SURVEY DATA: Companies pleased with supply chain programs
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Manufacturing News, Source : The Manufacturer US
Published : 25 Mar 2002 16:48
Data Shows Supply Chain Initiatives, Outsourcing Popular With Executives
Supply chain management initiatives have enabled companies to cut costs, improve efficiencies, enhance customer service, or improve competitiveness, according to 80% of executives responding to a new study by management consultancy Accenture. Slightly more than 50% consider said outsourcing non-core functions such as transportation and logistics critical to improving supply chain management.
Bill Copacino, global managing partner for Accenture's supply chain management practice, said the trend toward outsourcing supply chain functions is being accelerated by the recession and the pressing need to enhance competitiveness. However, he said that focusing solely on cost cutting can lead to a lack of long-term strategic plans at a time when supply chains need to become more global and customer focused.
Survey participants said the difficulty in scaling pilot programs across functions or divisions is one of the greatest challenges to achieving positive results from supply chain improvement. The least difficult challenge was garnering executive sponsorship-another indication that supply chain management is seen as a major strategic thrust in achieving corporate objectives.
More than 70% of executives said they see the Internet as one of the most important factors in facilitating greater collaboration with key trading partners because of the visibility it provides. The same number said partnering agreements that move beyond traditional time-and-materials agreements are critical to successful supply chain management.
The study of 150 Fortune 1000 executives was conducted by Wirthlin Worldwide.
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