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In today’s architectures and functional metrics, value optimization does not exist. And, when procurement and tactical planning operate in isolation, there is no decision support framework to guide the trade-offs especially when the functions are tethered to different and conflicting metrics. You are right. The reason?
In this type of environment, traditional procurement software and manual processes are insufficient – and many procurement teams are looking to artificial intelligence (AI) for answers. Key Takeaways Understand the potential impact of AI – including Generative AI & AI Agents – in procurement. This is where AI can make a huge difference.
Samuel Parker and Joe Lynch discuss DAT iQ: the metrics that matter. Experienced in solutions marketing and portfolio development across SaaS, Supply Chain Software, and OEM Hardware. Source capacity with precision using supply and demand metrics and forecasts. Samuel has his B.A.
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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.
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.
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.
The relationship between corporate financial performance and supply chain metrics was complex; and in my first attempts, I was unable to derive a correlation. The year 2012 marked the 30th anniversary of the use of supply chain management as a cross-functional process for source, make and deliver in the commercial sector. Definitions.
We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency. Efficient supply chains strengthen collaborative relationships through automated communication systems and shared performance metrics.
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? Here are some of the most important tools teams are already using.
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.
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?
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?
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.
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. Automation can also play a role here.
As product flows rapidly shifted and hard baked assumptions about lead times and sourcing locations were put to test, users across many organizations bypassed their planning systems and turned to excel sheets, internal data science teams or non-traditional supply chain vendors who could deliver AI based solutions at a faster turn.
Of the professionals surveyed, 59% saw the gap between procurement/sourcing and supply chain to be a major disconnect, and the most pressing pain point. Both procurement solutions from ERP companies like Oracle or Infor – or business spend management solutions – can help companies enforce these sourcing supplier decisions.
That’s where manufacturing inventory management software comes in. The right software can streamline your production, optimize stock levels, and even help you save money. In this ultimate guide, we’ll break down everything you need to know about manufacturing inventory management software.
Price index and price elasticity are useful metrics on their own, and a combination of these can help determine the right price point to maximize revenue and profit. Since there are often differences in store sizes, a metric representing the size can be added as well for a two-dimensional clustering approach.
Leveraging powerful tools like Inventory Management Software , todays COOs gain real-time visibility, streamline operations, and make faster, smarter decisions that keep their businesses ahead of constant change. COOs must build resilience through supplier diversification, nearshoring, and flexible sourcing strategies.
Aligned Metrics. To ensure the management of the complex system, the metrics of operating margin, inventory turns, ROIC, customer service, revenue, and forecast accuracy need to be managed together as a non-linear system. How do you balance the trade-offs between source, make and deliver? Supply Chain Design.
What is Vendor Relationship Management (VRM) and Why It’s Essential for Your ERP and Inventory Software? In VRM systems integrated with Kechie ERP software, you can assign vendors to specific general ledger accounts. Kechie ERP with VRM capability helps you monitor metrics like delivery times, product quality, and order consistency.
Mansi Arora, Managing Director – Strategy & Consulting, Supply Chain & Operations, Sourcing and Procurement, Accenture, November 29,2022 How does the Logility cloud platform ensure platform stability and scalability? In addition, they monitor the availability of data sources exposed or feed the application integration.
End-to-end supply chain visibility, planning, and execution support software are critical in agile supply chain performance. For instance, the solution should optimize availability, fulfillment, source determination, routing, warehouse handling, and production capacity together and concurrently, focusing on minimizing Total Cost to Serve.
They need visibility across multiple internal systemslike ERP, CRM, and financial platformsand even external sources shared with suppliers, partners, and customers. Modern platforms pull data from a wide array of sources: ERPs, relational databases, Excel files, cloud apps, third-party providers, and beyond. Why does that matter?
Through interactive modules, students can learn to use analytical software such as Excel, SQL, and specialized supply chain management tools. Through interactive tutorials and practical exercises, learners can become adept at using software for inventory management, transportation planning, and demand forecasting.
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.
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.
These systems also support phased implementation, allowing you to start with high-priority processes, train staff during regular work hours, deploy your wireless infrastructure before software rollout, maintain parallel systems during the initial transition, and closely monitor performance metrics.
Many-to-many can also refer to many participants in a network accessing many, many sources of event data critical to supply chain operations through a public cloud network. E2open is a provider of cloud-based, supply chain software. Their platform combines their network and software applications. Infor Nexus.
To monitor supply chain performance, stakeholders of successful companies typically define supply chain metrics that are relevant to the given business and track these KPIs regularly. By setting benchmarks for metrics, analysts can recognize unsettling trends and take preventive measures on time.
Processes in your planning software instantly alert planners to parts of the supply chain that will receive late shipments and what percentage of those shipments will be delayed. They see it within seconds, in an intuitive, graphical interface populated by algorithms embedded in your planning software.
But what if you could get a clear, birds-eye view of your core performance without investing in complex, expensive software? Running procurement and supply chain without metrics is like driving blindfolded. Decoding the Metrics: What Are They Telling You? Do you rely on a single source for critical items?
3PLs can quickly assess client-level profitability via accurate cost-to-serve metrics and analytics on demand while creating a verifiable audit trail of events and charges that reduce potential credit settlements and contribute to customer satisfaction. To learn more, visit Open Sky Group today.
The focus of planning is volume not value, and leaders struggle to change and embrace bi-directional orchestration to capture the price/volume trade-offs between source, make, deliver and plan. Build Strong Supply Chain Sourcing Development Practices. ERP Investments in the End-to-End Supply Chain Are Sufficient.
To enhance their competitive edge, companies across industries are adopting a key tactic: strategic sourcing. Strategic sourcing is a holistic approach to supply chain management that includes tactics for optimizing the total cost of ownership, improving supplier relationships, and ensuring long-term value creation.
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.
Their metrics are often misaligned as well – supply chain focuses on service and procurement focuses on the cost of acquiring materials and services. Optimize sourcing: Focus on optimizing sourcing spend across all categories of products. This approach results in inefficiencies, higher costs, and missed opportunities.
Mr. Green has previously held senior commercial roles at Salesforce, PROLIFIQ and CDC Software (now Aptean). About Descartes Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses.
It is important to benchmark forecast accuracy and similar supply chain metrics against your peers. Some suppliers of demand management software can also provide excellent forecast benchmarking for selected industries. Companies need to understand how much it is realistically possible to improve their forecasts.
Thanks to changes in technology and digital storage capabilities, companies are now able to collect and amass a huge amount of data from many disparate sources. With these blind spots, organizations are unable to drive the proper metrics to manage day-to-day operations and generate significant business value.
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