This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
As AI technology continues to reshape industries, AI and Supply Chain innovations are becoming indispensable to professionals in procurement, logistics, and supply chain management. Imagine a procurementteam struggling to manage multiple suppliers with varying reliability.
Early Supplier Involvement in the Design Phase At JAGGAER, we advocate for involving procurement early in the new product introduction process. Collaborative tools enable the integration of Engineering, R&D, Quality, Logistics, and Procurement from the initial design phases.
Action: Develop a procurement cost-avoidance tracker for proactive budget control. Elevate Stakeholder Management Achieve True Integration: Create cross-functional sourcing teams involving R&D, marketing, and logistics. Action: Launch a quarterly executive-level procurement strategy meeting with all business units.
The third assumption was that the logistics infrastructure would always be available. But during Covid, and other constraints like the Suez Canal closure, we saw what happens when suddenly logistics are not there when needed. We need to rewrite these systems and introduce new taxonomies to manage hyper-variability.
Procurementteams now face a clear need: build bendable systems instead of unbreakable ones. Procurementteams must align their plans with logistics, finance, and operations to avoid confusion and duplicated efforts. Mixing in regional or local suppliers gives procurementteams more flexibility when problems arise.
Modern procurement needs have far surpassed transaction management; procurement is now a critical component in driving strategic value across businesses and AI has become a key tool in procurementteams back pockets.
These insights stress the need for integrated collaboration and strategic alignment within organizations to overcome inefficiencies and maximize procurement effectiveness. By fostering internal collaboration, procurementteams can better align with organizational goals, improve operational efficiency, and deliver greater strategic value.
Procurement management software simplifies the vendor selection process by offering tools to evaluate and compare vendor performance based on specific criteria such as price, quality, reliability, and compliance. It’s important to choose software that aligns with the company’s procurement goals and integrates well with existing systems.
Example: Simulate a port strike’s impact on global logistics, calculating cost/time implications for 10,000+ shipment routes. Adaptive Orchestration (Hansen’s Agent-Based Models) Function: Model how human agents (procurementteams, suppliers) would respond to disruptions, incorporating behavioral incentives and irrationalities.
Arkestro’s unique approach enables procurementteams to deliver competitive quote outcomes without adding cycle time. Businesses using Arkestro see an average savings of 16% in the first 60 days, unlocking value across every transaction, from big, complex quotes for logistics portfolios to simple spot buys for valves.
AI, automation, and generative tools are redefining efficiency, allowing procurementteams to move from reactive to proactive decision-making. Scalability, integration, and flexibility are critical when choosing a platform, ensuring long-term value and the ability to adapt as procurement needs evolve.
The Role of Agentic AI in Supply Chains Supply chains are dynamic and complex, requiring continuous decision-making across multiple functions, from procurement and inventory management to logistics and demand forecasting. Assists with supplier performance assessment, risk management, and logistics optimization.
What This Means for Procurement: Procurementteams need tools that provide real-time tracking and end-to-end transparency across the supply chain. While companies have robust visibility over their inventory and warehousing (99%), this drops to a stark 20% when it comes to their deeper supplier networks.
Despite investments in tools and data, most procurementteams struggle to scale their efforts beyond one-off reports or limited categories. This fragmentation leads to inconsistencies that undermine trust and force procurementteams to chase data instead of analyzing it. The culprit?
Strengthen Data Visibility Across Sourcing and Contracting Procurementteams need consistent access to pricing and performance history, contract terms, and supplier risk profiles, not just at the negotiation stage but throughout the procurement lifecycle. Examples include IT, logistics, and critical raw materials.
Above you will find the Hansen Fit Score Semantic Stakeholder Overlay , visually mapping how aligned different stakeholder groups are with key procurement semantic categories such as Supplier Onboarding , Scorecarding , Compliance , and Intake/Orchestration. Key Insights: ProcurementTeams and ProcureTech vendors (e.g.,
Strengthen Data Visibility Across Sourcing and Contracting Procurementteams need consistent access to pricing and performance history, contract terms, and supplier risk profiles, not just at the negotiation stage but throughout the procurement lifecycle. Examples include IT, logistics, and critical raw materials.
The procurementteam can evaluate suppliers based on past performance, pricing, delivery timelines, and compliance status. The orchestration process may also support automated supplier shortlisting and RFQ ( A critical part of the Procurement Orchestration Process is routing through a pre-defined approval hierarchy.
SCM is focused on efficiency, throughput, and resilience across a much wider operational footprint and requires coordination between manufacturing, logistics and supply chain, and demand planning teams to ensure timely fulfillment and quality assurance.
If your procurementteam is juggling multiple ERP systems, you’re likely spending more time chasing data than driving strategy. All of which diminishes procurement’s impact across your organization. Now, let’s examine the differences between traditional ERP systems unfit for modern procurement organizations.
The Baltimore bridge collapse , geopolitical instability , and even recent IT outages have impacted a whole range of industries, from airlines to banking to logistics. For procurementteams, this adds even more complexity to already complex supply chains. Many people talked about how they fell into procurement.
It transforms raw procurement data into meaningful insights that support both short-term improvements and long-term strategic goals. Procurement analytics is the process of gathering, examining, and interpreting information about a business's purchasing operations. KPIs monitor procurement performance and analytics' effects.
