The 10 Procurement Metrics that Matter in 2021

Unleashed

What is procurement? 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.

Top 10 Metrics to Track and Manage Risk in the Supply Chain – Part 1

GlobalTranz

Procurement teams continue to struggle with finding available suppliers and shipping capacity to enable supply chain responsiveness. The post Top 10 Metrics to Track and Manage Risk in the Supply Chain – Part 1 appeared first on Transportation Management Company | Cerasis.

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3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance

GlobalTranz

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. Inventory measurement is critical and it is money after all in that it took a capital expense to procure. Promise time, lead time, cycle time, transit time, delivery time, unloading time, processing time, queue time, quality assurance time, processing time, turnaround time, receiving time, and shipping time to the customer, (and I bet you could think of more "times" to measure!).

7 Ways to Strategically Elevate Freight Procurement

Talking Logistics

In the last decade, many companies, especially those with manufacturing operations, have evolved direct materials sourcing from an administrative function to a strategic procurement process. The embodiment of this transformation is the chief procurement officer, an increasingly common title for executives that strategically source goods and services. As a strategic process, transportation procurement may still seem very tedious and challenging.

10 Tips Shippers Can Use to Reduce Costs in LTL Procurement with Better Request for Pricing Bidding

GlobalTranz

at Cerasis, we know a thing or two about the nuances of LTL procurement. LTL procurement is something we do very well. So we thought we would impart upon all the shippers out there some tips on how to reduce overall costs for effective LTL Procurement. 10 LTL Procurement Cost Cutting Tips. Saving money on less-than-truckload or LTL procurement is a laudable goal, except when operational problems eclipse savings gains. Logistics LTL ltl procurement

Multichannel Fulfillment & Shipping: Considerations for Wholesale Distributors & OEMs in the Transition From Single Channel Shipping

GlobalTranz

E-commerce has presented wholesale distributors and original equipment manufacturers (OEMs) with a crown opportunity for growth, but it comes at the cost of transitioning from single-channel shipping. Over the last year, average e-commerce sales have increased more than 15 percent, revealing the increasing demand for multichannel fulfillment and shipping. Adapting supply chain systems to succeed in multichannel fulfillment and shipping, also requires additional setup time.

Which Metrics Matter? Interview with Philippe Lambotte

Supply Chain Shaman

My journey to understand supply chain Metrics That Matter started three years ago. Balance: The ability to balance a portfolio of metrics to maximize market capitalization and free cash flow. The early results from the ASU study will be featured in the book Metrics that Matter and it will be the core of the upcoming Supply Chain Global Summit on September 10-11, 2014 in Scottsdale AZ at the Phoenician. (We How do you balance metrics ? .

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

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. Ironically, most companies are very entrapped in measuring and rewarding functional metrics which degrades overall improvement. Cash-to-cash is a compound metric.

3 Technology Companies Disrupting Shipping

FLEXE

I’m Nerijus Poskus — Director of Pricing and Procurement at Flexport. Basically, responsible for ocean freight carriers, ocean ships that rely on truck companies. Shipping a 40-ton container back in July or June used to cost about $700 — a 40-ton container. More than half of Hanjin’s ships were chartered. So the chartering companies are already receiving the ships back and they need to rent them. MSC is interested to charter those ships.

The Supply Chain Workload Iceberg!

Supply Chain Game Changer

These jobs reach far and wide, touching virtually every business process, most metrics, and all functional areas. Freight and Logistics Procurement Supply Chain Management Warehouse ManagementSubscribe Here! Email Address. Subscribe to Supply Chain Game Changer.

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WMS and Cycle Counting: How to Reach Inventory Management KPIs

Veridian Solutions

Failure to track replenishment and procurement activities. A Guide to the Warehouse Metrics Supply Chain Execs Should Track. The carrying cost of inventory KPI should also consider added expenses, like labor costs to manage inventory, insurance, and both packaging and shipping costs. As a result, Warehouse Managers may need to integrate picker performance metrics with this KPI. Metrics and KPIs Warehouse Management

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Pandemic Lessons For Supply Chain Leaders

Supply Chain Shaman

Initially, the output was published to procurement to design strategic buying strategies. Procurement became an island–isolated from the demand signal except for MRP. Dwell times grow as more and more ships sit in the ocean waiting to unload. What are functional metrics?

