Reducing Lead Times In Supply Chain

A Head of Procurement was let go after delivering record cost savings. The board meeting was tense. “Procurement hit all their KPIs. Why is this even on the agenda?” Then the supplier performance dashboard came up. Fifty contracts renegotiated. Thirty-five key vendors underperformed or failed. Savings had been prioritized over everything. Lowest bids won—regardless of reliability. What followed: missed deadlines, poor quality, production delays. Suppliers that looked cheap on paper but cost the company far more in execution. Operations were in chaos trying to recover. Hidden costs piled up—rush fees, downtime, lost trust. Procurement spend? Down 12%. Operational losses? Up 25%. What looked like success was actually draining the business. The procurement process was overhauled: • Focus on total cost of ownership • Strategic supplier vetting • Cross-functional sourcing decisions • Risk assessments built into every contract Fewer contracts were signed the next quarter—but outcomes improved. Supplier reliability went up. Operational efficiency rebounded. The new approach spent more upfront—and delivered double the value. Don’t celebrate savings. Measure business impact. Cut costs the wrong way, and you’re not optimizing—you’re sabotaging. P.S. Want to build a high-impact procurement strategy? DM to send you the blueprint

The growing complexity of supply chain interdependencies is creating significant cybersecurity risks. In my latest article for the World Economic Forum’s Centre for Cybersecurity, I outline five key risk factors and what organisations must do to mitigate them: 1️⃣ Cyber Inequity – Large organisations are improving cyber resilience, but SMEs remain vulnerable. They must view cybersecurity as a business priority, while industry collaboration and policy support can help bridge the gap. 2️⃣ Limited Supply Chain Visibility – Expanding supply chains make it harder to assess supplier security. Without clear incentives, compliance gaps persist, increasing exposure to cyber threats. 3️⃣ Third-Party Software Vulnerabilities – AI and open-source adoption introduce new risks, yet only 37% of organisations assess AI tool security before deployment. A structured security framework is essential. 4️⃣ Dependence on Critical Providers – Over-reliance on a few key suppliers creates systemic points of failure. Resilient IT architectures and strong business continuity planning are critical. 5️⃣ Geopolitical Risks – Cyber threats are increasingly shaped by global tensions, disrupting supply chains and increasing attack sophistication. Organisations must integrate geopolitical risk assessments into their cybersecurity strategies. 𝗪𝗵𝗮𝘁’𝘀 𝗡𝗲𝘅𝘁? Organisations must prioritize visibility, support smaller partners, and invest in resilience. Strong business continuity planning, robust IT management, and proactive threat detection are non-negotiable. Cybersecurity is not just an IT issue—it’s a strategic imperative. Read the full article here: https://lnkd.in/g-yQ2QRa #CyberSecurity #SupplyChain #AI #RiskManagement

Playing it safe is the riskiest move in FMCG today. That’s why industry giants are de-risking innovation by partnering with agile startups.               The FMCG landscape is evolving rapidly as consumers demand instant deliveries, eco-friendly products, and personalized experiences.  While traditional brands have the scale and resources, they often struggle to keep up with these fast-changing expectations. In contrast, startups built on agility and innovation, are seizing the opportunity to bridge this gap—reshaping the industry in the process. That’s why instead of resisting change, companies like Nestlé, Marico, and P&G are embracing it—by partnering with startups to drive innovation. To give you an example: 📍 Godrej Consumer Products Limited, Dabur, and Nestlé are rethinking supply chains to match the rise of quick commerce. 📍 Procter & Gamble launched a ₹300 Cr fund to co-develop cutting-edge supply chain solutions with startups.(Indianstartupnews) 📍 Eco-friendly brands like Bare Necessities Zero Waste Solutions , Beco and ORGANIC INDIA are finding a place in mainstream FMCG through strategic tie-ups. It’s the smartest strategy for one reason: survival. 📍 FMCG brands thrive on mass production and distribution, but they often move too slowly to adapt to emerging consumer demands.  📍 Startups, on the other hand, bring speed, fresh ideas, and niche expertise. By partnering instead of competing, legacy brands gain agility without the trial-and-error risks of building from scratch. This approach doesn’t just drive innovation—it de-risks it. Instead of making costly bets on untested trends, FMCG giants can leverage startups’ real-time consumer insights, experiment faster, and scale successful ideas seamlessly. In an era where consumer preferences shift overnight, playing it safe is the riskiest move. Have you seen any interesting FMCG-startup partnerships lately? #Innovation #Agility #FMCG

