a seamless student experience. Much like gyms and wellness centers, diving schools operate within the broader fitness supply chain , which impacts how they source, sell, and serve.
Once upon a time, the world of manufacturing was a relatively stable place. Suddenly, managing inventory is the name of the game for companies trying to manage working capital and maximize profit while keeping customers happy. And that’s where real-time perpetual inventory signals come in. Let’s take a closer look.
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.
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.
In conventional supply chain planning , planners using basic tools (typically spreadsheets or legacy systems) forecast just one number for each item. In modern distribution networks, meeting service levels requires getting precisely the right inventory to the right locations at the right time.
I did a little digging to find out the specifics about excess inventory, the stated causes, and the potential implications. Retailers’ Inventories – Just Keep your Returns? Michael Burry’s tweet was referencing the CNN article Just keep your returns: Stores weigh paying you not to bring back unwanted items.
This is more evident in supply chain, where time-tested methods are being replaced with new ones. Traditional methods of aligning these departments rely on time-consuming meetings, manual data reconciliation, and an often slow, sequential decision-making process that creates a lag in response times. Enter Generative AI (GenAI).
private companies are facing increased days in inventory and receivables, adding to liquidity strain. Tariffs & Trade: The Clock Is Ticking One of the most urgent themes of the presentation was tariff risk escalation. The call to action was clear: Organizations must act now to pinpoint financial and sourcing vulnerabilities.
Table of Contents ** Minutes What is product sourcing? Where can I source products from? This makes it essential that buyers understand where they are sourcing their products from and how that ultimately affects their brand. What is product sourcing? Where can I source products from?
Your Aftermarket Supply Chain is More Complex Than You Think: Stop Guessing, Start Optimizing Lets be honest: managing spare parts inventory requires specialized strategies unlike any other inventory management process. Suboptimal inventory distribution: excessive stock in low-demand locations and shortages in high-demand areas.
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.
The technology is ready to go; now is the time to use it.”[1] They write, “This includes tackling bigger issues such as compliance, supplier relationship management, risk and disruption, responsible sourcing, and transparency. The answer: One bite at a time, of course! Quite the opposite. Companies are no different.”[4]
A resilient supply chain incorporates alternative sources, carriers, routes, and other characteristics so that it can flex in response to a situation. Even in the worst of times, a resilient supply chain bends and stretches but never snaps. Utilize a TMS That provides real-time data to remain agile.
Even more impressive, lost sales due to stockouts can decrease by up to 65%, while inventory reductions of 20% to 50% are possible. This advanced analysis allows businesses to predict promotional lift with unprecedented accuracy, ensuring optimized production schedules and inventory positioning through sophisticated supply planning.
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.
It leverages historical data, competitive intelligence, and external factors to guide inventory planning and resource allocation. Image source: Stefan de Kok 2. Demand forecasting has evolved dramatically in recent years. What is Demand Forecasting in Supply Chain Management? weather, social media trends).
Misaligned priorities, siloed systems, and unclear ownership can directly impact key performance indicators like cost savings percentage and procurement cycle time. In many organizations, procurement also plays a critical role in ESG compliance, innovation sourcing, and maintaining business continuity during supply disruptions.
These events impacted everything from facility operations and transportation routes to energy costs and inventory management. The logistics, supply chain, freight transportation, warehousing, and inventory management sectors often operate on razor-thin margins. tallying a staggering $182 billion in damages. The largest U.S.
Your Aftermarket Supply Chain is More Complex Than You Think Lets be honest: managing spare parts inventory requires specialized strategies unlike any other inventory management process. Suboptimal inventory distribution: excessive stock in low-demand locations and shortages in high-demand areas. The outcome?
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. ERP, CRM, SCM), external sources (e.g., Data is the lifeblood of AI in the supply chain.
This urges a shift from the unsustainable practice of buffering against uncertainty with high inventory levels. Enter Inventory Optimization (IO) as a vital strategy to combat supply chain stress. Yet, recent research suggests a more advanced approach, Multi-Echelon Inventory Optimization (MEIO), surpasses traditional methods.
You know there are opportunities hidden in the numbers; the challenge is surfacing them in time to act. 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. Let’s dig in! The culprit?
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.
What is the role of make, source, and deliver? 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.
In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times. An efficient procurement process optimizes vendor selection and purchasing decisions to maintain cost-effective inventory levels. Streamlined operations: Ensuring smooth, uninterrupted flow from suppliers to customers.
Supply chain disruption has many sources: tariffs and trade disputes, natural disasters, pandemics, economic uncertainty and cybersecurity attacks. There won’t be a new normal, just new sources of disruption, from weather to government policies to industry conditions. Trade disputes and tariffs. Cyber threats and attacks.
Global supply chain disruptions continue to derail manufacturers in the high-tech, automotive, and renewable energy sectors as they grapple with long lead times, higher prices, and electronic component shortages. To mitigate risks, many companies are incorporating alternate parts into their sourcing strategy. Focus on commodity parts.
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.
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