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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.
In 2016, we finished a study on continuous improvement. In the study, when we asked for the top elements of business pain to drive continuous improvement for companies greater than 5B$ in annual revenue, as shown in Figure 1, we found the largest issues with cross-functional alignment and availability of talent.
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.
Strategic sourcing and innovative solutions are often viewed as two distinct procurement tools, but they should not be seen in isolation. Strategic Sourcing: The Foundation of Effective Procurement Strategic sourcing is far more than simply choosing suppliers. Done well, it can become a key driver of competitive advantage.
Just by embedding analytics, application owners can charge 24% more for their product. How much value could you add? This framework explains how application enhancements can extend your product offerings. Brought to you by Logi Analytics.
Case Studies. A Case Study. This case study will show you the analysis of Apple Supply Chain core processes, challenging issues and complexities of its operations. Information about Apple Supply Chain is a bit here, there and everywhere, its kinda tough to find the actual case study. Is Apple Supply Chain Really the No.
He leads a team of market experts who study every facet of the logistics industry to bring the best available insight to customers. During his tenure in the industry, he built innovative pricing and forecasting models, leveraging internal and external data sources to improve internal decision-making and increase profitability.
The issue is that when companies optimize functional metrics, they throw the supply chain out of balance and sub-optimize value. We have not designed the planning systems to serve managers, directors, and vice presidents, aiming to improve decision-making and collaboration across the source, make, and deliver processes.
Analysis of case study is certainly one of the most popular methods for people from business management background. In order to accelerate the learning, this article has gathered 20+ most sought-after supply chain case studies, analyzed/categorized them by industry and the findings are presented.
Over the last six years, we studied the connection between business results (growth, operating margin, inventory turns and Return on Invested Capital (ROIC)) and the link to company characteristics. Reward teams for cross-functional metrics. Focus functional metrics to improving reliability. ” Hau Lee, October 2014.
After two decades of study, I think because it is a lack of understanding. 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.)
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. Build in-market sourcing. Rationalize global strategies to focus on building markets based on in-market sourcing. Tougher than most understand. United States Inflation Rates and GDP Inflation is the highest in forty years.
The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. For the past decade, I have been studying these patterns. This data source synchronizes corporate reporting across global markets while tracking restatements, name changes, and currency shifts.)
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.
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
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.
But, I want to understand this more, and as a result, I have a new study in the field to gain additional insights, and I would love your input. In 2012, I placed the first alignment study in the field. Functional Metrics. To respond, follow this link. To entice you to participate let’s look at the data more closely.
Two recently published studies identify the top disruptions that impacted industry, business and global supply chains during 2024 and our expected to be present in 2025. Within the report, each risk is assigned a risk score metric to help global supply chain leaders prioritize planning and mitigation efforts this year.
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.
Here we share the answers to the questions that we get the most often about this research: What is the source of data? Which companies were considered in the study? We placed them in the industry that they were the most like, e.g., the primary source of revenue. We built peer groups based on like industries.
In this final blog on agility and why you should consider becoming an agilist to survive the new completion (of the continuous mention) of the application of enterprise decision management systems (EDMS) from Taylor and Raden cited in the first blog, I turn to the metric of agility and a new ROI metric of decision yield. The Takeaway.
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.
Under this study, 74 million events from from 1.6 Related Metrics There are 3 other metrics dedicated to the measurement of social media influence as below, 1) Klout develops Klout Score, the number between 1-100 that represent influence (the ability to drive action). million Twitter users were analyzed.
ARC has been actively studying industrial AI for over two years. 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.
History will also include case studies of mergers and acquisitions. The study of improvement and performance for the 535 companies in 26 industries took two months. The source data for the analysis comes from Ycharts.). We selected these metrics based on correlation work with Arizona State University in 2012.
The annual Gartner Supply Chain Technology User Wants and Needs Study is one of the most comprehensive studies of supply chain users. The most recent survey included more than 473 people spanning the globe. Stage 2 — Siloed functional solutions with some data/transactional integration of systems of record.
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). However, localized sourcing shortened leadtimes and improve responsiveness.
The team was organized around the functional silos of source, make and deliver. “I study supply chains. In our work, we tie research from quantitative and qualitative studies to financial results to drive new insights. When all functions are jointly focused on improving these metrics, then we can have one team.
In research study after study, we see that the greatest challenge to achieving supply chain excellence is the understanding of the supply chain by the leadership team. Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. Metrics Alignment. They lack cohesion.
Most supply chain leaders cannot get their groove on because they generalize–the use of the same metric targets and tactics for the supply chain without paying attention to the flows. In Figure 1, I share data from the risk management study of 2015. The Role of Demand Variability in Risk Mitigation from the 2015 Study.
In manufacturing-based companies, 70-80% of costs are in the processes of source, make and deliver. While the practices of finance are over 200 years old, in contrast, supply chain as a cross-functional practice (the combination of make, source and deliver) was recently defined in 1982. Is talent a cost or an asset?
Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. Most supply chain leaders speak out of both sides of their mouths… In my case study, Ed’s approach was brilliant, but the organization did not value agility. (I The So What?
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.
I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. These tools allow us to look at sell, source, make, and deliver together. Along the way, I will be doing more work on network design case studies. Where Would I Start?
To understand supply chain excellence, Abby and I have been studying pattern recognition for industry peer groups at the intersection of the metrics in the Supply Chain Effective Frontier of growth, profitability, cycles and complexity. They will be digitally shared through Amazon, iTunes and other sources.
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. Figure 4 is a case study from Lenovo. In this blog post, I give a framework to drive discussions.
Case Studies. Would you like to understand supply chain management concept but dont have time to study from a supply chain textbook ? Each customer in US or EU might already control the source of raw materials, ask you to provide dedicated production lines, nominate 3pl companies and air/sea carriers. A Case Study.
Webinars Five Ways AI-Enabled Digital Twins Will Shape the Future of Supply Chains Technology Ships’ Electronics Increasingly Jammed Since Israel Struck Iran Global Gateways Watch: The Crisis in Access to Critical Raw Materials Supply Chain Visibility Digital Edition SupplyChainBrain 2025 ESG Guide: Is ESG Still Relevant?
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.
Data will almost certainly come from a variety of sources – the supplier, employees and a range of 3rd party sources. Be sure to ensure data is unified across the S2P process and solutions offer native integrations to a robust ecosystem of relevant 3rd party data sources. Map Your Sub-tier Supply Chain.
This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. When companies look at singular metrics (labor costs or inventory), they have moved backwards. Aligning metrics matters. Functional metrics in isolation degrade value. We enjoy writing them!
When you track transportation metrics and KPIs like transit time, on-time pickups, and percent of truckload capacity utilized across your carrier partners, you can identify trends and opportunities for streamlined OTR transportation management. Harvard Business Review Analytic Services study?report Across OTR Transportation Modes.
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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