10 Key Logistics & Procurement Supply Chain Practices to Know and Master to Reduce Spend.


However, following these 10 practices can help you learn how to reduce spend in the procurement supply chain. As a result, an external benchmarking tool , explains Olga Rissin of CHAINalytics , offers the benefits of reducing internal spend and accessing outside data, which further drives competitive advantage and lower spend in managing the procurement supply chain. However, 48 to 72 hours would be an ideal lead time, reports Steve Raetz of Logistics Viewpoints.

Supply Chain and Procurement Transformation in 2021


Our research indicates that COVID-19 impacted 98% of businesses, with 60% reporting an ‘extreme’ impact. According to a pre-COVID report published by the Federal Emergency Management Agency ( FEMA ), 40% of businesses do not reopen following a natural disaster.


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Digital Procurement Improves Supply Chain!

Supply Chain Game Changer

Digital Procurement article and permission to publish here provided by Katherine Barrios of xeneta.com. The Hackett Group has recently released their analysis of their procurement benchmarking database. It demonstrates the advantages of working with a digital procurement strategy.

Procurement and Suppliers on the Same Page: How to Craft an Effective Terms & Conditions Sales Document


Editor's Note: Today's blog is the second part of Chuck Intrieri's series on how procurement and suppliers can avoid issues with their contracts. Procurement and suppliers often assume that small print is highly complicated legal jargon that is both boring and largely irrelevant. It Would Benefit Both Procurement and Suppliers To Write in a Clear, Friendly, and Organized Manner. Procurement

How to Procure Full Truckloads in Tight Capacity


The use of full truckload shipping is rising in popularity, resulting from its lower cost as compared to less-than-truckload (LTL) shipping. Unfortunately, the use of full truckload shipments and expenditures have hit an all-time high, reports Kate Patrick of Supply Chain Dive. Decreasing capacity and increasing full truckload rates are expected to increase throughout 2018, reports Freight Waves. Conducting annual procurement exercises.

Drop Shipping: A Perfect Fit for Supply Chain Operating Networks

Talking Logistics

As reported last month by Jennifer Smith in the Wall Street Journal , “A growing number of retailers are relying on suppliers to ship online orders directly to customers, a strategy they hope will help them compete with e-commerce rivals without spending more on inventory. The practice, known as drop shipping, lets retailers offer more products for sale on their websites—such as multiple colors of the same sweater—without having to keep those items in stock.

Procurement Logistics: What Is It & Where Do Logistics Providers Fit In?


Many different terms, such as less-than-truckload (LTL), procurement and transportation management, describe supply chain management processes. Although procurement logistics might sound like it involves the purchasing of manufactured products , it is much more involved. The Definition of Procurement Logistics. The simplest way to think of procurement logistics is the procurement of materials needed to manufacture products. What Is Procurement Management?

What Are the Goals of Procurement Management?

EC Sourcing Group

What Are the Goals of Procurement Management? The goals of procurement management are generally to acquire goods and services with the highest quality at the lowest cost to create an end product. Globally, most purchasing departments have moved on from a paper trail and have decided to make their procurement processes digital, which means that they now must be able to navigate E-procurement software and eSourcing software with some intermediate ability.

Multichannel Fulfillment & Shipping: Considerations for Wholesale Distributors & OEMs in the Transition From Single Channel Shipping


E-commerce has presented wholesale distributors and original equipment manufacturers (OEMs) with a crown opportunity for growth, but it comes at the cost of transitioning from single-channel shipping. Over the last year, average e-commerce sales have increased more than 15 percent, revealing the increasing demand for multichannel fulfillment and shipping. Adapting supply chain systems to succeed in multichannel fulfillment and shipping, also requires additional setup time.

Report Points to Increase of Shippers Outsourcing Transportation Management Due to These 4 Core Benefits


A distributor or manufacturer’s strength is in making product—its focus is procurement and streamlining production, but without the capability to fulfill orders, it is doomed. According to a recent report from Evan Armstrong of Armstrong & Associates, the 3pl industry is expected to see even more growth in the coming years than it saw from 2010-2013. Businesses today often need a bit of help moving their bottom line forward.

Want better supplier adoption of your procurement portal? Start by asking your own sales staff.


A good portion of the value provided by automating procurement and payables processes comes from the labor and cost savings generated from fewer errors and less manual work. The procurement portal has to have enough transactional volume running thru it. For companies of this size and influence, supplier adoption of the procurement portal simply becomes a criteria for inclusion in the company’s approved vendor list (AVL).

