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Background Most of the clients that I am working with are working on two large supply chain initiatives: Implementation of SAP RISE and Compliance with the EU Digital Product Passport initiative. In today’s architectures and functional metrics, value optimization does not exist. You are right. This is an opportunity.
There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Aligned Metrics. What does an investment in SAP mean for a company? SAP means many different things for different people. Can you help us with what you see in the data?”
Driving decarbonization with technology In 2023, the SAP CPO Think Tank community has been closely examining how companies can accelerate supply chain decarbonization. This blog highlights key strategies from these recent forums on sustainable procurement and practical tips to achieve impactful results. How can technology help?
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Do Invest in Distributor Capability Building : Provide training, digital tools, and performance incentives. A well-equipped distributor is an extension of your brand and a key to market penetration.
Avoid implementing Aera on top of an existing SAP APO implementation.) Initially, the output was published to procurement to design strategic buying strategies. Procurement became an island–isolated from the demand signal except for MRP. Watermelon Metrics Don’t Drive The Right Results.
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. Let me give you example.
In the height of the e-commerce craze, the marketplace offerings started with a focus on e-procurement. The widely-held view was that the e-procurement market would fuel the next generation of marketplace applications. The rebirth of marketplace offerings is not on the back of e-procurement or ERP. The debates were heated.
The goal of this blog is to help business users maximize their current SAP Investments in a time of change. While the name of SAP’s Supply Chain Planning suite has changed to SCM7 (the old name was SAP APO), the gaps are glaring. For SAP users, it is the best and a much needed system of record. Reflections.
The goal of this blog is to help business users maximize their current SAP Investments in a time of change. While the name of SAP’s Supply Chain Planning suite has changed to SCM7 (the old name was SAP APO), the gaps are glaring. For SAP users, it is the best and a much needed system of record. Reflections.
The first in the 1990s was Manugistics, the second in the early 2000s was SAP APO, and now their solution is SAS. In short, his vision of an end-to-end supply chain was transactional: better processing of order-to-cash and procure-to-pay. The first story is about a large regional food manufacturer. The Company is struggling.
Category management isn’t just another procurement trend. What procurement teams need is a clear view of their spend, tighter control, and a strategy that delivers lasting value—exactly what category management provides. The goal is to get the best results from every category. It’s tactical and short-term.
My first digital supply chain presentation was in Milan at an SAP Insider conference in 2012.) The primary investments are in networks of limited capabilities based on EDI, and indirect procurement spend management. Traditional planning taxonomies focus on the optimization of functional metrics. Relationship Management.
Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics. The Effective Frontier.
In this volatile world, efficient procurement led by a CFO is not the answer. The low Return on Invested Capital (ROIC) and the growth below the industry average comes from the lack of network design and organizational alignment between new product development, manufacturing, and procurement. What is the issue? Conclusion.
The data is all anonymous, but retailers can look at metrics such as time to fulfill, pack time, conversions, and ship versus pick-up, to name a few, across hundreds of Active Omni customers. SAPSAP showed off Joule, its generative AI assistant. There were two use cases that I found interesting.
The larger the organization, the more tension with conflicting functional metrics making decisions more difficult. The gap between logistics and procurement; and logistics and customer service increases process latency. Functional metrics need to be abandoned to focus on balanced scorecard outputs. The Role of Enterprise Data.
Did you know that advanced analytics, when used in lieu of traditional statistical models, can help procurement departments increase cost efficiency by 3-8%? [1]. The procurement department of any business generates more data than is humanly possible to compute and comprehend through traditional means. Operational Procurement.
Procurement operations are no exception. In fact, 43% of GPOs that took part in the 2023 Global Chief Procurement Officer Survey cited overall procurement risk had increased significantly as compared to 20% in the 2021 study. Keep reading to learn: What is an online procurement system?
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). As a B2B company, procurement management is essential.
At the Coupa INSPIRE procurement conference in San Francisco this week, the Chief Procurement Officer of Coca Cola Consolidated, Patrick Hopkins, shared his views on the “4 Truths of Procurement”, and how he has operationalized his views through the deployment of Coupa procure to pay software. Data must be right.
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). As a B2B company, procurement management is essential.
If one plant uses one version of SAP, another plant uses a different version and your warehouse uses Oracle, how does collaboration happen between these systems? For example, choosing the lowest cost supplier over one that provides better quality and delivery guarantees. Typically by e-mail and Excel…hardly an advanced collaboration approach!
While ToolsGroup and SAP (with the acquisition of SmartOps) are the nearest competitors, Terra prided itself on delivering better decisions through better math. The Terra solution complimented the functionality of the traditional APS vendors, i.e. Adexa, JDA, Logility, Kinaxis, SAP APO and Steelwedge. The change will be major.
