Punch Powertrain: Ten days to digital strategic sourcing
Working with Ivalua and CKS Benelux, in less than two months, Punch Powertrain had successfully configured and onboarded suppliers, deploying Ivalua’s platform in September of 2020 and delivering rapid value in the sourcing of direct materials.
Based out of Belgium, the automotive supplier specialises in sustainable and affordable propulsion system solutions and is leveraging Ivalua’s platform for the sourcing of components for its joint venture operations, Punch Powertrain PSA e-transmissions.
Using Ivalua’s strategic sourcing modules, Punch Powertrain buyers can now collaboratively define purchasing needs, consolidate tendering documents and enjoy streamlined workflows for managing and comparing costs. With a more efficient process for comparing offers, buyers can now award business based on price vs vale or a lower total cost of ownership. This allows for a more efficient process and increases the companies agility.
Moreover, a reverse auction may be added to the process, which CKS would manage as a third party. A certified integrator and Ivalua partner in CKS Benelux helped buyers and suppliers during the e-sourcing and e-auction phases and configured the platform in just ten business days.
“CKS’ and Ivalua’s value proposition meets our strategic objectives: digitalise the tendering process, aim for the best purchase price and optimise the time spend of our buyers in this program – allowing them to focus on the essence. It is a true boost to efficiency and competitiveness in innovative sectors of the automotive industry to be able to rely on the expertise of experienced partners. We are very much looking forward to open a new chapter with Ivalua in 2021 by rolling out the Advanced Product Quality Planning (APQP) module together with supplier quality performance management tracking.”— Juan-Carlos Flores Regla, CPO of Punch Powertrain.
“We are developing our ecosystem of partners to provide business advice and value-added service around our preconfigured, direct-sourcing solution. We are delighted that Punch Powertrain validates this strategy and relies on the dual expertise of CKS and Ivalua”.— Gabriel Giret, Head of Alliances EMEA at Ivalua.
“The CKS Group companies are extremely proud to have delivered with a reduced lead time – as is always the case in manufacturing – their technical expertise on Ivalua together with precious experience of procurement needs within the automotive industry. The Ivalua solution empowers us to deliver value to CPOs throughout Belgium.”— Pierre-Edouard Labbé, Managing partner at CKS Benelux.
How Covid-19 Shook Up the Who's Who of American Retail
According to the new Digital Commerce 360 Top 500 analysis report, the massive shift in ecommerce habits due to COVID-19 resulted in a windfall for the US’s largest retailers, including Amazon, Walmart and Target.
The study found that the top 500 companies generated a combined total of $849.5 billion in online sales in 2020, representing a 45.3 per cent increase YoY, the largest jump since Digital Commerce 360 began tracking the statistic in 2006 and more than double the median growth of 18.0% seen over the last decade.
Although retailers of all sizes saw an uptick from online sales, in large part, throughout the pandemic, customers looked to familiar big name brands to fulfil much of their essential needs. Demand for items began to spike as manufacturing in Asia was forced to shut down, causing supply chain shortages. As large retailers tend to hold more inventory, this became a crucial differentiator for customers, says Digital Commerce 360.
Combined, Walmart Inc., Amazon.com Inc. and Target Corp. added $265 billion in US revenue to the $791.70 billion U.S. ecommerce market in 2020, accounting for a third of the market.
Considering the need for people to stay busy during lockdowns as well as the requirements of homeschooling, it’s not surprising Joann, a crafting company, showed the fastest online growth of Digital Commerce 360’s top 500.
- In 2019, the bottom 100 of the top 500 registered the fastest growth while the top 100 showing the slowest growth rate. In 2020, however, the analysis showed the opposite, the top 100 largest companies grew at a rate greater than that of the whole, and the top 10 on the list enjoyed a growth rate even faster than the top 100.
- In 2020, collectively the top 10 grew web sales 52.5%, almost five percentage points faster than the top 100 and accounted for 62.8% of Top 500 sales, up from 59.9% in 2019.
- Who made the top 10 was shaken up some. For example, Walmart made it into the second spot, both Kroger Co. and Costco Wholesale Corp. crept into the top 10 for the first time, landing at No. 8 and No. 10 respectively
Segments of retail that enjoyed fueled courtesy of COVID included toys and hobbies, jumping an average of 24 spots in the rankings and food and beverage merchants moved up an average 23 ranks. In contrast, apparel retailers dropped an average 15 positions in the Top 500, whereas jewellery retailers fell an average of 10 spots.
Although Digital Commerce 360 attributes some of the growth to stock positions and the ability of large retailers to manage supply chain issues, even the largest internet retailer experienced disruption. In March of 2020, during the first save of the US pandemic, even the Amazonian giant found themselves running into meeting customer commitments and delivering orders on time. Order cancellations and extended lead times became commonplace. For a time, Amazon stopped fulfilling orders for items considered “non-essential”.
Despite the issues, Amazon maintained its spot as the top online retailer in North America by a large margin, representing 35.7% of all Top 500 sales. Although it should be noted that the share is down from the 36.7% it saw in 2019.
At the outset of the pandemic Etsy, a solely ecommerce company focused on handmade, vintage items and craft supplies, was expected to perform poorly. However, as supply chain shortages for face masks caused a sudden need for cloth masks, many began to turn to Etsy, tripling its stock value by June.