Through machine learning , AI uncovers patterns that assist in cost control, logistics planning, and supplier performance assessment. In supply chain operations, AI delivers end-to-end visibility and agility by integrating data from logistics, inventory, production, and external sources into predictive models and real-time dashboards.
Vendor Performance Reviews Made Visual Procurementteams routinely evaluate vendors based on metrics like delivery timeliness, cost efficiency, quality ratings, and compliance. By using workflow diagrams, swimlane charts, and SOP templates , teams can demystify logistics workflows and create reusable communication tools that scale.
Adaptive and Efficient Procurement Practices Hansen’s model enables organizations to simulate various procurement scenarios with unprecedented detail, fostering optimization in decision-making and resource allocation. Influence on the Procurement Industry 1. customs delays).
.” What procurement sees as value creation, finance might dismiss as merely doing your job. When procurement can demonstrate how higher costs in one area drive greater revenue or margin improvements elsewhere, we transition from cost-cutters to value creators. Sometimes the right decision is to spend more money, not less.
is when a single department, usually the procurementteam, manages all purchasing activities for the entire organization. It also gives procurementteams a structured request to work with, enabling them to prioritize and plan sourcing activities effectively.
Arkestros Predictive Procurement Platform leverages early AI principles akin to Jon Hansens RAM model in several key ways, blending decentralized decision-making, agent-like simulations, and seamless integration with legacy systems to drive efficiency. suppliers, procurementteams) to simulate interactions and optimize workflows.
Daily Dive M-F Operations Weekly Every Tuesday Procurement Weekly Every Thursday Logistics Weekly Every Wednesday By signing up to receive our newsletter, you agree to our Terms of Use and Privacy Policy. How can procurement chart the right course? You can unsubscribe at anytime. You can unsubscribe at anytime.
Example During a port strike, agents reroute shipments via alternative suppliers/logistics partners. Handling Multi-Stakeholder Complexity Factor Agent-Based Model (Metaprise) Equation-Based Intake & Orchestration Interoperability Agents represent suppliers, buyers, and logistics providers, collaborating across ecosystems.
The procurementteam is responsible for ensuring that the inputs to a business (whether goods or services) are of the right quality, delivered on time, and aligned with strategic goals. It includes procurement but also spans logistics, production, inventory management, and distribution.
Collaboration across Tier 1, Tier 2, Tier 3, and beyond requires visibility and communication regarding capacity, cost, risk, order quantities, inventory levels, quality , timelines, logistics, and more. Multi-tier supplier collaboration involves building transparency with and beyond your first tier suppliers.
Quantitative Effect: McKinsey (2023) notes 10-20% improvement in on-time delivery rates with digital procurement tools. For instance, logistics savings (10% of $75M, prior automotive response) reflect optimized supplier schedules, lifting rates from 85% to 90-95%. Predictive AI (e.g., ORO Labs) anticipates delays, improving planning.
Predictive Contract Compliance & Renegotiation: Agents will monitor contract terms against actual performance and market conditions, proactively alerting procurementteams to potential non-compliance or identifying opportunities for early renegotiation based on changing market dynamics or supplier performance trends.
How it works: Instead of maintaining a large in-house team for activities like logistics, IT support, or customer service, you outsource to specialists. A good can also lead to collaborative efforts to reduce costs, such as jointly finding ways to improve logistics, reduce packaging, or optimize product specifications.
Here is an excerpt from a recent email I received from Staphany Lapierre regarding an upcoming webinar: Twelve years ago, we set out to help procurementteams gain access to supplier data they could trust. Data with integrity, that is structured in a way that could power systems and decision-making across the enterprise.
Procurementteams may use one platform, while logistics depends on another, and finance runs an entirely separate system. Companies that embed sustainability into their logistics and procurement platforms build stronger brands and avoid future penalties. This ensures that profit and planet remain aligned.
Many procurementteams are being asked to deliver value beyond savings alone , strengthening supply chain resilience, reducing compliance risk, and advancing ESG and sustainability goals, at greater speed and without headcount increases. On the demand side, there is pressure to do more with less.
AdaptOne could provide significant value to Byrne Dairy , a food and beverage company, by optimizing and digitizing its procurement operations particularly in supplier management , compliance tracking , and procurement workflow visibility. Here’s how: 1.
Each participant in the procurement process—whether they are suppliers, buyers, or logistics providers—has access to this shared ledger. This automation reduces paperwork and accelerates the transaction process, allowing procurementteams to focus on strategic planning rather than administrative tasks.
ANSWER #1 AdaptOne could provide significant value to Byrne Dairy , a food and beverage company, by optimizing and digitizing its procurement operations particularly in supplier management , compliance tracking , and procurement workflow visibility. Here’s how: 1.
From Order Fulfillment to Strategic Value Creation Partner This realization is relatively new and comes with a fundamental shift in how the role of procurement is understood. Looking back just 30 years, procurement was mainly seen as an ordering department. But the procurement transformation journey is far from over.
Example : During a port strike, agents reroute shipments via alternative logistics partners without manual intervention, minimizing downtime. Agent-Based Solution : Agents represent suppliers, buyers, and logistics providers, sharing data and negotiating terms autonomously. tariffs, ESG compliance) without manual oversight.
We organize all of the trending information in your field so you don't have to. Join 69,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content