Tag: Importance of Supply Chain Management

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4 Vendor Management Best Practices Automotive Industry Companies Must Follow

The automotive industry is undergoing a period of immense disruption like never seen before. Influenced by new manufacturing and procurement processes and innovative designs, neither vehicles nor auto manufacturing facilities look like how they did a decade ago. Automobile companies of today are facing challenges in effective category management, identifying and following vendor management best practices, and leveraging data and analytics for their benefit. Rapid innovations in the automotive industry are putting tremendous pressure on companies to look for vendors who are ready to evolve and innovate at a rapid pace. Therefore, automotive companies need better metrics for contract compliance, procurement ROI, process efficiency, contract life savings, and invoice accuracy to bring about best-in-class procurement and effective resource and vendor management capabilities.

At SpendEdge, we understand the impact that an effective vendor management system can have on your business. And to help automotive companies thrive in the competitive marketplace, our team of experts has highlighted four vendor management best practices that can help automotive industry players to become market leaders.

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Top 5 Supply Chain Management Challenges Facing Companies in the Food and Beverage Industry

The food and beverage industry faces a lengthy list of unique challenges in terms of logistics and supply chain management, right from volatile commodity pricing and inventory management to quality and safety requirements combined with frequent new product introductions, high demand uncertainty, complex manufacturing constraints, and perishability. The need for inventory optimization in the food and beverage industry is growing due to the increase in customer demand, expanding product portfolios, and lengthening supply chains.

Inefficient inventory management in the food and beverage industry results in spoilage of products, resulting in bad supply chain management. This results in poor decision making at all the levels of the supply chain.  This leads to a vicious cycle, ultimately reducing sales, profit margins, and customer loyalty.

At SpendEdge, we understand the impact of better warehouse management on supply chain management. And to help companies strive in the competitive food and beverage industry, our experts have highlighted some of the major challenges that they must be aware of and prepare themselves for accordingly.  

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3 Best Practices for Supply Chain Risk Management Planning

When it comes to supply chain risk management planning, a risk can be defined as a broad spectrum of events, from counterfeit products, natural disasters, supplier delay, to theft, part shortages, production interruptions, and even cybersecurity. Every business has a different array of potential risks depending on its verticals, and each of its product has a different risk portfolio depending on its components. The product lifecycle is influenced by an incredible number of variables. Therefore, a comprehensive supply chain risk management planning is required, and many companies, today, are embarking on the journey to reduce the overall negative impact on the bottom line and effectively deal with unexpected hiccups. For companies that don’t have supply chain risk management plans, their primary objective should be to discover the largest risks and figure out strategies to deal with them. In this article, we have discussed some next-level best practices that can push supply chain risk management plans to another level of value and consistency.

Best Practices for Supply Chain Risk Management

Best Practice #1: Site checks must be performed

There are certain kinds of issues in supply chain risk management that can only be discovered with routine, in-depth personal visits, and an understanding of the culture where production occurs. The routine site visits are one of the most impactful methods of not only identifying supply chain risk but also help in developing contingency plans. Undoubtedly, this can be expensive and time-consuming in the case of a supply chain that reaches overseas, but the outcome can be enormous. This is one of the best practices which ensures that if there are any concerns with unsafe working conditions or quality, the companies can immediately take the necessary steps to revise their risk quantification.

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Best Practice #2: Don’t neglect cyber threats

Risks are not always physical but virtual too. There are many stakeholders when it comes to supply chain risk management who assume that supply chain risks come from physical challenges, such as delay in production and shortages, but this is short-sighted. Every supply chain is built on top of IT, whether it is a bill of materials shared between the company and the third-party suppliers, or CAD designs comprising proprietary, patented designs. Threquest proposalerefore, for a better supply chain risk management, companies need to roll cybersecurity risk into the overall supply chain roadmap and prioritize them higher than several physical risks.

Best Practice #3: Ease out supply chain risk with insurance

Insurance companies specialize in risk quantification and working with someone can help procurement companies in their process of putting together proper contingency plans. Some insurance policies cover the own production of the company, such as a custom-built and expensive piece of equipment that would cost millions and take weeks to replace. Therefore, this best practice in supply chain risk management can enable the company to recoup many of the costs involved in case of a critical failure. There are also other insurance policies that cover issues upstream, such as delay in the supply of parts from overseas suppliers. In either case, insurance can never make up for damage to a brand, but it can help lessen the sting of a major supply chain disruption, both in-house and the other side of the globe.


Want to know more about best practices for building supply chain risk management plans? Contact us now!

