Event & News
Raising the Profile & Importance of the Supply Chain Manager
Supply chain management has become a much more important business function in all companies since the pandemic began in February 2020. Let’s frame the issues which have made this executive and management change occur.
The Covid-19 pandemic has been devastating to the performance of both domestic and global supply chains. The disruption, uncertainty, cost escalations, and delays which began in March 2020, continue into the fall of 2021.
The crisis caused by a disturbing and unanticipated imbalance between demand and supply in all world markets has resulted in unprecedented challenges facing all managers and operations personnel engaged in the supply chain, procurement, manufacturing, warehousing, logistics, transportation, customer service, import/export, and sales. The challenges and their impact extend to all the support functions to supply chains: service providers, freight forwarders, carriers, 3PL’s, technology providers, consolidators, and distributors.
While the supply chain has generally had a “subordinated” posture in most companies, the Pandemic has now elevated this area of responsibility because the consequences of poor performance and failure are so impactful in the success of a business’s margin, profit, growth, and sustainability.
The importance of this area runs equally now to the importance of the supply chain manager, who may be known under the various “Titles” in the organization. Supply Chain, Procurement, Logistics, Warehousing & Distribution, Manufacturing, Materials Management, Demand Planning, etc. The disruption has impacted every company, executive, and business vertical. And we must also acknowledge the consequences to people and their families.
The impact to supply chains has moved up the ladder in every company all the way to the CEO, The Board, and the Shareholders. Supply Chain Managers and their colleagues have been forced due to the disorder in their business models, to work harder, work smarter and ultimately bring resources, experiences, and capabilities to the benefit of the disruptive impacts of the Pandemic. Supply Chain Managers have been now tested in areas as never seen previously. Most companies, over time, have seen physical, weather-related geopolitical events impact their supply chains. Negative events happen all the time.
With all these concerns having been identified as the “new reality” the good news is that many organizations’ talents, particularly in supply chain functions are finding ways to meet these challenges and maintaining their company’s business models to a necessary extent of successful operations.
The new roles and responsibilities of The Pandemic Supply Chain Manager require them to “think-out-of-the-box” and create approaches that were never thought of or utilized previously.
Supply Chain Managers have become “Frontline Heroes” in the face of this Pandemic and deserve much credit and recognition for keeping supply chains functioning in the face of all these challenges. This has and will continue to “raise the profile & importance” of Supply Chain Management in all companies’ business models. Additionally, senior management is recognizing their value to the organization, which has been a long-time coming.
Source: https://www.globaltrademag.com/spotlight-on-supply-chain-management-raising-the-profile-importance-of-the-supply-chain-manager/
Read MoreThe Covid-19 pandemic has been devastating to the performance of both domestic and global supply chains. The disruption, uncertainty, cost escalations, and delays which began in March 2020, continue into the fall of 2021.
The crisis caused by a disturbing and unanticipated imbalance between demand and supply in all world markets has resulted in unprecedented challenges facing all managers and operations personnel engaged in the supply chain, procurement, manufacturing, warehousing, logistics, transportation, customer service, import/export, and sales. The challenges and their impact extend to all the support functions to supply chains: service providers, freight forwarders, carriers, 3PL’s, technology providers, consolidators, and distributors.
While the supply chain has generally had a “subordinated” posture in most companies, the Pandemic has now elevated this area of responsibility because the consequences of poor performance and failure are so impactful in the success of a business’s margin, profit, growth, and sustainability.
The importance of this area runs equally now to the importance of the supply chain manager, who may be known under the various “Titles” in the organization. Supply Chain, Procurement, Logistics, Warehousing & Distribution, Manufacturing, Materials Management, Demand Planning, etc. The disruption has impacted every company, executive, and business vertical. And we must also acknowledge the consequences to people and their families.
The impact to supply chains has moved up the ladder in every company all the way to the CEO, The Board, and the Shareholders. Supply Chain Managers and their colleagues have been forced due to the disorder in their business models, to work harder, work smarter and ultimately bring resources, experiences, and capabilities to the benefit of the disruptive impacts of the Pandemic. Supply Chain Managers have been now tested in areas as never seen previously. Most companies, over time, have seen physical, weather-related geopolitical events impact their supply chains. Negative events happen all the time.
