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The modern supply chain is a complex network of suppliers, manufacturers, distributors, and customers, all interconnected and reliant on a shared ecosystem of trust and accountability. Ethical sourcing entails: Labor Practices: Ensuring fair wages, safe working conditions, and compliance with local and international labor laws.
For senior leaders, understanding and integrating the three pillars of sustainability—environmental, social, and economic—into supply chain strategies is essential. Transportation, warehousing, and manufacturing collectively contribute significantly to carbon emissions, making these areas critical for meaningful change.
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.
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.
Reducing cost was the primary objective, and most operational decisionsfrom sourcing to fulfillmentreflected that mindset. Resilience is the ability to respond to disruption while maintaining core operations, and more companies are shifting their strategies accordingly. For years, supply chains were engineered to be lean.
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.
That tightly integrated advanced planning (APS) coupled to Enterprise Resource Planning (ERP) using order data is sufficient. Functional Metrics and the Lack of Alignment to Strategy. Few companies are clear on the number of supply chains they operate, design the rhythms and cycles of each, and align metrics to the strategy.
However, large organizations are often equipped to handle fulfillment in-house, leveraging their extensive resources and capabilities. Optimizing fulfillment requires a series of steps to get a shipment from its source to the end customer.
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 this comprehensive guide, we’ll explore the key elements of warehouse optimization and provide actionable strategies you can implement today. An in-depth look at the tangible benefits, from cost reduction to increased customer satisfaction. Process Improvement: Streamlining workflows to eliminate redundancies and bottlenecks.
That’s the power of manufacturing data collection. Manufacturing data collection is your secret weapon for boosting efficiency, cutting waste, and staying ahead of the competition. Let’s dive in and unlock the potential of your manufacturing data. Its the foundation of modern manufacturing efficiency.
Infor’s CEO, Kevin Samuelson Infor’s strategy for differentiating their business from competitors like SAP and Oracle rests on a truly differentiated approach to ensuring that their customers get ongoing value from the business applications they purchase. Infor, with anticipated revenues of $3.4 We just want them solved.”
It’s the key to transforming your supply chain from a source of frustration into a well-oiled, profit-generating machine. You’ll learn how to leverage data to streamline operations, reduce costs, improve efficiency, and exceed customer expectations. That’s where data analytics comes in. Ready to get started?
Resource scarcity. These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. Much of the ESG journey is about conserving resources with smart planning and automation—but you can’t do that manually with spreadsheets.
Bowman, SupplyChainBrain In the rush to adjust sourcingstrategies in line with current trends in international trade, the answer might be to think small. manufacturers have spent the last few decades consolidating production at gigantic offshore plants, especially in China. Enter the concept of the “microfactory.”
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. In the face of variability, this is two-to-six weeks too long to make allocation or procurement decisions. The traditional leader values cost reduction but is blind on how to value time. Build in-market sourcing.
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.) Supply chain excellence was largely defined as manufacturing excellence.
Businesses are recognising the need to become good corporate citizens, as well as prepare for regulatory schemes that may require them to reduce carbon emissions. How to Reduce Carbon Emissions in Your Supply Chain 1. Transportation Networks and Modal Shifts A good transportation strategy is one of the best ways to reduce emissions.
Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.
As these organizations act on their climate pledges, the responsibility to reduce emissions is cascading to suppliers at every level. That includes everything from raw materials and manufacturing to packaging and logistics. Known as Scope 3 emissions, these are also the most difficult to measure and manage.
In manufacturing-based companies, 70-80% of costs are in the processes of source, make and deliver. While the practices of finance are over 200 years old, in contrast, supply chain as a cross-functional practice (the combination of make, source and deliver) was recently defined in 1982. Is talent a cost or an asset? Talent Gaps.
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. Can I have an industrial Google at a manufacturing facility?
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. Alex Zhong, Director Product Marketing at GEP.
These platforms can dynamically adjust the difficulty of tasks, provide targeted resources, and suggest personalized learning paths based on real-time performance data. Conversely, a student who quickly grasps procurementstrategies can be challenged with advanced case studies and leadership projects.
