Executive Briefings

Growing Complexity Demands Greater Visibility to Control Inventory, Landed Costs

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.

In its most recent visibility survey, Aberdeen found that growing supply chain complexity was the top business pressure (44 percent) for many executives. This, in turn, has contributed to increased supply chain management costs. It is not surprising that in a period of global expansion and business turmoil that visibility is taking center stage. But before a company can reduce inventory or landed costs, it needs visibility into them. Only then can it apply tools to agilely adapt to the information it collects.

Best-in-Class companies, compared to Laggards, have a 23-percent higher complete and on-time delivery rate to customers and an 11-percent greater advantage in year-over-year unit landed costs.

Aberdeen's research is based on interviews with representatives at 128 companies.

Click here for the full report.

Source: Aberdeen Group

In its most recent visibility survey, Aberdeen found that growing supply chain complexity was the top business pressure (44 percent) for many executives. This, in turn, has contributed to increased supply chain management costs. It is not surprising that in a period of global expansion and business turmoil that visibility is taking center stage. But before a company can reduce inventory or landed costs, it needs visibility into them. Only then can it apply tools to agilely adapt to the information it collects.

Best-in-Class companies, compared to Laggards, have a 23-percent higher complete and on-time delivery rate to customers and an 11-percent greater advantage in year-over-year unit landed costs.

Aberdeen's research is based on interviews with representatives at 128 companies.

Click here for the full report.

Source: Aberdeen Group