Effectively Manage Foodservice Supply Chains During Disruptions

CH Robinson Transportfolio

Every decision becomes more impactful based on these metrics. By aligning elements of a supply chain to various geographies, it’s simple to drive efficiency and reduce shipping timelines. With foodservice providers shuttered, it’s been an uncertain year for many.

Supply Chain KPIs You’ll Want Every Morning

Logility

Failed SCM implementation causes shipping errors. WMS failure causes Adidas to under ship by 20%. Every company today runs on data – the key to using your data is choosing the right metrics for visibility into your supply chain. Metrics.

The Disintermediation of the Supply Chain!

Supply Chain Game Changer

A truly efficient and effective Supply Chain must include a strategy, plans, business processes, and performance metrics that incorporate disintermediation and the elimination of waste! Think about the typical set of objectives and metrics associated with managing a Supply Chain. Drop shipping is another example of eliminating unnecessary and redundant material movement and transportation. Subscribe Here! Email Address. Subscribe to Supply Chain Game Changer. Want Success?

Thriving in 2021: Achieving Supply Chain Orchestration Success in the New Normal

OneSCM

Dramatic shifts in consumer wants and needs, meaning dramatic swings for procurement, shipping and logistics, are some of the significant challenges in play. The Right Metrics. Tracking and monitoring metrics in a single platform: On-Time Delivery, Order Fill Rate, Quality and Invoicing. Organizations can drill down to see the contributions of customers or product lines and how they are impacting overall success metrics.

Is Your Supply Chain A Cost Centre or a Value Creator?

Supply Chain Game Changer

Whatever your Industry you should be able to make comparisons to competitors, do benchmarking, and even compare yourself on key metrics across industries. From the inbound perspective he Supply Chain team typically procures raw materials, expedites their delivery. In areas such as E-Commerce the Supply Chain is instrumental in arranging delivery strategies such as Same-Day delivery and Drop Shipping, along with reducing freight costs to support Free Shipping services.

Outsourcing Sourcing! 5 Lessons from Around the Globe!

Supply Chain Game Changer

Check out What is Virtual Procurement and Why Should You Care? Large companies can afford to have Strategic Sourcing Procurement staff around the world. They are better off considering dealing with partners and outsourcing agencies to provide the on-the-ground sourcing support necessary to have their products manufactured, distributed and shipped. Your in-house Procurement team must proactively manage your Outsourced Sourcing partner! Subscribe Here! Email Address.

Supply Chain Scams and Fraud!

Supply Chain Game Changer

Finance Freight and Logistics Inventory Management Procurement Risk Management Supply Chain ManagementSubscribe Here! Email Address. Subscribe to Supply Chain Game Changer. 3 Most Common Freight Forwarding Scams (and How to Avoid Them)! Infographic). GET our EBOOK HERE.

eBook 60

A ‘Beached Whale’ in the Suez Canal: Stuck Working Capital

NC State SCRC

By now many of you have heard about the “Ever Given”, which has been stuck in the Suez Canal since Tuesday, and is blocking all container ships trying to get through with their cargo. For many years, as we moved to low cost countries, the shipping industry benefited.

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The Supply Chain Detective™: The Case of the Unpaid Invoices!

Supply Chain Game Changer

They themselves were confused over the number of aged invoices, the amounts, the metrics, the issues preventing payment, the critical parts being held hostage by suppliers in exchange for payment, the problems preventing payment, processes, and responsibilities. Quantity differences between the PO and invoice based on either MOQ differences or the Supplier over/under shipping relative to the PO. Subscribe Here! Email Address. Check out The Supply Chain Detective!

Who Should Be In The Winner’s Circle?

Supply Chain Shaman

Total cost analysis is more difficult than it sounds and most technology implementations automated functional measurement systems (manufacturing or procurement), but leave the organization blind on the management of total costs.

Top 5 Trends to Know to Compete with Amazon’s Supply Chain

GlobalTranz

Technology Will Reshape Procurement Practices. Better procurement practices translate into better overall sales, but the role of procurement in driving sales’ statistics will change throughout 2017. Today, procurement drives up to 67 percent of sales, explains Johnathan Webb of Forbes magazine, as procurement professionals look for innovative ways to produce effective, superior products. Procurement strategy was not always evident.

