Tag: supply chain planning

Supply Chain Planning

Top Five Benefits of Supply Chain Planning | SpendEdge

Continuously changing market conditions and consumer demands have made it vital for businesses to evolve rapidly and be prepared for unforeseen obstacles and circumstances in their supply chains. Today, businesses are under the pressure to develop new products and keep up with the latest trends while minimizing their total manufacturing costs. Without some sort of a comprehensive plan, businesses may fail at order fulfillment, which, in turn, can result in revenue loss.

Reducing life cycle of products demands a flexible supply chain that can be employed for manufacturing other products according to future needs. This requires enterprises to anticipate the demand for upcoming products and improve supply chain performance, making it compulsory for companies to follow the best practices in supply chain planning for better supply chain management.

At SpendEdge, we understand the impact that an effective supply chain planning can have on your business. And to help companies sustain themselves in the marketplace, our team of experts has highlighted five crucial benefits that companies can leverage through supply chain planning. But before we read about the advantages of supply chain planning, let’s know more about it:

What is supply chain planning (SCP)?

Supply chain planning basically refers to the companies’ ability to make accurate forecasts pertaining to their future demands. It is a process which requires companies to balance supply and demand and manage their assets to optimize the delivery of goods and services from suppliers to customers. Supply chain planning (SCP) provides strategic and tactical planning support to help deal with supply, distribution, manufacturing, planning, production scheduling, and forecasting.

Want to develop an agile supply chain that can address the rapidly changing market demands? Get in touch with our experts and know how our supply chain planning solutions can help you.

Top five benefits of supply chain planning

Retain customers

When companies support their supply chain planning with integrated demand forecasting, they are in a position to address spikes in demand. This reduces the chances of stockouts and helps companies fulfill their customers’ demand when they need it the most.  Meeting customers’ demands helps companies to win their loyalty and ensure sustainable profits.

Stay on top of demand

By implementing effective supply chain planning strategies, businesses can forecast the demand for their products. They can accommodate shorter product life cycles, the impact of fluctuating economies and emerging markets, and enhance their supply chain planning systems while responding to changes in demands. 

Reduce overhead costs

New businesses usually lack the competency and market knowledge required to reduce the prices of their products without affecting the overall operation in a drastic manner. With effective supply chain planning, companies can reduce costs in the production process without compromising the quality and price of the final product.

Increased production costs can affect the overall costs of products drastically. Request a free a proposal and know how an effective supply chain strategy can reduce the overhead cost for your organization.

Minimize delays

Many supply chains are plagued by delays due to some or the other reason. They constantly struggle with late shipments from vendors, issues on production lines, and logistical errors that affect their supply chain management system. Effective supply chain planning help companies avoid all such issues down the line.

Optimal shipping options

As new ecommerce companies continue to flourish, buyers have plenty of options to purchase products. In such a scenario, companies need an effective shipping plan to meet the demands of the marketplace. They need to ship products in a quick and efficient manner to ensure the success of their business. With the help of an efficient supply chain, businesses can determine the best way to ship their products and reduce costs at the same time. (more…)

Supply chain risk

Battling Supply Chain Risk in Five Simple Ways

Supply chain risk definition

Risk refers to the probability of any undesired event caused due to external or internal vulnerabilities which can be avoided by using preventive actions. Supply chain risk includes any type of risk that is associated with a company’s supply chain. These risks may be anything ranging from natural calamity in a region that the organization procures raw material for production activities to transportation strike due to which finished goods cannot be supplied to the market. Supply chain risk is the deviation from the expected or standard performance of these functions. Including demand planning, sourcing, production, supply planning, transportation, and reverse logistics.

What is supply chain risk management?

Supply chain risk management refers to an organization’s coordinated efforts to identify, monitor, detect, and mitigate any threats to supply chain that can consequently affect the company’s continuity and profitability. Cost volatility, supplier financial issues and failures, material shortages, and natural and manmade disasters are some of the primary examples of supply chain risk. Global supply chain leaders use supply chain risk mitigation strategies and software in order to foresee potential issues and adapt to these risks and unforeseeable supply chain risk as quickly and efficiently as possible.

