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I laugh when business leaders tell me that they are going to replace their current supplychain planning technologies with “AI.” Each supplychain planning technology at the end of 2024, went through disruption–change in CEO, business model shift, layoffs, re-platforming and acquisitions.
The manufacturing sector is facing unprecedented volatility in global trade, with tariffs becoming the latest in a series of uncertainty drivers that are impacting virtually all industries. Supplychains need to be more agile than ever, yet much of the advice circulating in the industry remains high-level or less than ideal.
When you talk to companies that have implemented enterprise or supplychain applications, executives will usually admit that they have under-invested in training and preparing users to use the new technology. Molex implemented a multi-enterprise supplychain network platform from SAP called SAP Business Network.
Harvard Business Review recently published an article, “ To Build Resilience, CEOs Need to Become Supply-Chain Experts ”. In this article, we wanted to discuss one aspect of supplychain that is often not given enough attention – building strategic relationships and shared value with direct spend suppliers.
However, as carbon taxes and emissions reporting requirements continue increasing, supplychain professionals face mounting pressures from inside and outside their organizations to measure and improve performance against new, nebulous sustainability metrics. Sustainability is high on the list of favorite corporate buzzwords.
Technology can change or even improve work. Companies today making a fundamental mistake: they are attempting to automate current processes with AI versus challenging and redefining work. Today, in supplychain planning, this could not be further from reality. What’s missing? This bearish attitude is well-founded.
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. When done right, spend analysis enables cost savings, supplier optimization, risk reduction, and more strategic sourcing decisions.
My head is wobbling with announcements, late-night Friday press releases, company name changes, and executive turnover in the supplychain planning market. Logility, a conservative company supplychain planning technology, historically had no debt and cash reserves of more than 80M, is undervalued in this deal.
Direct and indirect procurement are two fundamental approaches in supplychain management, each serving distinct functions within an organization. Both focus on improving efficiency and reducing costs but differ in their strategic approach and impact on the core business operations. Find Out More What Is Procurement?
Procurement and supplychain 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.
In the fast-paced world of modern supplychains, traditional forecasting methods fall short. Probabilistic forecasting is revolutionizing demand forecasting, supply planning, and inventory optimization by significantly improving forecast accuracy and decision-making across distribution networks.
Based on this, a multiple-month financial, supplychain, and capital expenditure plan is produced. A supplychain planning application is the core technology that enables robust planning. Historically, the supplychain plan that resulted from the IBP process was too static. More than 5.6
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. It is a brilliant tool.” SAP’s Business Network is a supplychain collaboration network.
In the fast-paced world of modern supplychains, traditional forecasting methods fall short. Advanced supplychain planning is being transformed by probabilistic forecasting , which revolutionizes demand forecasting, supply planning, and inventory optimization.
Building a software company is hard work. Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. .” ” My problem is that we move through these hype cycles with little accountability for spending and with a major opportunity cost to not redefine work. This will not help.
One way of doing this is by leveraging Source-to-Pay (S2P) solutions, which can provide procurement with the tools needed to manage their supplier relationships and identify opportunities for cost savings. Let’s explore further.
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. The question then becomes what is a good OTIF score to shoot for?
New technologies revolutionizing transportation are creating tremendous opportunities but also unprecedented challenges for tire manufacturers. The establishment of efficient global supplychains has become critical to competitiveness.
Strategic sourcing and innovative solutions are often viewed as two distinct procurement tools, but they should not be seen in isolation. Strategic Sourcing: The Foundation of Effective Procurement Strategic sourcing is far more than simply choosing suppliers.
Fragmented systems, rising cost pressures, and shifting risk profiles are making it harder than ever to manage procurement effectively. You’ll learn how to review your current approach, pinpoint gaps, and start implementing improvements right away, focusing on automation, data visibility, and stakeholder alignment.
Leaders surveyed in third annual ToolsGroup and CSCMP report are “extremely concerned” about external supplychain threats but lack people to make transformation succeed. From January to March 2022, CSCMP and ToolsGroup surveyed more than 300 supplychain professionals around the world.
” At that time, the sales organization used more point-of-sale data than their competitors, they had an impressive and innovative IT team, and their supplychain processes were what I considered best-in-class. The use of the supplychain as a functional organization within the organization to reduce costs.
