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For senior leaders, understanding and integrating the three pillars of sustainability—environmental, social, and economic—into supply chain strategies is essential. Reducing carbon emissions is a cornerstone of this effort. Meanwhile, advances in AI-driven route optimization reduce unnecessary mileage, cutting emissions and costs.
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.
The transition to renewable energy and the adoption of sustainable practices are now essential for reducing environmental impact, ensuring regulatory compliance, and maintaining competitiveness. Reducing dependency on fossil fuels can mitigate these risks and improve operational predictability.
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.
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.
Understanding The Shift In running the supply chain during a period of abundance, waste was a by-product of traditional thinking. The waste included: Negative Forecast Value Added (FVA) in demand planning. The use of outside-in signals can reduce it by 40-60%. Measure waste. Muda comes from many sources.
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. Supplier risk adds even more complexity.
In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times. We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency.
Now for the Do’s & Don’ts In the dynamic world of FMCG, your Route to Market (RTM) strategy and distributor partnerships can make or break your brand’s success. Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Ensure margins are fair and sustainable.
Even if the festive season looks a little different since the pandemic hit, food waste remains one of the biggest negative side effects of holiday consumption. Food waste has become a major global problem with real consequences to the planet. Pete Pearson Director of Food Waste, WWF. Source: [link].
Production Capacity Analysis While traditional testing methods can be time-consuming and offer incomplete data, focusing on key production metrics within the manufacturing process provides more actionable insights. Consider these essential metrics: Asset Utilization: How efficiently are your machines being used?
These benefits aren’t just about lower prices; they’re also about reducing transportation and inventory costs, which can really add up over time. That means they’re doubling up on items, wasting money, and tying up resources in products they don’t need right now.
It’s the key to transforming your supply chain from a source of frustration into a well-oiled, profit-generating machine. You’ll learn how to leverage data to streamline operations, reduce costs, improve efficiency, and exceed customer expectations. That’s where data analytics comes in. Ready to get started?
These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. From product design, sourcing and operations planning, to manufacturing, logistics and warehousing, there are many opportunities for improved efficiency at each stage of the process.
In this comprehensive guide, we’ll explore the key elements of warehouse optimization and provide actionable strategies you can implement today. An in-depth look at the tangible benefits, from cost reduction to increased customer satisfaction. Process Improvement: Streamlining workflows to eliminate redundancies and bottlenecks.
Think about it: How much time is wasted hunting down misplaced inventory? These digital tools transform traditional warehouse processes, creating streamlined, automated workflows that reduce errors, improve warehouse productivity, and increase overall efficiency. Imagine cutting picking errors by up to 40% through digital verification.
That’s why organizations zero in on strategies to achieve procurement cost reduction. The key thing to remember is that cost reduction in procurement isn’t just about slashing expenses. It cuts costs yet helps maintain product quality and smooth operations. Negotiate better contract terms.
I would like for us to move past the conventional view of sourcingstrategies and globalization to drive improvements to the supply chain in a variable world. The populist narrative of sourcing globalization is only part of the story. We speak of wastereduction and sustainability through a supply centric lens.
There are many ways an organization can cut supply chain costs. While there are no short-term fixes, enterprises should prioritize areas where they can make the quickest gains to reduce costs. This is a short term strategy, and one that can ultimately damage relationships with key suppliers.
Clear operating strategy and definition of supply chain excellence across plan, source, make and deliver. A shift from functional metrics to a balanced scorecard. I like the use of growth, margin, inventory turns, Return on Invested Capital, customer service and ESG metrics. I write this post as a guide. Drives Value.
Lane RFPs focused on cost reduction, but few asked if they had a feasible plan. Cost and Waste Can Be Pushed Backwards in the Value Chain Without Consequences. The strategy department in most shipper organizations sits in finance while the network design technology expertise is usually a much lower level in operations.
ESG reports can help investors make informed business decisions by identifying companies with less financial risk and avoiding those that may be impacted by stricter ESG metrics. This suggests a need for a more defined ESG strategy and framework within the industry to guide effective integration and action.
A solid supply chain and logistics strategy is essential for large companies. Using a logistics-oriented strategy helps companies better understand their suppliers, improve customer service, and optimize shipping. Smart logistics strategies can reduce wastage and improve operational costs. Subscribe Here! Email Address.
Tomorrow, 26 April 2023, is international Stop Food Waste Day. According the Stop Food Waste Day website , “Stop Food Waste Day is the largest single day of action in the fight against food waste. Food waste only exacerbates the challenge — and it’s everywhere. ” Why all the fuss? UN’s FAO, U.S.
