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Trade policies are constantly evolving, forcing companies to assess how these changes impact customer demand, supply networks, fulfillment strategies, and cost to serve. Manufacturing plants are deeply entrenched; tied to infrastructure, suppliers, skilled labor, and regulatory requirements.
Procurement and purchasing are often used interchangeably, but they serve distinct roles within any successful organization.While both involve acquiring goods and services, their workflows, objectives, and impact on enterprise risk management differ significantly. Procurement vs. Purchasing: What’s the Difference? What is Purchasing?
Reliance on fossil fuels creates additional challenges: Economic Vulnerability: Volatile oil prices and geopolitical conflicts increase financial risks. Businesses face heightened uncertainty in managing costs and securing stable energy supplies. Transparent sourcing practices build trust among consumers and investors.
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. Focus on Long-Term, Strategic Partnerships Shift the focus from short-term cost savings to long-term value creation with suppliers.
It’s time to shift from fragmented, ad hoc purchasing to a strategic, technology-driven approach. Tail spend — often unmanaged, fragmented and costly — can account for as much as 80% of total transaction volume. Without the right strategy, enterprises face hidden risks and unnecessary spend.
That’s because procurement professionals like you are under constant pressure to cut costs, reduce risk, and deliver data-backed insights to the business. 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’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.
Traditional contracts rely on manual verification, third-party intermediaries, and complex legal frameworks, leading to delays, disputes, and increased costs. Intermediary costs Third-party auditors, banks, and brokers drive up expenses. Lost goods, fraud, and counterfeiting cost businesses billions of dollars annually.
Like many companies, the French multinational produces a significant amount of its products in low-cost nations. By 2014, the company had purchased the Coupa solution, developed an internal modeling team, and created data extraction and cleansing routines. This is when the firm hired Mr. Botham.
Think your customers will pay more for data visualizations in your application? Five years ago they may have. But today, dashboards and visualizations have become table stakes. Discover which features will differentiate your application and maximize the ROI of your embedded analytics. Brought to you by Logi Analytics.
E-procurement is a digital process spanning the entire procurement lifecycle, from sourcing and contracting to ordering, invoicing, and payment. Unlike basic online purchasing tools, a sophisticated e-procurement system provides an integrated solution that connects all procurement functions.
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.
AI is reshaping the way organizations source, manage suppliers, and drive value today. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. For example, agentic AI can analyze supplier data, evaluate contracts, manage purchase orders, or recommend sourcing strategies.
AI is reshaping the way organizations source, manage suppliers, and drive value today. AI agents offer a smarter, faster way to manage sourcing, risk, and spend across the entire procurement lifecycle. For example, agentic AI can analyze supplier data, evaluate contracts, manage purchase orders, or recommend sourcing strategies.
Instead, sales teams must be proactive, identifying and acting on nuanced buyer behaviors — often before prospects are fully ready to make a purchase. In this eBook from ZoomInfo & Sell Better, learn 10 actionable ways to use these buyer signals to transform your sales strategy and close deals faster.
Both focus on improving efficiency and reducing costs but differ in their strategic approach and impact on the core business operations. Key Takeaways Unified sourcing platforms help connect planning, sourcing, and spend visibility for both procurement types, driving efficiency and competitive advantage.
Automakers must model dual-path sourcing strategies and reintroduce buffer inventory—not just for parts, but for regulatory flexibility. Tariff uncertainty may prompt manufacturers to increase safety stock levels or pre-purchase materials, squeezing working capital. This is especially risky for firms betting on partial assembly models.
SAP is embedding its generative Joule across the SAP Ariba source-to-pay solution portfolio to make it easier for their customers to manage routine inquiries, such as status updates, summarization, and frequently asked questions. When a procurement contract is negotiated, the buyer has planned to achieve a certain level of savings.
To navigate these changes, retailers are rethinking how they plan, replenish, and price their assortments—and turning to AI-powered systems for smarter back-to-school replenishment with AI. However, this year presents unique challenges: Tariffs on key imports like electronics and apparel are affecting supply costs and pricing strategies.
Connected devices are emerging at an explosive rate exerting pressure on larger operators; however, some organizations cannot continue to purchase the latest & greatest devices without ramifications. These tools enhance the reliability and efficiency of the supply chains and reduce costs associated with device failures or inefficiencies.
The difference between sole source vs. single source is on the surface. In single sourcing, your company selects a single supplier exclusively , even though there are other capable suppliers on the market. In sole sourcing, you don’t have a choice —only one supplier can provide what you need. The reason?
