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In February, Klaus Niebur, the director of global supply chain riskmanagement at Autoliv, and Jan Thiessen, the managing director at targetP!, spoke on best practices on supply chain riskmanagement at ARC Advisory Group’s Digital Transformation in Industry conference.
Planners are uniquely positioned with an end-to-end focus, from procurement of materials, through manufacturing and engineering, to the movement, storage, and delivery of finished products or services. Supply chain planners are now frequently tasked with initiating transformations to address these various pressures.
Procurement and supply chain management are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. Misaligned priorities, siloed systems, and unclear ownership can directly impact key performance indicators like cost savings percentage and procurement cycle time.
A 2023 McKinsey study found that companies relying on reactive supply chain management lose up to 10% of annual revenue due to inefficiencies and missed opportunities. Excess inventory, stockouts, and increased transportation expenses are common consequences of outdated planning methods.
Process-based companies continue to focus on manufacturing efficiency (OEE) and discrete on procurement (PPV) without designing the supply chain to balance transportation, manufacturing, and procurement to a balanced scorecard. Functional Metrics and the Lack of Alignment to Strategy. The Lovefest with Shiny Objects.
Supply Chain RiskManagement Solution from riskmethods. If I was asked to vote for the most interesting solution set that has come to the fore over the last few years, my vote would be for supply chain riskmanagement solutions. Supply Chain RiskManagement Vendors. AGCO Stayed Nimble during the Pandemic.
Supply Chain Knowledge and Risk Mitigation: Suppliers have a direct impact on direct spend with raw material and transportation costs as two big drivers of operating margins. This means involving procurement in the highest levels of strategic planning and decision-making.
The objective is to maintain operational continuity while balancing cost efficiency with riskmanagement. AI and Automation in Supply Chain Management Technology is redefining supply chain operations. This system is now being expanded to mid-tier suppliers and transportation rate negotiations.
Direct Procurement : Milk is collected directly from farmers at the village level. Milk Processing : After collection, milk is transported to regional processing plants, where it is pasteurized and packaged. This empowers them to have a stake in the business and share profits. through net-enabled kiosks in the villages.
That’s when it all gets extremely complicated, but one thing remains crystal clear: supply chain riskmanagement is profoundly important for businesses to grow and expand. The same source also informed that the Chartered Institute of Procurement & Supply (CIPS) Risk Index of 2016 was the highest since records have begun in 1995.
Thirdly, all the COVID supply disruptions brought home the need for better supply chain riskmanagement. Riskmanagement had been a hard sale. Companies typically embrace improved supply chain riskmanagement after a disaster – after the horse had already fled the burning barn. They are not.
Political instability has disrupted transportation corridors. First, overreliance on a narrow group of suppliersespecially those in politically sensitive regionsexposes companies to risk when trade relationships shift. Procurement is another area seeing change. Trade tensions have led to abrupt tariff hikes.
. … The truly biggest risks and threats — to the global economy, to businesses, and to supply chains — are the ones you’re unaware of and not accounting for in the first place. When it comes to riskmanagement, assessing the likelihood of various outcomes, and preparing accordingly, is vital. But what’s even more vital?
Why Your Procurement Strategy is More Critical Now Than Ever Before In an era of global supply chain disruptions, a robust procurement strategy is no longer optionalits essential. The right procurement strategy ensures that organizations: Mitigate risks before they escalate. Want to future-proof your procurement function?
Decoding the Procurement Department: A Comprehensive Guide to Roles and Responsibilities This supply chain article provides a comprehensive overview of the procurement department within an organization. Read In Detail About Procurement Department Here 2.
As reshoring continues, more supplies will be needed, which has major implications for procurement professionals, as well as increased demand for new talent and more truck drivers. For example, more manufacturers are likely to begin the process of outsourcing services and transportation to 3PLs. RiskManagement Will Take Priority.
Risks in halal supply chains The halal integrity of a brand (and its products) is a function of its supply chain, where a breakage in halal integrity anywhere in a supply chain becomes a breakage of its halal integrity. Halal riskmanagement is essential for trust in halal certified brands.
Supply chain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. Let’s break down these key components: Procurement: This is where it all begins.
While prior riskmanagement disruptions occurred and quickly established a new normal, in the COVID-19 pandemic, the only normal is constant change. Initially, the output was published to procurement to design strategic buying strategies. Procurement became an island–isolated from the demand signal except for MRP.
Herculean efforts by Procurement and Supply Chain departments to keep supplies flowing have prevented even more extreme disruptions than what we’ve experienced, but have inadvertently created additional risks. . Procurement and supply chain teams need to continue building the analytical skills of their teams.
In this blog, we explore the different types of predictive AI models for supply chain riskmanagement. Currently, Resilinc uses several predictive AI models in tracking purchase orders (POs) and commodities, autonomous mapping, risk-scoring models, and simulators. Welcome to part three of our AI in Supply Chain blog series.
This post is the second in a series of “How to Spot Supplier Risk.” ” In the process of business procurement and especially in the supply chain, supplier riskmanagement is a skill set that needs focus day in and day out. Enhancing Supplier RiskManagement Through On-Site Evaluations.
