Latest news with #SupplyChainInsights
Forbes
6 days ago
- Business
- Forbes
The World's Best Supply Chains
Lora Cecere Every year, the well-known industry analyst firm Gartner publishes a list of the 25 companies with the best supply chains. This report gets a lot of attention. Some supply chain leaders admit that their performance on this list affects their performance evaluation. But Lora Cecere's methodology leads to a more objective list of companies with truly excellent supply chains. Lora Cecere is one of the most respected supply chain analysts. She founded a boutique analyst firm called Supply Chain Insights. Her report is called Supply Chains to Admire 2025. Supply Chains to Admire Winners for 2025 Gartner's scoring is based on a composite score. A company is graded on what its supply chain peers think. This is 25% of the score. Another 25% is based on how Gartner's supply chain analysts evaluate a company. This is also 25%. There is a significant element of subjectivity in these scores. Another 20% of the score is based on a company's ESG score. While I am all in favor of corporate environmentalism and good governance, ESG is not the same as supply chain management. That leaves only 30% of the Gartner score which is arguably correlated with supply chain performance. Those measures include return on physical assets, the change in ROPA, revenue growth, and inventory turns. Ms. Cecere's methodology does not believe that one composite score should be used to rank all companies. Companies should be compared to their industry peer group. Some industries just have an easier time achieving high margins, inventory turns, and growth than others. Supply Chain Insight's core metrics, metrics correlated with market capitalization, include year-over-year progress in the areas of growth, operating margin, return on invested capital, and inventory turns. 530 companies across 28 industries were examined in these areas. Georgia Tech helped with the analysis. Only four companies appear on both Gartner's 2024 list and Supply Chain Insight's 2025 list. Those are L'Oreal, Lenovo, Inditex, and Nike. It takes four to five years to achieve supply chain excellence. So, what leads to supply chain excellence according to Supply Chain Insights? 'The most critical factor is leadership.' It is easier to drive improvement than sustain improvement. Surprisingly, there is no correlation based on the technology employed or the consultant used by a company. A balanced scorecard approach, not focusing solely on reducing costs, is critical. 'Many misinformed business executives believe that the most effective supply chain is efficient, operating at the lowest cost per unit.' Such companies suboptimize market capitalization. 'An efficient supply chain does not create the greatest value.' There are factors that work against the achievement of excellence: Positive factors, factors correlated with supply chain excellence include: A shift in metrics is often necessary to drive improvement. In forecasting, the right path is to move away from measuring the size of the forecast error toward measuring forecast value added. Similarly, companies measuring inventory should move away from measures of safety stock toward inventory value added. In manufacturing, companies should move from measures of operational equipment efficiency to schedule adherence and first pass yield. In transportation, companies should move away from focusing on transportation costs to focusing more on on-time performance and the ability of carriers to quickly accept tenders. For supplier management, similarly, there should be less reliance on costs and more focus on the reliability and quality of supply.
India Today
6 days ago
- Business
- India Today
Why AI in supply chain is the next big career wave in logistics and tech
Artificial Intelligence (AI) and Machine Learning (ML) are revolutionising supply chain management by reshaping how companies handle logistics, forecasting, and customer technologies unlock unprecedented opportunities for efficiency, agility, and innovation by leveraging vast data resources to drive decision-making, automate complex processes, and optimise global markets become increasingly dynamic, AI and ML are not just enhancements but essential tools for competitive FORECASTING AND INVENTORY OPTIMISATION One of the critical applications of AI in supply chain management is demand forecasting. AI-driven models analyse historical sales patterns, seasonality, and external factors like weather and economic trends to predict customer demand with remarkable Walmart employs ML algorithms to optimise inventory management, reduce instances of overstock or stockouts, and fine-tune replenishment approach has not only cut inventory costs but also enhanced customer satisfaction by ensuring product CHAIN RISK MANAGEMENTSupply chains are often vulnerable to disruptions caused by geopolitical events, weather anomalies, or supplier algorithms help businesses detect and predict these disruptions by analysing complex datasets and providing real-time IBM's Supply Chain Insights leverages Watson AI to monitor and assess risks, offering actionable insights to mitigate potential disruptions before they impact operations. advertisement LOGISTICS AND ROUTE OPTIMISATIONEfficient transportation and delivery routes are crucial for reducing operational costs and meeting customer algorithms analyse factors like traffic, weather, fuel prices, and delivery schedules to suggest optimal DHL uses AI-powered systems for dynamic route optimisation, reducing fuel consumption and improving delivery speeds. These advancements enhance both environmental sustainability and operational RELATIONSHIP MANAGEMENTMaintaining strong relationships with suppliers is key to a seamless supply chain. AI tools assess supplier performance by evaluating metrics such as delivery timeliness, material quality, and adherence to contract Unilever employs ML to evaluate supplier performance and improve sourcing decisions, ensuring high-quality materials at cost-effective rates. WAREHOUSE AUTOMATIONAI and robotics are transforming warehouse operations by automating tasks such as picking, packing, and sorting. These advancements reduce labour costs, improve accuracy, and speed up order Amazon integrates AI-driven robots in its warehouses to streamline inventory handling and enhance efficiency in order CONTROLML models analyse production data to identify potential defects before products are shipped, ensuring high quality and reducing Siemens applies AI in its manufacturing processes to detect defects early, minimising disruptions and maintaining product MAINTENANCEAI systems monitor machinery and predict maintenance needs, helping companies avoid unplanned downtimes and expensive Caterpillar leverages AI to forecast equipment failures, ensuring continuous operations and improving productivity. CUSTOMER