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Theyre feeling the heat most, as sudden trade policy curveballs throw procurement plans into chaos. manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. Traditional procurement, with its long-term contracts and rigid supplier ties, just isnt cutting it anymore.
They integrate AI into demand forecasting, inventory optimization, and logistics operations to improve efficiency, reduce costs, and mitigate risks. Companies must react after the fact, often incurring higher costs and reduced service levels. Predictive maintenance of transportation fleets reduces downtime and repair costs.
It ties up capital, wastes storage space, and risks product obsolescence. Manufacturers are shifting to on-demand production to align output with real-time demand. Manufacturers are shifting to on-demand production to align output with real-time demand. This lean model doesn’t sacrifice speed, but instead thrives on it.
Most organizations have public commitments to reduce their carbon footprint, with some of the more aggressive goals promising net zero emissions as early as 2040. Reducing emissions from transportation is crucial to achieving organizations sustainability goals. Freight transportation makes up over 10% of total global carbon emissions.
In May, the total number of job cuts in the US were 696,309 – an increase of 80% from the 385,859 jobs cut in the first five months of 2024. During the first week of June 2025, job cuts continued with 90,000 layoffs with iconic brands like Kimberly-Clark (1500-1900), Microsoft (6,000), P&G (7000), and Wal-Mart (1,500).
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.
Now for the Do’s & Don’ts In the dynamic world of FMCG, your Route to Market (RTM) strategy and distributor partnerships can make or break your brand’s success. Don’t Neglect Last-Mile Execution : Even the best strategy fails without strong in-market execution. Ensure margins are fair and sustainable.
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Manufacturing is on the cusp of an explosion in growth and innovation in 2018. The US energy industry is also awaiting changes in basic operating procedures, which are expected to dramatically reduce energy costs. These facts set the stage for exponential manufacturing growth in 2018. Green Manufacturing Will Go Viral.
According to McKinsey & Company, procurement accounts for 50% to 80% of a company’s cost base. That’s why organizations zero in on strategies to achieve procurement cost reduction. The key thing to remember is that cost reduction in procurement isn’t just about slashing expenses.
In this blog, well explore key strategies to enhance supply chain resilience and highlight how services like those offered by ModusLink can help businesses navigate these challenges effectively. Effective demand planning also optimizes inventory levels, reducing costs associated with storage and carrying inventory.
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.
That’s exactly what Kyle Krug , Vice President of Corporate Strategy & Marketing at Legacy Supply Chain Services, suggests. The SAP staff explains, “The good news is that you can now leverage smart technologies and tools to better power increasingly sophisticated supply chain optimization strategies.”
Since January, Canadians’ weekly grocery trips have become a real-time indicator for the potential impacts of tariffs as shoppers have responded to threats with a showcase of buying power, prioritizing nationally sourced and manufactured products even before a single tariff was enacted.
Simply using common calendar tools, such as Google, means you are using the IoT, but the Industrial Internet of Things (IIoT) leads to the use of connected, smart devices to reduce inefficiencies, delays, and inaccuracies throughout the product lifecycle, including procurement as well. Warehouse Management. Transportation Management.
How AI is Transforming Manufacturing: Strategies, Benefits, and Use Cases Artificial Intelligence (AI) is a huge topic and one that is constantly changing as research and development efforts push out the boundaries of whats possibleand whats already happening! Manufacturers now generate and own vast volumes of it.
That’s the power of manufacturing data collection. Manufacturing data collection is your secret weapon for boosting efficiency, cuttingwaste, 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.
You’ll learn how to leverage data to streamline operations, reduce costs, improve efficiency, and exceed customer expectations. Various supply chain optimization techniques, such as detailed planning, assessing current practices, and automating processes, can significantly enhance efficiency and reduce costs. Let’s dive in.
Running a manufacturing business isn’t easy. That’s where a manufacturing ERP comes in. Manufacturing ERP (Enterprise Resource Planning) software integrates all your core business processes into one powerful platform. This prevents stockouts, reduceswaste from overstocking, and optimizes your warehouse operations.
Whether you''re a manufacturing company in China, a sourcing agent in London or a world''s leading company in Silicon Valley, we''re all in a global supply chain networks. Therefore, a firm would be well served to develop a supply chain strategy as described in my book: Supply Chain Transformation. But, it can be overdone.
As businesses globally focus on reducing lost productivity, costly downtime, and rising inventory expenses, effective spare parts management has become a top priority—especially for asset-intensive industries. Therefore, optimizing spare parts management is crucial for the success of supply chain, manufacturing, and maintenance operations.
Peeling Back the Lid on Supply Chain World Salad In this world, where board discussions focus on eliminatingwaste 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.
The key to Zara’s ability to establish an agile Supply Chain rests on the following unique approaches: Procurement Methodology: Zara’s Procurement team doesn’t work on the number of finished clothes but on the quantity of raw materials needed to manufacture the clothes. Spare Capacity.