With all these concerns having been identified as the “new reality” the good news is that many organizations’ talents, particularly in supply chain functions are finding ways to meet these challenges and maintaining their company’s business models to a necessary extent of successful operations.
The new roles and responsibilities of The Pandemic Supply Chain Manager require them to “think-out-of-the-box” and create approaches that were never thought of or utilized previously.
Supply Chain Managers have become “Frontline Heroes” in the face of this Pandemic and deserve much credit and recognition for keeping supply chains functioning in the face of all these challenges. This has and will continue to “raise the profile & importance” of Supply Chain Management in all companies’ business models. Additionally, senior management is recognizing their value to the organization, which has been a long-time coming.
Source: https://www.globaltrademag.com/spotlight-on-supply-chain-management-raising-the-profile-importance-of-the-supply-chain-manager/
How SMEs can make better procurement decisions
Most SMEs today either use a hodge-podge of small-business tools to manage the flow of goods and materials from procurement to delivery and payment, or they outsource the management of their supply chains to third parties, which comes with its own set of limitations.
Many SMEs have the opportunity to take that process one step further by adopting a “procure-to-pay” approach to supply-chain management that integrates procurement with accounts payable. For product companies with an eye on achieving terminal velocity, procure-to-pay tools are often the launch pad.
There are wide-ranging benefits to adopting procure-to-pay solutions: visibility, business connectivity, enhanced demand planning and revenue forecasting. Each of those outcomes can ultimately be reduced to the most basic of supply chain functions: buying and paying for parts and materials.
In a perfect supply chain, you only have to order the exact amount of parts or components you need. All of those parts arrive on time, in full, at the quality you need in the right geographical location.
That, of course, rarely happens. Purchase orders change constantly, components aren’t delivered on time or have poor quality. This is a critical first-mile problem that directly affects your ability to meet customer commitments and demand. One component can mean the difference between shipping a customer’s order on time or holding onto it for weeks on end, which is why many SMEs often fall into the trap of overbuying to compensate.
In a connected supply chain, buyers are integrated directly with suppliers, allowing both to adapt and collaborate in real time on order adjustments, delivery timelines and other changes. With more visibility for those changes, SMEs can make better procurement decisions that still give them the flexibility to adapt, but not at the expense of profitability.
Source: https://www.entrepreneur.com/article/385203
Read MoreMany SMEs have the opportunity to take that process one step further by adopting a “procure-to-pay” approach to supply-chain management that integrates procurement with accounts payable. For product companies with an eye on achieving terminal velocity, procure-to-pay tools are often the launch pad.
There are wide-ranging benefits to adopting procure-to-pay solutions: visibility, business connectivity, enhanced demand planning and revenue forecasting. Each of those outcomes can ultimately be reduced to the most basic of supply chain functions: buying and paying for parts and materials.
In a perfect supply chain, you only have to order the exact amount of parts or components you need. All of those parts arrive on time, in full, at the quality you need in the right geographical location.
That, of course, rarely happens. Purchase orders change constantly, components aren’t delivered on time or have poor quality. This is a critical first-mile problem that directly affects your ability to meet customer commitments and demand. One component can mean the difference between shipping a customer’s order on time or holding onto it for weeks on end, which is why many SMEs often fall into the trap of overbuying to compensate.
In a connected supply chain, buyers are integrated directly with suppliers, allowing both to adapt and collaborate in real time on order adjustments, delivery timelines and other changes. With more visibility for those changes, SMEs can make better procurement decisions that still give them the flexibility to adapt, but not at the expense of profitability.
Source: https://www.entrepreneur.com/article/385203
Logistics is a mobile industry
Perhaps more than any other industry, transportation logistics is, quite literally, an industry in motion. Truckload freight alone accounts for more than 175 billion miles of movement over the road in the U.S. every year. The entire market for transportation management software (TMS) focuses on managing the movement of freight from inbound materials into manufacturing and production facilities, to outbound distribution to points of sale and final mile deliveries.
