Executive Briefings

New Study Identifies Leading Causes of Elevated Supply Chain Risk

Lack of visibility and process automation were identified as leading causes of increased supply chain risk in a new Supply Chain Benchmark survey conducted by solutions provider E2open and Gatepoint Research.

Results show that while more than half of respondents have in excess of 500 component suppliers or manufacturing partners, 44 percent have deficient visibility into tier-one suppliers, and 75 percent have deficient visibility into tier-two and -three suppliers. Additionally, more than 80 percent of respondents have not automated or only partially automated their supply chain processes.

Results from the survey highlight the importance supply chain visibility plays in brand owners' daily collaboration with suppliers - including their ability to perform mission-critical processes such as forecasts, order and inventory management, and orchestration of global communications. Moreover, supply chain visibility deficiencies decrease corporate profitability and competitive advantage, in addition to disrupting customer service.

Gatepoint Research surveyed more than 4,000 executives, including CIOs, COOs, CFOs, and supply chain executives with a 3.25 response rate. Of these, more than 70 percent represent companies with annual revenues in excess of $10bn. The study was conducted in Q3 and Q4 2009. 

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Lack of visibility and process automation were identified as leading causes of increased supply chain risk in a new Supply Chain Benchmark survey conducted by solutions provider E2open and Gatepoint Research.

Results show that while more than half of respondents have in excess of 500 component suppliers or manufacturing partners, 44 percent have deficient visibility into tier-one suppliers, and 75 percent have deficient visibility into tier-two and -three suppliers. Additionally, more than 80 percent of respondents have not automated or only partially automated their supply chain processes.

Results from the survey highlight the importance supply chain visibility plays in brand owners' daily collaboration with suppliers - including their ability to perform mission-critical processes such as forecasts, order and inventory management, and orchestration of global communications. Moreover, supply chain visibility deficiencies decrease corporate profitability and competitive advantage, in addition to disrupting customer service.

Gatepoint Research surveyed more than 4,000 executives, including CIOs, COOs, CFOs, and supply chain executives with a 3.25 response rate. Of these, more than 70 percent represent companies with annual revenues in excess of $10bn. The study was conducted in Q3 and Q4 2009. 

Read Full Article