SERVICE ENHANCEMENTAI-powered chatbots and personalised recommendation systems elevate customer experiences by providing instant support and tailored product Zara uses AI to deliver real-time inventory updates and recommend products based on customer preferences, enhancing the shopping BUSINESS USE CASES1. Tesla: relies on AI for inventory management, predictive maintenance, and demand forecasting to maintain smooth electric vehicle production.2. FedEx: AI tools help FedEx predict delivery times, optimise routes, and improve forecast accuracy for package deliveries.3. Procter & Gamble (P&G): uses ML to streamline production planning, enhance inventory management, and align supply with market demand.4. Alibaba: The company's 'Smart Logistics' system leverages AI to optimise warehouse operations, predict delivery times, and enhance supply chain Nike: Integrates AI for demand forecasting and inventory management, enabling quicker adaptation to customer preferences while minimising waste. BENEFITS OF AI AND ML IN SUPPLY CHAIN MANAGEMENT1. Cost Reduction: Optimising routes, inventory levels, and resource allocation significantly lowers operational costs.2. Increased Efficiency: Automating repetitive tasks such as order picking, demand planning, and shipment tracking boosts productivity.3. Enhanced Visibility: Real-time data and predictive insights provide comprehensive supply chain transparency.4. Customer Satisfaction: Faster deliveries and personalised experiences improve customer loyalty.5. Resilience: AI-driven adaptability enables businesses to respond swiftly to supply chain disruptions and fluctuating AND CONSIDERATIONS1. Data Quality and Integration: Accurate data is crucial for AI-driven insights, necessitating robust data collection and integration processes.2. Initial Investment: Implementing AI and ML solutions often requires significant upfront investment in technology and infrastructure.3. Skill Gaps: There is a growing need for skilled professionals to develop, manage, and interpret AI and ML integration of AI and ML into supply chain management marks a significant shift towards smarter, more responsive, and more efficient operations. While challenges remain, the potential benefits far outweigh the technology continues to advance, businesses that embrace AI-driven supply chain strategies will be better positioned to thrive in an increasingly complex and competitive market.- Article by Manoj Kumar Tiwari, Director, IIM Mumbai; Professor, Industrial and Systems Engineering, IIT Kharagpur
Associated Press
07-05-2025
- Business
- Associated Press
Netstock's Tariff Impact Report Provides Proactive Strategies for SMB Resilience
BOSTON, May 07, 2025 (GLOBE NEWSWIRE) -- Netstock , a leader in supply chain planning solutions for small and medium-sized businesses (SMBs), today announced the release of its Tariff Impact Report 2025: 5 Proactive Strategies for SMBs . Developed in collaboration with trusted supply chain expert Lora Cecere, Founder of Supply Chain Insights , the report analyzes the challenges posed by the dynamic tariff landscape and offers five actionable strategies to help SMBs navigate these complexities. 'The Tariff Impact Report emphasizes the critical need for SMBs to embrace inventory management solutions—made smarter by AI and powered by real-time analytics,' said Ara Ohanian, CEO of Netstock. 'In today's unpredictable tariff environment, these tools are not just for optimization—they are fundamental for survival. Relying on excel-based quarterly planning isn't enough in this volatile landscape. SMBs need daily, AI-driven insights to effectively adapt.' The current climate of new and unpredictable tariffs generates significant uncertainty for businesses. For SMBs, maintaining flexibility and preparedness amidst this volatility is particularly challenging. To gain a deeper understanding of how SMBs are responding, Netstock surveyed over 120 of its customers, representing American SMBs with revenues under $500 million. 'For small and medium manufacturers, historical data offers limited guidance,' said Lora Cecere, Founder of Supply Chain Insights. 'Instead, companies should evolve to use market data using AI-powered advanced analytics.' Drawing on the survey data and expert insights, the Tariff Impact Report 2025 identifies five key areas where businesses can take proactive steps to mitigate tariff-related challenges. Use analytics to be proactive in the management of cross-border trade in the environment of increased tariffs. Netstock's survey found that only 12% of SMBs are relying heavily on analytics during this dramatic shift in supply chain management. Traditional methods will struggle in the new supply chain environment. Aggressive analytics are essential for SMBs to manage costs and build resilience. Nearshoring as an option. Only 15% of SMB respondents claimed they could easily reshore operations. For SMBs where nearshoring isn't viable, the key to navigating tariff volatility lies in leveraging visual and descriptive analytics, coupled with supply chain planning decision support. Cross-functional analysis of trade-offs, informed by logistics and transportation data, becomes critical for making proactive and effective choices. The impact on inventory. With over half of SMBs anticipating tariff-driven cost increases for the majority of their inventory, inventory planning technologies are crucial. Enhancing demand forecasting with Forecast Value Add (FVA) and using actual lead times for safety stock calculations are vital for mitigating longer lead times and potential shortages. Impacts will not just be on supply. Demand will change as well. Tariffs will significantly impact consumer demand and sentiment, leading to potential shifts in purchasing behavior. SMBs must prioritize channel data in demand planning and focus on FVA, recognizing that historical demand patterns will be less reliable. Expect the unexpected. The unprecedented impact of tariffs means there's no existing playbook to follow and Netstock's survey reveals that only 22% of SMBs have successfully implemented strategies to manage tariffs. Organizations must become highly proactive, fostering internal cooperation and building adaptability to navigate continuously evolving market conditions. The Netstock Tariff Impact Report 2025 is now available at [ Tariff Impact Report 2025: 5 Proactive Strategies for SMBs ]. About Netstock Netstock is a global leader in inventory optimization and supply chain planning software for SMBs. With over 2,400 customers in 67 countries, Netstock's AI-driven solutions help businesses streamline operations, improve forecasting, and optimize inventory to meet market demands. From automated recommendations to actionable insights, Netstock enables companies to enhance decision-making, reduce costs, and improve overall supply chain efficiency. Visit to learn more. Contact: [email protected]