Aging tracking tech like electronic data interchange (EDI) using in-cab telematics is being rendered obsolete by the omnipresence of mobile phones and wireless technologies. Asset tracking and management, driver and equipment management, scheduling, fuel card management, mapping and mileage calculations, routing and dispatching processes and many other logistics tech solutions are now being delivered via mobile apps on wireless devices.
Logistics users of all persuasions — from supply chain executives to transportation planners/dispatchers and even some truck drivers themselves — have hailed the benefits of having logistics information delivered to and from their handheld devices.
Digitization can’t be realized without a mobile component. The power and promise of data aggregation are compelling organizations of all sizes to focus on digitizing their operational activity. After all, any segment of the supply chain still managed using paper-based systems stands as an obstacle to gaining end-to-end visibility and performing analysis of the upstream and downstream impacts of logistics plans. In short, either the entire end-to-end logistics function is digitized, or the benefit of digitization may not be fully realized.
Digitization is already being realized across the information systems in the back offices of carrier operations and the procurement and sales operations of shippers. Digital integrations between accounting platforms, enterprise resource planning (ERP)/order management systems, TMS, warehouse management systems (WMS), and other enterprise software see to it that data is organized, normalized and passed back and forth between these applications with increasing efficiency. This data accessibility powers increased automation levels and dramatically improved planning and execution. Yet, it is where the literal rubber meets the actual road in supply chain logistics — with drivers moving freight — that mobile tech is making the largest transformative impact.
Critical logistics documentation — like bill of lading (BOL) and proof of delivery (POD) documents — is still largely passed back and forth between drivers and consignees on paper. This not only leaves a significant digital blind spot in the process but also slows it down, requiring the paper data to be manually entered into the information systems when the driver returns. One shipper summed it up perfectly at Ignite during a panel discussion on innovation remarking, “Contactless BOLs close the loop for our digitization initiative. Before this, our entire data flow was digital except the BOLs and PODs which still required manual processing with all the delay and potential for errors that came with it. Now we’re fully digital end-to-end.”
Emerging paperless shipping documentation tech tools are closing this last remaining gap in end-to-end digitization using mobile tech. Using wireless devices, drivers at pickup and delivery locations can log pickups and deliveries digitally and in real-time, completely closing the loop on supply chain data.
The mobile apps being provided to drivers also increase speed and accuracy to the claims process, enabling photos of damaged or missing freight to instantly append claims reports. The same mobile apps provided to drivers accelerate settlement, driver pay, hours of service compliance and a host of other critical concerns. The data captured and shared via the application of mobile technologies accelerates supply chain throughput and increases operational efficiency.
Source: https://www.supplychainbrain.com/blogs/1-think-tank/post/33812-four-ways-mobile-apps-are-advancing-logistics
Read MoreAging tracking tech like electronic data interchange (EDI) using in-cab telematics is being rendered obsolete by the omnipresence of mobile phones and wireless technologies. Asset tracking and management, driver and equipment management, scheduling, fuel card management, mapping and mileage calculations, routing and dispatching processes and many other logistics tech solutions are now being delivered via mobile apps on wireless devices.
Logistics users of all persuasions — from supply chain executives to transportation planners/dispatchers and even some truck drivers themselves — have hailed the benefits of having logistics information delivered to and from their handheld devices.
Digitization can’t be realized without a mobile component. The power and promise of data aggregation are compelling organizations of all sizes to focus on digitizing their operational activity. After all, any segment of the supply chain still managed using paper-based systems stands as an obstacle to gaining end-to-end visibility and performing analysis of the upstream and downstream impacts of logistics plans. In short, either the entire end-to-end logistics function is digitized, or the benefit of digitization may not be fully realized.
Digitization is already being realized across the information systems in the back offices of carrier operations and the procurement and sales operations of shippers. Digital integrations between accounting platforms, enterprise resource planning (ERP)/order management systems, TMS, warehouse management systems (WMS), and other enterprise software see to it that data is organized, normalized and passed back and forth between these applications with increasing efficiency. This data accessibility powers increased automation levels and dramatically improved planning and execution. Yet, it is where the literal rubber meets the actual road in supply chain logistics — with drivers moving freight — that mobile tech is making the largest transformative impact.
