Tag: supply chain planning

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How Can Companies Achieve Competitive Supply Chain Planning?

With the rise in competition, the need to reduce costs and eliminate inventories has increased for companies. They need to link their production and procurement activities more tightly with the actual demand to sustain themselves in the market. An effective supply chain planning enables companies to keep their production and demand in sync and address customer demands.

Moreover, with collaborative planning in the supply chain, companies can consolidate sales, production, inventory and purchasing information, and become more demand-driven depending upon the real demand. Following such an approach makes companies more responsive by enabling them to perform simultaneous material and capacity planning tasks across multiple facilities and time horizons. Furthermore, it can help them to execute holistic plans, spanning from long-term aggregate planning to short-term detailed schedules.

At SpendEdge, we understand the impact that competitive supply chain planning can have on businesses. Therefore, our team of experts has highlighted a few critical steps that are needed for achieving competitive supply chain planning.

Want to know how an effective supply chain management system can increase the efficacy of your organization? Get in touch with our experts today!

How to achieve competitive supply chain planning?

#1 Move planning closer to demand

Supply chain planning allows companies to shift their planning processes closer to demand by synchronizing production and purchasing activities with the actual demand. This enables companies to increase responsiveness, address changes in the market, and transform themselves into demand-driven organizations. Also, with demand-based supply chain planning, companies can easily decrease inventory levels and improve customer service.

#2 Synchronize supply chain planning with enterprise planning

By synchronizing supply chain planning with the wider business planning process, companies can wisely optimize profitability if in case any unlikely event or situation occurs. They can even deploy sales and operations planning (S&OP) solutions to improve enterprise-wide collaboration.

Wondering how to synchronize supply chain planning activities with enterprise planning?

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#3 Improve demand visibility

Supply chain planning aggregates forecasts and sales orders created by customers and local sales offices and improves visibility into enterprise-wise demand. This allows companies and their management to analyze the kind of demand being generated in the company. This demand can further be adjusted based on the accuracy of the various demand streams.

#4 Create supply chain resilience

Supply chain planning helps companies to plan and react quickly in case of supply chain disruptions.  This increases the profitability of organizations and helps them to recover operational capabilities after the disruption has happened. Also, it helps in better product positioning and helps companies to gain substantial benefits from disruptions.

Still not sure how a potent supply chain can give better results for your organization? Request a free demo below!

 

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4 Supply Chain Planning Challenges Businesses Need to Surpass in 2019| SpendEdge

The recent paradigm shift of modern business management compels individual businesses to compete in terms of supply chains, rather than an autonomous entity. This makes it vital for businesses to integrate the company’s intricate network of business relationships and respond quickly to changing consumer demands and fluctuating market conditions.

It has considerably increased reliance on suppliers and has created the need for organizations to manage supplier relations, information, and contracts effectively. Moreover, organizations require supply chain planning systems to establish a streamlined supply chain planning process that can derive the best value from their spending. Also, a supply chain management system is important to gain 360-degree visibility into their supplier ecosystem. However, there are certain challenges companies face during supply chain planning.

At SpendEdge, we understand that an effective supply chain planning is crucial for almost all industries to run their businesses smoothly. Therefore, in this blog, we are highlighting the key supply chain planning challenges faced by companies.

Interested in running your business without interruptions? Get in touch with our experts and leverage the benefits of an effective supply chain management system for your organization.

Supply chain planning challenges faced by companies

Increasing complexity

Many times, increasing product complexities drive excess costs for companies. Not only this, the amount of stock keeping units (SKUs) increases and hits product cost targets as well. Firms involved in the omnichannel business (multiple-channel distribution) often face this challenge while supply chain planning.

Changing market dynamics

The behavior of consumers depends upon different cultural, social, personal, and psychological factors. It creates pressure on companies to reinvent their products and introduce new products at regular intervals. However, businesses need to ensure that they keep manufacturing costs low as trends don’t last long and the majority of products have short life-cycles. This is a common supply chain planning challenge that makes it imperative for businesses to build strategies that can adapt to fluctuating demands and production needs.

