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Theyre feeling the heat most, as sudden trade policy curveballs throw procurement plans into chaos. manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. Traditional procurement, with its long-term contracts and rigid supplier ties, just isnt cutting it anymore.
They’ve already been planning for months now to ensure they procure, position, sort, and store enough inventory to meet holiday demand. The most common strategy in the playbook for coping with such challenges is to stockpile inventory, says John Santagate, senior vice president, global robotics, at supply chain technology provider Infios.
Treating suppliers as essential partners in the field of direct spend management—almost like customers—can be a key component of a successful company strategy. Market Intelligence: Suppliers often have access to valuable business and supply market intelligence, which can inform a company’s strategy especially in the area of direct spend.
In 2017, a strategy consultant was hired to do a top-to-bottom assessment of the Boston University procurement program. Randall Moore was hired as the new chief procurement officer in May. Facilities sourcing and construction contracting were centralized in the procurement department. It was like a trip through Hell.
Others had already pressure-tested their supply chain strategies for moments like this. Scenario modeling, running what-if simulations to stress-test sourcing, pricing, and inventory decisions, has become a cornerstone of supply chain strategy. Lippert Components is a clear example. When the latest wave of U.S. They’re the norm.
AI also improves the efficiency and cost-effectiveness of supply chain operations, both in terms of automating processes, and finding ways to refine pricing strategies and take advantage of forecast trends. Combining these in the supply chain is the ideal way to advance beyond reactive strategies to proactive and even predictive ones.
Not just for IT departments or data scientists, but also for the people who manage daily operations, procurement leads, planners, and inventory analysts. This means it can: Embed semantic search into procurement or customer service workflows. Feed large language models with accurate, up-to-date information drawn from verified data.
Just as your body needs multiple defense mechanisms to fight off illness, your supply chain needs various strategies to handle disruptions, whether they’re local supplier issues or global crises. Common examples of Supply Chain Disruptions So what are the main reasons that you need to consider supply chain resiliency in the first place?
Take the six professionals selected as our 2025 Rainmakers, for example. Almost nobody was getting hired, but I was fortunate enough to receive an offer from a small paper converter in Cincinnati for a role that was half procurement and half production planning. This fall we’re also launching a procurement academy.
For example, variations in country codes (e.g., “UK” vs. “GB”) or port codes for cities like Shanghai create confusion and erode trust in data reliability. Five Ways to Make Logistics Data Actionable Esch and Ritzmann outlined five key strategies to transform logistics data into a strategic asset.
For example, reduced emissions could result from streamlined routing or fewer trips due to improved demand forecasting. For example, when implementing air-to-ocean logistics strategies, the solution will weigh ocean freight more favorably than air freight.
This new feature strengthens procurement and negotiation strategies by helping users understand when rates are likely to dip or spike, allowing for more effective timing of negotiations with carriers. A retailer, for example, can use historical rate data to estimate transportation costs for an expected surge in holiday demand.
Resilience is the ability to respond to disruption while maintaining core operations, and more companies are shifting their strategies accordingly. Sudden tariff increases can quickly make a cost-optimized procurementstrategy untenable, leaving companies scrambling to adjust. Procurement is another area seeing change.
Koganti urged the procurement audience to look for whats referred to as “foresight function” in planning tools, which is capable of enhancing data analysis, scenario generation and trend identification , allowing for more informed and proactive decision-making, albeit with human oversight.
This article explores the key drivers of reshoring, the rise of regionalized freight networks, evolving market trends, and how companies can optimize logistics strategies in this new landscape. Data-Driven Decision-Making in Freight Procurement Advanced Transportation Management Systems (TMS) enable: Carrier vetting and rate comparison.
Flexible air network mitigates tariff uncertainty FedEx leveraged digital tools and its trade compliance expertise to help customers, whipsawed by fast-changing tariff policies, change import strategies. FedEx, for example, reduced capacity out of Asia to the U.S.
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.
In sectors where product assortments shift throughout the year, for example, AS/RS may require different bin sizes to accommodate new inventory, while P2G operates independently of bin structures, allowing for seamless transitions. 3PLs, for example, rely on contracts with customers that can change over time.
And instead of lamenting their detrimental impact after the fact, logistics professionals would do better to learn lessons and develop strategies to be prepared for the inevitable next disruption. To determining which tools can help execute that strategy.
Tesco and Walmart have announced procurement policies aimed at reducing carbon emissions and promoting sustainability throughout their extended supply chains. The beverage industry offers a valuable example. Yee Chow is global head of strategy and implementation at Zevero. Retailers are following suit.
Industry-specific content is available for processes like Source to Settle, Procure to Pay, Order to Cash, and more. Examples of automatable processes include Invoice Processing, Sales Order Entry, and Customer Account Creation. The strategy strongly focused on enabling customer success and accelerating innovation.