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supply chain planning

4 Simple Ways to Master Supply Chain Planning

The economic volatility that occurred a decade back resulted not only in the global economic recession but also in the instability of consumer demand and rapid changes in raw material, fuel, and commodity prices. Due to this, supply chain executives were under constant pressure to formulate more customer-centric and efficient supply chains while identifying innovative ways to reduce costs and promote growth. Supply chain planning is integral to the success of any business. For companies, ensuring that supply and demand planning is on track is vital. Making constant improvements in supply chain techniques and processes are vital to achieving this. There are numerous ways for businesses to do this. And if followed correctly, it might surprise you that supply chaiRequest Demo_SEn planning is much simpler than you think. Keep a track of these four aspects to step up your supply chain planning process:

Focus on customer needs 

Having a clear-cut demand planning strategy is essential for companies to ensure that they are there are no gaps in meeting the customers’ demand. A common mistake made by manufacturers is believing that the only thing they need to be concerned with is getting their products to the retailers. Ideally, manufacturers must pay more heed to improve the quality of the product, taking into consideration the end consumers. A proper demand planning strategy ultimately results in a good supply chain planning process. This is because it helps manufacturers understand what customers want and how much inventory of one product is needed over another.

Data accuracy 

Most of the supply chain planning process relies heavily on the historical data that has been collected during a particular period. If companies aren’t focused on right data, they would have a hard time trying to make improvements, especially in activities like demand planning. Also, the data collected must be easy to understand and use. This would help in a quicker- decision making and implementation process.

For a visual explanation of supply chain planning and optimization, check out this video on YouTube: 

Clear communication 

Good communication skills are crucial for the smooth flow of operations, avoiding delays, and eliminating mistakes. This also holds true for an efficient supply chain planning.  Communication among all parts of the company in question is vital to the overall success of the supply chain. Businesses must make use of computer software and equipment that can communicate with different portions of the business. This will allow for communication that is fast and efficient, which cuts down on lag time between when one department finishes a portion of the chain and another begins one. It also helps the top management to quickly find and eliminate issues that may slow down the progress a product makes through the chain.

Track results 

Several tools and technologies are available today that helps companies in demand planning and also track their supply chain planning process. It is always better for companies to opt for a mix of both mobile and traditional technologies. Mobile technologies help executives with their supply chain planning attempts on the go. This will help minimize errors and issues are addressed in a timely manner. Employees should be able to tack their efforts to identify gaps in a timely fashion and rectify it before it gets too late.


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AI in Supply Chain

What does the Future of Digital Supply Chain Look Like?

Digitalization has been the talk of the town in any business function ranging from marketing, finance, operations to procurement and supply chain. Industry 4.0 has been the most significant driver for digitalization in organizations that augment the management’s capabilities to improve efficiency and productivity. Industry 4.0 incorporates various game-changing technologies ranging from Internet of Things (IoT), cloud-based systems, and data analytics. The advent of such technologies has changed the way how supply chain and logistics department functions. It has also contributed to saving time for operations professionals by automating mundane tasks. The future looks bright for supply chain digitalization with ideas from the automated warehouse and robotics to drone delivery looming around. So how is technology unfolding in the area of digital supply chain and what trends are set to gain traction in theSE_Demo2 coming years?

Network-focused visibility

Traditionally, procurement and supply chain information existed in silos and managers from one department had less transparency of other departments. The digital supply chain will be marked by the ability to understand activities and events of multiple players. Digital supply chains will augment to such a level that transparency will increase not only for internal stakeholders but also for external supply chain partners. One day, the technology will advance to enable global trading network or global commerce hubs.

Advanced analytics

A typical supply chain generates a huge amount of data, and with so much data available, advanced analytics seems to be the perfect candidate for in-depth analysis. The advancement in data storage and processing technologies has enabled companies to crunch mountains of data within minutes and not months. The power of such advanced analytics can be utilized in areas such as making buying decisions, inventory planning, supplier network optimization, and supplier collaboration. It will significantly help companies in improving productivity and reducing the cost.

AI and robotic automation

The world of the supply chain may see personal assistant such as Alexa and Siri on the consumer-facing side. Such an AI personal assistant will be able to give instant information into the company’s supply chain and help managers track the progress of their operations. Additionally, AI and automation systems can enhance workforce productivity by performing repetitive tasks such as supplier on-boarding, assisting with invoice compliance, and processing help-desk orders. Such automated digital supply chain will shorten lead times, eliminate errors, and improves stakeholder experiences.

Cloud TMS

Transportation management system (TMS) is one of the crucial parts of any logistics network. Cloud TMS can provide remote monitoring to logistics professionals and the ability to track progress along the supply chain. Cloud TMS also eliminates the troubles of on-premise deployment and breaks silos to create an interconnected network of 3PL providers, carriers, and matching providers. Cloud TMS has the ability to develop into a central marketplace which offers a connection to all stakeholders in a supply chain.

Mobile robotics

Apart from technologies like IoT and data analytics, which evolves from the software part, technologies like mobile robotics can also significantly improve workforce productivity. It will allow warehouses to reduce labor requirements and help DCs keep pace with the current e-commerce growth. The use of mobile robotics may not be limited to material handling but also in automated guided vehicles (AGVs). Mobile robotics/smart AGVs that can carry or pull materials to workstations, or function as smart, driverless lift trucks which would alleviate the manpower needs at the DC level, and allow for DC automation which is quicker to install and reconfigure.