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AI in Supply Chain Management: Top 4 Reasons Procurement Companies Should invest in AI in 2019

Just as artificial intelligence (AI) has made its way into finance and healthcare, it is now creating a fourth industrial revolution in supply chain management. The use of AI in supply chain management has brought about operational improvements for companies across the globe. It has made it possible to discover patterns in supply chain data by relying on algorithms that quickly pinpoint the most important factors behind the success of supply networks. Key factors influencing supplier quality, inventory levels, demand forecasting, order-to-cash, procure-to-pay, transportation management, production planning, and more are becoming known for the first time with the aid of AI in supply chain management. This is making supply chains more efficient and result-oriented. In this article, we have discussed some of the significant benefits of AI in supply chain management for 2019.

Benefits of AI in Supply Chain Management

#1. Helps in analyzing large data sets with maximum accuracy

For supply chain management, one of the most challenging aspects is predicting future demands for production. Before any solution of demand management is implemented, the master data needs to be cleaned up. This process of normalizing and cleaning the data costs more, takes far longer, and requires an ongoing effort. The use of AI in supply chain management can help simplify this process and improve the accuracy of demand forecasting.

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#2. Improves supplier delivery performance

AI in supply chain management helps in improving supplier delivery performance, reducing freight costs, and minimizing supplier risks. These are some of the significant benefits artificial intelligence is providing in collaborative networks of the supply chain. Today, AI in supply chain management can be used to identify horizontal collaboration synergies between multiple networks of shippers.

#3. Provide better insights into improving supply chain management

Artificial intelligence helps uncover new information to improve supply chain performance.  By combining the strengths of supervised learning, unsupervised learning, and reinforcement learrequest proposalning, artificial intelligence is rapidly becoming an effective technology that continually seeks to find important factors affecting the performance of the supply chain.

#4. Helps in maintaining physical assets across the entire network of supply chain

AI in supply chain helps at visual pattern recognition, opening up several potential applications in the maintenance of physical assets and physical inspection across the entire network of the supply chain. The use of AI in supply chain is also proving to be very effective at automating inbound quality inspection throughout logistics hubs, isolating product shipments with wear and damage.


Want to know how you can implement AI in supply chain and yield massive, quantifiable results?

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3 Key Digital Supply Chain Challenges That Need to be Tackled in 2019

Long before the era of digitization that we commonly associate with Industry 4.0, supply chains have served as the lifeblood of industrial organizations. However, in recent decades, supply chains have grown increasingly complex due to the advent of advanced digital technologies. These technologies have helped the supply chain to evolve into something more interconnected, less linear, and more responsive to change. This new networked chain of supply is known as a digital supply chain. It has reshaped the way stakeholders transact and communicate with each other. The emergence of the digital supply chain has made the supply network a strategically critical component of the organization and has helped in making it more flexible and responsive. However, there are several challenges in the area of digital supply chain analytics, visibility, and planning that are essential to realize its true potential when it comes to driving innovation.

Digital Supply Chain Challenges

Challenge #1: Managing the digital supply chain

A digital supply chain includes applications, network, and data connections. It connects customers to the tech solutions that underpin e-commerce, unlike production supply chain that moves physical resources and raw materials among manufacturers, suppliers, and retailers. Therefore, with business transactions moving to the cloud, managing the digital supply chain becomes crucial for increasing revenues, control costs, and protect the brand.

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Challenge #2: Optimizing the integrated planning process

For any digital supply chain network, optimizing the integrated planning process is very challenging as most companies don’t leverage all the information to achieve the best planning result possible. Additionally, it has been observed that statistical forecast data or determined planning is manually overwritten by planners. So, for a digital supply chain to derive the best outcome, the organizational setup, arequest proposaldvanced level of integrated process optimization, processes, governance, and incentives need to be aligned between and within partners in the supply chain.

Challenge #3: Building a balanced roadmap

Shifting to a new market strategy with a digital supply chain network to accelerate growth can wreak havoc on the company’s highly customized supply chain. Therefore, it becomes crucial for the management to make sure that the new supply chain balances their competing demands and allows easy integration of new business models. A balanced roadmap can help in generating quick wins and provide flexibility to accommodate evolving technologies and future capabilities.


Is your organization’s supply chain ready to go digital or are you facing any of these digital supply chain challenges? Contact us now!

