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Own your suppliers inbound shipments

In the webinar, we will look at ways how can you protect budgets and keep inventory levels under control by controlling inbound supplier's shipments.

𝗪𝗵𝗲𝗻: Tue, Oct 20, 2020 10:00 AM - 10:30 AM (PDT)

𝗥𝗲𝗴𝗶𝘀𝘁𝗲𝗿: Click here to register


October 2020
Sixth, in our series on suppliers management how-to, we will look at ways to control inbound supplier's shipments, which help keep inventory levels and cash flow under control:


Own Your Inbound Shipments

The costs of excess inventory can be huge: These may include freight in, storage costs, insurance expenses, external or internal theft, obsolescence, spoilage, and taxes. Studies have shown that the annual additional cost of holding excess inventory can be 25 percent to 32 percent.The bottom line: The more inventory you have on hand, the greater the amount of the business’ capital is tied up. One way to control excess inventory and try to optimize it is by eliminating early supplier's shipments.

We suggest the following approach for controlling suppliers inbound shipments:


1. Utilize a Simple workflow for authorizing all supplier shipments in advance. This will help keep inventory levels and cash flow under full control. Create a simple workflow for this process >> Suppliers confirm PO lines in a supplier portal as "Ready for shipment" (Only lines within the shipment window will be visible and allow to confirm as "Ready for shipment") >> Buyers receive an email alert and approve >> Suppliers receive authorization to create barcodes and shipment paperwork.

2. Go paperless by adding online barcoding and shipment paperwork (COC, FAI) capabilities so that suppliers can create this online and on the fly, you gain full visibility and control of the shipment in advance and your incoming inspection won’t have to deal with endless paperwork and the risk associated with it in our current environment.

Join us Wednesday, Oct 21 at 10:00 AM EST for a live 30 minutes webinar to learn how you also can "Own your inbound shipments".
https://www.gotomeet.me/peter989/how-can-you-protect-budgets
You can also dial in using your phone:
United States: +1 (872) 240-3412
Access Code: 285-138-669

September 2020
Fifth, in our series on suppliers management how-to, we will continue looking at AI (Artificial Intelligence) and ML (Machine Learning) implementations for suppliers management:


Machine Learning modules for Supplier Lead time management

Supplier Lead Time is the amount of time that normally elapses between the time an order is received by a supplier and the time the order is shipped.

In most enterprise purchasing systems, suppliers lead time are entered upon supplier agreement signature and are kept as static data on a part level which is not updated frequently or at all.

Since supplier lead time plays a critical role in the timing and sizing of purchase order decisions, many purchasing professionals have recognized this importance, and are looking to accurately predict lead times and to develop strategies for coping with problems created by lead time variations.

As part of our ongoing work to develop prediction algorithms based on AI and ML to help the supply chain organization better manage their suppliers, we've developed a module which predicts the lead time variation % of a supplier manufactured part compared to the current static lead time maintained in the enterprise purchasing system.

This module combines data captured from various systems:
1. Purchasing information from the enterprise system
2. Goods received information from the enterprise system
3. Daily supplier data captured in our systems: late lines, late qty
4. Supplier portal inputs such as date difference in supplier po confirmations

Blending this wide range of information and sources, helps build an accurate module and after training it, It helps build an accurate prediction system, which highlights the following to the supply chain organization:
1. Fine-tune suppliers metrics to better predict if parts will be shipped on time or not.
2. Specify lead time data on a part level which includes WIP (Work in process) and inventory qty recommendation for both buyers and suppliers.
3. Return updated lead time to enterprise system to better manage the purchase order life cycle.

September 2020
Fourth, in our series on supplier's management how-to, we will look at using AI for suppliers management.


AI for suppliers management - From Reactive to Proactive

PricewaterhouseCoopers determined that Artificial Intelligence (AI) "is a source of both huge excitement and apprehension. What are the real opportunities and threats for your business?...Business leaders are asking: What impact will AI have on my organization, ... And these leaders look to capitalize on AI opportunities..."

Supply chain and suppliers management methods are at a significant point in time where the adoption of AI- and ML (Machine learning) enabled solutions could mean the difference between failure and success.

One major aspect that AI and ML algorithms can be of major help to supply chain and procurement teams is analyzing suppliers’ data and foresee on-time delivery issues in advance —before they stop production lines. These predictions can help target future critical suppliers and parts and enable procurement organizations to focus immediate attention on where it is most needed.

