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Procurement and supplychainmanagement 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.
That’s when it all gets extremely complicated, but one thing remains crystal clear: supplychainriskmanagement is profoundly important for businesses to grow and expand. Without a doubt, managingsupplychain is nothing but easy. Its scope is extensive and spans all areas of the supplychain.
First, overreliance on a narrow group of suppliersespecially those in politically sensitive regionsexposes companies to risk when trade relationships shift. Sudden tariff increases can quickly make a cost-optimized procurement strategy untenable, leaving companies scrambling to adjust. Procurement is another area seeing change.
Sure, supplychain cost reduction is important in reducing the cost of goods sold (COGS) and increasing profit, but there are other measurements which should not be forgotten. 3 Key Metrics for Measuring SupplyChain Performance Beyond Cost Reduction. What about measuring working capital in the SupplyChain?
Unfortunately, most supplychain executives and their teams focus predominantly on just two factors, the tradeoffs between cost and service, with risk rarely entering the conversation — until a disruption occurs and then everyone goes into panic mode. And the first step is asking “What are the risks?”
A common challenge for procurement and supplychain professionals is obtaining support from C-level leaders to invest in a robust supplychainriskmanagement (SCRM) program. But to make their strongest case, SCRM advocates need to focus on one key metric: return on investment.
With 30% of respondents indicating their organizations are suffering from an inability to assess risk across suppliers, many are investing in new strategies to minimize the frequency and impact of disruption. Effective supplier management will be agile enough to identify disruption and the impact it will have on suppliers and take action.
Two recently published studies identify the top disruptions that impacted industry, business and global supplychains during 2024 and our expected to be present in 2025. This data was compiled from Resilincs EventWatchAI , a risk monitoring database provided to customers. All rights reserved.
Leading procurement and supplychain tech providers go head-to-head in data-driven fall 2024 vendor ranking WASHINGTON, DC. Exiger was designated the most sophisticated and most holistic solution and named a “Value Leader,” earning the highest functional score in riskmanagement.
Global supplychain leaders understand that designing and implementing a robust riskmanagement practices are essential and fundamental to running the business. In my life time, supplychains changed. What is RiskManagement? They morphed from regional to global multinational organizations.
Now more than ever, riskmanagement is a vital part of the procurement function, and hence the CPO’s responsibilities. One main reason is because supplychains are growing longer and are getting more complex. Conventional thinking about supplychains and supplier risk is outdated.
The AI-driven BOM also helps businesses monitor the environmental footprint of products , ensuring that even in cases where suppliers are unable to provide complete data, companies can still report accurate lifecycle and sustainability metrics. This not only ensures compliance but also strengthens supplychain resilience and performance.
The reality is that supplychainmanagement is not just about managing orders and transportation and inventory — it’s about doing all those things while also navigating through the many risks that could disrupt your supplychain or bring it to a halt. At what cost?
Unfortunately, most supplychain executives and their teams focus predominantly on just two factors, the tradeoffs between cost and service, with risk rarely entering the conversation — until a disruption occurs and then everyone goes into panic mode. And the first step is asking “What are the risks?”
95% of supplychain executives report having a formal supply-chainrisk-management process following Covid-19. How the War in Ukraine is Impacting the SupplyChain and Raw Material Prices. Start Sourcing SupplyChain Talent Now ?. Wall Street Journal ). McKinsey ). Deloitte ).
What is procurement? This process is known as procurement. Procurement covers everything from placing orders to tracking shipments and auditing deliveries. What’s the difference between procurement and sourcing? If you’re still confused about the difference between procurement and sourcing, that’s okay!
Predictable risks are still causing significant losses on a daily basis. Many organizations are losing millions, and in some Global 3000 cases, billions of dollars a year due to ineffective supplychainriskmanagement and monitoring. Many procurement teams are finding holistic approach can provide huge advantages.
Issues with Many SCRM Programs Supplychainmanagement and supplychainriskmanagement (SCRM) have become a greater priority for businesses and government organizations in the last five years, according to Gartner.
As an experienced business professional, he has served in diverse roles ranging from Marketing and Strategy, to Procurement and SupplyChain. He is a frequent speaker, college lecturer and author on topics that include SupplyChainRiskManagement, Environmental Sustainability and Governance, and the use of new A.I.
no metrics, operate in functional silos). Simply put, if you don’t understand the root causes of poor supplychain visibility, you won’t know what corrective actions to take. Quantify the financial impact of poor supplychain visibility. Identify which SKUs take priority for supplychain mapping.
On the other hand, transportation metrics continue their slowed pace, reaching the second highest level of capacity growth, and the third fastest rate of price contraction in the history of the index. Interestingly, Transportation Utilization is the outlier here, as both utilization metrics in the index were up significantly in September. ”.
Information is centralized Information is centralized Increased productivity & accuracy Assists compliance Improved auditability Enhanced supplier riskmanagement Vendor information governance What are the Key Pillars of Supplier Information Management?
Whats more, the risks associated with ESG regulations will continue to be a priority for procurement and supplychain leaders for years. Other countries, like the UK, Australia, and Turkey, are in the process of drafting similar laws to improve the sustainability of supplychains.
First, if an overall supplychainriskmanagement process is not in place that needs to be designed and implemented as quickly as possible. While that plan is being executed, the supplychain needs to be evaluated from beginning to end and needs to become agile, flexible and nimble.
Interestingly, the downshifts we observed in transportation metrics were much more muted in the last week of July, leaving open a possibility for a bit of recovery as we move towards peak season. Warehousing and Inventory metrics continue to buoy the logistics sector. that we have not seen since April of 2019.
It is safe to say that, over the last 24 months, the pandemic has reinforced an unavoidable truth: in order to maintain a competitive edge, business must drive resilience and visibility across their supplychain – and having a strong digital strategy has been shown to be key to achieving this. However, the problem continues to persist.
Applying Lessons, Actions and Learning Once again we reiterate that global supplychainmanagement teams instill the learning, lessons and successful actions garnered from the pandemic years, namely: Broader material and finished goods supplier sourcing options across multiple regions.
Why a SupplyChainRiskManagement Framework is Needed A supplychainriskmanagement framework is critical for risk identification and effective management of the inherent and imposed risks in today’s business environment.
This included: Developing playbooks and contingency plans to address your most pressing risks. Evaluate structural changes in your supply base that could reduce risk exposure. Go digital: Explore the potential of dedicated supplychainriskmanagement solutions.
based Albemarle providing upwards of 100,000 metric tons of battery grade lithium hydroxide to supply 3 million Ford EV batteries starting in 2026. These agreements include U.S.
based Institute of Health Metrics and Evaluation (IHME). The country’s elderly populations are especially at risk. A published report from Reuters this week cites modeling data that forecasts over one million deaths across China through 2023, according to projections from the U.S.
And since so many aspects of supplychainmanagement affect both customer experience and financial metrics, supplychain innovation efforts need to take these factors into consideration too. To paraphrase a popular saying, it takes a village to achieve and maintain high levels of supplychain visibility.
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