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Home » Firms Use 'Rule of Thumb' to Plan Supply Chains, Report Says

Firms Use 'Rule of Thumb' to Plan Supply Chains, Report Says

December 27, 2016
Supply Management

JDA Software Group and Warwick Manufacturing Group's (WMG) report the "Supply Chain Segmentation: A Window of Opportunity for European Manufacturing" found that 18 percent of respondents took into account historic, present and future data in the supply chain planning process.

The report surveyed 100 manufacturing organisations across Europe to benchmark their supply chain segmentation practices.

About 39 percent of respondents' segmentation models were data-driven, and 23 percent of organizations stated they prefer the use of "rules of thumb" to any kind of data-driven methodology.

"The survey highlights that the majority of organisations are not using dynamic or data-driven models," said Hans-Georg Kaltenbrunner, vice president of manufacturing industry strategy at JDA. "Indeed, more organisations are driving their supply chains forward by looking in the rear-view mirror, rather than looking at the road ahead."

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