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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 modelsoptimize functional processes to improve cost and customer service. At the top of the model is a balanced scorecard.
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.
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.
Molex implemented a multi-enterprise supply chain network platform from SAP called SAP Business Network. The most common form of trading partner collaboration is purchase order collaboration. The most common form of trading partner collaboration is purchase order collaboration. The buyers dont report to Mr. Gainsford.
Three months into 2025, we have seen a barrage of on-again, off-again tariffs that have supply chain and logistics teams reeling, as they must rethink everything from next weeks shipping route to their foundational networkmodels. With the global e-commerce market predicted to reach $8.1 The Ukraine-Russia conflict is ongoing.
Advanced supply chain planning is being transformed by probabilistic forecasting , which revolutionizes demand forecasting, supply planning, and inventoryoptimization. This approach significantly improves forecast accuracy and enhances decision-making across distribution networks. The result?
The industry has had little value from digital transformation and business networks. Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. The business network market is in need of innovation.) Or that a focus on cost reduction can actually undermine value creation?)
Probabilistic forecasting is revolutionizing demand forecasting, supply planning, and inventoryoptimization by significantly improving forecast accuracy and decision-making across distribution networks. Enhancing Inventory with Probabilistic Forecasting A supply chain is a complex ecosystem influenced by dynamic variables.
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.
GEP and the North Carolina State University (NCSU) Supply Chain Resource Cooperative surveyed supply chain, procurement and IT professionals across a range of industries to gain insight into their priorities and strategies regarding supply chain resilience and optimization. Business Spend Management Solutions are Networked .
Green Logistics: Optimizing transportation routes, consolidating shipments, and employing energy-efficient vehicles to reduce emissions. These initiatives also lead to cost savings by maximizing load capacity and reducing fuel consumption. Advanced route optimization tools further support these goals.
In this scenario, by adopting an adaptive supply chain, the retailer uses real-time data analytics to identify emerging trends and collaborate closely with suppliers to quickly adjust production and inventory levels to meet customer demand. This collaboration enables faster response times and cost savings.
The trade with Asia we take for granted today was only possible by mitigating a significant supply chain trade-off – reducing costs without appreciable impacts to quality and service. Supply chain optimization has also improved in significant ways that can address these trade-offs better than before.
But between rising costs, complex logistics, and the constant struggle to optimize space and labor, staying ahead can feel like an uphill battle. That’s where warehouse optimization comes in. Here’s what you can expect: A clear definition of warehouse optimization and its core components. Ready to get started?
Picture this: You’re a warehouse manager, and with a few taps on your smartphone, you instantly know the exact location and quantity of every item in your inventory. That’s not science fiction—it’s the power of mobile inventory management. Ready to turn your inventory from a headache into a strategic asset?
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. As companies across industries have discovered, a well-optimized supply chain can drive significant improvements throughout their operations.
However, recent disruptions have highlighted the vulnerabilities of these complex networks, resulting in significant financial losses for companies. It is crucial for organizations to understand the importance of Purchase Order collaboration to effectively manage their direct spend, optimize operations, and mitigate risks.
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. Misaligned priorities across finance, legal, and procurement create friction that delays decision-making and reduces impact.
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.
In a previous post , I made a case for how the Chief Supply Chain Officer (CSCO) and Chief Procurement Officer (CPO) are smarter together. Accordingly Supply Chain and Procurement will need continuous collaboration. By aligning supply chain and procurement, spend can be considered more holistically.
With all the buzz around digital transformation, someone peering in from outside supply chain may assume most businesses have already digitized essential tasks like inventory planning. This article will share five things you need to know about optimizinginventory in the digital age.
I see a preponderance of reports and white papers that have lots of pages but say little. Optimization engines to improve functional metric performance resulted in an exploding number of planners. Rolling up a perpetual inventory signal takes eleven hours. days to get a perpetual inventory signal and 2.2
I am currently doing research on inventory management. In the research, I ask inventory planners to define resilience. Of the twenty companies interviewed, only one can answer the question, “Do you have a good inventory plan?” No technology in the market measures inventory health. Build a network of networks.
Supply chain execution is required to distinguish between the high runner purchases and the slower-moving products customers are willing to wait for. In a study of logistics providers conducted by Fraunhofer IML, only 36% of organizations reported having a clear overall plan for digital transformation.
