This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
The survey provides a comprehensive assessment of the SCM executives’ agenda for the next two to three years
Target Group of Respondents
− The Value Chain survey captured trends, practices and operational performance benchmarks in five key areas:
Framework
− Each of the 5 independent surveys included 18-22 questions on business objectives, enabling technologies, and key performance measurements such as FTE’s, cycle times, and efficiency rates.
− There were a total of 1,461 respondents. The number of respondents by survey: New Product Development: 360
Supply Chain Planning: 270
Customer Order Management: 270
Procurement: 396
Logistics: 175
LogisticsProcurementCustomer Order
ManagementSupply Chain
PlanningNew ProductDevelopment
Energize your Supply Chain Network: Value Chain Survey Results
Revenue growth takes precedence over cost containment
Welcome back to the top line
Four out of five CEOs across the world believe that revenue growth is their number one priority – and the means to achieve their financial performance objectives
At the same time, CEOs believe they must maintain their ongoing emphasis on cost containment
Most CEOs believe that differentiated products and services will be a key driver of growth in a hypercompetitive market – and product/service innovation will only be achieved through new capabilities
Energize your Supply Chain Network: Value Chain Survey Results
Balancing customer requirements while managing costs and resources, is key to bringing new products and services to market in a timely fashion to meet profitability objectives
Energize your Supply Chain Network: Value Chain Survey Results
The overwhelming majority of respondents consider the implementation of these leading practices proved to be effective in supporting their objectives for profitability and performance
Energize your Supply Chain Network: Value Chain Survey Results
Most companies are embracing logistics leading practices in the areas of differentiated logistics services by customer segment and flow through strategies
Energize your Supply Chain Network: Value Chain Survey Results
Outsourcing of logistics functions continues predominately in the areas of freight bill audit and payment, customs/export services, warehousing and transportation
Of those outsourced functions most responded that they have met objectives:
Recommended ActionsFocused and variable logistics network structures and processes
are required for supply chain success in today’s global economy
Create competitive “fit for purpose” supply chain structures by focusing on differentiating competencies which support the customer value proposition and exploit the advantages of global sourcing and networked value chains
To accommodate the variability brought about by customer demand fluctuations and changing requirements, develop and implement dynamic and adaptive supply chain logistics structures
Control and marshal logistics assets and virtual assets acquired through outsourcing and partnerships in realtime. Integrate the entire end-to-end global logistics network and manage event exceptions proactively
Create competitive advantage through aggressive exploitation of new supply chain technologies (RFID) and reduced cost of operations through new ways to deliver and finance technology infrastructure.
Energize your Supply Chain Network: Value Chain Survey Results
New competitive advantage from existing investments: Profitability, Performance, Partnership
ProfitabilityQuest for profitability demonstrated through SCM
initiatives that can deliver a rapid return on investment (ROI)
PerformanceStrong focus on end-to-end supply chain visibility
(sensing) and end-to-end responsiveness (adaptive supply chain)
PartnershipCollaboration is next frontier of improvement for
renewed operational excellence. Partnerships are required to: Develop new products/services faster Produce hybrid and cost effective products/services Deliver through multiple, global channels Increase performance of operations
Source: IBM / IndustryWeek Value Chain Survey, 2004
PartnershipPerformance
Profitability
Energize your Supply Chain Network: Value Chain Survey Results
SCM quest for profitability is demonstrated through initiatives that can deliver superior products and services with rapid time-to-market and return-on-investment
Profitability1. Create superior innovation processes of
products and services to meet customer needs in collaboration with supply chain partners
2. Implement real-time accurate access to relevant customer & supply chain operational data
Quickly identify root causes of issues
Manage by exception through alert messaging
Shared information on plans, issues and actions to enable rapid decision-making
3. Develop variable cost structures that can be controlled and managed in direct relationship to customer demand Initiatives support profitability objectives
through growth, cost containment, and rapid ROI
Source: IBM / IndustryWeek Value Chain Survey, 2004
PartnershipPerformance
Profitability
Energize your Supply Chain Network: Value Chain Survey Results
The number of players has increased dramatically, as well as the complexities involved in delivering customer value in the extended supply networkPartnership1. Develop and implement the ability to
execute across the supply chain network in a synchronized way through collaborative planning and execution with customers and suppliers.
2. Rationalize the logistics network and outsource non-differentiating activities to partners
3. Develop and implement dynamic and adaptive supply chain logistics structures for variable cost control.
4. Develop and implement global sourcing and supply networks End-to-end visibility and
adaptability
Networks of supply chain partners that sense and respond in a coordinated fashion to changes in their environment
Initiatives support objectives of growth, cost containment and improved service levels through collaborative partnership in the extended supply chain
Source: IBM / IndustryWeek Value Chain Survey, 2004