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Procurement Technology: Top 4 Ways it is Impacting Supply Chain Functions

The continuous influx of innovation in the field of procurement and sourcing has made supply chain functions simpler by eliminating tiring paperwork and automating complex as well as simple tasks. Procurement technology solutions like e-procurement tools and many others significantly benefit businesses by allowing better visibility, greater productivity, and cost efficiency. Traditional techniques such as category expertise and supplier relationship management are still relevant but the new procurement technology solutions are transforming the way businesses approach supplier negotiation, contract management, category management, and reverse auction. The high degree of granularity achieved through the use of procurement technology enhances business agility, drives continuous process improvement, and supports an operating model that boosts business excellence within procurement and supply chain functions. In this article, we have talked about a few interesting ways in which procurement technology is impacting supply chain functions.

Procurement Technology in Supply Chain Functions

Mobile procurement has made supply chain efficient

We cannot deny the fact that procurement professionals are on the move and demand instant information. This is where procurement technology plays an important role. It empowers them to drive better value and results. With such technology, organizations can streamline their procurement processes and supply chain functions with features like purchase order creation, demand notifications and real-time analytics from a mobile device. Procurement professionals can also request and compare items conveniently, providing them complete visibility on suppliers.

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Digital signatures have secured supply chain functions

Digital signature and certificates make the e-tendering process possible through its capacity to access information of buyers or services online and ensuring security. Digital signatures drive away the lengthy paperwork and allow for contracts to be carried out in lesser time. Additionally, this procurement technology also encourages automatic contracts and eases the request for proposal processes apart from simplifying the order of purchase.Contact US

E-catalogs have improved reliability

Unlike services catalog or traditional product, e-catalogs are interactive and can store huge quantities of items that can be classified and organized into different categories as per requirement. Such a procurement technology can be easily modified and edited on a recurrent basis and help in converting inquiries resulting in significant cost savings. 

Reduced operational costs in supply chain functions

Today, both small and medium business enterprises are migrating to cloud technology to enjoy the benefits of procurement technology solutions without investing much on IT infrastructures. Also, businesses are opting for a Software-as-a-Service (SaaS) model to meet their procurement needs. Such digital procurement platforms provide great value that in-house solutions can never match. Additionally, cloud migration can reduce the overall costs and provide scalability and flexibility to the organization.


SpendEdge offers customized procurement market intelligence solutions to help procurement and sourcing stakeholders make better business decisions. Are you looking for any solution? Request a proposal now!

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4 Reasons Why IoT in Healthcare is the New Trend and its Role in Transforming the Pharmaceutical Supply Chain

Efficiency, convenience, and automation are the three words that define everything the Internet of Things (IoT) stands for. Today, IoT has become a game changer technology that has been creating quite a buzz in almost every industry. But has this technology found acceptance in healthcare? The modest beginning of IoT in healthcare can be traced to the use of smart sensors, remote monitoring, and medical device integration as well as wearable biometric sensors, activity trackers, glucose monitors, smart beds and medication dispensers. Additionally, the use of IoT in healthcare will help mitigate pharmaceutical supply chain entropy, while improving transparency and visibility. The future of healthcare will be exhilarating with more expansion and investment in IoT.  This technology is expected to optimize every aspect of care as well as the pharmaceutical supply chain and transfigure the way it is managed across the continuum. So, let’s understand in detail the reasons why IoT in healthcare is the need of the hour. (more…)

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6 Major Causes of Supply Chain Risk and Ways to Overcome Them

Supply chain risk is an inevitable component of a business, and these risks evolve and become more prevalent with time. In this dynamic scenario, yesteryear’s supply chain risk management strategies often prove to be ineffective. Businesses having a poor grasp of hazards in the supply chain will increase freight spend and diminish the brand value. However, having an idea about the supply chain risk that companies endure in the global market will help reduce their impact. This will also enable shippers to mitigate the likelihood of occurrence and minimize disruptions simultaneously.

Unfavorable weather conditions

Extreme weather is a significant supply chain risk to ocean freight activities. Tropical storms can prove disastrous for ocean carriers. The recent reports on the global climate change indicate tropical storm threat is on the rise. One of the ways in which shippers can avoid such supply chain risk is through re-evaluating ocean route used and determining which carriers can increase shipping in anticipation of tropical storms.

Connectivitysupply chain risk

In the age of modern trade, supply chain risk exists within the connectivity of systems. The integration and modification of systems increase the risk even though systems can be integrated through an open-source software. Furthermore, poorly integrated systems could lead to bottlenecks and disruptions in the supply chain. To stay prepared for such contingencies, companies must create a backup data resource and decentralize the data storage. It is also vital to ensure that the system connectivity is on a secure network. Furthermore, companies must give emphasis to avoid unnecessary modifications, and work with expert supply chain systems’ integrators in order to maximize profitability and efficiency.

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