Critical logistics documentation — like bill of lading (BOL) and proof of delivery (POD) documents — is still largely passed back and forth between drivers and consignees on paper. This not only leaves a significant digital blind spot in the process but also slows it down, requiring the paper data to be manually entered into the information systems when the driver returns. One shipper summed it up perfectly at Ignite during a panel discussion on innovation remarking, “Contactless BOLs close the loop for our digitization initiative. Before this, our entire data flow was digital except the BOLs and PODs which still required manual processing with all the delay and potential for errors that came with it. Now we’re fully digital end-to-end.”
Emerging paperless shipping documentation tech tools are closing this last remaining gap in end-to-end digitization using mobile tech. Using wireless devices, drivers at pickup and delivery locations can log pickups and deliveries digitally and in real-time, completely closing the loop on supply chain data.
The mobile apps being provided to drivers also increase speed and accuracy to the claims process, enabling photos of damaged or missing freight to instantly append claims reports. The same mobile apps provided to drivers accelerate settlement, driver pay, hours of service compliance and a host of other critical concerns. The data captured and shared via the application of mobile technologies accelerates supply chain throughput and increases operational efficiency.
Source: https://www.supplychainbrain.com/blogs/1-think-tank/post/33812-four-ways-mobile-apps-are-advancing-logistics
Are you looking for ways to reduce your logistics costs?
Any logistics business wants to reduce their supply chain costs and efficiently manage their operation while keeping their customers happy.
High customer demands have become the norm, which makes keeping up with these demands while still keeping costs low a difficult problem to overcome. Some of the costs you may incur are delayed delivery and transportation costs, fuel costs and international shipping fees.
Sound familiar? Are you looking for ways to reduce your logistics costs? The following are some strategies you should start to implement:
1. Dash Cams
Providing your fleet with dash cams will save you money. Not only do they allow you to monitor your driver’s behavior, which will prevent fines, but they will also increase efficiency and customer satisfaction. Drivers can also be better trained through real time footage, which will increase their skill levels, leading to quicker delivery times and a reduction in operational costs;
2. Consolidate Shipments
When shipping goods, you have to decide whether you want a full container load or less than a full container load. It is desirable to have a full container load of goods that are going to the same destination. This increases efficiency and also removes the need for several shipments to be sent to one location. A single shipment is also less likely to get lost. If you cannot fill a single container load, you could look to connect with other local businesses that are sending goods to the same destination and combine your loads;
3. Minimize Travel Times
Minimizing travel times means assessing where your customer base is located in relation to your own business. If it is the case that most of your shipments are to somewhere that is a long distance from you, then it is worth considering outsourcing warehousing and fulfillment. This way, you will not need to send as many single shipments and consolidate your load into one, allowing the local fulfillment center to provide delivery. This will dramatically reduce your costs while also saving time and increase efficiency;
4. Informed Decision Making
Whatever steps you take to reduce your costs, they ultimately rely on you making informed decisions. The best analytical tools available should be used to give you data that can be used to evaluate which areas can be improved and where costs can be reduced through more efficient methods. Transport management systems or warehouse management systems are available to provide this information to you so utilize them at every opportunity possible.
Source:
https://signalscv.com/2021/09/strategies-for-reducing-logistics-and-supply-chain-costs/
Read MoreHigh customer demands have become the norm, which makes keeping up with these demands while still keeping costs low a difficult problem to overcome. Some of the costs you may incur are delayed delivery and transportation costs, fuel costs and international shipping fees.
