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From balancing cost-efficiency with ethical sourcing to enhancing transparency and integrating corporate social responsibility (CSR), businesses face mounting pressure to align their operations with sustainability, technology, and energy practices. The energy sector provides a compelling example of CSR-driven compliance.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. Error is error, but is it the most important metric? My answer is no.
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.
However, the sectors reliance on fossil fuels and resource-intensive practices poses significant challenges. Proactively adopting cleaner energy sources ensures alignment with these evolving regulations. The industry’s dependency on traditional energy sources necessitates an urgent shift toward cleaner alternatives.
Ethical sourcing is a fundamental aspect of social sustainability. Manufacturing and resource extraction activities often affect surrounding areas, requiring companies to engage proactively with residents to address concerns and mitigate negative impacts. The impact of supply chains on local communities cannot be overlooked.
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.
Reducing cost was the primary objective, and most operational decisionsfrom sourcing to fulfillmentreflected that mindset. Leading organizations are building supply chains that are less exposed to single points of failure, more informed by real-time data, and more able to adjust sourcing, inventory, and routing based on current conditions.
However, large organizations are often equipped to handle fulfillment in-house, leveraging their extensive resources and capabilities. Optimizing fulfillment requires a series of steps to get a shipment from its source to the end customer. The ability to meet fulfillment goals is impeded by several issues.
Supply chain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. Understanding Supply Chain Efficiency Supply chain efficiency refers to maximizing output while minimizing resource input.
At a high level, procurement focuses on sourcing the goods and services an organization needs, while supply chain management oversees the broader flow of those goods, from raw materials to end customers. Supply Chain Management (SCM) involves orchestrating a product’s or service’s entire lifecycle, from sourcing and production to delivery.
It’s the key to transforming your supply chain from a source of frustration into a well-oiled, profit-generating machine. Implementing Data Analytics for Supply Chain Success Data analytics transforms supply chains with precise insights and real-time monitoring by bringing together multiple data sources. The result?
Resource scarcity. These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. Much of the ESG journey is about conserving resources with smart planning and automation—but you can’t do that manually with spreadsheets.
At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) I never calculated and accounted for the inter-dependencies between metrics.
A disruption at any point in the global logistics network including the average of 12 touch points from shipment packaging to final delivery can prove disastrous for profits, service levels, customer loyalty, and other key metrics. With the global e-commerce market predicted to reach $8.1
AI is reshaping the way organizations source, manage suppliers, and drive value today. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. For example, agentic AI can analyze supplier data, evaluate contracts, manage purchase orders, or recommend sourcing strategies.
AI is reshaping the way organizations source, manage suppliers, and drive value today. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. For example, agentic AI can analyze supplier data, evaluate contracts, manage purchase orders, or recommend sourcing strategies.
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. Align the organization and focus resources on building adaptive modeling capability. (I Build in-market sourcing. Rationalize global strategies to focus on building markets based on in-market sourcing.
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.
They prepare equipment for maintenance, do isolation (disconnect a piece of equipment from the flow of chemicals by closing valves), look at quality or reliability metrics, and do rounds. trillion records from 47 data sources in the Cognite platform. A knowledge graph creates relationships across previously siloed data sources.
As regulations across the globe strengthen, the pressure to collect, report, and organize emission-related metrics has never been higher. Across the globe, requirements for stricter reporting on complex metrics are increasing. If the resources and software are applicable, automate as much of your data collection as possible.
When it comes to supply continuity, being proactive about mitigating disruptions is essential, yet many procurement organizations may still lack sufficient resources. Tracking the Metrics that Matter. Inflation Metrics. Savings from Sourcing: In 2021, competitive sourcing projects generated an average of 7.7%
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.
In fact, many companies move backwards—like Campbell’s Soup or Kellogg—when they try to implement a large project with too few resources too fast. Companies with the strongest performance had more advanced supply chain human resource departments, a well-integrated supply chain finance team, and a supply chain center of excellence.