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AI in Supply Chain

5 Interesting Ways in Which AI can Enhance Your Supply Chain

artificial intelligence

Artificial intelligence is gradually gaining a foothold as a mainstream technology in most industries. So, what is this technology all about? Artificial Intelligence is the intelligence displayed by machines, in which, learning and action-based capabilities mimic autonomy rather than process-oriented intelligence. Ideally, AI can be broken down into two categories- Augmentation (which assists humans with their day-to-day tasks) and Automation (which works completely autonomously in any field without the need for any human intervention). Understanding these categories of AI capacities is essential for the future implementation of artificial intelligence into business work tools. The application of AI into supply chain related-tasks holds high potential for boosting top-line and bottom-line value. Here are some interesting ways that artificial intelligence can help enhance your supply chain:SE_Demo2

Operational procurement

To streamline procurement and related tasks through automation and augmentation with the help of chatbots, there is a need for robust and intelligent data sets which the procurement bot would be able to access as a reference. Chatbots are a form of artificial intelligence that can be used for functions like speaking to suppliers, place purchasing requests, and also to set and send actions to suppliers regarding governance and compliance materials. With the help of these automated functions in the supply chain, a company can increase their focus on other vital areas.

Supply chain planning

For any business, supply chain planning forms a crucial aspect of the supply chain strategy. Machine learning coupled with supply chain planning could help companies in forecasting within inventory, demand, and supply. Machine learning also has the ability to revolutionize the agility and optimize supply chain decision-making. With the help of machine learning, supply chain managers can deliver the best possible outcomes based on intelligent algorithms and machine-to-machine analysis of big data sets.

Warehouse management

Supply chain planning is heavily reliant on proper warehouse and inventory-based management. One of the main problems most businesses face regarding warehousing is understocking or overstocking. Machine learning algorithms and data streams have precise predictive power to forecast the supply and demand. With this mechanism, issues pertaining to the shortage or excess stock can be avoided.

Logistics and shipping

The rising demand for on-time delivery is putting pressure on companies to improve the efficiency of their shipping and logistics facilities. Efficiency in shipping and logistics is a win-win situation for both the company and its customers. Faster and more accurate shipping reduces lead times and transportation expenses, adds elements of environmental friendly operations, and reduces labor costs.

 Supplier selection

Choosing the right supplier and maintaining a good professional relationship with them is a crucial task for businesses. Also, sourcing from the right suppliers is an increasing concern for enhancing supply chain sustainability, CSR, and supply chain ethics. A single slip-up in this operation could lead to bad PR and negative publicity for a company. With the help of machine learning and intelligent algorithms, firms can get active real-time data about their suppliers. This will help them in better choosing the best supplier from the lot with minimum errors of judgment.


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Electric Motor

Top Trends in the Electric Motors Market

Electric motors power nearly every electrical devices in the world, and it would be an incredibly difficult task to get through our day without using one. Electric motors are mechanical devices that convert electrical energy into mechanical energy through the process of electromagnetism in the stator and rotor windings. Recent advancements in technology have even made it possible for motors to be as small as a nanometer consisting of a single molecule. The electric motor finds applications across multiple industries including automobile, energy, manufacturing, HVAC, consumer appliance, and industrial automation. Amongst these, the automotive industry is expected to drastically drive the demand in the global electric motor market due to the increased production of electric vehicles. (SpendEdge – Procurement Market Intelligence Report)

Request Free SampleTrends in the Electric Motor Market

Energy efficient electric motor

The demand for energy-efficient motors from end-user industries such as power and energy, automobile, and others has been strong. However, they are demanding energy-efficient electric motors to reduce their energy costs. Additionally, such engines also reduce the carbon emission, which helps companies to meet their sustainability goals. Also, some governments have imposed strict regulations that will increase the demand for energy-efficient electric motors in the future.

Rise in prices

The increase in global steel prices is expected to increase the price of electric motors by 15%-20% by 2022. Such changes will affect the prices of motors related to efficiency standards such as IE2 and IE3. Though the price of energy-efficient electric motors might increase, buyers can reduce their energy costs.

Customized electric motor

The supply market of electric motors is highly fragmented due to the presence of several regional and global suppliers, which intensifies competition. To increase competitiveness, suppliers are customizing their electric motors to differentiate their products and provide products according to the needs of buyers. Consequently, buyers require customized products to avoid compatibility issues such as load efficiency.