Sound familiar? Are you looking for ways to reduce your logistics costs? The following are some strategies you should start to implement:
1. Dash Cams
Providing your fleet with dash cams will save you money. Not only do they allow you to monitor your driver’s behavior, which will prevent fines, but they will also increase efficiency and customer satisfaction. Drivers can also be better trained through real time footage, which will increase their skill levels, leading to quicker delivery times and a reduction in operational costs;
2. Consolidate Shipments
When shipping goods, you have to decide whether you want a full container load or less than a full container load. It is desirable to have a full container load of goods that are going to the same destination. This increases efficiency and also removes the need for several shipments to be sent to one location. A single shipment is also less likely to get lost. If you cannot fill a single container load, you could look to connect with other local businesses that are sending goods to the same destination and combine your loads;
3. Minimize Travel Times
Minimizing travel times means assessing where your customer base is located in relation to your own business. If it is the case that most of your shipments are to somewhere that is a long distance from you, then it is worth considering outsourcing warehousing and fulfillment. This way, you will not need to send as many single shipments and consolidate your load into one, allowing the local fulfillment center to provide delivery. This will dramatically reduce your costs while also saving time and increase efficiency;
4. Informed Decision Making
Whatever steps you take to reduce your costs, they ultimately rely on you making informed decisions. The best analytical tools available should be used to give you data that can be used to evaluate which areas can be improved and where costs can be reduced through more efficient methods. Transport management systems or warehouse management systems are available to provide this information to you so utilize them at every opportunity possible.
Source:
https://signalscv.com/2021/09/strategies-for-reducing-logistics-and-supply-chain-costs/
Logistics Field Coaching
Field logistics operations coaching is one of the most important tools for the continuing development of your logistics operations team. Although face to face team coaching and one-on-one coaching in the office and coaching during weekly operations team meetings are important, nothing is more effective at picking up strengths (to support) and areas for development (to coach) in field logistics representatives than spending time with them in the field on a routine basis.
Read MoreYoung Professionals Say Supply Chain is a Good Career Choice
The supply chain field is a good career choice, according to nearly all respondents (99%) in a new survey. The report, released Tuesday during the Council of Supply Chain Management Professionals (CSCMP) annual conference, collected responses from hundreds of supply chain professionals aged 30 and younger. Ninety-five percent of respondents say they’re excited to have a career in the supply chain field, and 97% would recommend others consider supply chain as a career.
This year, 58% of respondents said they chose to pursue a supply chain career due to the impact supply chain roles have in business and their tangible impact on outcomes. This is a significant increase from the 13% who cited this reason in 2019 and the 10% who noted it in 2017. The number of respondents entering the industry due to first-hand exposure, 38%, also increased over previous studies.
Young supply chain professionals said they are eager to continue their education on the job, and 95% of respondents expressed excitement for their development track and training opportunities. Young professionals generally remain satisfied with the compensation they receive, with 86% saying they earn enough to live on, 75% saying they are comfortable, and 48% saying they are well paid.
Overall, respondents reported that they are happy with their current employers, and they said they are staying at their current employer due to the work environment-culture or co-workers (60%), development opportunities (60%), and the salary and benefits (53%).
Source: https://www.supplychainbrain.com/articles/33786-young-professionals-say-supply-chain-is-a-good-career-choice
Read MoreThis year, 58% of respondents said they chose to pursue a supply chain career due to the impact supply chain roles have in business and their tangible impact on outcomes. This is a significant increase from the 13% who cited this reason in 2019 and the 10% who noted it in 2017. The number of respondents entering the industry due to first-hand exposure, 38%, also increased over previous studies.
Young supply chain professionals said they are eager to continue their education on the job, and 95% of respondents expressed excitement for their development track and training opportunities. Young professionals generally remain satisfied with the compensation they receive, with 86% saying they earn enough to live on, 75% saying they are comfortable, and 48% saying they are well paid.
Overall, respondents reported that they are happy with their current employers, and they said they are staying at their current employer due to the work environment-culture or co-workers (60%), development opportunities (60%), and the salary and benefits (53%).
Source: https://www.supplychainbrain.com/articles/33786-young-professionals-say-supply-chain-is-a-good-career-choice
10 questions to ask to find the best reverse logistics provider and to maximize profits from your sales channels
Reverse logistics refers to the transfer of products back up the supply chain from the customer to the supplier. It includes customer returns from retail sales, as well as the return of products and components to the distributor or manufacturer.
The growth of online shopping has seen the rate of retail returns climb to as much as 40% of sales. If product returns from your customers are costing your company time and money, have you considered outsourcing your returns management to a third-party provider? Or have you had an unsatisfactory experience with a provider in the past?
