This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
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. Procurement ran a request for proposal event.
On this blog and the one published by our sister company Logistics Bureau, we often receive questions relating to metrics suitable for monitoring procurement performance. To answer some of those inquiries, we decided to release the following brief overview of what we believe to be the most helpful procurement KPIs. Supplier Lead Time.
Kevin Nelson, a chief procurement officer and senior vice president at BD, agreed to be interviewed on this topic. The company had access to huge amounts of trade data, for example. But the further up the supply chain BD went, the less incentive suppliers had to participate in these exercises. Supply Chain Chaos is the New Norm.
American Supply Chain Resilience Act and the German Supply Chain Act are just two examples of this. Carrying out such design exercises on a frequent basis allows for organizations to pivot quickly to either tackle disruptions or to take advantage of opportunities.
Until we have this kind of pervasive visibility, inventory management will continue to be largely an exercise in futility. Real-time visibility into “static goods” — wherever they may be — is the foundation for managing through volatility. The ROI will only multiply with visibility into supplies and goods from end to end.
For example, forecasts are generated using the past three years of history, implicitly assuming history repeats. A close alignment between Procurement and Supply Chain can also yield several very interesting use cases that will help turbocharge your business. One off recommendations are made about facility locations (i.e.,
The techniques require different degrees of sophistication, but even the relatively simple exercise of putting data from different sources in the same space and producing a visual representation can suggest strategies for transformation. to anticipate conditions that signal an emerging demand spike.
Strategy and leadership teams might elect to be alerted to production line disruptions, for example, so they receive details about every impacted order. Inbound/procurement teams could view SKUs at facilities with low days of supply, and drill into orders in the yard with low SKUs.
So, for example, outsourcing sales activity is not typically a good idea if yours is a retail sales company. For example, US-based companies may be quite fortunate if they have access to manufacturers right on their doorstep in Mexico, a country with far lower labour costs than the rest of North America.
Without the proper procurement, receipt and storage of the materials needed to carry out the business activity it is impossible for the metal fabricator to begin the manufacturing process or market its products. For example, a custom manufacturer may need a metal fabrication supplier to take on a design-to-order project.
It will also make it easier to determine, for example, if you should opt for contract rates over spot rates or vice versa. Firstly, if you plan to benchmark as a one-off exercise now and again, you might engage a specialist team of consultants to execute a project for you. The Pros and Cons of Procuring a Benchmarking Tool.
Suppose you wanted to be the fastest runner in the world, for example. For example, are you sure that you don’t have one or two business units that excel in a performance element which, otherwise, is proving to be a weakness for your supply chain operations? Those levels are “benchmarks”. Ready to SCOR with External Benchmarking?
Walmart may be the most famous example of a company that has succeeded primarily because of a well-developed and aligned supply chain strategy. For example, supplier performance issues can cause problems with inventory, order fill, on-time delivery performance, and customer-order lead times. . Procurement costs.
For example, one of the main problems with Asian-US trade is that all container ship deliveries are now routed to the West Coast, even though the bulk of America’s manufacturers are based on the East Coast. To assist with the short-term solution, the answer is an extensive data-gathering exercise. Use data to improve operations.
Walmart may be the most famous example of a company that has succeeded primarily because of a well-developed and aligned supply chain strategy. For example, supplier performance issues can cause problems with inventory, order fill; on-time delivery performance and customer-order lead times. Procurement costs.
From a shipper’s perspective, transportation is a cost center, and the exercise of sourcing trucking capacity is not much different than that of procuring raw materials for production. In the above snippet, the example lane is very unbalanced in terms of capacity flow.
Common examples of Supply Chain Disruptions So what are the main reasons that you need to consider supply chain resiliency in the first place? Once this exercise is completed, your company can then assess the risk from tier-two suppliers onwards.
While these approaches can certainly deliver a significant return on investment (ROI), other strategies that can positively impact their transportation network are often overlooked – for example, thinking more strategically about capacity.
At first, he didn’t like my honest response: “Jim, you’re using a commodity-oriented procurement process for selecting your carriers and third-party providers. Here are four reasons why your own procurement process might not be as good as you think it is. Third, many procurement processes suffer from confirmation bias.
An example of where this can make a difference is in how businesses source and onboard new suppliers – an exercise that is traditionally slowed by the burden of contracts and letters of credit. Streamlining Processes. Another effect of supply chain connectivity is to help reduce paperwork and processes that slow production down.
Any operation defending the Australian north-west demanded was a difficult logistics enterprise, as highlighted by exercises such as the long-standing ‘Kangaroo’ series. Procurement of these essentials was eventually conducted in Sydney, where the operational supply-chain eventually began. hardware stores etc.).
So thats the route were taking in this article (no pun intended), we’ll be exploring the evolution of fleet route optimisation from a time-consuming pen-and-paper exercise to a high-tech process that, in some cases, can be completed in minutes. But first, what is route optimisation?
Procurement professionals, if you are considering a transition from manual and Excel-based RF(x) to online automated e-sourcing platforms, here is the information you need to mitigate fear, uncertainty and doubt in your supplier base. But feedback from suppliers on the available procurement automation platforms tends toward the negative.