Increased production of high power-to-weight ratio motors

Industrial buyers form the automobile, electronic device, and aircraft sector are focused on reducing the overall weight of their product without compromising on functionality and power. As a result, they demand motors with high power-to-weight ratio. For instance, in aircraft manufacturing, the use of electrical drives in aircraft up to 2.20 ton had a limitation in take-off weight because of the high weight of the electric motor. This issue can be addressed by the use of a high power-to-weight ratio electric motors

Read more about the emerging trends in the electric motors market along with supply market insights, procurement challenges, sourcing insights, and key suppliers in SpendEdge’s upcoming report on the global electric motors market.

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Supply Chain Planning

AI Technology – Redefining the Wheel in Supply Chain Planning

Each decade we are blessed with technology that can transform the way the world operates ranging from the wheel, electricity, telecommunications, and internet, to smartphones. Artificial intelligence (AI) can be touted as the next big thing along the line which can simulate human thinking process and which enables the machine to process large data sets and provide accurate decision-outcome. A majority of the companies believe AI to be the next step in the industrial revolution which has a huge potential for complete automation with minimal errors. Businesses have realized the power of AI in improving their efficiency and profitability, as a result of which they have started using AI in the field of robotics by automating tasks from production to delivery. However, businesses are exploring ways to leverage AI into their supply chain planning process including demand forecasting, production planning, and logistics planning.

Here are some ways AI can improve the efficiency of supply chain planning:SE_Demo2

Streamlined Process in Supply Chain Planning
The businesses relying on mechanical ways of handling their supply chain planning process are facing consequences of a tedious distribution management systems that handles multiple operations prone to human error. The process of manually identifying stock levels, estimating optimal replenishment cycle, and fulfilling orders are highly erroneous and inaccurate. AI systems would be able to scan through colossal amounts of historical data to streamline every aspect of supply chain planning from demand to inventory to supply.

Handle Supply Chain Disruptions
Supply chain professionals are humans after all, and humans tend to stick to things that are familiar to them. On the contrary, AI would not be bogged down with any pre-conceived notion, and act purely on the basis of data available to them and past-outcomes of decisions. For instance, IBM recently launched Watson Supply Chain, which considers infinite sources of information including social media, weather forecasts, historical data, and newsfeeds, and uses cognitive technology to track and predict supply chain disruptions to suggest the best course of action.

Logistics Optimization
Apart from forecasting and scheduling functions of supply chain planning, companies are looking to incorporate AI into technologies such as driverless cars to optimize the process of logistics planning. The advent of autonomous vehicles could significantly improve accuracy, decrease lead times, reduce transportation costs, and save human labor costs. For instance, AI technology of TransVoyant is able to collect data from satellites, radars, sensors, and smartphones to track real-time movement of goods and estimate the time of arrival by factoring in weather conditions, port congestion, and natural disasters.

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Pollution in China

How Pollution in China is Forcing Companies to Clean up Their Supply Chain Management Process

It’s no big secret that every manufacturing giant is looking at the Chinese market to procure and source their products. This may seem all good for China, due to its strong economic development, but many people fail to see the downside of what seems like a win-win situation. The increase in industrialization comes at the cost of serious pollution issues – with ambient air pollution alone killing hundreds and thousands of citizens. In a bid to address this issue, the Chinese government is taking critical steps by ordering pollutingSE_Demo2 factories to close and shutting down their power supply. Also, last year, China announced that it would cut down on its steel and coal output, which can lead to a possible economic turmoil. So, what does China’s pursuit of ‘Blue Sky’ signal to the supply chain management of manufacturing giants?

Disruption in Supply Chain Management

Supposing you are relying on one supplier in Guangzhou to deliver the products in time for the holiday season, and then you get to know that the supplier has suspended operations, a scenario which can completely wreck your supply chain management process. Turning towards alternate suppliers to manufacture the product in time will not only drive up the product cost but also freight and cargo cost; thereby, compromising on profitability. Companies would have to look for alternative options or even source locally and possibly redesign their supply chain management process.

Damaging Brand Reputation

The increasing pollution levels in China has forced brands to maintain compliance, as failure to do so not only leads to negative PR but also damages the brand reputation. Companies losing millions in revenues and brand values because of negative press is not a new thing. Consequently, it forces the brands to alter their supply chain management practices to align with standards that comply with local laws. This process usually increases the overheads, in turn, lowering their net margin.

Supplier Search

China’s recent government crackdown on pollution has led to the shutdown of tens and thousands of Chinese factories. As a result, manufacturers that comply with EPA laws are facing demands bigger than their capacity – prompting the brands to look elsewhere. Companies will have to go through a great deal of supply chain planning to consider alternative locations such as Vietnam, Thailand, or India. Even though an optimal location can be identified, it would be difficult to match China’s well-established manufacturing network.

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