We've built such an algorithm based on 4 main suppliers inputs from various systems:
1. Historical inbound shipments Data
2. Manufacturing data via the suppliers portal
3. PO confirmations in the supplier portal
4. Supplier portal updating trends

The score is adjusted on a supplier level per the engagement rate allocated to each supplier:
· Suppliers that input Stock + WIP data
· Suppliers that input Stock data
· Suppliers that don’t input manufacturing data (Only PO confirmations)

And the outcome is grouped into 3 main colors:
1. Red < 65 (Are late or will be late in the next 90 days - Need immediate attention)
2. Yellow > 65 <85 (Have a chance to be late in the next 90 days – Need some attention)
3. Green > 85 (Will be on time in the next 90 days)

Such a prediction system will give indicators for manufactured parts at suppliers, and give the tools to communicate and make the right decisions to achieve on-time deliveries, eliminate hidden factory costs of late parts, redeploy labor from expediting to value-added activities, and focus on growth and not resolving delivery issues.

September 2020
Third, in our series on supplier's management how-to, we will look at using advanced technologies for the new normal.


Digitizing Procurement For The New Normal

Per Mckinsey August 2020 article, Reimagining procurement for the next normal: “Companies have a lot to bounce back from…Yet procurement has helped companies weather global crises before. According to our research, in the five years immediately following the 2008 global financial crisis (GFC), total return to shareholders (TRS) for companies with top-quartile procurement capabilities was 42 percent higher than for companies whose procurement operations were in the bottom quartile…We also found that companies with top-performing procurement functions saw valuations return to pre-GFC levels an average of three years faster…”

Per the Mckinsey article, one of the five steps that will help procurement leaders address the current situation and set up their organizations for success is: “Accelerate adoption of digital and analytics: Procurement leaders have talked about digitizing procurement for some time. But our discussions with them indicate that progress has been slow. Many are trapped in pilot purgatory, making small investments in select use cases that never scale up to achieve real business impact. The rapid adoption of new ways of working that the pandemic necessitated forced companies to accelerate the shift to digital. As remote work becomes the next normal, digitization can be an important enabler of effective collaboration across functions.”

We believe one immediate and budgetary digitizing procurement initiative can be using online tools like simple to use user-friendly web supplier portals built to help SCM teams better track suppliers open PO's and manufactured parts by allowing suppliers to update data in an easy, simple and fast secured web portal. to increase visibility and traceability with your suppliers for on-time PO confirmations and Obtaining accurate lead times, WIP (work-in-progress) and stock level quantities weekly.

The second phase of such an initiative will be the use of advanced artificial intelligence (AI) and machine learning (ML) algorithms to analyse suppliers’ data inputs gathered from the supplier portal over time. This will help foresee issues in advance and can play a major rule in the new normal and the efforts of procurement and supply chain teams to help their companies bounce back and will help companies target future critical suppliers and parts and enable them to focus immediate attention where it is most needed, thus redeploying labor from expediting to value added activities , eliminating hidden factory costs of late parts and focus on growth and not resolving delivery issues.

September 2020
Second, in our series on supplier's management how-to, we will look at the key factors on how to gain and maintain supplier's engagement and participation.


How to gain and maintain supplier's engagement and participation

Some of the biggest frustration with supplier portal tools implementation is the low percentage of supplier participation. Participation rates may fall under 50% of all participating suppliers, a figure that puts the entire investment and work at jeopardize.

Here are some points to create supplier engagement strong:

1. Service

Be service orientated when deploying your supplier portal and make sure to be reachable and responsive to your supplier requests. From login to technical questions. Service = Higher supplier engagement and participating rates.

2. Ease of use

keep your portal as easy to use as possible for your suppliers. Be sure to reduce the number of supplier's required inputs to the minimum needed, make validation messages crystal clear and be sure that no special technical requirements are needed (such as software downloads) to use the portal.

3. User friendly

Be sure that the GUI (Graphical user interface) is user friendly and web-based, so users who are already using other web pages and applications, find it intuitive with same logic as in other web applications they daily use. Be sure that your portal is mobile friendly as well and use on screen messages telling the user what is needed to be done.

5. Tutorials and training

Make use of web videos instead of text tutorials. Make the tutorials as professional as possible and as detailed as possible. Offer detailed training sessions when neededץ

6. Provide both incentives and penalties

Provide small incentives for regularly participating suppliers and enforce penalties with non-conforming ones.

7. Buyers and Administrators Buy In

Be sure the all ranks inside the organization have bought into the portal deployment and understand the goals and KPI’s targets. The buyers and administrators are the ones facing suppliers daily and are the ones that can help convey the importance of the portal usage to the supplier contacts.

