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I laugh when business leaders tell me that they are going to replace their current supplychainplanningtechnologies with “AI.” Each supplychainplanningtechnology at the end of 2024, went through disruption–change in CEO, business model shift, layoffs, re-platforming and acquisitions.
The modern supplychain is a complex network of suppliers, manufacturers, distributors, and customers, all interconnected and reliant on a shared ecosystem of trust and accountability. As industries evolve and global markets expand, ethical considerations have become central to supplychain compliance.
The new year has arrived and so has the new wave of noteworthy news coming out of the supplychain space. A first-of-its-kind research project was published by the FAIRR Initiative, addressing human rights violations and overfishing in the seafood supplychain. As the year marches on, you can count on weekly updates here!
Machine learning (ML)a specialized field within artificial intelligence (AI)is revolutionizing demandplanning and supplychain management. According to McKinsey , organizations implementing AI-driven demand forecasting solutions can reduce forecast errors by 30% to 50%.
In most industries, supplychains have become increasingly complex. As a result, many organizations are moving toward supplychain orchestration as a structured method for improving coordination. Collaborative Workflows Supplychains involve many teams and companies working toward the same outcome.
Historically, supplychain leaders managed supplychains in a world of abundance. There are many factors: war, supply shortages, climate change, labor (knowledge and availability), and shifts in governmental regulation. The waste included: Negative Forecast Value Added (FVA) in demandplanning.
In today’s interconnected global economy, sustainability within supplychains and logistics has become a necessity rather than an option. Regulatory demands, rising consumer expectations, and global challenges such as climate change and social inequality have made sustainable practices a strategic priority.
However, as carbon taxes and emissions reporting requirements continue increasing, supplychain professionals face mounting pressures from inside and outside their organizations to measure and improve performance against new, nebulous sustainability metrics. Sustainability is high on the list of favorite corporate buzzwords.
Enhanced Efficiency Through Real-Time Data Connected vehicle technology drives efficiency improvements across route planning, driver safety, maintenance, and fuel management. Together, these capabilities show how connected fleet technology supports precise, cost-effective fleet management.
The logistics and supplychain industry is a critical component of global trade, responsible for moving goods and materials efficiently to meet consumer and business demands. Businesses face heightened uncertainty in managing costs and securing stable energy supplies.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supplychain excellence. In my post Mea Culpa, I reference my work with the Gartner SupplyChain Hierarchy of Metrics. They do not excel in planning or forecasting.
According to research by Ernst & Young LLP, the global consulting firm, as the Covid crisis recedes, supplychain executives are losing the strategic gains they made with their C-suite counterparts. 28% of supplychain leaders cite cost reduction as one of the top three priorities currently.
Supplychain sustainability is increasingly important for companies facing expectations from investors, regulators, customers, and employees. Integrating ESG across supplychains presents clear operational and strategic challenges that require focused attention. Data collection and verification remain areas of concern.
Open Sky Group, a global leader in supplychain execution solutions, has announced a strategic partnership with Easy Metrics , a premier provider of labor management and warehouse performance management solutions.
Let me start by saying that t he process is not a panacea to solve all supplychain ills. For most companies, building a great S&OP process is a missed opportunity. For me, there are ten characteristics that define a great S&OP process: Clear and Actionable. S&OP is a business process.
Sudden and significant changes in demand, especially in consumer markets, stack up more challenges, requiring order revision and reallocation. The fulfillment process is further complicated by ongoing shifts in customer expectations and demands and geo-political and weather disruptions.
Building a software company is hard work. The supplychain planner role is the most dissatisfied of any employee in the supplychain, but most focus on improving engines using AI into conventional work processes. The opportunity is to rethink planning. I am speaking to many that are ill equipped.
If “the forecast is always wrong,” is improving forecast accuracy even the solution to our demandplanning woes? Because moving from guessing from the gut to statistical forecasting reduces bias and increases objectivity, based on years of research by statisticians codified into forecasting software.
Frederic Laluyaux, the CEO of Aera Technology, agrees with this assessment. In the supplychain arena, the need to make course corrections is exploding. Mr. Masson of ARC points out, “Each AI use case requires specific datasets and may necessitate different tools and techniques.” Business cycles are compressing.
As a part of the curriculum, I encourage the class to record their unlearnings because I fundamentally believe that outside-in thinking requires rethinking planning. New forms of technology are an enabler. I laughed at Neils Van Hove’s recent post. Supplychain leaders love shiny objects.
In my recent Mea Culpa post, I mentioned my prior work on Sales and Operations Planning (S&OP), and the importance of leadership. Leadership and S&OP? If you have walked in the shoes of the supplychain leader, you are probably laughing by now. Is your plan feasible? Sounds easy, right?
For over a decade, since founding SupplyChain Insights in 2012, I have pounded the keyboard, asking business leaders to think more holistically about the impact of supplychain decisions on the firm’s value, the improvement of a value chain, and the impact on the environment. Thirteen years.
