SourceDay’s Post

Manufacturing is complex enough; today, organizations leave the critical process of direct material procurement to manual email and spreadsheets. Our data shows that when a PO is Acknowledged in SourceDay, those critical components are 40% more likely to be delivered on time. On average, that's an improvement from 58% to 81% OTD. Production scheduling, overhead costs, and revenue are more predictable and improved when parts are on time! #manufacturing #ontimedelivery #directprocurement

🚚 How are 3PL providers adapting to today’s fast-paced logistics world? Discover the latest trends, challenges, and growth strategies transforming supply chains! 🌐📈 #Logistics #SupplyChain #3PL #BusinessGrowth #Innovation #FutureOfSupplyChain

Every stage of the supply chain, whether upstream or downstream, plays a vital role in ensuring smooth operations. Understanding these flows is essential for optimizing efficiency and driving success.  Learn More: https://lnkd.in/du49dyAq . . . #Godamwale #SupplyChain #3PL #Logistics #Upstream #Downstream #Flexible #Warehouse #B2B #WarehouseManagement #WMS #SupplyChainSolution

There are many considerations that go into modern manufacturing, but there are three key critical operations, stemming from Third-Party Logistics, that will have the biggest impact: 1. Streamlining Supply Chains 2. Enhancing Operational Efficiency 3. Scalability and Flexibility Click to read The Estill Group's article about the importance of 3PL services: https://ow.ly/SZWH50SWHvh #ModernManufacturing #SupplyChainManagement #OperationalEfficiency #Scalability #Flexibility #LogisticsSolutions #ManufacturingIndustry #3PLServices #BusinessOperations #IndustryInsights

METRICS TO MONITOR SUPPLIER IN SCM Moving on, the supply chain is understood t be a combination of many supply chains. For example, consider that an Original Equipment Manufacturer or OEM has a supplier. The OEM then processes the product and distributes it into its downstream supply chain. The supplier here can be an OEM for its own upstream supplier and have an own downstream, that is the manufacturing plant in our case. Every part of the supply chain is responsible for providing input into other supply chains. In such cases, organizations define the metrics to agree on the performance criteria to minimize the disruptions. Let us start by understanding the KEY METRICS OF SUPPLIER from the supply chain entities. QUALITY – Is often measured as percentage of defects per lot. Supplier are expected to meet the quality levels per delivered lot. Depending on the type of the product, organizations use different sampling techniques to measure the incoming product quality levels. DELIVERY – Delivering the products on time is critical for the supplier. The variability of the delivery impacts the supplier performance ratings and will have detrimental effects on the suppliers business. Also, as the variability in delivery increases, the manufacturer must hold more safety stocks to beat the uncertainties. This adds to the inventory cost for the manufacturer. COST – Supplier is expected to keep the cost inline with the agreed PO. In most part of the businesses suppliers are required to pass on the Year-on-Year cost savings that is understood as the proxy for efficiencies. Following are some metrics used to measure the supply chain performance drivers. These include SERVICE LEVEL – It refers to the proportion of times the entire lead-time demand can be met. As the Service Level increases, the safety stock and the total inventory costs also increases. FILL RATE – It is the percentage of the demand that can be met. The fill rate is always greater than or equal to the service level. ORDER FULFILMENT LEAD TIME – This refers to the total time that elapses between an orders placement and its receipt. It includes the time required for order transmittal, order processing, order preparation and transit. It is the average consistently achieved lead-time from cstmr order origination to customer order receipt for a particular manufacturing process. SUPPLIER ON TIME DELIVERY – It is a metric which measures the performance of a supplier or vendor on their delivery commitment and is used to show to what extent they are matching with the lead time. It is expressed in % terms. TOTAL INVENTORY DAYS OF SUPPLY – It is the total gross value of inventory at a standard cost before reserves for excess and obsolescence. CASH REALIZATION TIME – It is the length of time from the purchase of raw materials to the collection of payment from customers.  CASH TO CASH CYCLE TIME – It is the time it takes for cash to flow back into a company after it has been spent on raw materials.

Inbound supply visibility is critical for manufacturing and distribution supply chain leaders. Yet a mix-and-match of legacy systems, emails and spreadsheets can make it difficult to achieve a holistic view. Our guide to Inbound Supply Chain Visibility for Manufacturers and Distributors explains: • The benefits of complete inbound supply visibility • Why real-time data is key to aligning supply with demand timelines • How SourceDay enables real-time visibility https://lnkd.in/gQfqfdkn #supplychainvisibility #manufacturingsupplychain #inboundsupplychain

🚀 🌐 𝐄𝐱𝐩𝐥𝐨𝐫𝐞 𝐭𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐋𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬 𝐰𝐢𝐭𝐡 4𝐏𝐋! 🌐 🚀 Have you ever wondered how to make your supply chain even more efficient and effective? 🤔 In our latest article, we dive deep into what 4PL is all about and how it can help your business reduce complexity, lower costs, and become even more flexible. 🤝🔍 👉 Read the full article here and discover why 4PL is the future of logistics! https://lnkd.in/eRJXYVVe

In supply chain management, upstream and downstream refer to the flow of goods, information, and materials relative to the organization. Upstream: Refers to the supply side of the supply chain, involving activities related to sourcing and procurement. Includes interactions with suppliers and acquiring raw materials and components needed for production. Focuses on supplier management, material sourcing, and procurement processes. Downstream: Refers to the demand side of the supply chain, involving activities related to delivering the final product to customers. Includes distribution, retail, and customer service functions. Focuses on order fulfillment, logistics, and customer interactions.

Understanding 3PL and how it can benefit your business. Check it out! 👇 #CornerstoneSystems #3PL #RockSolidTransportation #SupplyChain #Logistics

Navigating the selection of a third-party logistics provider is critical for shippers aiming to optimize their supply chain operations. Our latest article offers a comprehensive guide to choosing the right #3PL. The guide covers essential factors such as evaluating service scope, technological capabilities, and the provider’s ability to adapt to changing needs. This resource is invaluable for shippers seeking to enhance logistics efficiency and streamline their operations. Get the full guide here: https://hubs.li/Q02vZcgG0