SUPPLIER QUALITY AUDIT CHECKLIST: 1.Quality Management System 1.Verify if the supplier is certified to ISO 9001 or IATF 16949. 2.Check for the presence of a documented Quality Policy and measurable objectives. 3.Confirm that roles, responsibilities, and authorities are clearly defined. 4.Ensure quality manuals and procedures are up-to-date and controlled. 2.Incoming Material Control 1.Review procedures for inspecting incoming materials. 2.Check whether Certificates of Conformance (CoC) or test reports are verified. 3.Confirm that non-conforming incoming materials are recorded and managed appropriately. 3.Process Control 1.Verify that work instructions are available and followed at each workstation. 2.Identify whether critical processes are controlled with defined parameters. 3.Check if in-process inspection is conducted systematically. 4.Look for the use of Statistical Process Control (SPC) tools like control charts or histograms for key operations. 4.Final Inspection and Testing 1.Ensure there is a procedure for final product inspection and testing. 2.Confirm that inspection records are maintained. 3.Check if outgoing products are verified against customer requirements. 4.Verify traceability systems for finished goods. 5.Equipment Calibration and Maintenance 1.Review the calibration schedule for measuring instruments. 2.Check if all gauges and instruments are calibrated with valid certificates. 3.Ensure preventive maintenance plans are in place and followed. 6.Non-Conformance and Corrective Action 1.Examine how internal and customer-related non-conformances are handled. 2.Check if root cause analysis methods like 5Why or Fishbone diagrams are used. 3.Ensure corrective and preventive actions are tracked to closure with effectiveness verification. 7.Document and Record Control 1.Confirm that records are retained as per defined retention policies. 2.Check whether document revisions are controlled and updated systematically. 8.Supplier/Sub-supplier Management 1.Verify if sub-suppliers are evaluated periodically. 2.Ensure the supplier has defined quality expectations and requirements for their own suppliers. 9.Training and Competency 1.Check whether employees are trained and competent for their assigned tasks. 2.Ensure training records are maintained and effectiveness is evaluated. 10.Continuous Improvement 1.Look for evidence of continuous improvement initiatives such as Kaizen, 5S, or Six Sigma. 2.Check whether improvement goals are set, monitored, and reviewed regularly. 11.Environment, Health & Safety (EHS) 1.Ensure that safety measures, signage, and personal protective equipment (PPE) are available and used. 2.Verify the implementation of 5S principles in the workplace. 3.Check for compliance with environmental and legal regulations. 12.Customer Satisfaction and Support 1.Review how customer feedback and complaints are collected and analyzed. 2.Check whether timely and effective actions are taken in response to customer issues.

Tactics to Engage Suppliers in Decarbonization 🌎 Suppliers are essential to achieving climate goals. For many companies, most greenhouse gas emissions come from their supply chains. These emissions, known as Scope 3, are often the hardest to measure and manage. Engaging suppliers is critical to reducing overall emissions and meeting climate commitments. It also helps companies manage regulatory risks and strengthen the resilience of their business operations. Reducing emissions across the value chain requires a deliberate and structured approach. Not all suppliers have the same capabilities, resources, or readiness to act. This means companies must apply a mix of strategies tailored to different types of suppliers. These strategies should balance support with accountability and combine short-term incentives with long-term expectations. One way to drive supplier action is through commercial incentives. Tools such as long-term purchase agreements, volume increases, or expanded shelf space can be linked to sustainability performance. These measures send a clear message that climate action is part of doing business and can reward suppliers who make progress. Public recognition is another effective tactic. Publishing supplier scorecards or sharing success stories in press releases can motivate improvement and encourage healthy competition. These actions require minimal effort but can create significant visibility and validation for suppliers making meaningful changes. Some suppliers, especially smaller ones, need help to move forward. Providing personalized support or enabling access to renewable energy can remove key barriers. Companies can also offer funding solutions such as improved payment terms or revolving loan funds. These tools help suppliers act more quickly and confidently. Financial tools are especially important for suppliers with limited access to capital. Projects that reduce emissions often require upfront investment. Offering early payments or co-investing in emissions reduction projects can unlock supplier action and demonstrate shared commitment to climate goals. Accountability also plays a key role. Including sustainability requirements in supplier contracts or requests for proposals helps set clear expectations. When suppliers do not meet minimum standards, companies may reduce business or end the relationship. These measures reinforce the importance of climate performance as a business requirement. Monitoring progress ensures transparency and continuous improvement. Regular audits, third-party reviews, and clear feedback loops allow companies to verify implementation and identify areas for further action. This helps suppliers stay on track and ensures that progress toward decarbonization is both real and measurable. #sustainability #sustainable #esg #business #decarbonization