OTR freight represents a long-standing aspect of supply chain operations and transportationmanagement. M odern transportation networks and supply chains continuously adapt to market volatility and transitions. Download the White Paper: Over the Road Freight Management Trends.
The second is, Why are companies focused on traditional riskmanagement investments primarily focused on supply/procurement when the more significant opportunity is balancing risk and opportunity in an increasingly complex world? Which gets me to the question, “What is supply chain management?
Meet with the Leader in ProcurementRisk AI As geopolitical risk, regulatory change, and ESG expectations accelerate, Exiger helps CPOs tackle the growing list of procurement challenges. Exiger is a Leader in the Gartner Magic Quadrant for Supplier RiskManagement Solutions.
Simply using common calendar tools, such as Google, means you are using the IoT, but the Industrial Internet of Things (IIoT) leads to the use of connected, smart devices to reduce inefficiencies, delays, and inaccuracies throughout the product lifecycle, including procurement as well. Warehouse Management. TransportationManagement.
About Supply & Demand Chain Executive Supply & Demand Chain Executive is the only supply chain publication covering the entire global supply chain, focusing on trucking, warehousing, packaging, procurement, riskmanagement, professional development and more.
Especially grievous are the gaps between finance and operations, manufacturing and procurement, and the operations and commercial teams. We Assumed that Transportation Would Always Be Available And That We Just Needed to Negotiate Price. Avoid the discussions on traditional riskmanagement approaches. We are to blame.”
Supply chain optimization software tracks items as they move through your supply chain and generate alerts at important points to improves decision-making and enhance visibility across the supply chain by integrating various capabilities like procurement, inventory, and customer relationship management.
.” Aside from national security implications, the main lesson to be learned here is how vulnerable companies are to risks associated with their supply chains. Smith insists, “The business case for supply chain riskmanagement investment needs to be made convincingly and robustly to justify investment.”
In a similar vein, a major 3PL that I spoke to last week at Eye for Transport is considering discontinuing the traditional storage of spare parts and initiating a new service to do 3D printing of parts on demand. I would infuse it into S&OP, riskmanagement, and supplier development. I believe that it matters.
They integrate finance, HR, sales, and supply chain management into one complex platform. Within this setup, an ERP procurement module helps companies make purchases and manage suppliers. Numbers speak louder: According to Procurement Tactics’ top procurement trends in 2025 , 83% of CPOs prioritize digitization.
Why Procurement Transformation Can Fail! The duties of procurementmanagers are diverse, ranging from creating solicitations to collaborating with vendors. The importance of digital procurement is increasing rapidly. Along with cost savings, procurementmanagers are focusing on optimizing and automating processes.
Under the current COVID-19 global pandemic, managingrisk in the supply chain has taken on a renewed importance. Procurement teams continue to struggle with finding available suppliers and shipping capacity to enable supply chain responsiveness. As a.read More.
While traditional supply chain management prioritises cost efficiency and speed, modern supply chain resilience demands a more comprehensive approach that balances operational efficiency with riskmanagement and adaptability. Not only does this spread the risk, but transportation costs are lower.
Procurement has never played such an important role in the increasingly globalised economy. Has procurement fundamentally changed itself in the past 10 years? Strategic Procurement can mean totally different things in different industries and sectors. The time when Procurement was almost a synonym to Purchasing has long gone.
The Role of Supply Chain Resilience in Operational Success A truly resilient supply chain is deeply interconnected with other business faculties, such as procurement and logistics, which are essential for consistent sourcing and delivery of goods.
If you were tasked with procuring the best supply chain IT system, what would you look for? Meanwhile, the strength of SCM is in providing visibility and managing real-time information flows on an end-to-end basis. Conclusion When youre building your supply chain technology stack youll soon realise theres no one silver bullet solution.
What is procurement? In simple terms business procurement is the process of locating and acquiring goods and services from external sources for the business to use. Procurement activities include planning, sourcing, and negotiation, along with riskmanagement, legal and value analysis.
Most often the focus is on transportation or logistics, but does not take into consideration the trade-offs between make, source and deliver. Use of third-party data for transportation lane and drayage times by day/time of week. Concerted plans that focus on inventory management as one part of the supply chain as a complex system.
Learn the supply chain riskmanagement maturity model stages from Supplier RiskManagement to antifragility. The way that businesses talk about (and manage) supply chains is changing rapidly. Supplier RiskManagement What is Supplier RiskManagement (SRM)?
Procurement operations are no exception. In fact, 43% of GPOs that took part in the 2023 Global Chief Procurement Officer Survey cited overall procurementrisk had increased significantly as compared to 20% in the 2021 study. Keep reading to learn: What is an online procurement system?
Supply chain leaders get it, as confirmed by recent PwC research that shows: Investing in advanced supply chain capabilities bears fruit through lower costs, increased revenues, improved sustainability, higher asset utilization, better riskmanagement, and greater rates of on-time, in-full delivery to B2B and B2C customers.
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