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Your inbox quickly fills with concerned emails highlighting rising costs, delayed materials, and your teams urgent efforts to assess the situation and determine the next steps. manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy.
The logistics and supply chain industry is a critical component of global trade, responsible for moving goods and materials efficiently to meet consumer and business demands. Reducing dependency on fossil fuels can mitigate these risks and improve operational predictability.
For instance, Summit Materials uses the Samsara Connected Operations Cloud across its 4,000-vehicle fleet, centralizing data on fuel usage, emissions, and diagnostics to improve fuel efficiency and advance sustainability goals. This approach to route optimization minimizes delays and helps maintain exacting standards of service reliability.
Lets explore these challenges and strategies to overcome them. Conflicts in critical regions disrupt access to essential materials. Optimize Inventory and Pricing Use AI-driven insights for stock mix optimization and dynamic pricing, reducing excess stock while meeting service level goals.
The result was a year-over-year savings of more than 3%. This case study — How a Global CPG Leader Optimized $500M of Direct Materials Spend and Exceeded Savings Goal by Partnering with GEP — details how GEP’s strategic insights helped the company increase its resilience and optimize direct materials spend to drive year-over-year savings.
For senior leaders, understanding and integrating the three pillars of sustainability—environmental, social, and economic—into supply chain strategies is essential. Reducing carbon emissions is a cornerstone of this effort. Meanwhile, advances in AI-driven route optimization reduce unnecessary mileage, cutting emissions and costs.
Treating suppliers as essential partners in the field of direct spend management—almost like customers—can be a key component of a successful company strategy. Supply Chain Knowledge and Risk Mitigation: Suppliers have a direct impact on direct spend with raw material and transportation costs as two big drivers of operating margins.
Trade policies are constantly evolving, forcing companies to assess how these changes impact customer demand, supply networks, fulfillment strategies, and cost to serve. As a result, the company had to lay off workers and reevaluate its entire strategy – even as tariffs are paused – due to a lack of supply chain flexibility.
By placing photovoltaic (PV) panels on the roofs of buildings, warehouses can capture sunlight and convert it into electricity, reducing energy costs and carbon emissions. The integration of robotics within warehouse operations has led to significant improvements in productivity, accuracy, and cost savings. According to JLL, the U.S.
From new pricing strategies and material substitutability to alternative suppliers and stockpiling, a new GEP-commissioned Economist Impact report reveals that enterprises are adopting a variety of approaches underpinned by data and technology.
Addressing the Challenge: Practical Approaches Organizations making progress on ESG-driven supply chains are employing several practical strategies. Third-party audits, certifications, and blockchain-based supply chain tracking are being used to strengthen data verification efforts and reduce reliance on self-reported information.
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. AI-driven logistics optimization has resulted in faster and more cost-effective deliveries.
A customer case story presented showed significant speed improvements in identifying process issues and reductions in employee time spent on this task, potentially leading to substantial annual savings through improved early payment discounts. Automate: utilizes technologies such as RPA, IDP, and IPaaS.
Balancing Cost-Efficiency with Ethical Sourcing and Compliance Cost-efficiency remains a primary driver for supply chain strategies, but it must be balanced with ethical sourcing practices. Environmental Impact: Reducing emissions, conserving resources, and adhering to environmental regulations.
For global manufacturers, managing direct and indirect material spend can get very complicated very quickly. Multiple legacy systems prevent procurement from standardizing processes and tracking what they’re spending with each supplier.
Fortunately, the expected storm surge never materialized, and landfall narrowly missed the densely populated Tampa Bay area. UVa Health said it is working on reducing any unnecessary waste of IV products, including IV fluids, dialysis fluids, parenteral nutrition, and irrigation fluids.
Reduces Implementation Times Enterprises and supply chain software providers strive to reduce application implementation times. With a data gateway you can automate data operations, reducing the need for manual intervention and improving overall efficiency.
production at its South Carolina plant to reduce reliance on North American imports. Mitigation Strategies in the Auto Sector To cope with rising tariffs, automakers are accelerating plans for nearshoring and domestic production expansion. government is expanding farm subsidies to offset revenue losses from reduced trade.
Read on to explore key AI use cases in procurement, the challenges businesses face, strategies to overcome them, and the exciting opportunities AI brings for the future. This gives them advance warning so they can adjust their purchasing strategies. Here are the topics we’ll cover at a glance : What is AI in procurement?
Even global manufacturers –– companies across industrial, automotive, chemical, and energy industries –– are scrambling to mitigate the impacts of labor, material and energy shortages, delays, inflation, and unexpected events. It’s not just small and medium-size businesses that are caught off guard.
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.”
Supply Chain Resilience: Strategic partnerships with reliable suppliers guarantee consistent material availability, regardless of production scale. Dependencies on suppliers who cant meet increased demand can lead to material shortages and production delays. This reliability prevents bottlenecks and keeps production flowing smoothly.