Peeling Back the Lid on Supply Chain World Salad In this world, where board discussions focus on eliminating waste and meeting corporate social responsibility goals, supply chain teams respond with projects like end-to-end planning, control towers, and real-time decisions. Each concept is flawed adding to, not reducing, cost and waste.
There are many ways an organization can cut supply chain costs. While there are no short-term fixes, enterprises should prioritize areas where they can make the quickest gains to reduce costs. Mastering Direct Spend Management Procurement teams generally do not report to the chief supply chain officer.
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. We’re talking real-time tracking, automated purchasing, and a whole lot less stress.
As with the logistics category where we featured 15 most popular blog posts vs. the 10 we covered in the top manufacturing blog posts and supply chain blog posts , we write so many transportation blog posts in that category, we are going to feature the 16 most viewed transportation blog posts. Read the Full Blog Post. Read the Full Blog Post.
In the fast-paced world of smart manufacturing, making quick, accurate and informed decisions is essential. Real-time decision-making, powered by artificial intelligence (AI) , is revolutionizing smart manufacturing processes. That said, manufacturers need to take several steps to successfully enable these technologies.
According to the UN Environment Program’s Food Waste Index, 923 million metric tons of food is wasted globally every year. Besides being a waste in precious resources, this quantity of wasted food also contributes to 8-10% of greenhouse gas emissions, making it actively detrimental to our environment. Source: [link].
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.
In the case of reverse logistics, the resource goes at least one step back in the supply chain. For instance, goods move from the customer to the distributor or to the manufacturer. When a manufacturer’s product normally moves through the supply chain network, it is to reach the distributor or customer.
The role that procurement plays in manufacturing organizations is a difficult one. This function must simultaneously balance cost reduction, quality, and assurance of supply in their quest to maximize profits. . Procurement needs digitization at its core to enable automation, efficiency, and innovation within the supply chain.
It was funded by 50 large consumer products manufacturing companies (CPG). In the dawn of e-commerce, conservative manufacturers, anteed up $240 million in four months. In the height of the e-commerce craze, the marketplace offerings started with a focus on e-procurement. The stories border on the ridiculous.
As regulations across the globe strengthen, the pressure to collect, report, and organize emission-related metrics has never been higher. Across the globe, requirements for stricter reporting on complex metrics are increasing. If the resources and software are applicable, automate as much of your data collection as possible.
Koganti urged the procurement audience to look for whats referred to as “foresight function” in planning tools, which is capable of enhancing data analysis, scenario generation and trend identification , allowing for more informed and proactive decision-making, albeit with human oversight.
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. Reduce error. Design-Through-Manufacturing Efficiencies.
As supply chain disruptions continue the procurement function should adapt to improve transparency, build collaborative relationships, and ensure sustainable sourcing practices, resulting in a stronger, more resilient supply chain with Cloud ERP for manufacturing. Strategic sourcing with Cloud ERP.
Sustainable manufacturing has become essential for manufacturers to maintain customer loyalty, win new business, and remain competitive in today’s supply chain based marketplace. In the past, manufacturers were slow to set goals in this area. Sustainable manufacturing also enhances employee, community, and product safety.”
Automation is at the center of modern manufacturing businesses, with companies exploring the possibilities of artificial intelligence in improving workflows and profitability. Industrial engineers incorporate these technologies in designing and fabricating advanced manufacturing systems. How AI Is Changing the Manufacturing Industry.
Customer expectations of reliable quality and rapid delivery forces today’s manufacturers to either shorten cycle times or lose business. Lean systems have provided a formidable operating strategy for leaders determined to achieve and maintain optimal operational systems and customer satisfaction levels. Establish time-tables.
Procurement is one core process area being focused to better manage today’s fluctuating change, with key performance metrics leading the way to assessing and managing procurement performance. The Basics of Procurement KPIs. Every KPI needs a clearly defined goal.
The traditional metrics of excellence cost efficiency, on-time delivery while still important, are no longer sufficient in an era defined by volatility, complexity and political changes. This approach has enabled some organizations to reduce inventory by significant amounts while actually improving service levels.
What are Total Manufacturing Costs? Your total manufacturing costs are essentially an expense analysis that calculates how each of your company’s departments contributed to producing a finalized product. This looks at all stages of the manufacturing process from raw materials to work-in-progress to final result.
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