At the time, DuPont, now acquired by DOW, boasted externally on internal adherence to SAP standardization for decision support. Organizations can align to drive value despite the allegiance to functional metrics. As long as companies are motivated by functional metrics, inventory management will be an enigma. Let me explain.
No metric should be measured in isolation, and functional metrics should be replaced with the balanced scorecard metrics shown in Figure 2. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance.
Demand-driven concepts are expansive they extend from the customer’s customer to the supplier’s supplier, but the areas of sales and procurement are often very resistant to the demand-driven concepts. Over the last decade, the only metric that we have improved is revenue/employee (see below). Most Have Defined “Demand” too Narrowly.
For one customer that I was working with, it was E2open for hi-tech procurement, GT Nexus for ocean freight, CH Robinson for over- the-road transportation, SupplyOn and Exostar for communication with A&D customers, and Elemica for communication with rubber and plastic suppliers. The gaps are large. ” I said, ” I understand.”
When this happens, there is greater balance between metric trade-offs and resiliency in year-over-year improvements in corporate performance. I do not think that this will happen through the repurposing of indirect procurement networks (e.g., SAP’s redefinition of Ariba). Process needs to follow strategy.
Supply Chain Matters provides highlights of B2B, and ERP Cloud based software provider SAP SE’s formal reporting of Q4 and fiscal full year 2023 financial performance. SAP CEO Christien Klein noted in the company’s reporting that: “ SAP has delivered: We met or exceeded our outlook for 2023 in all key metrics.”
Simulate the CO 2 footprint of the plan through procurement, production, and transport. 3] Richard Howells, “ Sustainable Supply Chains: Balancing the Bottom Line and the Green Line ,” SAP News, 17 May 2021. [4] ”[3] Howells observes that a sustainable supply chain begins with design.
Collaboration between production, procurement, and logistics teams is essential to optimize resource utilization and minimize lead times. Use dashboard reporting and analytics tools to track performance metrics in real-time and identify areas for improvement. Production Planning Upon receiving an order, production planning kicks in.
This effort was led by the Chief Procurement Officer for Siemens BT, Carl Oberland, but has recently been rolled out across the global organization. In addition, Carl assigned a person who could work on access databases, and began by combining procurement data for 5 divisions into a single database. “The
Such systems are also instrumental in establishing aligned tactical and strategic performance metrics systems that drive improved economic outcomes (Bendoly et al., ERP systems are designed to integrate transactions from finance, human resources, procurement, operations, sales and marketing, logistics, and other functions in a firm.
Today, as the founder and managing partner of USM Supply Chain Consultants she has put her expertise in supply chain, procurement, finance and project management to work to help her clients achieve greater profitability. In the end-to-end supply chain there’s procurement, logistics, operations, and warehousing.
My first digital supply chain presentation was in Milan at an SAP Insider conference in 2012.) The primary investments are in networks of limited capabilities based on EDI, and indirect procurement spend management. Traditional planning taxonomies focus on the optimization of functional metrics. Relationship Management.
It focuses on leveraging the corporate infrastructure and its SAP and SAP Hana implementation, in order to span all activities from order to cash and from demand planning to customer delivery and return. There are systems directors in both the procurement and logistics/planning teams.
Contract analytics can provide a summary view on performance and pricing deviations, risks, statistics (expiry, renewal and pending), procurement and sales metrics. This included budgeting tools, commodity management data, SAP inventory data, contract information, and other data from multiple parts of the organization.
Businesses can gain valuable insights into cost-saving opportunities by integrating data from various sources such as transportation, procurement, and inventory. What is the Role of Performance Tracking and Metrics in Supply Chain Analytics Software?
4PL’s will typically operate through a SaaS-based warehouse management solution (WMS), allowing merchants to see fulfillment statuses, on-time delivery metrics, and inventory levels across all locations at a glance. Integrated Technology. 3PL’s rarely provide this type of technology component. End-to-End Supply Chain Support.
Sourcing & Procurement. Sourcing & Procurement. ProcureEdge – Sourcing & Procurement. Insuring that each function, including online marketing, store operations and supply chain have common objectives, metrics and aligned rewards for the coming year. Procurement Blog. Pharmaceutical and Biotech.
Sourcing & Procurement. Sourcing & Procurement. ProcureEdge – Sourcing & Procurement. Example: For a shipper, number of shipments at a 3PL warehouse might be a relevant metric while the 3PL provider may be more interested in the number of shipments for all serviced shippers. Procurement Blog.
Will digitization change the way we measure things and monitor metrics? A problem in procurement can impact manufacturing and logistics and planning, but often these dots are never connected, so there never emerges a cross-functional approach to working on them.
Sourcing & Procurement. Sourcing & Procurement. ProcureEdge – Sourcing & Procurement. In this step, the actuals are compared with the planned metrics (MAPE, forecast accuracy, bias etc.) Pharmaceutical and Biotech. Public Sector. Publishing Resources Industries. Business Services. Business Applications.
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