The basic frame of supply chain planning–functional taxonomies for optimization on a relational database–must be redesigned before supply chain leaders can reap the benefit of deep learning, neural networks, and evolving forms of Artificial Intelligence (AI). Graph architectures also use different optimization technologies.
I know that your primary focus is procurement. If S&OP efforts were that effective, don’t you think that we would have made more progress against inventory levels, margin, and growth? In part, this results in increasing swings in inventory in response to shifts in consumer demand as one moves further up the supply chain.
The consulting team pitches a theme–vision of supply chain best practices, big data analytics, or demand-driven value networks– to the executive team, and a new project is initiated. Companies adopt planning to optimize the organization’s response from the customer’s customer to the supplier’s supplier.
But companies often have diverging incentives and interests from their supply chain partners, so when they independently strive to optimize their individual objectives, the expected result can be compromised. ”. I think about this discussion with Keith often as I work on the Supply Chain Index and edit the chapters of Metrics That Matter.
Despite two decades of advancement in supply chain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear.
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. The concept was that managing trade-offs and optimizing the whole to drive business outcomes would improve value. A negative FVA increases cost, inventory, and risk. The impact is exponential.
With a growing number of older vehicles on the road, the aftermarket industry faces greater pressure to optimize supply chains, ensuring critical components like brakes, tires, and batteries are readily available to meet rising demand. Moreover, the proliferation of e-commerce is reshaping how aftermarket products are purchased.
By embedding analytics across logistics, sourcing, and fulfillment, businesses gain the visibility and foresight needed to stay competitive.Analytics-driven leadership is no longer a luxury; it’s the foundation of operational survival in todays volatile business environment. Analytics allows organizations to move beyond intuition.
Opportunities for Procurement Technology As we look toward 2025, European businesses are reshaping their supply chains to navigate an increasingly complex global landscape. A recent report by Maersk and Reuters Events highlights that 68% of companies are making supply chain visibility and monitoring solutions a top priority.
If youve followed our blog over the years, youll know that weve shared lots of information about distribution network design, why its vital to get it right, how long it should take, the importance of reviewing the network every so often, and various elements of design such as determining the number of warehouses and where to locate them.
This means continuously assessing the trade-off between the total cost to serve and meeting customer demand and minimizing lost sales. The increasing need for constantly analyzing these trade-offs across the supply chain networks has highlighted the need for digital twins and what-if capabilities in network design solutions.
The latest study highlights opportunities for businesses to strengthen resilience with artificial intelligence (AI)-driven demand sensing to optimizeinventory, realize more value from planning investments, and better serve clients during disruptions of any size. Orlando, FL – October 2, 2024 – E2open Parent Holdings, Inc.
Shoppers coping with inflation have shifted buying habits , purchasing fewer goods and cutting back on big name brands in favor of cheaper alternatives. Behind the scenes, CPG brands are strategically balancing cost cutting measures with supply chain investments to ensure preparedness for continuing market shifts.
Last week in the middle of a presentation, a supply chain leader made the statement, “We have solved the issues in supply through better optimization and use of data. The data models are wrong. Most organizations are stuck on their ability to drive improvements in operating margin and inventory cycles. Remember back then?
To keep customers like my dad satisfied, RGD and Quick-commerce companies need to invest in new technologies to optimize the supply chain and logistics operations. InventoryOptimization. InventoryOptimization involves decisions about the inventory level, the location, and the mix of products.
That’s where manufacturing inventory management software comes in. The right software can streamline your production, optimize stock levels, and even help you save money. We’re talking real-time tracking, automated purchasing, and a whole lot less stress. Spreadsheets just don’t cut it anymore.
Automotive distributors play a vital role in the automotive supply chain by procuring parts, warehousing them, and then supplying them to OEMs (original equipment manufacturer), retailers or end consumers. The data can be used to identify inefficiencies in the supply chain, improve inventory management, and streamline operations.
Supplier problems will cause a cascade of problems up and down the value stream, leading to supply order delays that cause inventory shortages, production disruptions, missed shipments and lost revenue. The study found that these leaders considered the largest gap to be between supply chain and procurement, citing it as a major issue.
Inventory, in this time of uncertainty, is the organization’s most important buffer to protect against variability. However, organizations are not good at managing inventory. Cash-to-Cash Metrics. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle.
by Diane Reynolds – Project Director Healthcare Transformation at One Network Enterprises. Multiparty Networks are Proven Technology. One Network has years of experience in healthcare supply networks that provide medicines and vaccines to hundreds of millions of people in Africa and around the globe.
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