An ERP strategy to optimize the potential of the innovations on offer is critical for manufacturers across the globe. The following five evolving tech trends will inform manufacturers ERP strategies in 2025. IoT sensors also enable predictive maintenance, thereby extending the lifetime of machines and reducing downtime.
DDMRP : Demand-driven Materials Replenishment Planning is useful for calculating the right buffer for direct materials and improves traditional MRP logic. The problem is that it is order-driven and the order is not a good proxy for demand in make-to-stock and configure-to-order processes.
With companies importing raw materials, components, and finished products, rising tariff rates and customs duties can erode profit margins and disrupt business strategies, especially given the reliance of U.S. By Jackson Wood , Director of Industry Strategy, Global Trade Intelligence at Descartes.
By producing only whats needed, when its needed, they eliminate the burden of forecasting errors and reduce warehouse dependency. Powered by digital tools, on-demand strategies offer a cleaner, more responsive path to production. Raw materials, energy, and labor go into making goods that never get used.
Reduces Implementation Times Enterprises and supply chain software providers strive to reduce application implementation times. With a data gateway you can automate data operations, reducing the need for manual intervention and improving overall efficiency.
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.
Factors such as geopolitical shifts, extreme weather events, raw material shortages, and infrastructure challenges can significantly impact operations. Effective demand planning also optimizes inventory levels, reducing costs associated with storage and carrying inventory.
From raw material sourcing to logistics and regulatory compliance, stakeholders across the value chain will need to prepare for structural adjustments. Each reformulation may involve regulatory submissions, quality assurance reviews, and potential consumer communication strategies.
The company is operationalizing this target by reducing emissions as much as possible, increasing use of carbon-free electricity, and removing the emissions that remain. Supporting hypergrowth while reducing supply chain logistics emissions is not an easy feat. This of course generates carbon from transportation activities.
Established in 2021 in the UK, Pledge brings accessibility and transparency to freight emissions measurement and reporting, empowering businesses to confidently measure, manage and help reduce their carbon footprint. truck, rail, barges), and sea.
The combined expertise of Nauto’s advanced fleet safety technology and Beans.ai’s cutting-edge routing solutions optimizes last-mile operations, reduces delivery times, and improves overall fleet management. A key supply chain challenge is securing a steady, cost-effective supply of iron, the core material of the batteries.
To achieve greater product differentiation and reduce expenses, companies are outsourcing design and development work to contract manufacturers (CMs) and other domain experts. Historically, manufacturers would offshore their operations to reduce labor costs; however, times have changed.
Today’s article comes from Greca Manuzzi, Senior Expert Product Marketing at Kinaxis, and explores breaking down silos in material and transportation planning. How can businesses ensure they remain competitive in such a market while facing constant pressure to improve efficiency, reduce lead times and cut costs? What is load building?
This facility will produce material for electric vehicle (EV) battery anodes, reducing reliance on Chinese imports. It emphasizes the importance of cost savings, supply base rationalization, risk management, strategic foresight, and supplier collaboration. million loan from the U.S.
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.”
As a result, the solution helped minimize stockouts, reduce costs, and streamline operations. The MEIO model enabled Belcorp to maintain a fill rate exceeding 95 percent while aiming to reduce total inventory value by 10 to 15 percent. Here’s where our MEIO model within SO99+ came into play.
Change management was not solely focused on suppliers, buyers, and material managers all had to change how they operated. There were 65 material managers included in the initial rollout. For material managers, he made the case that they would be much more likely to get their inbound supplies on time. He needed to influence them.
At one of the demo booths, what stood out was the ability of the procurement solution to track savings leakage over the course of a contract. When a procurement contract is negotiated, the buyer has planned to achieve a certain level of savings. However, those savings can leak away in several different ways.
These decentralized networks aim to boost flexibility, reduce risk, and improve responsiveness, aided by technologies such as blockchain, AI-driven logistics, and expanded visibility into supply chains. For years, supply chains have focused primarily on reducing costs, often prioritizing efficiency over resilience.
By maximizing space utilization, improving inventory control , and boosting workflow efficiency, you can unlock significant cost savings and elevate your customer service game. In this comprehensive guide, we’ll explore the key elements of warehouse optimization and provide actionable strategies you can implement today.
In addition, mounting environmental concerns and sustainability goals push organizations to reduce their carbon footprint, which often entails optimizing transportation for efficiency. Mandates for a more conscientious supply chain are driven by stakeholders’ demands for reduced environmental impact.
This article explores the disruptive nature of supply chain disruptions, the significance of collaboration in managing direct spend, the role of Purchase Order (PO) Collaboration in tracking materials throughout the order cycle, and real-world challenges faced in PO Collaboration.
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