Fragmented systems, rising cost pressures, and shifting risk profiles are making it harder than ever to manage procurement effectively. No matter the focus, whether cost reduction and quality improvement, or supply chain optimization and resilience, procurement must have a concrete role in delivering outcomes that matter to the business.
What Is Strategic Sourcing? A Complete Guide Strategic sourcing is a data-driven approach to securing the best value for your organization from its strategic suppliers. It is called strategic because it replaces traditional ad hoc approaches to sourcing, which were almost entirely focused on cost savings, item by item.
Key takeaways Importance of Procurement Procurement vs. Purchasing Key Functions Departmental Structure Role Descriptions The blog emphasizes the significance of a well-structured procurement department with qualified personnel to achieve organizational objectives. Read In Detail About Procurement Department Here 2.
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Unlike traditional tools that often operate in isolation or rely on rigid workflows, AI connects the dots between disparate data sources, providing a more comprehensive view of procurement activities. This gives them advance warning so they can adjust their purchasing strategies.
” Traditional planning models optimize functional processes to improve cost and customer service. The problem is that the reduction of costs within one function does not necessarily drive value. The data outcome is open source and can be used to improve project outcomes. This work was expensive. How Do You Drive Value?
Subscribe Strategic Supplier Relationship Management – Do’s and Don’ts At any given time, working with the resources of any business depends on procuring the right materials at the right time and at the right cost. Sourcing and procurement take on a meaning that transcends the mere buying of materials or services.
Fragmented systems, rising cost pressures, and shifting risk profiles are making it harder than ever to manage procurement effectively. No matter the focus, whether cost reduction and quality improvement, or supply chain optimization and resilience, procurement must have a concrete role in delivering outcomes that matter to the business.
The most common form of trading partner collaboration is purchase order collaboration. With PO collaboration, buyers send digital purchase orders over the network to suppliers or other trading partners. They can view overall performance and then drill down and look at problems purchase order by purchase order.
Given the many aspects of retail operations outside a business’ control—from supply chain disruptions and labor shortages to inflation and interest rates impacting both operational costs and customer behavior—the fulfillment challenge this peak holiday season is acute.
Modern procurement professionals need to be among some of the most highly skilled workers in any organization, and we want to help you identify exactly what essential procurement skills you need to lead your team as the industry continues to grow and evolve.
These agents can communicate, negotiate, and collaborate to solve complex problems. Then, another application would be purchased, and another, and another. trillion records from 47 data sources in the Cognite platform. A knowledge graph creates relationships across previously siloed data sources. In part, this was skill.
To achieve traditional supply chain outcomessuch as reducing costs and managing lead timesTMS systems generate insight and foresight into these metrics during planning and execution processes. Companies should evaluate it alongside cost, lead time, on-time delivery, and capacity utilization.
Strategic Sourcing Success: Best Practices and Key Strategies Of course, there are many definition s of source-to-pay but put simply, strategic sourcing is a data-driven approach to securing the best value for your organization from its strategic suppliers. How Has Strategic Sourcing Evolved?
How CPG leaders can reduce costs without hurting supply chain performance fbaker Tue, 06/03/2025 - 09:18 In the consumer packaged goods (CPG) industry, SG&A (Selling, General, and Administrative) costs have long been a go-to target for improving margins. But today’s market is anything but typical.
Optimizing fulfillment requires a series of steps to get a shipment from its source to the end customer. These steps include sourcing and receiving inventory, storing inventory, order processing, picking and packing an order, shipping the order, and returns management. The question then becomes what is a good OTIF score to shoot for?
Global supply chain disruptions continue to derail manufacturers in the high-tech, automotive, and renewable energy sectors as they grapple with long lead times, higher prices, and electronic component shortages. To mitigate risks, many companies are incorporating alternate parts into their sourcing strategy. Focus on commodity parts.
In this blog, we will explore and compare the supply chain courses available on both platforms, diving deep into aspects such as focus and specialization, pricing, availability of practical tools, ease of use, and more. Pricing Structure Affordable pricing, with annual access to purchased courses and practical resources through Pro Plan.
Key Takeaways Modern procurement systems streamline the entire Source-to-Pay lifecycle by integrating sourcing, contracting, purchasing, and supplier management into a single platform, enabling better visibility, compliance, and control across the enterprise.
As we map value streams, there are trade-offs between, cost, cycle time, and customization. I mportant to the discussion is the realization that cost is not value, and optimization of functional metrics based on cost optimization decreases value. Inventory is the most important buffer and the greatest source of waste.
Rising Costs: Managing Budget Constraints Fluctuating prices of raw materials, coupled with increased transportation costs, can strain the budgets of custom home building projects. To mitigate the impact of rising costs , builders can work closely with clients to establish clear budget expectations from the outset.
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