Tag: supply chain challenges

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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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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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