The increasing globalization of supply chains is causing companies to improve their global trade management (GTM) technology and business practices, according to Aberdeen Group. In the latest of a regular series of benchmark reports, Aberdeen says many companies are suffering from a lack of supply-chain process visibility, due in part to longer distances caused by the offshore outsourcing of manufacturing operations. At the same time, new customer requirements are requiring suppliers to respond more quickly to changes in demand, even as they struggle to hold down costs throughout their multi-tier supply chains. In Aberdeen's survey of more than 200 organizations, the consultancy found that companies using a supply-chain visibility platform over the past two years are twice as likely to have reduced their total landed costs; 1.7 times as likely to be able to reallocate or reroute shipments in transit, twice as likely to have reduced lead times and lead-time variability from international locations, and nearly twice as likely to experience increased budget accuracy within their supply chains. Current "on-demand" technologies for achieving visibility improve access to data by multiple parties in different locations, permit real-time updates on supply-chain events, and support networks of pre-connected carriers and suppliers. In keeping with its customary procedure, Aberdeen divides surveyed companies into three categories: Best in Class, Industry Average and Laggard, according to their ability to manage total landed cost while maintaining required customer-service levels.
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