top 5 logistics and procurement trends
TRANSCRIPT
Top 5 Logistics and Procurement Trends
SYNOPSIS:
• Introduction• Trend 1: Accurate Demand Planning• Trend 2: Globalization• Trend 3: Cost Factor• Trend 4: Procurement and Sourcing• Trend 5: E-procurement• Conclusion
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• INTRODUCTION
• Procurement and logistics has seen many developments with technology, which naturally increases the expectations as time rolls over.
• With the revolution of technology and advanced communication, the definition of goods delivery has seen phenomenal changes.
• Today’s Supply Chain Management, popularly known as SCM is all about comprehending and manipulating different set of variables to get the job done at the simplest form i.e. delivering the product/goods within the shortest time and budget.. The stronger the knowledge on SCM makes the journey simpler to reach the target.
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Trend – 1: Accurate demand planning• Manufacturing organizations and suppliers in the supply chain always concentrate
on demand-driven focus. This helps them creating more customer oriented mind-set that directly impacts on cost factor without scarifying the operational efficiency of the company. However, this tactic presents its own set of challenges such as minimum order quantity, capacity constraint, product configurations, and ware house constraints and to name a few. Company has to address aforesaid challenges to prevent its impact on both system integrators and end-users.
• As demand planning is one of the most crucial functions for companies, they never leave a stone turned down to plan its demand and supply statistics. Careful demand planning, therefore, plays an important role because how well the suppliers manage this function decides its impacts on their business.
• If suppliers fail to plan the demand efficiently, the lead time of four to six weeks will suddenly stretch to ten to fourteen weeks, or longer, creating dissatisfaction throughout the process. As popularly said, professionals always see a race against clock with the logistics.
• Hence, it is vital to maintain a fine balance between demand and supply by considering all elements and effectively address the challenges.
Trend -2 :Globalization• Globalization has a major impact on the way the business is managed and
transacted nowadays and none of the business area has been spared from globalization’s impact. However, when we look back, Supply Chain Management is one of the main sectors that are affected more by this predicted development.
• Business, with an international footprint, hence looks for partners that are capable to deliver its products to any place, irrespective of the set boundaries. However, irrespective of experience and expertise in SCM, logistics should require suitable assistance to deliver product to the designated countries without which it is close to impossible.
• A perfect supply chain management hence plays a crucial role in managing the changes brought by globalization. However, one of the best strategies that have given proven results is to outsource all procurement and logistic services to an efficient SCM service provider such as CormSquare who has experience and expertise to know where to save and how to handle the process competently.
Trend – 3: Cost factor• In the logistics arena, most of the companies aim to bring the costs down as
much as possible. Nevertheless, one of the major elements that raise the cost is fuel charges, not to mention its surcharges, which is beyond the control. Hence, it is essential for companies to look for an alternative to cut-down fuel charges and at the same time it is also essential to deliver product within stipulated timeframe.
• The current challenges most of the companies are owing to its international delivery is bearing expensive shipping charges and to monitor and control costs of a specific country owing to the elements of corruption present in the system.
Trend – 4: Procurement and sourcing• In case, organization doesn’t wish to outsource its supply chain functions and
willing to adopt advanced procurement process within the company, it is essential to consider most crucial elements of logistics. However, to begin with, an organization should able to identify the need of advanced procurement, sourcing and supplier management skills amongst its employees.
• Most of the companies, that are willing to establish its own logistic presence, prefer employees having experience and expertise in procurement rather than hiring people having basic or intermediate skills.
• The capabilities employers looking for are just not limited to the knowledge of procurement, but also include efficiency in different areas such as supplier collaboration, knowledge of analytics and financial procurement, sustainability, relationship management and performance management
• In fact, if whole scenario is considered and analysed intently, 42% of leaders implemented SCM technology efficiently unlike other companies. Nevertheless, as said above, the companies now aiming towards implementing effective and unique SCM technologies to capture the market and augment its supply chain efficiency.
Trend -5 E-procurement• During 1990’s, buyers used to wait for a long time to receive quotes from the
vendor and to finalize everything to seal the deal, it usually took months. However, with the invention of advanced technology and communication system, the Supply Chain Management system is changed from its roots. Nowadays, with the raise of e-procurement, buyers ask for quotes in a click and vendor send their quotes in few minutes. All transaction takes place within 24 hours.
• Driven by the enormous expectations of buyers, investors and shareholders, it has become essential to integrate sustainable buying process and this challenge is capably addressed by e-procurement system. With this system, companies can easily connect with its branches and can request to deliver the order, thus saving the fuel and shipment charges effortlessly.
Conclusion• The entire SCM process depends upon demand and supply strategy. With the
driven end-user requirements and the need to stay active in highly competitive market, the speed at which the business is managed on international level shows no sign of weakening and puts equal pressure on its partner logistics company to function with equal efficiency by successfully addressing the challenges of automation, integration and consolidation. However, victory in the area of logistics and procurement yet depends on the profound knowledge of procurement.
• What is your thought on procurement and what essential steps have to be taken to reach the peak of success? Do let us know your opinion in comment section.
CormSquare is cloud based procurement platform targeted for small and medium enterprises (SMEs) and bulk purchases. CormSquare is native end-to-end procurement software with private market. CormSquare automates procurement process, greatly reducing time. It also helps find right suppliers at lower price. CormSquare saves procurement cost and ease of procurement.
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Our Customer Relationship Officers (CROs) can assist you with finding suppliers, supplier competency assessment and supplier audit. Based on your requirement, our relationship officers can find local, national or global suppliers.Our Customer Relationship Officers (CROs) can assist in raising RFQs, RFIs, receiving quotes, compare technical and commercial quotes, purchase order management, delivery/document tracking and payable processing.Our Customer Relationship Officers (CROs) can analyses your procurement data and provide actionable intelligence.
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• Assisted Purchase – buyer receives customized quote from cormsquare’s procurement professionals.
• End to End E-Procurement Suite on cloud, that helps buyers in managing enterprise purchase.
• Seamless Responsive Interface which works across devices. • Digital B2B Store front for supplier with digital catalogue, ePayment and
eProcurement Services • Mini CRM Tools and Digital promotion assistance to our stakeholders. • Collaboration with supplier to assist in Customer acquisition, engagement. • Helping manufacturing and Buyers to master the transformation of their business.
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