In the modern manufacturing landscape, the misalignment between procurement and production isn’t just a communication problem it’s a performance bottleneck
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In the modern manufacturing landscape, the misalignment between procurement and production isn’t just a communication problem it’s a performance bottleneck that directly impacts throughput, margin, and customer satisfaction. As companies push for leaner operations, just-in-time delivery, and dynamic responsiveness, the gap between what’s ordered and what’s actually build-ready has grown more costly to ignore.
Why Procurement and Production Drift Apart
Procurement teams are incentivized to secure materials at the best possible price and terms. Production teams are focused on continuity, cadence, and avoiding line downtime. When these functions operate in silos without shared context or synchronized priorities disconnects arise:
These scenarios create a reactive environment where planners are constantly firefighting instead of orchestrating.
Reimagining Visibility: Beyond Dashboards
Traditional dashboards only show what’s already happened. To bridge the gap between procurement and production, leaders are shifting to AI-enabled digital twins that synchronize the full supplier ecosystem, capture changes in real time, and trigger proactive alerts before a build bottleneck materializes.
Rather than exporting stale reports, today’s supply chain innovators deploy semantic layers of data that auto-detect:
A Real-World Example: Automotive Tier-1 Supplier
Consider a Tier-1 automotive supplier managing a high-velocity component build. On paper, their inventory was healthy, and orders were confirmed. But one of their Tier-2 suppliers split shipments of a core sensor module delivering the connector harness early, and the actual chip 3 days later.
Because the digital twin flagged the split shipment in real time, procurement was able to escalate with the Tier-2 partner and trigger a secondary backup supplier to fulfill the missing component avoiding a 48-hour production freeze that would have impacted final assembly at the OEM.
This level of responsiveness is only possible with real-time clean-to-build visibility embedded into every procurement decision.
Final Thought: From Functional Efficiency to Ecosystem Excellence
The future of procurement and production is no longer linear, it is networked. Success depends on removing blind spots, automating proactive alerts, and aligning teams around a single ecosystem view.
Leading manufacturers are enabling multi-enterprise orchestration, where every supplier, every planner, and every factory floor operates from a shared truth.
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Seshadri Guha has 25+ years of experience across competitive strategy, digital transformation, organizational design, and technology architecture.He has led large-scale change initiatives for multinational enterpr ises while building and scaling high-growth ventures.Previously, he led the Advanced Computing Technologies Group at Automated Analysis Corporation and was a founding partner at CGN Global, serving Fortune 100 clients.He founded TADA in 2016 and holds an MS from Iowa State University and a BS from IIT Madras, with executive education from Kellogg and Krannert.Guha also serves in leadership roles with multiple nonprofit organizations and founded Passage to India.