Full Truckload Technology: The Various Technology Involved in Full Truckload Freight Shipping Management


The most recent report on adoption rates of TMS is from 2015, with only 35 percent of shippers actively using a TMS, asserts Bridget McCrea of Logistics Management. Demand for record-breaking speed of delivery and free shipping are only making the case for greater use of technology in full truckload freight shipping management, and shippers need to understand why. Access our complete Full Truckload Shipping White Paper Series.

Putting Procurement Front and Center of Your Supply Chain

Oracle SCM

Procurement professionals are now playing an increasingly strategic role within their organizations. Procurement of raw materials and components that go into the manufacturing process is essential to ensure final product quality and strong financial performance. Companies depend on procurement teams to mitigate the impact of those disruptions and ensure supply continuity. The new procurement professional needs a broad set of skills. By Mark Lauterbach.

Imbalanced Investments: Transportation Spending vs. Procurement Technology (Part 1)

Supply Chain Network

Shockingly, though, companies are failing to invest in the necessary procurement tools to manage spend and optimize their transportation networks. Here’s the cliff-note version of the results; the full report is worth a thorough read : Transportation planning is sorely inefficient: According to the survey, only 25 percent of buyers are using a completely systems-based approach for procurement. Freight & Transportation Information Technology PaulMartyn Procurement

How to Be a Preferred Shipping Customer: Strategies for the Coming Capacity Shortage

Talking Logistics

But these positive developments are beginning to be overshadowed by concerns about the ongoing driver shortage: CNN has reported there are currently 30,000 open slots for drivers. Customers with a strict ‘procurement mindset’ overlook important factors like consistency, overall experience or past performance. Understand the full range of shipping alternatives your carriers can offer. Business has been improving for the U.S. trucking industry.

[INFOGRAPHIC] Procurement Trends: Carving a Bigger Role in Supply Chain & Manufacturing


As time passed, procurement gradually gained a larger role in the scope of manufacturing and order fulfillment. By the mid-1950s , procurement had become a commonplace aspect of minor business, and procurement was almost comparable to secretarial work. However, modern technologies are dramatically changing procurement trends and how procurement professionals operate and their role in the company. As a result, procurement seemed to have a technical speed limit.

Three big mistakes procurement & supply chain leaders must avoid


Supply chain leaders need to look at minimising risk through by focusing on cash flow, diversifying production and enacting strong financial discipline to cope with disruption, according to procurement and supply chain service provider GEP. In the immediate term, supply chain costs will increase as manufacturers expedite shipping and pay overtime labour costs to meet customer commitments.

Supplier Cartel Activity and Sustainable Procurement


Anti-competitive practices remain a peripheral CSR issue for most companies , particularly in the context of sustainable procurement. But, as corporate price-fixing scandals show — including the recent record fine imposed by the EU Commission on Volvo/Renault — the issue should be at the top of the priority list of every procurement risk management program. Moving beyond compliance: Sustainable Procurement.

What is eProcurement?


Difference Between Procure to Pay and eProcurement. Procure-to-Pay is the sequential process we described earlier. Eprocurement or e-procurement comes from electronic procurement. Selecting the right Procure to Pay software will preserve you from failed deployments.

Freight Consolidation for Full Truckload: The Hidden Gem of Full Truckload Shipping


Full truckload shipping is generally less expensive than other over the road transportation modes. Instead of throwing in the towel, shippers can leverage full truckload shipping to ship LTL shipments in the back of a full-size van or trailer. Unfortunately, the surrounding LTL shipping has resulted in an unusual problem; shippers are turning to LTL-exclusive shipments, which can significantly drive up freight spend.

Procurement…cost reduction is not enough… now the game changer is adding value for the customer


For many years, many strategic sourcing and procurement professionals have been using the cost reduction playbook as a guide for all of their sourcing and procurement activities. While cost reduction will always be a big part of procurement, the current trends are making their jobs much more demanding due to the value driven supply chain with the customer in mind. THE GAME CHANGER…VALUE PROCUREMENT.

5 Reasons Why Your Business Needs a Procurement Consulting Agent


Does your business perform require procurement, shipping, and logistics? If so, you may be missing out by not hiring an experienced procurement consulting agent. A procurement consulting agent can work with your business to determine the most cost-effective, convenient way for you to acquire the products that you need. Procurement agents know a lot about the industries they work in and are often able to advise on the products your business is going to need.

Ocean Freight Procurement and Going with the Stream


The annual fixed-price contract is the current go-to for ocean freight procurement. Just like streaming replaced that iPod as a better way of listening to music, ocean freight procurement now has a better way. But Does Fixed Ocean Price Procurement Need Fixing? For example, logistics providers reported that unless they paid extra during capacity crunches, 25% of their shipments failed to make the first available sailing. Remember iPods?

Florence Et Al.