Overhauled MRO Strategy Propels UK Food Manufacturer to Save Millions, Boost Productivity For most companies, the COVID-19 pandemic presented a significant challenge in managing operations. One food manufacturer based in the UK was among those to successfully manoeuvre through the pandemic and beyond.
For years scientists and activists have been lobbying the need to reduce our carbon footprint. However, environmental concerns of waste generated from disposing used pallets have led to innovative ideas using alternative materials to match the robustness and cost effectiveness of the wood or plastic pallet.
Economic downturns can disrupt the flow of goods, increase operational costs, and reduce profit margins. In this blog post, well explore the importance of robust supply chains, the key risks they face during economic downturns, and practical strategies. Recession-proofing a supply chain doesn’t mean eliminating all risks.
I was drawn to Hunter and Amory Lovins, who advocated a strategy pairing energy efficiency with renewables, long before its current popularity. After all, what’s the point of installing solar panels only to waste the greener energy produced? Buffering creates waste. Proper disposal can cause downstream issues.
As I work with companies, I often contrast the strategies, approaches and outcomes within a peer group. Both companies provide packaging materials to the food manufacturing industry. They were unclear on their supply chain strategy and the role of supply chain planning. The decision was a political tug of war.
Especially grievous are the gaps between finance and operations, manufacturing and procurement, and the operations and commercial teams. Lane RFPs focused on cost reduction, but few asked if they had a feasible plan. Cost and Waste Can Be Pushed Backwards in the Value Chain Without Consequences. We are to blame.”
We were discussing the results of the planning benchmarking work that we have just finished, and I was sharing some insights on inventory management when one of the panelists emphatically stated, “Inventory is a waste to manage. Companies need to carefully manage the asset and mitigate the waste. A heated debate ensued.
My definition of a network is the bi-directional information exchange of manufacturing, procurement, quality, and transportation signals across multiple tiers of trading partners in a many-to-many trading partner information exchange with minimal latency. The rising inventories, and associated waste, should drive a call to action.
This is the second part of my series on various ways to reduce overall costs as it relates to logistics and warehouse cost reductions. In the first part I put forth 6 areas of focus in order to reduce logistics costs. Today, I will now address how a focus on inventory will allow for warehouse cost reductions as well.
Choosing the Right ERP System for Manufacturing: Key Features to Consider Enterprise Resource Planning (ERP) is a cornerstone of modern manufacturing, bringing together core business functions to improve operational efficiency. Quality Control – Manufacturers must ensure that every product meets industry and customer standards.
Category management isn’t just another procurement trend. With today’s growing cost pressures and increasingly complex supply chains , quick fixes no longer cut it. Category Management (CM) is a strategic procurement approach that groups related purchases into categories to manage each as a strategic unit.
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. In 8 out of 10 companies I work with, this approach creates a negative FVA introducing error and waste into the supply chain. Supply-centric or Manufacturing Thinking.
Tariffs are reshaping sourcing strategies, forcing tech upgrades, and making inventory planning a lot more complicated. When Tariffs Disrupt Global Supply Chains, Inventory Models Shift Traditionally, companies have relied on just-in-time (JIT) inventory strategies to minimize storage costs and reducewaste.
One of the most effective strategies for building resilience is integrating project management into supply chain operations. Improve collaboration between suppliers, manufacturers, and logistics partners. This proactive approach minimizes downtime, reduces financial losses, and strengthens overall operational efficiency.
Multiple manufacturers, multiple relationships, multiple distribution models, multiple contracts. Outcomes: less waste in time, energy, and money; preparedness for unexpected events (resistance to disruption in the chain); ability to identify issues quicker and with more accuracy; streamlined recalls. Download white paper.
The Manufacturing Supply Chain Journey through AI and Automation Manufacturing Supply Chains Explained The manufacturing supply chain comprises all the processes a business uses to turn raw materials and components into final products that are ready to be sold to customers, whether these are consumers or other businesses.
In addition, poor visibility, unpredictable demand, and disjointed systems worsen the situation further and lead to inefficient procurement, misplaced stock, and emergency orders. Why Traditional Methods Just Cant Cut It Anymore. This slows down response times, and also increases the chances of inaccuracies due to human error/bias.
The logistics landscape is evolving rapidly as more manufacturers relocate production closer to domestic markets. This article explores the key drivers of reshoring, the rise of regionalized freight networks, evolving market trends, and how companies can optimize logistics strategies in this new landscape. Midwest U.S. Midwest U.S.
To stay ahead of the curve, industry leaders are turning to data-driven strategies and artificial intelligence (AI) to transform how they manage inventory, forecast demand, and optimize the entire spare parts lifecycle. This lack of transparency hampers accurate demand forecasting, procurement efficiency, and inventory optimization.
For AFFLINK's partners and affiliates navigating complex procurement environments, ESG integration reshapes how supply chains are built, evaluated, and optimized. Why ESG Matters to Supply Chain Management Modern supply chain strategies extend beyond efficiency and cost containment. Innovative suppliers play a key role here.
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. In this ultimate guide, we’ll break down everything you need to know about manufacturing inventory management software.
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