Analyst Insight: The Warehousing Education and Research Council's latest benchmarking study shows that the performance gap between best-in-class and "Major Opportunity" warehouses remains large. In order to close the performance gap, Major Opportunity warehouses need to understand how to find their process weeds and pull them up by the roots. By aligning shop floor metrics to corporate strategy, companies link accountability to where the work gets done and will begin to close the gap. - Joe Tillman, senior researcher, Supply Chain Visions
Analyst's Insight: Every day in the trade press and across our laptops, we read about infrastructure weaknesses, transportation shortages, closing businesses, unemployment rates and all the other ills associated with the dreaded "R" word - recession. We know from our members how challenging these past few years have been, and we support and admire the collaboration and focus on best practices that are clearly evident and becoming more and more important in logistics. - Michael Mikitka, CEO, Warehousing Education and Research Council
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
Analyst Insight: The top strategic action tied to improving parts management for service and support organizations in a recent Aberdeen research study on service parts logistics was to integrate service parts planning, forecasting and execution with overall logistics functions (i.e., procurement, supply chain management, inventory management) to ensure the delivery of the right part to the end customer when an asset goes down or is not operating at full efficiency. - Aly Pinder Jr., senior research associate, Aberdeen Group
Analyst Insight: The decision to initiate or continue global sourcing is not a simple one to make. Organizations have many factors to consider, both external and internal, and those factors can change. Organizations must revisit their sourcing strategy often to ensure that they are maintaining the best value. - Becky Partida, knowledge specialist, APQC
Analyst Insight: There are many flavors of supplier networks. And switching costs, especially on the buyers' side, can be high - because these are solutions, not just networks. For these reasons, we will not see the consolidation of supplier networks to nearly the same extent that we see for other types of networks. - Bill McBeath, chief research officer, ChainLink Research
The "cloud" can be a difficult concept to grasp, given the various definitions it has been assigned by software vendors and users. Greg Johnsen, executive vice president of marketing and sales with GT Nexus, calls it "an information replica of the physical supply chain." Cloud-based technology provides one place where managers can go to monitor critical supply-chain events. When an element is updated, "everybody gets the information."
Analyst Insight: The awareness of supply chain finance (SCF) in emerging markets is growing. Most recently, foreign importers of goods manufactured in emerging markets, procure-to-pay software providers and financial institutions have been driving increased activity globally. Companies in emerging markets, especially in the small and medium-sized segment, stand to achieve business gains with better understanding of their end-to-end financial supply chains and proper application of available SCF strategies and solutions.
- Viktoria Sadlovska, managing director and CRO, Prameya Research