Successfully scaling manufacturing requires more than just adding resources. This agility minimizes downtime and maximizes resource utilization. This targeted approach optimizes resource allocation and minimizes bottlenecks by allowing you to scale only where necessary.
What is the Perfect Delivery Metric? Improving on this metric will always involve a focus on people and processes, but often also includes implementing new, more robust, supply chain applications. The wrong metrics drive suboptimal behaviors and metrics can often be manipulated.
Procurement professionals can contribute significantly to the S&OP process by providing valuable insights into supply chain dynamics, identifying potential risks, and optimizing sourcing strategies. Discuss bottlenecks in the supply of raw materials or alternate sources to procure balance and level production plans.
Strategic Sourcing Simplified: Best Practices for Maximizing Value Strategic sourcing goes beyond cost savings its about making informed decisions that drive long-term value. Now well dive into best practices in these critical areas to ensure a more effective and resilient sourcing strategy.
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?
GEP and the North Carolina State University (NCSU) Supply Chain Resource Cooperative surveyed supply chain, procurement and IT professionals across a range of industries to gain insight into their priorities and strategies regarding supply chain resilience and optimization. Networks and Sourcing.
These platforms can dynamically adjust the difficulty of tasks, provide targeted resources, and suggest personalized learning paths based on real-time performance data. MTSS platforms support the development of these analytical skills by integrating advanced tools and resources that allow learners to engage with real-world data sets.
The survey is structured to determine the relative importance of competing objectives, how the importance has changed over time and why; the degree to which certain external factors (resource shortages, cost inflation, etc.) However, I am surprised at the degree that localized sourcing is being considered.
Digital twins bring enterprise-level visibility to network planning, allowing organizations to simulate new fulfillment strategies, evaluate sourcing risks, and prepare contingency plans that support both customer experience and bottom-line resilience. Prioritize problems with measurable costssuch as delays, rework, or service penalties.
While there are many types of visibility (see Figure 1), the most common use case is either sourcing or transportation visibility. The focus is on functional metrics, but are unable to get to overall supply chain metrics. In this blog post, I give a framework to drive discussions. Visibility. Gaps in Enterprise Visibility.
Big enterprises might not be that open to innovations but are hypersensitive to cost and resource savings. It also reduces your resources and improves processes. It incorporates your resources from every stage of the logistic process in the real-time. The cloud-based logistics has lots of metric tools.
You’ll be able to have an agent like you have a human resource,” he said. He sees a near future in which there are multiple agents, each with their own realm of responsibility, such as shipping, pricing and forecasting.
Companies moving to BPO in these practice areas are experiencing supply chain improvements in metrics such as inventory turnover and customer service. An outsourcing vendor can be used at the entity to share best practices, recommend and implement new methodologies, and train resources. Those companies also reduced planning spend.
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.
It is important to support this workstream through a team of key individuals: Sponsor: A high-level executive who champions the procurement application implementation, the sponsor provides critical support, resources, and influence. An Analysis by Ivalua Read More : What is Source to Pay Best Practice? Download Today!
An Enterprise Resource Planning (ERP) system is a suite of integrated software applications that helps organizations manage and automate their core business processes. This provides a single source of truth and enables better coordination and communication across the supply chain.
It’s resource-intensive by nature, with emissions stemming from agriculture, water use, packaging and outsourced production. Establishing baselines, tracking reductions, or meeting compliance requirements without having accurate, standardized data becomes nearly impossible. The beverage industry offers a valuable example.
Supply chain data can be challenging to manage due to its unstructured or semi-structured nature and the need to integrate new data sources. To ensure successful integration, they should create a plan with timelines, resources, and evaluation metrics (refer Figure 2).
This orientation is fundamental in determining what KPIs the company values, as many of them are far different from metrics managed by manufacturers relying on traditional views of success.”. In fact, their digital champions began by aggressively expanding their sources of wisdom beyond their historic and current resources.
The company sources goods from 34,000 suppliers out of 30 nations. In the annual report where they report on their key performance indicators (KPIs), they don’t just report on core financial metrics and the NPS, they also have people metrics. The company has shown sustained improvement on this metric.
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