Supply Chain Shaman

The reporter wanted to discuss the implications of Hurricane Florence. It is now closed at the start of a busy shipping season as companies prepare for holiday inventory builds. While ships on the water are moving to other ports, this will put a strain on the US port system that is struggling with capacity issues. Procurement Risk management Uncategorized disruption hurricane readiness risk management transportationThis morning the Washington Post rang.

Make Freight Sourcing More Efficient!

Supply Chain Game Changer

Freight sourcing and procurement is a critical component of the whole supply chain and is crucial to the success of the business. In order to achieve maximum efficiency in freight sourcing and procurement, you need a strong team to handle the requirements. Knowing the cargo, the packing, and shipping requirements will enable the team to select the most suitable supplier from the database. Freight Shipping Intelligence. The shipping industry is fragile in nature.

The Way to Real Time Supply Chain

The Logistics of Logistics

A new Bloomberg Business Week Research Services survey and report makes it clear that innovative supply chain tools are widely acknowledged to be crucial to meeting corporate goals now and in the future as supply chains grow more complex, customers become more demanding and globalization accelerates. This enables companies to respond swiftly to customer requirements, procure parts earlier, plan parts inventory more effectively and unlock service parts profit potential.

Suppliers are Friends, not Food!

Supply Chain Game Changer

Now… Is there something to be learned from this quote in Finding Nemo, that we can apply to procurement and sourcing? Speaking with procurement and sourcing professionals on a daily basis, in my work at Kodiak Rating , there’s a resounding pain point that many organizations are trying to address; figuring out how to combat supply chain complexity, whilst simultaneously enhancing transparency, traceability and building better relationships/collaborations with their suppliers.

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Avoid Hidden Charges on International Shipments


Shipsy’s rate procurement software comes powered with intelligence around local charges, intelligent reference rates and multiple dashboards around cost saving and vendor participation. Shipsy maintains a sync with all shipping lines and ensures local charges are updated on actuals.

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This Week in Logistics News (November 5-9, 2018)

Talking Logistics

Okay, turning the corner, here’s the supply chain and logistics news that caught my attention this week: Amazon offers free shipping on all orders for the holidays (CNN). Shipping Rates to Increase for FedEx Express, FedEx Ground and FedEx Freight Services. Free Shipping as a Competitive Weapon (and Loss Leader). A couple of weeks ago, Target announced that it would offer free 2-day shipping this holiday season.

Ways to think about the Supply Chain of the Future: Artificial Intelligence


According to an article published in The Economist , AI has reduced returns by 2 million units a year and is able to procure 200,000 ítems autonomously without human intervention. If you want to do a deep dive on artificial intelligence for the logistics industry, I highly recommend this report from DHL and IBM. Amazon autonomous cars e commerce last mile logistics robots Same Day Delivery self-driving cars Shipping startup supply chain Uber machine learing

Avoid Hidden Charges on International Shipments


Shipsy’s rate procurement software comes powered with intelligence around local charges, intelligent reference rates and multiple dashboards around cost saving and vendor participation. Shipsy maintains a sync with all shipping lines and ensures local charges are updated on actuals. Blank Sailings Due to Corona Virus-Increasing Shipping Costs. As all countries are taking measures to restrict the outbreak of Corona Virus, the shipping industry has been majorly impacted.

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Days Inventory Outstanding: Definition, Formula, Calculation


Days Inventory Outstanding is calculated based on the average value of the inventory and cost of goods sold in a given reporting period. The average inventory is the average value of the inventory at the end of a particular reporting period and is calculated as follows:-.

Tips for Effectively Managing E-Commerce Logistics


Yet, as few as 33 percent of shippers have taken advantage of a transportation management system (TMS), reports Michael of Levans of Logistics Management. According to Roberto Michel of Logistics Management , the biggest challenge in e-commerce logistics revolves around the demand for additional last-mile delivery options and next-day shipping, if not same-day shipping. Offer multiple shipping options to consumers. E-commerce is in the middle of a boom.

The Supply Chain Detective™: The Case of the Unpaid Invoices!

Supply Chain Game Changer

We had run reports and crawled through the data but we still couldn’t make sense of what was going on. Quantity differences between the PO and invoice based on either MOQ differences or the Supplier over/under shipping relative to the PO. We updated our past due Invoice reporting every day with the latest numbers. I/T was critical as well because with advanced analytics we could provide reporting that would forecast where we had discrepancies before they occurred.

Imagining the Supply Chain of the Future!

Supply Chain Game Changer

Techniques such as drop shipping and full case fulfillment and replenishment eliminate several handoffs and touches throughout any Supply Chain. Data gathering and data entry, the creation and manipulation of spreadsheets and reports, the production and completion of forms, all purchase order and invoice management activities, product data management, and more are activities that should all be automated in the future. Subscribe Here! Email Address.