Manual mix: Consumer goods companies fail to address, automate global supply chain risk
By Manufacturing Business Technology Staff -- Manufacturing Business Technology, 8/28/2008 8:58:00 AM
TradeCard, a provider of a comprehensive supply chain collaboration platform, recently released a survey report examining the level of supply chain automation in place at retail and consumer goods companies to collaborate with trade partners, ensure compliance, and handle risk. The study shows consumer goods companies and retailers are, surprisingly, placing very little emphasis on proactively monitoring supply chain risk.
“Many companies still rely on slow manual processes that offer only limited visibility,” says Esther Lutz, VP of business development and author of the report. “This lack of visibility leaves them exposed to risk when events requiring rapid change occur. Our study shows most companies are taking a reactive approach to risk, as opposed to a proactive approach that could help minimize the impact of disruption and protect bottom line results early in the cycle.”
According to the report, 66 percent of companies in the consumer goods and retail space rely on physically visiting factories to benchmark suppliers and trade partners, and manage risk; and they rely on fax, email, and phone to transact with suppliers. The report shows 60 percent of those surveyed identified strategic programs—e.g., private labels, direct shipments, and postponement—as high-priority company goals and initiatives.
But the study indicates that many have not put technology in place to support efficient execution of these strategies, exposing risk onto themselves in various forms.
TradeCard helps retailers and brands source smarter and faster through a rapidly deployed network that enables the extended supply chain. TradeCard’s services and global trading partners are delivered on a Software-as-a-Service platform that connects buyers, suppliers, and service providers.
Says Lutz, “As companies initiate new overseas sourcing programs they face a number of barriers and heightened complexity. Currencies, customs, and time zones are just a few forms of risk to be addressed. Increased complexity of transactions requires companies to change the way they view and assess supply chain risk. A holistic approach that includes all supply chain parties involved in the process and identifies potential weak points can protect the bottom line.”
Download the report free of charge.