Exploring the Cost Efficiency of Transport Modes in India: A Game-Changer for Businesses. As India continues to strengthen its position as a global economic powerhouse, understanding the cost dynamics of transportation is crucial for businesses aiming to optimize logistics and reduce operational expenses. Let’s dive into the comparative costs of various transport modes in India, based on insightful data that could reshape your supply chain strategy. Transportation is the backbone of trade and commerce, and the choice of mode can significantly impact your bottom line. 
Rail transport offers a reliable and cost-effective solution, especially for bulk goods over long distances. Its structured network across India makes it a preferred choice for industries like mining and agriculture. 
While road transport provides flexibility and doorstep delivery, its costs are relatively higher due to fuel prices, maintenance, and road conditions. It’s ideal for shorter distances and time-sensitive deliveries but can strain budgets over long hauls. 
Coastal shipping emerges as a surprisingly economical option, leveraging India’s extensive coastline. It’s gaining traction for moving goods along the coast, offering a balance of cost and capacity. Inland Waterways 
The star performer! Inland waterways, including coastal routes, are the most cost-efficient mode. With initiatives like the National Waterways project, this eco-friendly option is set to revolutionize freight movement, especially for heavy cargo. Seaway: Represented by robust shipping vessels, seaways align with coastal and inland waterway efficiencies, making maritime transport a cornerstone of international and domestic trade. Why does this matter? For businesses, selecting the right transport mode can lead to substantial savings. For instance, shifting a portion of freight from road to inland waterways could cut costs by up to 80-90% per tonne-km compared to road transport. This is particularly relevant as India pushes for sustainable logistics under initiatives like “Make in India” and the Sagarmala Project. The data underscores the potential of waterways, which remain underutilized despite their low cost and environmental benefits. As of July 2025, with growing infrastructure investments, now is the time to explore these alternatives. Whether you’re in manufacturing, retail, or logistics, aligning your strategy with these cost insights can enhance competitiveness. What are your thoughts? Have you considered diversifying your transport mix to include waterways? Let’s discuss how these trends can shape the future of logistics in India. Share your experiences or insights below—I’d love to hear from you! #Logistics #SupplyChain #Transportation #IndiaBusiness #Sustainability #Freight #BusinessStrategy #MakeInIndia #Waterways

Contract management can make or break your procurement process. But are you leveraging the right KPIs to ensure success? Here are 15 contract management KPIs you can use to improve your procurement contracts and streamline your processes: -Time to Contract Signature: Measure the time taken from initiation to signing. -Time Per Phase: Assess the duration spent in each process phase. -Costs Beyond Contract Value: Evaluate costs incurred over the agreed contract value. -Contract Compliance Rate: Ensure contract terms, conditions, and guidelines are adhered to. -Supplier Performance: Evaluate supplier deliverables against agreed terms (SLAs, KPIs, etc.). -Contract Accuracy: Measure the precision and correctness of contract content. -Stakeholder Satisfaction: Gauge satisfaction with the contract management process. -Risk Management Effectiveness: Assess the effectiveness of risk management strategies. -Contract Visibility: Ensure the accessibility and visibility of contracts within the organisation. -Process Efficiency: Evaluate the efficiency of your contract management processes. -Contract Utilisation Rate: Assess how well contracts are utilised versus their potential. -Vendor Compliance Rate: Measure the rate of vendor compliance with contract terms. These KPIs can transform your approach to contract management, making it more efficient, accurate, and compliant. 💡 Share your thoughts in the comments below 👇

