More than half (56%) of manufacturers regard supply chain management as a market strategy differentiator, a customer service differentiator or as a profit centre, as opposed to a cost of doing business.
That’s one of the key findings of a study among supply chain executives by analyst Aberdeen Group, which also suggests that resulting supply chain transformations are focusing on four specific improvement categories: responsiveness, strategic alignment, collaboration and sustainability.
It indicates that the top three pressures currently being faced by manufacturers are cost containment (68%), followed by escalating customer service demands (49%) and restructuring brought about by mergers, acquisitions and divesture activity (44%).
Most importantly, Aberdeen finds that firms ranked as best-in-class share several common characteristics around supply chain process, reporting, data, technology, etc. They are twice as likely to have a formalised supply chain risk management initiative, and one and a half times as likely to have implemented cross-functional metrics.
They are also 1.7 times more likely than their competitors to have closed-loop integration of supply chain planning and execution, and twice as likely to have end-to-end supply chain data and process visibility.
“Based on numerous interviews in a variety of industries [automotive, consumer packaged goods, high-tech semiconductor, chemicals and healthcare], the technology application areas that participants are prioritising reflect the challenges driving the dramatic transformation that companies are facing,” observes Robert Shecterle, vice president, supply chain, Aberdeen.
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