Some companies handle their own reverse logistics needs. But others choose to outsource reverse logistics to a third-party service provider. A third-party service that specializes in returns management will use the latest technologies to manage every stage of the returns life cycle. That will free up your resources to focus on increasing your sales.
A good reverse logistics provider will help you to:
• Elevate your customer experience
• Maximize returns value
• Protect brand integrity
• Reduce operational costs
• Minimize waste
To find the best reverse logistics provider for your business, you need to ask the right questions. Let’s look at 10 questions that will help you narrow down your options in the selection process:
1. Have You Worked With Similar Businesses in the Past?
2. Do You Have Product Restrictions?
3. How Extensive Is Your Warehouse Network?
4. Do You Offer Systems Integration?
5. How Fast Can You Process Returns?
6. How Is Your Pricing Structured?
7. Is Your Capacity Scalable?
8. Can You Handle Omnichannel Returns?
9. What Insurance Coverage Do You Provide?
10. How Do You Evaluate Your Performance?
An efficient reverse logistics process is essential to maximize profits from your sales channels.
Source: https://www.supplychainquarterly.com/blogs/2-scq-forum/post/5495-10-questions-to-ask-before-choosing-a-reverse-logistics-provider
Read MoreThe growth of online shopping has seen the rate of retail returns climb to as much as 40% of sales. If product returns from your customers are costing your company time and money, have you considered outsourcing your returns management to a third-party provider? Or have you had an unsatisfactory experience with a provider in the past?
Some companies handle their own reverse logistics needs. But others choose to outsource reverse logistics to a third-party service provider. A third-party service that specializes in returns management will use the latest technologies to manage every stage of the returns life cycle. That will free up your resources to focus on increasing your sales.
A good reverse logistics provider will help you to:
• Elevate your customer experience
• Maximize returns value
• Protect brand integrity
• Reduce operational costs
• Minimize waste
To find the best reverse logistics provider for your business, you need to ask the right questions. Let’s look at 10 questions that will help you narrow down your options in the selection process:
1. Have You Worked With Similar Businesses in the Past?
2. Do You Have Product Restrictions?
3. How Extensive Is Your Warehouse Network?
4. Do You Offer Systems Integration?
5. How Fast Can You Process Returns?
6. How Is Your Pricing Structured?
7. Is Your Capacity Scalable?
8. Can You Handle Omnichannel Returns?
9. What Insurance Coverage Do You Provide?
10. How Do You Evaluate Your Performance?
An efficient reverse logistics process is essential to maximize profits from your sales channels.
Source: https://www.supplychainquarterly.com/blogs/2-scq-forum/post/5495-10-questions-to-ask-before-choosing-a-reverse-logistics-provider
How Distributed Order Management (DOM) can meet customer expectations by automatically maximizing order fulfillment at the lowest possible cost
Following a year (and then some) with very little control, consumers are craving flexibility and transparency from the businesses they engage with. As they experience the convenience of e-commerce, shoppers today can seamlessly jump across channels by browsing in-person, then buying online or switching devices mid-search. In fact, bounce rates on social media have risen 14% since Q2 of 2020, and abandoned cart percentages climbed as high as 65% on desktop and 81% on mobile in the last year, according to Kibo’s Ecommerce Quarterly Benchmark report.
Part of the bounce-rate uptick is due to the newfound ease in comparison shopping. It’s become a habit, really. In addition to price comparing, if a customer can find the same product elsewhere that will be delivered at a more convenient time, or be available sooner from a nearby store’s inventory, they’re likely to forgo brand loyalty in exchange for flexibility. To win these customers back and regain their loyalty, retailers must ensure every customer gets the product they want, when and where they want it, by seamlessly synching the online realm with the physical store. This is where distributed order management comes into play.
With distributed order management (DOM), retailers can meet customer expectations by automatically maximizing order fulfillment at the lowest possible cost. DOM works on rule-based procedures to work out the kinks that tend to plague supply chains. The system works to automate key functions – like order routing, shipping, inventory forecasting and reordering, inventory management and order processing – from all channels and fulfillment centers. A DOM system can streamline stock replenishment by connecting to a central platform and adjusting to preset supply and demand rules.