So that’s the route we’re taking in this article, exploring the evolution of fleet route optimisation from a time-consuming pen-and-paper exercise to a high-tech process that, in some cases, can be completed in minutes. I guess that’s why we called it route planning and not route optimisation.”
Suppose you wanted to be the fastest runner in the world, for example. For example, are you sure that you don’t have one or two business units that excel in a performance element which, otherwise, is proving to be a weakness for your supply chain operations? Those levels are “benchmarks”. Ready to SCOR with External Benchmarking?
For example, customer demand for a product may suddenly rise. For example, the Disaster Recovery Journal indicates the main sources of business interruption. For example, faulty production equipment can lead to poor product quality. For example, one of your competitors buys one of your key suppliers.
Of course, switching to more efficient lighting requires significant investment, especially if you choose induction lights, which are particularly expensive to procure. For example, could some areas of your warehouse be adapted via racking optimisation to store higher inventory volumes? Are Our Processes Optimal?
So, for example, the Head of Supply might be the Supply Chain Director, Supply Chain Manager, or another non-executive supply chain management specialist. For example, several sales and operations planning models exist, including those credited to Tom Wallace and Oliver Wight. The Supply Chain Head. The Executive Sponsor.
Examples of Blockchain in Food Supply Chains. The examples we’ve looked at so far illustrate the uses of blockchain to promote sustainability in the supply chain and assure consumers that they are buying ethically sourced products. Big Names are Backing Blockchain. Other Food Industry Blockchain Initiatives.
Examples include discrete pick (as assignment per order), consolidated orders, often used when discrete picking happens at the customer venue, and so on. For example, what if you have a lot of fast-moving products? Considerations of the product characteristics such as product velocity, dimensions, cube, crushability, toxicity etc.
The COVID pandemic may have been an extreme example of what can go wrong, but it also underscored the importance of planning and decision-making in the event of sudden disruptions that upend the normal working of the complicated modern supply chain apparatus. How to Create an Agile Supply Chain Model.
The supply system was swamped with high-priority demands for every item imaginable, both in-service and those requiring procurement action, and the demands kept coming during and after units deployed. This would not be like a month-long exercise in the local training area.
Sourcing & Procurement. Sourcing & Procurement. ProcureEdge – Sourcing & Procurement. Let us take an initiative such as Inventory Optimization as an example. Enterprise transformations are a multi-year exercise in the making. Procurement Blog. Business Process Outsourcing. Customer Service.
You have operations here and procurement over there and sales right here, for example. Digitization is a technical exercise that collects all transaction data from all of the silos into an electronic state in a central location. Sherman: While digitization is a technical exercise, digitalization is a business exercise.
For most of human history, the success of that exercise has rested on the appointed seer’s years of experience, coupled with some indefinable grasp of probability. So a workable automated system will have the capability to weed out those parameters that don’t make sense — for example, a material that is prohibited in key markets.
Sourcing & Procurement. Sourcing & Procurement. ProcureEdge – Sourcing & Procurement. an example, electronics retailer Best Buy has augmented its online assortment by 20,000 items.Similarly, Target and Wal-Mart and other general merchandise retailers have boosted their online capabilities and product offerings.
Sourcing & Procurement. Sourcing & Procurement. ProcureEdge – Sourcing & Procurement. In this blog, with the example of Asset Management for personal health, they emphasize on identifying avenues for adding more Asset definitions to the EAM purview. Procurement Blog. Business Process Outsourcing.
Suppose you wanted to be the fastest runner in the world, for example. For example, are you sure that you dont have one or two business units that excel in a performance element which, otherwise, is proving to be a weakness for your supply chain operations? Those levels are benchmarks. You can also benchmark supply chains.
Sabine Ursel talks to Bettina Bohlmann (above) , Managing Partner of 3p Procurement Branding GmbH in an interview focused on themes to be explored at this year’s EXCHAiNGE event in Frankfurt. Bohlmann: By eliminating ineffective communication loops, for example. I found your real-world exercises in past years very enlightening.
Data portability had been an issue within the Asset management space, it would have been a toiling exercise to carry an Asset manual to the repair location for decipher a complex hydraulic oil flow directions.
Those who were intimately involved in the redeployment of Australian combat elements from Afghanistan in 2013 will have no troubles in citing examples of huge stockpiles of stuff that were created through over ordering, poor stock management, risk adverse planning and a failure to recognise changing security conditions.
Transportation spending is a perennial target of budget-cutting exercises, and a large, multi-faceted cost center for many companies; some may spend three to six percent of their materials costs on transportation. These functions must integrate easily into current logistics, invoicing , and procurement processes.
For example, by 2030 PUMA – headquartered in Herzogenaurach, Germany – wants to reduce absolute Scope 3 greenhouse gas emissions from its supply chain and logistics by 33% compared to 2017. Frank Waechter, Vice President of Treasury and Insurance at PUMA PUMA SE (PUMX: GER), with revenues of €8.6
We organize all of the trending information in your field so you don't have to. Join 84,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content