When we deploy our IDAS.AI set of suppliers management tools, we take all of the above into consideration in order to ensure suppliers engagement rates remain higher over time (our benchmark is 70% monthly and between 75%- 85% 3 months rolling) and this is one example of a mail we received from one participating supplier:

"WOW! That is all I can say. You were the easiest company to request portal access EVER!!!!! Thank you very much!"
August 2020
We are starting a series of professional weekly posts on supplier's management how-to. Feel free to comment and share and to raise any questions or subjects of interest. Our first post will deal with obtaining suppliers visibility and traceability


Why do companies need to ensure suppliers visibility?

Suppliers visibility is the ability of parts, components, or products to be tracked from the manufacturer to their final destination, and help to improve and strengthen the supply chain by making data readily available to all stakeholders, both within the suppliers and customer

Fact #1:

Supply chain visibility is now the third greatest strategic priority for industry professionals according to the GEODIS 2017

Fact #2:

Just 6% have "full visibility" into their tier-two suppliers. Cost is the likely reason for the lack of visibility, as not all companies have the resources to investigate their tier-three, four or five suppliers.

Fact #3:

Statistics demonstrate that only about 50% of organizations that are deemed "best-in-class" are using a supplier portal, and of the rest of the organizations, only 20% utilize supplier portals

Problem #1:

Supply chain and procurement managers, find it difficult to predict where the next "bottleneck" will be, which will disrupt the supply of parts, stop production lines and cause dissatisfaction with the end customers

Problem #2:

Suppliers compliance and po acknowledgments percentages are low and enormous amount of time=money is spent in communication with non-compliant suppliers

Problem #3:

Data silos are created and accessible by only one functionality/department but isolated from the rest of the supply chain. This results in a severe lack of transparency and efficiency.


3 steps suppliers visibility development path:

Step #1:

Increase visibility and traceability with your suppliers by using online tools like simple to use user-friendly web supplier portals for on-time PO confirmations. This will also help flow down accurate changes in your requirements in real-time, enabling all sides to adjust to ever-changing demands in times of crisis.

Step #2:

Obtain accurate WIP (work-in-progress) and stock level quantities from your suppliers and manufacturers. This will help you analyze potential shortages that may lead to line stoppages in advance. It will also help you to fulfill immediate requirements arising from your manufacturing sites when needed

Step #3:

Share as much information with your suppliers. Share forecasts, news updates, and accounts payable information with your supplier on line. This will buy-in and increase supplier's participation rates and information sharing.

The bottom line - Be traceable-Don’t tell them, show them!

July 2020
How can you protect budgets during COVID19?

Today, more than ever, Supply chain teams need to keep a close watch on their bottom lines. At IDAS, we’re making that easier than ever by helping our clients keep their operations as simple and streamlined as possible. Our software and services help you:.

Own your inbound shipments

Suppliers confirm PO lines as “Ready for Shipment” in a supplier portal so you can Authorize all shipments early, to control cashflow and inventory

Keep that workflow simple

Increase visibility and traceability with online tracking tools and PO confirmations

Ready. Set. Go paperless. - Paperless is more

Online barcoding and shipment paperwork keep things simple and eco-friendly. Our supplier portal includes barcode shipping label that will inform that a package is being ready to ship, and force standardized shipping labels for incoming goods.

These are tough times. Hard workers deserve an easy way to protect their budgets. Learn more about how you can simplify your processes and save money at IDAS.ai
April 2020
It’s time to rethink your supplier's management strategy

The COVID-19 pandemic has rattled the world economy. With worldwide stay home policies and travel stoppage, hidden weaknesses in supply chains are surfacing and making it extremely difficult to minimize line stoppages, past dues, and communication breakdowns with your suppliers.

It’s time to rethink your supplier's management strategy and introduce cutting-edge online tools that can help minimize performance and communication issues in the upcoming months.

Here are a couple of points we are raising that might help you better manage your suppliers in these uncertain days:

1. Increase visibility and traceability with your suppliers by using online tools like supplier portals for on-time PO confirmations. This will also help flow down accurate changes in your requirements in real time, enabling all sides to adjust to ever-changing demands in times of crisis.

2. Obtain accurate WIP (work-in-progress) and stock level quantities from your suppliers and manufacturers. This will help you analyse potential shortages that may lead to line stoppages in advance. It will also help you to fulfil immediate requirements arising from your manufacturing sites when needed.

3. Control inbound shipments by authorizing all supplier shipments in advance. This will help keep inventory levels and cash flow under your full control.

Create a simple workflow for this process >> Suppliers confirm PO lines in a supplier portal as "Ready for shipment" >> Buyers receive an email alert and approve >> Suppliers receive authorization to create barcodes and shipment paperwork.