Five years ago, we all thought the COVID-19 pandemic resulted in the most disrupted supplychain landscape we would ever see. Since then, supplychain disruptions and volatility have only increased. We were wrong. With the global e-commerce market predicted to reach $8.1
With freight transport accounting for a significant share of global emissions, efforts to improve logistics now extend beyond operational metrics to include resilience, regulatory compliance, and climate performance. AI is playing an increasingly pragmatic role in optimizing supplychain operations.
Procurement and supplychain management are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. In this blog, we cover the key differences between procurement and supplychain management, and explain where the biggest disconnects typically occur.
Self-congratulations notes abounded this week as vendor-after-vendor shared their rankings on the Gartner Magic Quadrant for SupplyChainPlanning. I believe that the Gartner Magic Quadrant is a barrier to progress in supplychainplanning, and that vendors that rally in support have a false sense of superiority.
For years, supplychains were engineered to be lean. Recent years have brought a series of disruptions that exposed vulnerabilities in how supplychains are designed. Recent years have brought a series of disruptions that exposed vulnerabilities in how supplychains are designed.
The Covid-19 pandemic tested the global supplychain. Like riding a bumpy road, the supplychain leader is riding the ups and downs of changing market conditions facing greater variability day-to-day. Here, based on interviews with supplychain leaders, I share lessons learned. It will not be over soon.
This requires a thorough readiness assessment, selection of appropriate technology, and careful integration with existing business processes. It is crucial to assess the organization’s technological infrastructure, supplychain processes, and compliance frameworks to ensure they are aligned with DPP requirements.
Demand forecasting is a critical strategy for supplychain management that can dramatically improve business decision-making and financial performance. However, securing leadership buy-in for demand forecasting technology requires a strategic approach that clearly demonstrates value.
Tightening of pocketbooks: changing demand patterns. Federal Reserve Bank of New York, Global SupplyChain Pressure Index, [link] What can you do? Federal Reserve Bank of New York, Global SupplyChain Pressure Index, [link] What can you do? Measure it (both demand and supply) and use the insights.
ARC Advisory Group has been covering the SupplyChainPlanning ( SCP ) market for 17 years. The pandemic brought home the need for companies to run agile and resilient supplychains. Supplychain agility reflects a company’s ability to respond quickly to surges or plummeting demand.
Supplychain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. Healthcare providers are leveraging efficient supplychains to ensure critical supplies reach patients when needed most.
Life for the supplychain leader is more complex. Instead, we need new approaches to sense, orchestrate and collaborate within organizations to improve outcomes.) We are living in a world of rich supplychain case studies. Each day, the Wall Street Journal features a supplychain failure as front-page news.
The global supplychain is built on three assumptions: rational government policy, availability of reasonably priced logistics, and low variability. In March 2023, the Global SupplyChain Pressure Index fell to the lowest level since November 2008. S&OP is too slow and cannot achieve the needed alignment.
The Connected SupplyChain. Drip Digital SupplyChain. Autonomous SupplyChainPlanning. Self-Healing SupplyChains. Touchless SupplyChains. The issue is that when companies optimize functional metrics, they throw the supplychain out of balance and sub-optimize value.
If you’re exploring procurement technology, chances are you’re not just looking for a better tool – rather, you’re looking for a smarter, scalable strategy. AI, automation, and generative tools are redefining efficiency, allowing procurement teams to move from reactive to proactive decision-making.
The global supplychain landscape is undergoing significant transformations, influenced by rapid technological advancements, shifting consumer expectations, and the intricacies of international commerce. Developing Analytical Skills Data analysis is at the heart of effective supplychain management.
Sales & Operations Planning (S&OP) is an established industry process that aims at finding a balance between demand and supply and streamlining cross-functional collaboration. Procurement People should learn the Sales & Operations Planning (S&OP) Process.
Each year, we compile a list of top-performing SupplyChains, termed the SupplyChains to Admire. This week, while all my friends are on vacation, I am writing the final report for the SupplyChains to Admire. Our goal is to continually redefine the definition of supplychain excellence.
Supplychain management has been in the news. But the intricacies of supplychain management are beyond the grasp of most. One key solution used to help manage complex supplychains is supplychainplanning (SCP). Supplychainplanning is a complex solution.
Ever feel like your supplychain is a tangled mess of spreadsheets, frantic phone calls, and last-minute scrambles? That’s where data analytics comes in. It’s the key to transforming your supplychain from a source of frustration into a well-oiled, profit-generating machine. Let’s dive in.
“May you live in interesting times,” widely attributed as a Chinese curse, some claim this as a blessing; whichever side you take, this is exactly what’s happening in the supplychain world since 2020, and it looks like we will be living with this blessing/curse for a while longer. Emerging Themes for SupplyChainPlanning.
Supporting hypergrowth while reducing supplychain logistics emissions is not an easy feat. In the early 2020s, Microsoft’s transportation and logistics team needed to meet growing demand for cloud services while managing carbon, cost and cycle time. A clear goal needs to be combined with good data and metrics.
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