Nearly eight in 10 (78%) consumers consider food waste, likely out of a desire to minimize spending. Lower-income consumers and those using food assistance programs care the most about food waste as a purchase driver—again, suggesting it is a response to higher prices.”
Supply chains must be connected and collaborative so all links can align to business strategy and oriented toward a common set of the most important metrics (and not functional metrics that drive siloed behavior). Reducewaste and aim for circular, not linear, designs.
The risks associated with chemical manufacturing include the storage and transportation of raw materials, finished products, and waste. 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. They must be.
The lubricants are oils and greases to reduce friction and prevent moving machine parts from grinding. Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. They saw a steady drop in inventory and reduced working capital by about 50% over the period of 2011-2015.
The end result is a blending of biotechnology and artificial intelligence to help us overcome our feeble human lives by cutting down on human aging as much as possible. It is the company’s largest plastic packaging reduction effort in North America to date and will remove almost 15 billion plastic air pillows from use annually.
That’s why staying on top of the latest supply chain planning trends is so important – they can make all the difference when it comes to staying competitive, reducing costs, and meeting your customers’ needs. Food waste produces 7% of the world’s greenhouse gas emissions, mainly methane, an extremely potent gas.
In this blog post, we’ll explore the challenges of inventory management in today’s manufacturing landscape , discuss the importance of a “single source of truth” for global inventory, and introduce a powerful solution that can help manufacturers transform their operations and drive profitability. How do they achieve this?
While trucks have a smaller carbon footprint/kg/km than air freight, the enormous volume of truck freight explains why reducing the carbon footprint is a priority goal. . Add in emissions from fork trucks, yard trucks, 3PLs and there’s almost no way for a shipper to easily assess, track and reduce their carbon footprint. .
Top 3 Procurement Technologies to Embrace in 2025 Staying ahead of key procurement technology and advancements is essential for CPOs who want to improve spend cost reduction, drive strategic value, and navigate the increasingly complex procurement landscape.
While it’s undeniably important to source products responsibly and produce recyclable or reusable products, companies also need to focus on making the transportation and distribution of products more sustainable. Ensure Your Materials Are Ethically Sourced. You can also keep track of your supplier’s transportation times.
“When the world changes around you, and when it changes against you, what used to be a tailwind is now a headwind — you need to lean into that and figure out what to do because complaining isn’t a strategy.”. This allows Zara to make products that meet consumer tastes and reduces the number of items they must sell at a discount.
Why ESG Matters to Supply Chain Management Modern supply chain strategies extend beyond efficiency and cost containment. ESG is essential in the supply chain because it reinforces brand trust while reducing exposure to social and environmental risks.
“ The most dangerous kind of waste is the waste we do not recognize ”: Shigeo Shingo. Lean thinking focuses on the elimination of all waste (where waste is defined as any non-value added process) and bringing value to the customer , beyond the customer’s expectations. Try to recognize all of your wastes.
In this article, we’ll delve into the challenges of stock balancing, explore effective strategies, and examine how this often-overlooked practice can significantly impact your bottom line. Inventory balancing, therefore, becomes a crucial strategy for reducing costs, increasing efficiency, and ultimately, satisfying customers.
Key elements to include: Sustainability Goals and Metrics: Define clear sustainability goals aligned with the company’s overall objectives. Introduce relevant metrics for measuring environmental impact like carbon emissions, water usage, and waste generation. Consider minimal packaging designs to reducewaste.
Their responsibilities focus on going beyond cost reduction and achieving broader business goals such as growth, innovation, and customer satisfaction. Align your supplier management strategy with business objectives In many organizations, there is a disconnect between their approach to procurement and the overarching business objectives.
If you’re reading this blog in 2021, you know about the increasing importance of sustainability and reduced environmental impact with fires in the western US, excessive flooding in Europe and a recent Canadian heat wave. The benefits go beyond brand allegiance to include: Improved operational efficiency with reducedwaste and costs.
Financial Reengineering is the radical redesign of business processes and organizational structure in order to achieve significant improvements in performance, such as productivity, cost reduction, cycle time, and quality. The traditional supply chain leader focused only on cost reduction. Cash-to-cash is a compound metric.
With today’s growing cost pressures and increasingly complex supply chains , quick fixes no longer cut it. What procurement teams need is a clear view of their spend, tighter control, and a strategy that delivers lasting value—exactly what category management provides. Read on to learn: What is category management?
We take a look and offer strategies and case studies, along with tips from supply chain professionals. A circular supply chain is where used products or their parts are returned or processed so they can be repaired, resold, refurbished or recycled – which reduceswaste from the supply chain and is more sustainable.
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