From my new Harvard Business Review article, here’s how to create the second of four pillars that innovative organizations need – capability to forge strategic partnerships: You don’t have to contain yourself to your team or the organization when it comes to innovation. Great innovations can come from collaborations with suppliers, customers, universities, startups, or companies using relevant technology in a totally different way. For example, the jeans company Levi Strauss has been collaborating with Google to figure out what “smart” clothing might accomplish for users like truckers. But doing so needs focused and dedicated work. That means you need to find people within the team to do the long-term work of building those relationships, having speculative conversations, and hunting for partner capabilities which may not be immediately apparent. You don’t want to be Yahoo, which declined to engage with an ambitious early-stage company boasting a different business model: Google. What to do instead? Put specialists in strategic technology partnerships on the lookout. Have them work in collaboration with core business teams who can use these partnerships to make innovation happen. For example, many pharma companies have these types of partnership offices near MIT, and it’s an approach that can be replicated by a broad range of industries. Johnson & Johnson’s university collaborations not only facilitate investments and research partnerships, but through JLabs they also provide lab space and support services for promising start-ups without requiring an equity stake. This can give Johnson & Johnson an inside track with the start-up when the timing is ripe. The fruits of the program have been substantial — as of 2023, 840 incubations of companies in this network had yielded more than 290 deals or partnerships with J&J. (Have you used other methods to forge strategic partnerships? Please add them in the comments!)

𝗛𝗼𝘄 𝗣𝗿𝗼𝗰𝘂𝗿𝗲𝗺𝗲𝗻𝘁 𝗰𝗮𝗻 𝗜𝗺𝗽𝗿𝗼𝘃𝗲 𝗜𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 : Procurement departments work intensively on how to spend more effectively by prioritizing spending and not just cost-cutting. To understand role of procurement in improving Inventory management we first need to understand the SCOR model which explains Procurement’s role in the supply chain and how it fits in overall business. SCOR Model : 𝐏𝐥𝐚𝐧 – 𝐒𝐨𝐮𝐫𝐜𝐞 – 𝐌𝐚𝐤𝐞 – 𝐃𝐞𝐥𝐢𝐯𝐞𝐫 – 𝐑𝐞𝐭𝐮𝐫𝐧 – 𝐄𝐧𝐚𝐛𝐥𝐞 Procurement has an impact on Plan, Source, and Enable. Having input to half of the key processes shows how critical procurement is to business. It’s not just the department that handles invoices and orders items. The procurement role in these processes’ ranges from : ✅Determining resource requirements and establishing communications ✅Developing approved practices and policies ✅Obtaining the resources ✅Managing contracts, performance, and risk. With this procurement can provide value in five areas: Savings, Quality, Speed, Innovation, and Risk. Savings Using Kraljic matrix we can segment supply items and analyse to define actions. Quality Given that failures of quality can occur in many different areas, buyers need to determine which areas require the most attention. Digital solutions within ERP, such as predictive supplier performance analysis, provide assistance in this area because they can learn from where past quality failures occurred to highlight likely occurrences in the future. Speed To improve the speed of delivery and availability of inventory, procurement needs to reduce the time to set up a source (source to contract), and to go from a purchase requisition to a purchase order (PR-to-PO). Automated solutions to request and process quotes can shorten the time to contract after the requests for information and quotation (RFI and RFP) have been adjudicated and completed faster with online enablement. Digital tools can help in the PR-to-PO process. When done manually there are often many steps that procurement staff must follow – record, check, follow-up, verify, and get approval. A procurement solution can streamline this work by ensuring all the necessary documents are obtained, correct processes and practices are followed, and mobile device links accelerate approvals. Innovation Procurement can support innovation by identifying and securing suppliers that offer key items. Digital solutions, like an online platform to facilitate planning and transactions with suppliers, can help enterprises and their suppliers to work together to optimise procurement activities. Risk Procurement can use digital solutions like ERP to decrease risk through various measures including preferred supplier and supplier performance, quality control, and production lot traceability. Buyers can use artificial intelligence (AI) software to help them detect fraud and identify trends in supplier delivery and product quality.

The efficiency of modern transportation depends on a seamless flow of data, where real-time insights empower fleet managers to optimize routes, reduce delays, and ensure cargo integrity, making every decision more precise and responsive to unpredictable challenges. The transportation ecosystem relies on interconnected systems that transform raw data into actionable intelligence. Sensors track vehicle performance, cargo conditions, and driver behavior, generating real-time data on fuel consumption, harsh braking, or temperature fluctuations. This data is transmitted through advanced communication networks, where it is aggregated and structured for analysis. AI-driven systems identify inefficiencies, predict maintenance needs, and optimize logistics by adjusting routes dynamically. Fleet managers use these insights to improve safety, reduce costs, and enhance delivery reliability. By leveraging technology, businesses can respond swiftly to disruptions, ensuring supply chains remain resilient and adaptive. #SmartLogistics #DataDriven #FleetManagement #DigitalTransformation #SupplyChain