Rising transportation costs

As consumer demands continue to grow, enterprises are compelled to broaden their portfolio to attract the rising number of buyers. Organizations are emphasizing on fast frequent delivery through one way or the other. Companies such as Amazon have turned to the supply chain to employ new technologies. This has further increased pressure for firms to realize the advantages of value chain objectives.

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Procurement

Procurement has always been considered as a medium to save the cost of goods sold but in the new age, procurement plays an integral role in business expansion. It is crucial for supply chain planning and making businesses competitive. Also, procurement experts can play a significant role in the branding of new products and market development after the cost waste and discrepancies have been sorted.

How to achieve competitive supply chain planning?

To succeed in the growing global market and achieve a competitive supply chain planning, companies need a follow these five steps:

  • Move to real-time supply chain planning
  • Integrate supply chain planning with the organization’s planning
  • Predict the demand of customers
  • Leverage real-time data across all points of the supply chain
  • Ensure flexibility to cope with disruptions

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Why Is Supply Chain Services the Need of The Hour for Modern Businesses?

Today, supply chain services have become an integral part of businesses and are vital for the success of any organization. As manufacturers nowadays need to manage multiple product lines, companies with complex supply chains require supply chain services that can simplify the daily operations. Moreover, manufacturers have to manage logistics and address demand across the globe.  With effective supply chain services, companies can integrate functions, improve financial stability and boost customer services.

At SpendEdge, we understand the impact that supply chain services can have on expenditure. That’s why our team of experts has highlighted some relevant key areas that are crucial for businesses to grow and manage financial stability.

Importance of supply chain services 

#1 Streamline flows and integrate functions 

Aligns flow 

Retailers depend on supply chain services that can deliver products to customers on time and avoid holding costly inventories in stores any longer than necessary. With supply chain optimization companies can easily design, manage, and coordinate their supply chains.

If your organization is finding it challenging to streamline functions, get in touch with our experts and know how our supply chain services can help you.

Integrates functions 

Supply chain management system bridges the gap between logistics, purchasing, and operations and ensures that companies focus on goals that can improve their overall performance. Businesses can even employ supply chain services companies for better-customized supply chain solutions.

Predicts demand 

Unlike earlier, demand planning  requires analytical skills and computer modeling. Not every company possess the efficiency to interpret the data and analyze the trends precisely. By outsourcing supply chain consulting and strategies companies can accurately predict market demand.

#2 Enhance monetary position

Improves profitability

Supply chain services help firms to reduce supply chain costs. This can lead to a dramatic increase in the profitability of companies. Also, supply chain services facilitate procurement managers to identify latent saving opportunities and offer cost-effective supply chain consulting and strategies.

Reduces fixed assets 

With proper supply chain services, firms can easily reduce the use of large fixed assets such as depositories, plants and transportation vehicles in the supply chain. They can redesign their network to serve customers in such a way that it can significantly reduce the number of warehouses.

Conducts supplier cost analysis 

Supply chain services enable firms to employ supplier cost analysis (or) price breakdown analysis technique and analyze various components. Furthermore, they aid in procuring the right products and services at the right price levels.

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#3 Boost customer service

Ensures timely delivery

Customer service function is often considered to be the end function of the supply chain, but it is definitely not the end process. It works to meet the needs of the customers and ensures customers receive what they want on-time. Therefore, it becomes imperative for companies to understand customer’s needs. With supply chain services, firms can easily access the skills and knowledge required to meet customer’s needs.

Extends after sale support 

The responsibilities of companies do not just end after the delivery of products. Customers expect products to be serviced at the earliest in case of any discrepancy. This requires companies to have supply chain solutions that can keep up with such demands.

Delivers value to customers 

It is essential  for companies to determine different ways to make purchase decisions easier and deliver value to their customers. For instance, retail companies like Amazon and Walmart are giving steady competition to brick-and-mortar retailers. Therefore, businesses need the help of reliable supply chain consulting firms that can provide them with competent supply chain solutions.

Managing supply chain can become an exhausting task for companies . If you are one of them, request a free demo and let our procurement experts help you.

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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…)

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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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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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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.

For more trends in the digital supply chain, IoT systems, and big data analytics:

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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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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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