Introduction Gardner, (1954) and Huntzinger, (2007) define Purchaseprice 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.
With the advent of the digital era, supplychain has transformed dramatically. To increase flexibility, responsiveness, and competitiveness in the long run, the investment in supplychain digitalization will increase by 10%-15% over the next few years. If trends hold, we will achieve touchless supplychains very soon.
Supplychain 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.
I seethed as the news stations celebrated supplychain success for the December holidays. The health of the supplychain underpins our economy. When the supplychain is sick, all industries suffer. Not only did the cost increase, but variability tripled. jump in apparel costs and 5.5%
The Covid-19 pandemic tested the global supplychain. Like riding a bumpy road, the supplychain leader is riding the ups and downs of changing market conditions facing greater variability day-to-day. Here, based on interviews with supplychain leaders, I share lessons learned. It will not be over soon.
“May you live in interesting times,” widely attributed as a Chinese curse, some claim this as a blessing; whichever side you take, this is exactly what’s happening in the supplychain world since 2020, and it looks like we will be living with this blessing/curse for a while longer. Emerging Themes for SupplyChain Planning.
ARC Advisory Group began conducting formalized research on the global warehouse automation market in 2014. We define the market as those warehouse automation providers responsible for delivery of the system to the end-user (to eliminate double-counting). Looking back, I estimated the market in 2013 at $6.4 billion in 2019.
Today, I speak at the North American Manufacturing Association, Manufacturing Leadership Conference, in Nashville on the use of data to improve supplychain resilience. Background The Council of SupplyChain Resilience met for the first time this month. What is supplychain resilience?
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. End-to-end supplychain visibility, planning, and execution support software are critical in agile supplychain performance.
That’s why staying on top of the latest supplychain planning trends is so important – they can make all the difference when it comes to staying competitive, reducing costs, and meeting your customers’ needs. Here are some highlights from these trends in 2023 and implications on supplychain planning.
Belcorp’s Maturity in SupplyChain Design. When companies implement enterprise software solutions, they often label that implementation as being part of their company’s digital transformation. Using this software effectively is about more than the functionality. How do we best handle surging transportation costs?
But between rising costs, complex logistics, and the constant struggle to optimize space and labor, staying ahead can feel like an uphill battle. It’s a holistic approach that blends strategic planning, streamlined processes, and the right technology to transform your warehouse into a well-oiled, profit-generating machine.
By harnessing the growing power of AI to not only sense demand at a very fine-grain, real-time level, but also to govern decisions about pricing and inventory. By harnessing the growing power of AI to not only sense demand at a very fine-grain, real-time level, but also to govern decisions about pricing and inventory. AI can help.
Wikipedia Unleashing the Contrarian Here are my thoughts this morning over coffee: Gartner Top 25: Really A Celebration of SupplyChain Leadership? Designed to lift the profession and celebrate supplychain results, I struggle to find that the methodology supports either objective. I don’t think so.
Supplychainautomation refers to the tools and technologies we can use to make manual tasks automated, reducing the need for human workers. It’s sometimes misunderstood, but it’s actually integrated into almost all supplychains nowadays in av ariety of different ways.
Knowledge Graphs are emerging as an important tool for building advanced AI capabilities. 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. Their plants are very expensive.
In 2004, I worked with a Midwest North American meatpacker to help define its supplychain strategy. The team understood the importance of margin management, focusing only on cost as an input to margin. Consumers constantly change the mix preferences in purchases. The focus was on margin and quality.
Industries dependent on these metals, including defense , renewable energy , electronics, and manufacturing, may experience supplychain disruptions, including delays, price increases, and supply bottlenecks, due to China’s leading role in their production. defense and technology.
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.
Today, supplychain excellence matters more than ever. During the pandemic, the supplychain discussions take new importance. While the supplychaintechnology market lost its allure at the start of the last decade, it is now cool again. The supplychain career is new. Reflection.
”) So, I sat across from a stranger on a cold winter night, the only thing that we had in common was our experience in supplychain planning. . And won’t the supplychain follow suit?” The perspective of a manufacturing leader is quite different than that of a business leader in logistics.
Companies implementing supplychain planning (SCP) have traditionally been very big companies or companies with complex supplychains. Supplychain planning is not just for the big boys. This manufacturer produces plastic reusable material handling containers and plastic fuel tanks.
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