A DOM system can also process orders from across an organization, regardless of the sales channel, and route them to the best fulfillment center and the best shipping courier. Additionally, orders can be prioritized in the system as well. With this option, retailers can fulfil current orders, manage backorders, and prepare pre-orders for upcoming launches simultaneously. This leads to faster order turnaround times with more accuracy at lower costs.
The central DOM platform offers one viewpoint of every item in the inventory, giving both retail leaders and customers the transparency they seek. Previously, retailers had to choose between exceeding customer expectations and maintaining low-cost operations. For example, promising a lower cost or a quicker delivery to compete with Amazon used to jolt internal business costs. With a DOM, however, these goals can be pre-set and automatically achieved, since the system will find the best way to meet the needs of both the shopper and the seller without a risky trade-off.
For these large or high-growth companies, a DOM system becomes essential in consolidating data across a variety of sources. For instance, if a retailer works with multiple suppliers for different inputs, managing these relationships can become tedious. With a DOM in place, the system tracks how and when a retailer orders from their suppliers and can ensure products are never over- or under-stocked. Similarly, if a retailer has multiple warehouses across the country, DOM systems can coordinate inventory management across the warehouses, and additional factors like third-party logistics (3PL) warehouses and drop shippers. Not only is the inventory data condensed, but the DOM platform also provides real-time analytics without complicated spreadsheets, no matter how many stock keeping units the brand offers.
That being said, even smaller retailers can benefit from a DOM. The system decreases the risk of a technology or information silo by coordinating all processes together in one single data hub. This enhanced level of connectivity helps companies of any size manage data more effectively and can lead to higher profits and heightened growth potential.
Source: https://www.sdcexec.com/warehousing/retail/article/21627238/kibo-commerce-winning-customers-back-with-distributed-order-management
Read MorePart of the bounce-rate uptick is due to the newfound ease in comparison shopping. It’s become a habit, really. In addition to price comparing, if a customer can find the same product elsewhere that will be delivered at a more convenient time, or be available sooner from a nearby store’s inventory, they’re likely to forgo brand loyalty in exchange for flexibility. To win these customers back and regain their loyalty, retailers must ensure every customer gets the product they want, when and where they want it, by seamlessly synching the online realm with the physical store. This is where distributed order management comes into play.
With distributed order management (DOM), retailers can meet customer expectations by automatically maximizing order fulfillment at the lowest possible cost. DOM works on rule-based procedures to work out the kinks that tend to plague supply chains. The system works to automate key functions – like order routing, shipping, inventory forecasting and reordering, inventory management and order processing – from all channels and fulfillment centers. A DOM system can streamline stock replenishment by connecting to a central platform and adjusting to preset supply and demand rules.
A DOM system can also process orders from across an organization, regardless of the sales channel, and route them to the best fulfillment center and the best shipping courier. Additionally, orders can be prioritized in the system as well. With this option, retailers can fulfil current orders, manage backorders, and prepare pre-orders for upcoming launches simultaneously. This leads to faster order turnaround times with more accuracy at lower costs.
The central DOM platform offers one viewpoint of every item in the inventory, giving both retail leaders and customers the transparency they seek. Previously, retailers had to choose between exceeding customer expectations and maintaining low-cost operations. For example, promising a lower cost or a quicker delivery to compete with Amazon used to jolt internal business costs. With a DOM, however, these goals can be pre-set and automatically achieved, since the system will find the best way to meet the needs of both the shopper and the seller without a risky trade-off.
For these large or high-growth companies, a DOM system becomes essential in consolidating data across a variety of sources. For instance, if a retailer works with multiple suppliers for different inputs, managing these relationships can become tedious. With a DOM in place, the system tracks how and when a retailer orders from their suppliers and can ensure products are never over- or under-stocked. Similarly, if a retailer has multiple warehouses across the country, DOM systems can coordinate inventory management across the warehouses, and additional factors like third-party logistics (3PL) warehouses and drop shippers. Not only is the inventory data condensed, but the DOM platform also provides real-time analytics without complicated spreadsheets, no matter how many stock keeping units the brand offers.
