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While past efforts focused on meeting compliance requirements, organizations are now working to proactively embed environmental, social, and governance (ESG) principles into their sourcing, production, and distribution activities. Building supplier capabilities while maintaining sourcing flexibility requires additional investment.
Reducing cost was the primary objective, and most operational decisionsfrom sourcing to fulfillmentreflected that mindset. More recently, fluctuating trade policies have emerged as a persistent challenge, especially for firms with global footprints. For years, supply chains were engineered to be lean.
We’ve seen AI take over everyday tools and search engines; AI in Sourcing and Procurement is becoming a strategic tool in our kit, At Ivalua, we are helping global procurement teams integrate AI across the Source-to-Pay process, bringing automation, insight, and agility to every step. This is where AI can make a huge difference.
(Inventory is both our most important buffer and greatest source of waste.) Functional metrics align to bonus incentives, but progress in supply chains remains evasive. Muda comes from many sources. Agentic AI is useful in the creation of workflow, policy and rules definition. Human Potential. Most likely. Quantify it.
beef from 1,000 to 13,000 metric tons , removing the 20% tariff within that limit. trade policy shift introduced in April 2025. Policy Uncertainty : Key sectors, including pharmaceuticals and digital services, are still under negotiation. Firms should monitor policy developments and prepare for regulatory changes.
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. Reward teams for cross-functional metrics. Tie policy to action.
Digital procurement streamlines workflows and unifies data, enabling faster sourcing, better collaboration, and improved accuracy. Digital procurement is the use of digital technologies to enhance, automate, and optimize procurement processes across the entire source-to-pay (S2P) lifecycle.
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. All rights reserved Privacy Policy Cookies Do Invest in Distributor Capability Building : Provide training, digital tools, and performance incentives.
The global supply chain is built on three assumptions: rational government policy, availability of reasonably priced logistics, and low variability. For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. Build in-market sourcing. Over four-hundred days of war in Ukraine.
This blog offers a clear, practical overview of what spend analysis is, how it supports strategic sourcing, and why it matters for both direct and indirect procurement. We’ll walk through key benefits, types of spend analysis, steps to get started, and metrics to track—backed by lessons learned from real-world implementations.
The process as is implemented in many companies focuses on balancing demand and supply based on preestablished rules and policies that serve as guardrails for the planning process. Engage sourcing team to ensure supply continuity: Supplier mix for many organizations we work with is becoming increasingly dynamic.
This guide breaks down the key procurement technologies in use today and the trends reshaping the future, such as AI-driven sourcing, predictive risk management, and deeper integration across the supply chain. What Is Procurement Technology?
Integration of corporate social responsibility metrics in planning. Comprehensive view of source, make and deliver. Most often the focus is on transportation or logistics, but does not take into consideration the trade-offs between make, source and deliver. Focus is on make, source and deliver together. Manufacturing.
The Power of Source-to-Pay Digital Transformation To put it briefly, source-to-pay refers to the entire process that starts with finding, negotiating with, and contracting the suppliers of materials, goods and services, and culminates in the final payment for those items. Who Should Prioritize an S2P Digital Transformation?
She found that the best combination of metrics to evaluate total cost is a balanced scorecard of revenue per employee, operating margin, inventory returns, and return on capital employed. These levers could be alternate sourcing, alternate routing, changes of push-pull decoupling points, or even changes to the product portfolio.
Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. It combines decisions across sell, deliver, make and source processes to drive value based outcomes. Metrics Alignment. Most companies operate well within functions, but struggle to build strong horizontal processes.
Tesco and Walmart have announced procurement policies aimed at reducing carbon emissions and promoting sustainability throughout their extended supply chains. In North America, 81% of consumers said they would stop buying products from brands they learned were harming the environment. Retailers are following suit.
In simple terms business procurement is the process of locating and acquiring goods and services from external sources for the business to use. Procurement activities include planning, sourcing, and negotiation, along with risk management, legal and value analysis. What is procurement? Undamaged shipment rate.
In the process, these enterprises have adopted policies to reduce greenhouse gas emissions or even become net-zero emitters. Thus, organizations must make sure that data are complete, accurate, timely, and consistent as well as capture the required metrics. Next, the enterprise can set targets.
Supply Chain Finance & Revenue Management Digital Edition SupplyChainBrain 2025 ESG Guide: Is ESG Still Relevant? No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp Design, CMS, Hosting & Web Development :: ePublishing
No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp Design, CMS, Hosting & Web Development :: ePublishing
Process: Blueprints for Success This process workstream focuses on blueprinting existing processes, policies, and metrics. You can connect with Vishal on Linkedin You May Also Like Source to Pay (S2P) What is Source to Pay Best Practice? An Analysis by Ivalua Read More : What is Source to Pay Best Practice?
The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ). The definition of this metric is similar to the way it sounds. Cost of quality.
