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Sourcing Strategy: Effective vs Efficient with Ron Crabtree. Joe Lynch and Ron Crabtree discuss sourcing strategy: effective vs efficient. When developing a sourcing strategy, the focus can be effectiveness (gaining desired results) or on efficiency (reducing cost, labor, and resources used). About Ron Crabtree.
A data gateway is essentially a connective tissue across your supply chain, providing unified access to supply chain data from various sources, including enterprise systems, data feeds, data warehouses, data lakes, data marts, and business entities. Achieving these goals requires visibility into the entire supply chain.
There is a belief that manufacturing is a mechanical process with not much thinking involved. While this is wrong for manufacturing in general it is especially wrong for process manufacturers – companies that produce food and beverages, paints, chemicals, pharmaceuticals, and cosmetics. What is process manufacturing?
A data gateway is essentially a connective tissue across your supply chain, providing unified access to supply chain data from various sources, including enterprise systems, data feeds, data warehouses, data lakes, data marts, and business entities. Achieving these goals requires visibility into the entire supply chain.
For example, an ERP for automotive distributors needs to include not just a standard sales function but also allow for automotive-specific processes like call-offs and contract pricing, as well as other processes like returns and lot traceability. There are several business processes that an ERP must have to support automotive distribution.
This was an intimate, packed 2-day event with executives, customers, other market analysts, and additional Infor team members. The event began with an address from the CEO, Kevin Samuelson, and CTO and President, Soma Somasundaram. Together, they presented the vision for the future and innovation priorities.
In a previous post , I made a case for how the Chief Supply Chain Officer (CSCO) and Chief Procurement Officer (CPO) are smarter together. Accordingly Supply Chain and Procurement will need continuous collaboration. Here are some examples of such use cases.
Unless manufacturers change, they will find that their ability to forecast demand, and determine what to do to meet it, will be challenging. Supply chain management (SCM) systems help businesses to manage the flow of goods and services right from the sourcing of raw materials, to delivering finished goods to the customer.
Global supply chains have been tested repeatedly by a series of disruptive events, including the COVID-19 pandemic, U.S.-China Companies that previously prioritized cost-cutting and centralized sourcing quickly found themselves exposed to serious production and distribution risks. China trade disputes, and natural disasters.
In today’s global economy, Australian manufacturers must transition to a more sustainable and ethical business environment if they want to stay profitable. These events have highlighted the importance of sustainable, resilient, transparent, and legally compliant supply chains. The impact of ESG for manufacturers.
What Celanese has accomplished is the single best example ARC is aware of employing agentic AI and copilots at scale. Ibrahim Al Syed, the director of digital manufacturing at Celanese, was surprisingly forthcoming about how Celanese developed these capabilities at ARC Advisory Groups 29th Annual ARC Industry Leadership Forum.
Just ask any manufacturer who’s had to halt production because a single critical component wasn’t available. The resilience of your supply chain is determined by its structure and operations, whether we’re dealing with major immediate events like a pandemic or gradual systemic changes to your business environment over time.
The high-tech firm is more than a manufacturer of PCs, tablets, smartphones, and servers. The company has more than 2000 suppliers and operates over 30 manufacturing sites. An iGPU (integrated graphic processing unit) is a current example. For example, we’re working on telling the solution that it has a budget.
Procuring transportation for freight is much different than any other procurement category. Transportation procurement needs to support both customer service and a company’s internal supply chain goals. One master of freight procurement is Kyle Masters. Simmons Foods Simmons Foods is a farm to fork poultry manufacturer.
Image source: Pexels | 7 Cost-Saving Tips Every Supply Chain Manager Should Know Managing costs effectively is crucial for success in the competitive supply chain world. Example: Retail giant Zara uses real-time data from its stores to adjust inventory dynamically. Track these metrics to identify trends and address issues proactively.
At the same time, the Chief Purchasing Officer (CPO) has taken on a pivotal role by securing Personal Protective Equipment (PPE) to protect the workforce and direct materials when primary sources fail. As disruptions become the norm, Supply Chain Planning and Source-to-Pay (S2P) cycles need to be increasingly dynamic and intertwined.
For example, if an employee works 40 hours at regular pay plus 10 hours of overtime, they will not pay federal income tax on those overtime hours. These might include discounts for purchasing electric lawn equipment or energy-efficient pest control solutions. Similarly, service workers who receive tips will keep this income tax-free.
And even before they begin, they must realize these problems are too big for any single team—supply chain must connect with finance and procurement to treat the n-tier suppliers as an extended part of their network and become their preferred customer. By identifying these gaps, you can create sourcingevents to close them.
Manufacturers have realized that while they may aim to be stable, what they really need is to be agile. The new normal for manufacturers. The adoption of digital strategies is a major feature of new strategies that manufacturers are planning. It ties into the ERP system where quotes and purchase orders are managed.
Lead time typically encompasses various supply chain stages, including order processing, manufacturing, transportation, and delivery. For example, the longer it takes to complete specific process cycles in the supply chain, the more resources are required to execute those cycles. Why is lead time important?
in manufacturing dominance. Manufacturing companies that have relied on China for production materials are feeling the blowback of this dependence; some retailers source more than half their inventory from China, according to 2020 Statista data. Indeed, by 2010, China surpassed the U.S.