4. Go paperless by adding online barcoding and shipment paperwork (COC, FAI) capabilities so that suppliers can create this online and on the fly, and your incoming inspection won’t have to deal with endless paperwork and the risk associated with it in our current environment.

5. Prepare an updated contact list of suppliers and incorporate online tools to send real-time online notifications and alerts seamlessly and effortlessly. This will save your administrator the time and effort required to send hundreds of emails manually and let them focus on value-added work with their suppliers.

6. In times when most administrative staff are working remotely through email at home, create a secured online communication platform by using timelines and agreed-upon graphical icons to centralize communication with suppliers and avoid issues of limited access to suppliers’ information.

7. Map your suppliers, and use heat maps to get a clear, simple visualization of where your bottlenecks are and act accordingly. Map suppliers per different risk categories, which include geo-location and current readiness to deal with the pandemic.

Heat Maps are extremely versatile and efficient in drawing attention to trends, and they are innately self-explanatory, with the ability to rapidly communicate key data insights to the viewer.

8. Use advanced artificial intelligence (AI) and machine learning (ML) to analyse suppliers’ data and foresee issues in advance —before they stop your production lines. These predictions will help you target future critical suppliers and parts and enable you to focus immediate attention where it is most needed.

9. Stop being reactive >> Start being proactive by using online tools and predictive algorithms.

March 2020
Using heat maps to visualize suppliers risks

When you hear the term “Heat Maps”, what comes to mind? Do you immediately think of something related to financials?



By definition, Heat Maps are graphical representations of data that utilize color-coded systems. The primary purpose of Heat Maps is to better visualize the volume of locations/events within a dataset and assist in directing viewers towards areas on data visualizations that matter most.

But they’re much more than that. What many people don’t realize, is that Heat Maps can be applied to a handful of data visualizations. This is especially true when dealing with large volumes of data, as colors are easier to distinguish and make sense of than raw numbers. Heat Maps are extremely versatile and efficient in drawing attention to trends, and Heat Maps are innately self-explanatory with the ability to rapidly communicate key data insights to the viewer. That’s the reason we're starting to introduce a variety of heat maps in our supplier management tools: from an overview and comparison of all suppliers to easily track suppliers with current and upcoming delivery and capacity issues to supplier-specific heat maps to view supplier trends in the last 6 months and from their a drill down on specific part numbers.

Heat Maps

February 2020
In times of uncertainty, its time to stop being reactive and start being PROACTIVE!

Learn how IDAS ground breaking technology, support and know how will help you minimize line stoppages, past dues and communication break down in times of uncertainty and travel stoppages.

The spread of the coronavirus has rattled the world economy and with growing concerns of worldwide travel stoppages, its time to rethink your supplier's management strategy and introduce cutting edge on-line tools that can help minimize performance and communication issues in the upcoming months.


Our unique combination of AI technology and accumulated experience will help you optimize your suppliers performance and communication issues in advance through identification of on-time delivery issues prior to them occurring, transparent real-time communications, elimination of non value-added operations, increasing accountability, 360-degree visibility across the whole supply base which eliminates the immediate need for on-site visits.

Technology

IDAS Unique integration of cutting-edge technology based on a proven worldwide communication tool and the next generation of parts prediction algorithm or PPA.

Supplier Portals

The Supply chain set of tools were built to help SCM teams better track suppliers open PO's and manufactured parts by allowing suppliers to update data in an easy, simple and fast secured web portal. The tools which include the Supplier Portal, Supplier Shipments and parts tracking ,will streamline the flow of information between suppliers and SCM teams there by increasing visibility, traceability and giving you the tools to communicate and take the right decisions to achieve on time deliveries.

Supplier Open Orders Confirmation

Create Shipments Documents

Manufacturing Updates

Parts Prediction Application (PPA)

We take pride in our ground-breaking PPA Algorithm which allows supply chain teams to assess and measure suppliers data and activity over time. This includes historical and current acknowledgments, manufacturing, and shipping trends and data. PPA offers a prediction system and indicator for your manufactured parts at your suppliers, allowing you to make the appropriate decisions and to manage and guarantee on-time delivery.

Supplier main page

P/N main page

P/N time line page

Line of Balance (LOB)

Our LOB Service will help you address the question of how aligned is supplier specific parts production with your demand. Save time , money and resources currently allocated to contacting and managing your suppliers, with our on line automatic and on site capabilities.

 

Line of Balance

Heat Maps

With a simple view, our heat maps will help any supply chain team better understand where the bottle necks are located. If its on all suppliers, specific commodities or projects or on a part basis, save time and efforts analyzing your issues and start being proactive and work immediately to solve the upcoming performance and communication failures.

 

Heat Maps