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
Procurement and supplychain management are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. In this blog, we cover the key differences between procurement and supplychain management, and explain where the biggest disconnects typically occur.
Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.
Direct and indirect procurement are two fundamental approaches in supplychain management, each serving distinct functions within an organization. These materials and parts are the building blocks of a company’s final offerings, making them mission-critical to the manufacturing process. Find Out More What Is Procurement?
The Digital SupplyChain Journey: Step 2 – Digital Transformation Leadership! The Digital SupplyChain is the future. Electronic connectivity is THE backbone that makes the Digital SupplyChain a reality. Faxes, paper purchase orders, typewritten lists of anything and everything, memos, and on and on.
No matter the focus, whether cost reduction and quality improvement, or supplychain optimization and resilience, procurement must have a concrete role in delivering outcomes that matter to the business. Intake management software that supports these controls can help standardize how requests are handled and who gets involved.
No matter the focus, whether cost reduction and quality improvement, or supplychain optimization and resilience, procurement must have a concrete role in delivering outcomes that matter to the business. Intake management software that supports these controls can help standardize how requests are handled and who gets involved.
Procurement software tends to fall into one of three categories. There are enterprise resource planning (ERP) systems, which are complex systems designed to help companies manage all ends of the supplychain. And finally, there’s purchase order-specific software. What is Procurement Software?
From rawmaterials for manufacturing to office supplies or software subscriptions, these purchases keep the business moving. But purchasing is more than just placing orders, it's a structured process that ensures the right items are bought, from the right sources, at the right price, and at the right time.
Managing a successful supplychain requires more than just ensuring products are delivered on time its about building strong, effective partnerships with your suppliers. This software enables companies to create more efficient and transparent relationships with their suppliers, improving the overall performance of their supplychain.
Why Inventory Planning Software Is Critical For Growing Businesses Are you drowning in spreadsheets? For fast-growing retailers and multichannel sellers, generic inventory tracking solutions quickly become a liability. The right planning solution can transform inventory from a constant challenge into a strategic advantage.
SupplyChain Optimization Software: The Strategic Edge for Growing Brands Growing ecommerce and retail brands can no longer rely on spreadsheets to juggle multiple warehouses, Amazon FBA limits, and fast-moving SKUs. What Is SupplyChain Optimization Software?
Unlike our colleagues purchasing direct materials, measuring hard savings – i.e. those visible on the P&L statement – becomes a complex puzzle in the indirect space. How do you consistently generate measurable savings on categories that are purchased irregularly or have highly variable specifications?
Paul Nilsen, Purchasing Manager – Willis North America, New York, NY ** ** (NOTE: Yes, I do keep track of all the professionals who have interacted with Procurement Insights since the blog was launched in May 2007, as it provides a glimpse into how our industry has progressed over these many years.) FROM CANDY.
SupplyChain Disruption in 2025: Navigating SupplyChain Issues Supplychain issues have become the defining challenge for multichannel merchants in 2025. When supplychains falter, customer satisfaction plummets and competitors gain ground. What Are SupplyChain Issues in Plain Language?
The bare minimum needed in material master data is: Manufacturer Manufacturer’s part number Specifications such as drawing or issue numbers. For rawmaterials and production parts, purity grades and tolerances for ensuring consistent quality. It’s vital that supplier lead times are properly documented.
In his assessment, Utz previously excelled in the operational aspects of procurement, such as transacting business, supporting manufacturing operations and maintaining rawmaterial inventory the day-to-day firefighting of procurement. In January 2023, Ron joined Utz to lead procurement through this transformational period.
Worse yet, their responsibilities are far more important than purchasing a pair of sporty sneakers. Instead of drawings, sales data, and various records being scattered across the organization, they would all be centralized in one software system. Originally written for SupplyChain Game Changer and published on February 26, 2024.
Paul Nilsen, Purchasing Manager Willis North America (New York, NY) My Response In Part 4 of my Changing Face of Procurement Conference Series titled Winning Strategies for Vendor Engagement, I briefly discuss an M&A case reference involving organizations within the confection or candy industry.
Imagine a company that suddenly runs out of packaging materials. Production slows down, orders get delayed, and customer satisfaction dropsall because someone missed a routine purchase. Operational procurement refers to the process of purchasing the everyday goods and services a business needs to function.
When your business is small, using spreadsheets or sticky notes to track purchases might seem easy. It saves time, reduces mistakes, and gives you a clear view of all purchases, helping you make better decisions. rawmaterials, software licenses). What is the main purpose of the purchasing system?
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. This is the heart of procurement analytics.
Immediate ROI Through Workflow Efficiency: Automates purchase requests, approvals, and vendor onboarding, significantly reducing cycle times and errors. declining rawmaterial prices). Low Initial Investment: Costs are minimal since Excel is typically part of an organizations existing software suite.
Modern Spend Management and Accounts Payable software. Helping organizations spend smarter and more efficientlyby automating purchasing and invoice processing. These portals improve real-time visibility into purchase orders, payment timelines, and dispute resolution, directly enhancing vendor satisfaction. [5] What's PLANERGY?