Ian Arroyo April 29, 2025 Blog As Freightos’ Chief Strategy Officer, I’ve had the privilege of witnessing firsthand how the logistics industry has transformed since COVID-19 disrupted supply chains worldwide. What’s become increasingly clear is that there are no more black swans in global logistics.
From remanufactured electronics to reverse logistics strategies that give products a second life, leading companies are proving that sustainability isnt just good for the planet its also good for business. H&Ms Garment Collecting Program is a perfect example of reverse logistics in action. from 2023 to 2030.
Uyghur Forced Labor Prevention Act (UFLPA) and the European Unions Forced Labor Regulation (FLR) are prime examples of this tightening framework. The law requires importers to provide clear and convincing evidence of a forced-labor-free supply chain and tasks the Forced Labor Enforcement Task Force with devising enforcement strategies.
Supply chain strategy is critical to business success, but companies often underestimate its importance and hence pay it less leadership attention than other areas of operation. Supply Chain Strategy In 2014, a survey by Tompkins Consortium delivered a shocking revelation.
billion by using CRM and SCM in a new multichannel market strategy. Customer Relationship Management (CRM) in supply chain management focuses on using customer data and segmentation strategies to optimize delivery networks and inventory management. What is CRM in Supply Chain Management? Why is it important?
In order to meet some requirements, for example, of customers or corporations, the resources managed in logistics can include tangible items such as food, materials, equipment, liquids and stuff as well as abstract items such as information, particles and energy. What is Logistics?
Recent and upcoming changes from the National Labor Relations Board, the Equal Employment Opportunity Commission, and state and federal lawmakers and regulators require companies to rethink policies, practices and compliance strategies. And as political tensions rise, so too does the risk around workplace speech and conduct.
While some aspects of this article may be dated, the article speaks to a range of issues directly relevant to national security in a post-National Defence Strategy age. Other examples of logistics influences on strategic competition are before us if we choose to look. Many of these conversations can end with it.
However, if organizations adopt proactive tariff optimization strategies and build adaptive supply chains, these challenges can be turned into opportunities. Strategy: Diversification of raw materials sources, exploration of alternative materials, or investment in domestic production are some of the ways to limit exposure to the tariff.
Its such a tiny word, but it covers quite a lot of different disciplines," says Adrian Wood, director of strategy and marketing for Dassault Systèmes. Apples Siri and Amazons Alexa are personal-use examples of these, but from a business context, their uses are just starting to be implemented.
In the face of these challenges, businesses are deploying innovative strategies to mitigate tariff impacts. Maersk, for example, uses blockchain to track shipments, reducing documentation errors by 20%. Cost Pass-Through and Pricing Strategies Some companies pass tariff costs to consumers, though this risks market share.
So argues Greg Petro, CEO of First Insight , a retail platform that uses AI analysis of consumer feedback to predict demand, determine pricing thresholds and model scenarios around, for example, differing tariff levels or supply chain bottlenecks. That’s a bad management strategy — the inability to predict demand,” says Petro.
For example, if the price of steel or wood has gone up, adjust the prices of products made with those materials. While navigating tariffs requires short-term tactics such as pricing adjustments and inventory management, it’s also important to think about the following long-term strategies: Diversify supply chains.
For example, RFID-enabled medications can be scanned quickly and accurately at multiple points in the medication lifecycle. These technologies work together to deliver a unified, digital-first approach to managing medication flow — from procurement to administration. But software alone isn’t enough.
The roles of logistics and procurement in an efficient supply chain cannot be overstated. According to Paul Myerson , reports Industry Week, up 70 percent of a company’s costs come from procurement and logistics operations. So, why do supply chain managers not take advantage of this data with respect to procurement?
Over his 30+ year career in the supply chain, Richard has worked with manufacturers around the world in operations, supply chain, and lean strategy roles to develop systems that can manage complex supply chains on a global scale. Richard previously founded and led Factory Logic, Inc. acquired by SAP).
Many different terms, such as less-than-truckload (LTL), procurement and transportation management, describe supply chain management processes. For example, transportation management often focuses on the journey of products after manufacturing. The Definition of Procurement Logistics.
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.
Since joining Trimble, Williams has led product development and strategy for Trimble’s award-winning dynamic freight procurement solution, Engage Lane. Explore Trimble’s strategies for improving productivity by addressing the fragmented nature of the transportation industry.
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.
To deal with the new challenges in managing and planning the supply chain , the procurement department is one of the functions that should look at changing. It is no longer sufficient for procurement to focus just on supplier costs, placing orders and ensuring goods are received. Risk management. Collaboration with Finance.
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.
Below are some transportation strategies for success for suppliers of TMS, TES, and MTS. Coronavirus has changed the outlook for direct-to-consumer commerce, and a TMS is now a critical component of this strategy. Transportation strategies come in all shapes and sizes. Look to the Cloud. Address Outsourcing Risks Head On.
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