That being said, even smaller retailers can benefit from a DOM. The system decreases the risk of a technology or information silo by coordinating all processes together in one single data hub. This enhanced level of connectivity helps companies of any size manage data more effectively and can lead to higher profits and heightened growth potential.
Source: https://www.sdcexec.com/warehousing/retail/article/21627238/kibo-commerce-winning-customers-back-with-distributed-order-management
A new kind of procurement function emerge from the pandemic.
The COVID-19 pandemic forced virtually every business function to change how it worked, step into new roles, and adapt to extremely challenging market and operational conditions. For many of those functions, those changes – while significant – were short-term, and designed to help them weather the storm.
But, for procurement teams, the pandemic has accelerated evolution for the function – one that was already well underway before COVID-19 hit. It propelled the function’s journey from ‘back office spend optimizer’ to ‘strategic value creation all-star’. And now, there’s no going back.
Over the past 18 months, leading procurement functions have stepped up to deliver business value far beyond simple cost savings and margin optimization. Not surprisingly, their organizations want them to keep delivering it.
As a result, we’re seeing a new kind of procurement function emerge from the pandemic.
During the pandemic, supplier relationships have been more valuable and important than ever. At the peak of the disruption, the right relationship with a strategic supplier could mean the difference between business as usual and completely halting operations.
Leading procurement teams have been building high-value relationships with suppliers for decades, but the events seen in 2020 and 2021 were a powerful opportunity to showcase their value to the rest of the organization. As a result, organizations are now more interested than ever in the other great ways that procurement teams can create value from these relationships.
Exclusive contracts negotiated with suppliers, for example, are a valuable asset for supporting innovation. Through the contracts they help create, procurement teams can build partnerships that have a huge impact on overall business strategy, bringing new USPs into the organization.
As the first point of contact for suppliers, nobody in the business knows what’s happening with those suppliers better than your procurement team. That means they’re exposed to things like new products, new materials, new capabilities, and new offerings before anyone else, all of which can be used to drive commercial, product, and innovation strategies.
The leading teams of today aren’t just filling orders and signing invoices for suppliers – they’re partnering with them strategically. Now, businesses are waking up to the implications that have for innovation, and harnessing procurement teams’ potential as innovation drivers.
Source: https://www.globaltrademag.com/procurement-evolved-the-new-characteristics-of-post-pandemic-procurement/
Read MoreBut, for procurement teams, the pandemic has accelerated evolution for the function – one that was already well underway before COVID-19 hit. It propelled the function’s journey from ‘back office spend optimizer’ to ‘strategic value creation all-star’. And now, there’s no going back.
Over the past 18 months, leading procurement functions have stepped up to deliver business value far beyond simple cost savings and margin optimization. Not surprisingly, their organizations want them to keep delivering it.
As a result, we’re seeing a new kind of procurement function emerge from the pandemic.
During the pandemic, supplier relationships have been more valuable and important than ever. At the peak of the disruption, the right relationship with a strategic supplier could mean the difference between business as usual and completely halting operations.
Leading procurement teams have been building high-value relationships with suppliers for decades, but the events seen in 2020 and 2021 were a powerful opportunity to showcase their value to the rest of the organization. As a result, organizations are now more interested than ever in the other great ways that procurement teams can create value from these relationships.
Exclusive contracts negotiated with suppliers, for example, are a valuable asset for supporting innovation. Through the contracts they help create, procurement teams can build partnerships that have a huge impact on overall business strategy, bringing new USPs into the organization.
As the first point of contact for suppliers, nobody in the business knows what’s happening with those suppliers better than your procurement team. That means they’re exposed to things like new products, new materials, new capabilities, and new offerings before anyone else, all of which can be used to drive commercial, product, and innovation strategies.
The leading teams of today aren’t just filling orders and signing invoices for suppliers – they’re partnering with them strategically. Now, businesses are waking up to the implications that have for innovation, and harnessing procurement teams’ potential as innovation drivers.
Source: https://www.globaltrademag.com/procurement-evolved-the-new-characteristics-of-post-pandemic-procurement/