We work with a lot of manufacturing companies and one of the questions we get most often is 'Why do we need to blog'? Often followed by 'How do we blog for manufacturing'? So now we know what a blog is but why is manufacturing blogging a great idea and not a waste of time: To Help People. A word about what a blog is.
Every year, massive convention centers around the country host thirty or forty major events a year. Many more are business-to-business events at which manufacturers display their wares to wholesalers and retail buyers. B2B exhibition organizers to either postpone their events to late 2020/early 2021 or cancel them entirely.”.
Edge Hardware: The battle for edge hardware also intensified in 2024, as companies sought to deploy AI capabilities closer to the source of data. This puts pressure on other device manufacturers to follow suit. Key announcements from the event include: Introduction of ChatGPT Pro : This broadened the usage of frontier AI.
If we’re going to be able to prepare for these types of events in future, we have to identify appropriate sources of information that we should focus on all the time — not just when [crisis] manifests,” said Randy Bradley, associate professor of information systems and supply chain management at the University of Tennessee. “We
The United States aerospace manufacturing industry is a highly competitive one. These factors make aerospace manufacturing companies highly valued partners, even internationally. These heavy-duty robots play a key role in many manufacturing processes, ensuring uniformity and safety. Fuselage Fabrication.
Management practices such as lean manufacturing and just-in-time inventory management, along with globalization, have made tremendous impact on cost and service, but have accentuated risk. The bullwhip effect is one example of this disruptive effect, when small changes in demand cause huge demand spikes downstream.
As organizations look for reducing dependencies on concentrated sources of supply, Eastern Europe, Mexico, and South Asian countries will start providing viable alternatives to the current manufacturing powerhouse countries. American Supply Chain Resilience Act and the German Supply Chain Act are just two examples of this.
But for that special class of disruption, the low-probability, high-impact events like natural disasters, epidemics and other upheavals, organizations don’t know how to mitigate the risk and successfully manage their supply chains, and are now trying to find their way through the minefield of issues and challenges with no clear solution.
For this variety of tasks, POLI-TAPE was looking for a partner who could cover all transport tasks along the entire supply chain from a single source. Today, the fleet supports all processes between warehouse and manufacturing with 40 rented Hyster forklifts. They are as robust as a Volkswagen with premium service from a single source.”
These solutions use natural language processing, for example, to read online publications and other data sources, make sense of what they read, contextualize the data into information, and report supply chain disruptions caused by weather, geopolitical events and other hazards in near real-time.
This global, Tier 1 manufacturer is headquartered in Stockholm and had revenues of over $8 billion last year. in turn, is a boutique procurement consultancy. Professionals from procurement, compliance, logistics, sustainability, information-security and several other internal stakeholder all use the solution for different reasons.
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’s good to see these companies recognizing the impact of climate change, and changing their policies, sourcing, and manufacturing practices to reduce emissions. These come from using gasoline for driving a car or coal for heating a building, for example. Clearing land and cutting down forests can also release carbon dioxide.
Mr. Bailey has worked most of his career at VF – as an industrial engineer in facilities, in strategic sourcing, running offshore operations, and now as the person in charge of the company’s entire supply chain. VFC’s supply chain sourced over 410 million units of apparel, footwear, and accessories in their last fiscal year.
How can a manufacturing business today become an intelligent and automated ecosystem – a smart factory that drives productivity, performance, and profitability? The more technology shifts manufacturing structures, systems and strategies, the more business-critical ERP becomes, and proper techniques are needed to make processes more efficient.
Make-to-Order (MTO) manufacturing is the production of specialized or unique one-off products in quantities ranging from one to small production runs. Usually, the final product is a combination of custom manufactured components and standard components. MTO operations bring their own set of unique challenges.
Inventory, storage facilities, transportation assets, energy provisionall of these things have conventionally been sourced through capital spending, leaving many companies with phenomenal sums of money sunk into capital investments. Still, thats all the more reason for companies to think differently about supply chain operations.
And agility is about reacting quickly and hopefully effectively to the actual disruptive event. But the event might not be disruptive at all if you had planned for it. That variability might be in the areas of manufacturing, distribution, or transportation capacity. Resilience comes down to planning for agility.”
Companies can also test-drive their supply chains by introducing the uncertainty of events that are difficult, if not impossible, to predict with accuracy. These events can range from minor supply disruption or canceled shipments to significant black swan events. suppliers impact your ability to deliver.
Because it is so important, the way a GL is designed, used, and secured needs to be understood in a modern manufacturing business. 3 reasons why manufacturers should use an integrated ERP accounting system. With inventory making up more than 20 percent of a manufacturer’s cost, inventory information in the GL is important.
Also, for whatever reason, Gartner limits the scope of the Top 25 to companies in the manufacturing, retail or distribution sectors. In particular, the company has been criticized for its long-time practice of using local water sources for its products. Privacy Settings. anonymous user. DataTable subpages. Media Image. transactionID.
Most manufacturing processes heavily rely on the use of machinery. For example, a subtle change in hydraulic pressure may still permit the machine to operate. For example, the IoT could be used to control automated delivery of products via unmanned aerial vehicles (UAV), or droves, in the future. IoT and Machine Functionality.
Amway, the world’s leading direct-selling business specializing in health and beauty products, manages a sprawling supply chain within 100 markets and territories with manufacturing facilities that incorporate ingredients from Amway’s farms around the world. The company began searching for a better way to procure freight and manage bids.
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