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5 Ways to Prepare Your Supply Chain for an Efficient Holiday Rush

OneSCM

Smart supply chain directors collate and make sense of data metrics, using technology to eliminate data silos. A prudent way to cut down on shipping costs is to consider Less Than Truckload (LTL) shipping versus Full Truckload. Whereas not every organization has big box store budgets for automation, greater efficiency can still be achieved by looking at workflows, procurement, inventory, and storage. Ready or not, the holidays are coming.

Moving Up The Corporate Ladder, Does Your Freight Spend Have A Seat At The Table?

4WL Consulting

The previous decade has seen many companies, mainly those handling manufacturing operations, change how sourcing of direct materials is executed – from an administrative function to a somewhat strategic procurement approach that has seen the creation of a new position “the Chief Procurement Officer.” There’s been a shift from executing daily freight transactions to integrating top-level corporate planning and procurement strategies.

9 Key Topics to Understand to Frame A Shipper’s Mind for Effective KPI Management with a 3PL

GlobalTranz

Editor's Note: As of late you may have noticed we have written a lot about procurement and the future of procurement. A large part of procurement is finalizing the contract and then the follow through of the determined deliverables in that agreement. The next step in procurement is then managing vendors and keeping service providers accountable for continued improvement. All KPIS have metrics to measure.

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The difference between supply chain and logistics explained

Unleashed

When we refer to the ‘supply chain’, we’re referring to the network of suppliers, manufacturers, producers, shipping companies and more who, when combined, produce, ship and sell products and services to end-users. One of the most commonly referred to warehousing metrics.

The Financial Dimension of Supply Chain Visibility [Episode Highlights]

Talking Logistics

Financial data and visibility into the costs associated with shipping are critical to improving corporate financial performance. Total cost management is just one part of supply chain visibility, but a very important part based on the financial impact that shipping has on the organization. This is where financial visibility – especially from an accounting or procurement perspective – plays into the organization.

The Top 5 Transportation Management Blogs of 2016 …So Far

GlobalTranz

Maintaining the best possible fleet for your shipping needs requires vigilance and the tracking of specific measures across their performance. Yet, all metrics and scorecards are not equal, and you need to know what metrics should be included in your carrier scorecard. The Top 10 Most Common LTL Shipping Mistakes Made by Shippers. According to Joe Lynch , shippers face many challenges and problems in LTL shipping.

How Can Supply Chain Leaders Use Big Data as a Tool to Continuously Improve?

GlobalTranz

Transportation modes used in procurement and shipping. In other words, consumers can get practically anything they want at a moment’s notice, and more consumers are expressing a willingness to wait for a product a few days if free shipping is a possibility. Supply chain leaders are enthralled with the idea of using big data, but they tend to fail to understand how to disseminate big data in their organization properly.

Achieving enterprise-wide adoption of supply chain risk management

Resilinc

A common challenge for procurement and supply chain professionals is obtaining support from C-level leaders to invest in a robust supply chain risk management (SCRM) program. But to make their strongest case, SCRM advocates need to focus on one key metric: return on investment.

Freight Visibility and Control: Introducing the Freightos Baltic Index (FBX)

Freightos

Today, the go-to metric for that question is typically Standard & Poor’s 500, the Nikkei, or the Dow Jones Industrial Average (a shockingly poor indicator , if you look closer). Nearly every industry has created on-demand metrics to gauge market performance, hedge risks, and make decisions accordingly. Freight Visibility and Control: Introducing the Freightos Baltic Index (FBX). By Zvi Schreiber, CEO, Freightos.

2020 Requires Big Wings and Feet

Supply Chain Shaman

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. Examples include first pass yield, schedule adherence, hands-free orders, orders shipped complete, and minimization of waste. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance.

Building the Business Case for Supply Chain Risk Management

GlobalTranz

On the other hand, only 8 percent of companies that were rated by their executives as less than significantly above average on supply chain-related metrics have the same performance. The same source also informed that the Chartered Institute of Procurement & Supply (CIPS) Risk Index of 2016 was the highest since records have begun in 1995.

How Gen Z's Consumer Expectations Drive New Supply Chain Trends

AFFLINK

Gen Z has grown up with two-day and same-day shipping. This has driven many companies to engage in last mile shipping services: rather than shipping to stores, more companies are having to ship directly to consumers. Many companies have started using resources such as Amazon FBA (Fulfillment-by-Amazon) as a way to offload these last mile shipping needs. Large stores are seeing failing metrics for this reason. Generation Z is coming of age.