A strategic difference: Survey says supply chain management is a critical function
By Manufacturing Business Technology Staff -- Manufacturing Business Technology, 2/6/2008 10:10:00 AM
A majority of manufacturing companies consider supply chain management to be an essential component of their business strategies. In fact, 56 percent of companies regard supply chain management as either a market strategy differentiator, a customer service differentiator, or a profit center.
Those numbers emerged from a recent survey of more than 800 companies conducted by Boston-based Aberdeen Group.
"We conducted numerous interviews in a variety of industries (automotive, consumer packaged goods, high-tech semiconductor, and chemicals) and there was nearly unanimous recognition of the need for supply chain transformation driven by factors such as the globalization of supply, increasing competitive pressures, and dwindling product life cycles," said Robert Shecterle, VP, supply chain with Aberdeen.
Shecterle said these pressures are causing manufacturers to prioritize adoption of technologies that address things like global supply chain visibility and sales and operations planning (S&OP).
According to the Aberdeen survey, the top three pressures driving companies to focus on supply chain transformation today are:
• Cost containment (68% of companies);
• Escalating customer service demands (49% of companies); and
• The restructuring requirements brought on by mergers and acquisitions (44% of companies).
Aberdeen compiled the survey results into a report titled The Supply Chain Executive's Strategic Agenda2008. A copy of the report can be downloaded at:
http://www.aberdeen.com/link/sponsor.asp?cid=4559