New data sources. With mergers and acquisitions, new data sources are added along with the data in these systems. Depending on the system and processes inherited with the new source, data issues could be significant. In addition, these record counts are never static. With that amount of data, something is going to be off.
ESG reports can help investors make informed business decisions by identifying companies with less financial risk and avoiding those that may be impacted by stricter ESG metrics. This suggests a narrative shift is needed, framing ESG not as a financial burden but as an untapped source of value creation and market differentiation.
Policies include a net-zero strategy to decarbonize the UK economy by 2050 and a commitment to achieve a fully decarbonized electricity system by 2035. This approach often involves using standalone or point solutions that focus specifically on sustainability metrics and reporting.
Increased costs due to emergency sourcing. A well-defined procurement strategy doesnt just mitigate risksit adds significant value to your organization : Cost Savings: Strategic sourcing and supplier negotiations reduce procurement costs. Regulatory Compliance: Ensures adherence to industry laws, ESG policies, and ethical sourcing.
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. worry no more! References Garnder, S.
The Group’s sustainability policy is based on three pillars: Acting for People, Acting for Planet and Acting for Responsible Trade. CEVA Logistics is taking a lead in the air cargo industry to reduce the logistics-related impact on the environment at the source by creating demand for more sustainable aviation fuel (SAF).
Effective governance requires real-time data to improve sourcing decisions, create and nurture a strong supplier network, and provide the transparency consumers demand. Supply chain governance integrates coordination of operations and ensures that the proper policies are implemented and controlled.
Because of a personal relationship, the supply chain manager knows they can call their colleague from sourcing to lean on their vendors to get the shipments expedited. Capabilities of GenAI show the user the data source that corresponds to the answer for each question the user asks.
Know your vendors and apply consistent policies and procedures. Vendor scorecards based on performance metrics help ensure better sourcing decisions when used to assess and compare vendors and assist with onboarding. Compliance is an ongoing challenge for businesses today.
The regulation is designed to provide European consumers with extensive data about the provenance of the items they purchase, all the way back to the sourcing of raw materials. Beyond the promotion of ethical sourcing, it’s also about “how we can extend the life of products,” Balaam says.
Webinars Watch: An Alternative to Traditional Battery-Making Technology for EVs Sourcing/Procurement/SRM Watch: Getting Ahead of Customs Compliance Violations Regulation & Compliance Five Ways AI-Enabled Digital Twins Will Shape the Future of Supply Chains Technology Digital Edition SupplyChainBrain 2025 ESG Guide: Is ESG Still Relevant?
Ethical Sourcing & Labor Standards As due diligence frameworks evolve, so too does the scrutiny placed on labor practices across the supply chain. Ethical sourcing ensures that suppliers adhere to human rights principles, prohibit forced or child labor, and operate with fair wages and safety policies.
Shift in Supplier Dynamics: Companies may seek alternative sourcing options to mitigate cost increases. Compliance Challenges: Evolving trade policies require continuous monitoring and adaptation. Compare sourcing alternatives and production schedules in real-time.
metric tons per person and in the European Union 5.66 metric tons per person. metric tons. Lets now break that down into the various stages in the traditional upstream source-to-contract (S2C) processes. And it is those of us in the richer countries (i.e., By comparison, in India the figure is just 2.5
Without a centralized purchasing system, procurement teams may struggle to ensure that all purchases adhere to company policies and regulatory requirements. This lack of coordination means that different departments might be sourcing from suppliers that don’t follow sustainable practices or social responsibility standards.
As authorities crack down on corporate non-compliance with the CSRD and ESG regulations , companies face pressure to adopt strong procurement compliance policies. Procurement compliance means ensuring all purchasing activities adhere to applicable regulations, laws, internal policies, and external guidelines. Unsustainable sourcing.
I find that the path to building an end-to-end value network usually goes through five distinct phases: improving transactional efficiency, data sharing, formulation of policy, building relationships and engaging in joint value creation. When source, make and deliver report to the same organization, progress is quicker.
For smaller fashion brands, as highlighted by Glossy , the financial burden of tariffs can be especially acute, often forcing them to absorb higher costs or shift their sourcing strategies entirely. Supply Chain Finance & Revenue Management Lawyer for 737 Crash Victim Families Slams DOJ Deal with Boeing Quality & Metrics U.S.
Image source: APA. For example, as of March 2022, 81% of Americans say the supply chain is a significant source of stress. Image source. Image source: APA. The following experts share eight sources of stress at work. And plenty of us are feeling that stress at work. In…and out…there you go!)
Source: Descartes Datamyne. 3) Immigration policy preventing potential workers from entering the country to fill open jobs like driving. The only bright note is that shipping costs will be a fraction of what they were over the last several years. Figure 1: U.S. Container Import Volume Year-over-Year Comparison. Somewhat nailed it.
The network senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time data to align sell, deliver, make and sourcing organizations outside-in. The focus is on channel data: price; inventory positions; and policies. Order Policy. Cost-to-Serve.
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