The increased complexity of global supply chains has led to longer lead times, more pipeline inventory, and the need to control downstream an upstream logistics, according to Supply Chain Visibility Excellence: Mastering Complexity and Landed Costs, a report from Aberdeen Group.
Analyst Insight: At the beginning of 2011, IDC Manufacturing Insights predicted that supply chain visibility would climb on the IT application priority list as manufacturing companies identified the business cases to improve both service levels and dollars saved. This held true throughout the year as manufacturers get a handle on what visibility means to their organizations in a tactical, rather than strategic, manner. - Simon Ellis, practice director, Supply Chain Strategies, IDC Manufacturing Insights
Analyst Insight: Ditching spreadsheet programs and stand-alone supply chain solutions for integrated software solutions is key to increasing visibility throughout the supply chain. By improving visibility, supply chain leaders can further optimize inventory and improve forecasting abilities, as well as increase the business's ability to react to disaster within the supply chain - a top priority for many executives. - Michael Koploy, ERP analyst, Software Advice
Analyst Insight: Supplier segmentation is a critical foundational component for executing on your supply management strategies and for understanding and building value in the supply network. Supplier segmentation supports an end-to-end supply chain segmentation strategy. However, it must be aligned with downstream processes to ultimately deliver value to customers. Unfortunately, Gartner Supply Chain research finds two-thirds of organizations take a one-size-fits-all view to supplier relationship management, resulting in misaligned resources and little delivered value. - Mickey North Rizza, Gartner Supply Chain Research