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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.
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.
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.
Transportation, warehousing, and manufacturing collectively contribute significantly to carbon emissions, making these areas critical for meaningful change. 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.
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.
Strategic sourcing and innovative solutions are often viewed as two distinct procurement tools, but they should not be seen in isolation. Think of them as apples and gearseach essential and effective on its own, yet when combined; they create a formidable mechanism for achieving procurement excellence.
Once upon a time, the world of manufacturing was a relatively stable place. So how does a manufacturer navigate this rollercoaster? And that’s where real-time perpetual inventory signals come in. According to Gartner , these issues can lead to missed manufacturing deadlines and wasted capital.
Scaling manufacturing operations is crucial for business growth but presents unique challenges. Balancing increased demand with consistent quality and controlled costs is difficult but essential for manufacturers looking to expand. Successfully scaling manufacturing requires more than just adding resources.
In today’s dynamic market, procurement is far more than just a buying and purchasing center. Forward-thinking organizations have transformed the department into an untapped gold mine that creates value for the entire end-to-end manufacturing process—from design and sourcing to production and delivery.
Ibrahim Al Syed, the director of digital manufacturing at Celanese, was surprisingly forthcoming about how Celanese developed these capabilities at ARC Advisory Groups 29th Annual ARC Industry Leadership Forum. The company has 55 manufacturing sites across the world. The company runs some plants, and some are operated by third parties.
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!
But instead of guessing what’s happening, you’ve got real-time insights at your fingertips. That’s the power of manufacturing data collection. It’s not just about collecting numbers it’s about turning those numbers into action. Its the foundation of modern manufacturing efficiency.
The promise of a well-intended consultant just sounds sooooooo good. At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.)
As a Principal FMCG Supplier, mastering this balance is essential; not just for growth, but for long-term sustainability. Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Urban vs. rural, modern trade vs. traditional trade—each requires a tailored approach.
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. Process latency, the time for an organization to make a decision using a traditional S&OP process, is two-to-six weeks. In the face of variability, this is two-to-six weeks too long to make allocation or procurement decisions.
Warehouse optimization isn’t just a buzzword; it’s a lifeline for businesses seeking to thrive in the demanding world of modern commerce. Warehouse optimization isn’t just a buzzword; it’s a lifeline for businesses seeking to thrive in the demanding world of modern commerce. Ready to get started?
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.
The output was just not helpful. We have too hard-wired solutions bolted into IT architectures to enable the flexibility needed by business leaders during times of high variability. Advanced planning evolved with a focus on modeling manufacturing constraints. Over time, this changed. It will not be over soon. The reason?
Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Just focus on geography and forget about anything else. by John Westerveld. Don’t care.
Procuring transportation for freight is much different than any other procurement category. Transportation procurement needs to support both customer service and a company’s internal supply chain goals. One master of freight procurement is Kyle Masters. Simmons Foods Simmons Foods is a farm to fork poultry manufacturer.
Procurement and Supply Chain Management are essential functions that can help companies navigate these challenges, but they are often siloed and operate in separate departments. Their metrics are often misaligned as well – supply chain focuses on service and procurement focuses on the cost of acquiring materials and services.
These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. Cloud applications that manage your supply chain provide real-time access—a single source of truth no matter where you are. Start with your supply chain.
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. When I started my business in 2012, I frequently wrote about the future using the moniker of Supply Chain 2020. My focus was simple.
Second, they adapt over time as market structures and strategies evolve. 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.
Keeping track of all your moving parts in manufacturing is a tall order. Spreadsheets just don’t cut it anymore. That’s where manufacturing inventory management software comes in. It’s not just a nice-to-have; it’s the key to staying competitive.
Frank, the line manager for manufacturing, dominated the meetings. The changeover times for the CM Bartlelts was 5X more prolonged than the more agile IM machines. Equipment washouts represented 11% of the change over time and were a significant barrier to agility. Sharing My Experience. The year was 1982.
We’ve already listed the top 10 manufacturing blog posts and the top 10 supply chain blog posts last week. Logistics encompasses certain subsets of practices within the supply chain, such as just in time logistics, mission critical logistics, and more. Top 15 Logistics Blog Posts of 2014.
I find that many times companies have the wrong name, or a misnomer, for what they are trying to achieve. It was my first time working with this group. As I sat in the back of the room, shifting in my chair, waiting for my time to speak, I watched speaker after speaker endorse the concept of one team. I am passionate about it.
When we think about the critical requirements for a manufacturer to succeed, productivity, quality, and inventory management immediately jump to mind. But another factor can play an equally strong role in making or breaking a manufacturing business: communication. This can help to prevent errors and improve efficiency. Reduce error.
This morning, the New York Times pushed me an article by Peter S. 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. Let me explain. Not so today.
At that time, manufacturers talked about customer-centric supply chains, but were afraid to aggressively adopt ecommerce strategies. Manufacturers, today, are aggressively pursuing e-commerce strategies. Get Good at Having a Real-time Perpetual Inventory Signal. In 2014, ecommerce strategies grew in importance.
During the 1980s, I was on a management team for a large manufacturer. The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team. Why Jump Now?
That includes everything from raw materials and manufacturing to packaging and logistics. Tesco and Walmart have announced procurement policies aimed at reducing carbon emissions and promoting sustainability throughout their extended supply chains. At the same time, global regulations are tightening. In the U.S., In the U.S.,
Commerce is global and regional at the same time, the world is getting smaller and more interconnected, and Consumer Packaged Goods (CPG) manufacturers operate in this build-anywhere and sell-anywhere market. Here we have compiled a list of the top six challenges that CPG companies face in the post-pandemic market.
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.
Businesses often use it in retail and purchasing. Category management isn’t just another procurement trend. It’s a way for companies to group similar goods or services (like IT infrastructure, facilities, or raw materials) and manage them holistically instead of handling every purchase in isolation.
After three years of research, I have just refined the methodology to start to pull the trends. I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. ” —Translation from the Greek by Ludwig Edelstein. I am an old gal.
Management practices such as lean manufacturing and just-in-time inventory management, along with globalization, have made tremendous impact on cost and service, but have accentuated risk. Metrics such as lead-times, forecast accuracy, inventory levels, and service are used to measure operational risks.
Time For Action. Especially grievous are the gaps between finance and operations, manufacturing and procurement, and the operations and commercial teams. Today, we are nearing the end of the fourth quarter of corporate reporting. Let me repeat this, “$200 Billion in profits.” profit for Q3 on $16.6B ” [link].
By the time I have finished writing this article, and certainly before it is published, the situation will have changed. One is reminded of the Chinese proverb, Better to be a dog in times of tranquility than a human in times of chaos. And insight is what we got, in spades. As late as the 1990s, supply chains were very local.
How can manufacturers manage disruption and improve productivity? By using advanced analytics for manufacturing, to understand the valuable information concealed within the data they already have! Therefore, manufacturers must continually look for new ways to improve the productivity and profitability of their operations.
The award, based on beating the industry peer group on rate of improvement on the key metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) while outperforming their peer group, is tough to achieve. Based in Paris, L’Oréal is a global personal care manufacturing company.
How can manufacturers manage disruption and improve productivity? By using advanced analytics for manufacturing, to understand the valuable information concealed within the data they already have! Therefore, manufacturers must continually look for new ways to improve the productivity and profitability of their operations.
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