A manufacturing execution system (MES) is a comprehensive, dynamic software system that monitors, tracks, documents, and controls the process of manufacturing goodsfrom rawmaterials to finished products. Increased uptime: MES monitors machine performance and preventive maintenance schedules, reducing unplanned downtime.
Malicious code generation via generative AI could hijack procurement software or disrupt production systems, with severe financial and operational consequences. AI-generated code could also cancel or reroute orders, falsify signals to suppliers, halt rawmaterial deliveries, or redirect shipments to fraudulent addresses.
However, these strategies often only account for direct procurement or the purchases associated with the products a company sells. Indirect spending, or those purchases that fall into the everything else categoryfrom IT equipment and professional services to payrollaren’t always held to the same standard.
The regulation is designed to provide European consumers with extensive data about the provenance of the items they purchase, all the way back to the sourcing of rawmaterials. The DPP “represents a significant advance in product transparency and sustainability,” according to an EU report published in September of 2024. “As
Modern Spend Management and Accounts Payable software. Helping organizations spend smarter and more efficientlyby automating purchasing and invoice processing. Simpler Logistics and SupplyChain Management With operations overseas, you run the risk of becoming too reliant on global supplychains.
Example: Automated generation of purchase orders, waybills, and customs forms eliminated manual steps, cutting procurement cycle times by 35%. There is more to e-procurement than software! This mirrors the Metaprise Models emphasis on agent-based workflows over rigid tech solutions. “Yes Virginia! eVA) and failures (e.g.,
What is a Vendor Management Tool A vendor management Tool is a softwaresolution that helps businesses manage, monitor, and streamline interactions with vendors or suppliers in one centralized platform. Whether its rawmaterials, software, logistics, or outsourced services, companies rely on multiple suppliers to run smoothly.
Hansens concept of “Velocity Procurement” is a modern evolution of his earlier work in supplychain and procurement optimization, reflecting his decades of experience streamlining processes for organizations like the Canadian Department of National Defence and the New York City Transit Authority.
Instead, his contributions are more broadly tied to practical applications of algorithmic thinking in supplychain and procurement optimization. The core idea was linking disparate data streamsor “strands”to optimize purchasing decisions, a concept he termed “strand commonality” in a 2024 reflection.
We'll reveal prevention tactics through better inventory planning software and recovery strategies for businesses struggling with excess inventory challenges. Without proper inventory planning software , many businesses struggle to accurately classify their stock positions, leading to capital inefficiency and storage waste.
The Strategic Edge: Production Planning Software for Today's Manufacturers Are you drowning in spreadsheets, juggling missed deadlines, and watching inventory costs eat away at profits? Production planning software transforms how businesses convert customer demand into efficient, cost-effective production schedules.
The use cases cover the entire lifecycle of manufactured goods, from product design through supplychain optimization to digital twins and predictive maintenance. It can also be used to analyze purchase history, behavior, and preferences to suggest product customizations before the customer even asks. style, size, function).
It is a powerful tool that helps procurement and supplychain professionals to evaluate and negotiate pricing with suppliers effectively and favorably and achieve cost savings. Importance of Should Cost Model A should-cost model is an essential tool for procurement and supplychain organizations. 2.5% -1.2% 1.8% -0.7%
For today’s article, we will discuss everything you need to know about the blanket purchase order, including what it is, its importance, how to create one, and when to use it. After this article, you will know the difference between regular and blanket purchase orders and how using this will benefit your organization.
First Name Email Download 51 Prompts → Or receive our famous weekly newsletter Global SupplyChain — Everything About SupplyChain Global supplychain has become a popular way for businesses to source unique materials and products from other countries as they are unavailable domestically.
Whether you outsource or buy one, working with one of these machines will greatly speed up your supplychain. Thanks to CNC machine technology, traditional manufacturing supplychains are gradually disappearing. Machine parts manufacturing companies must rely on their supplychains to obtain and transport rawmaterials.
One important aspect of inventory management is tracking rawmaterials. Rawmaterials are the foundation of your products, and accurately tracking them in your inventory system is vital for maintaining optimal production levels and meeting customer demands. Monitoring these materials is important for several reasons.
Calculating rawmaterials inventory accurately is vital for any ecommerce business. Fortunately, Finale Inventory, a comprehensive inventory management software designed specifically for ecommerce businesses, can help streamline the process and ensure accurate inventory calculations.
Commodities are Tangible products, which usually refer to rawmaterials that are used as inputs in producing other goods and services. Commodity Trading is the exchange of essential rawmaterials and goods. It follows the principles of supply and demand as it is the driving force of commodity markets.
Rawmaterials play a crucial role in the field of ecommerce. This article aims to provide a comprehensive understanding of rawmaterials, including their definitions, formulas, types, and importance in the ecommerce industry. Rawmaterials play a fundamental role in the supplychain of ecommerce businesses.
Sustainable SupplyChain Consulting — The Ultimate Guide. Sustainable supplychain consulting firms are hired by many big businesses to help them with their goals. In this article, we will discuss what sustainable supplychain consulting firms are. What is Sustainability in SupplyChain?
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