Chad Eschinger, research vice president with Gartner, reveals the results of the firm's annual survey of what’s driving companies to make changes in their supply chains, and which technologies they're employing to achieve that goal.
Supply chains are becoming more complex in order to support the increasingly diverse levels sizes and needs of new suppliers and customers. There are so many variables that can go into a single sale, like selling across multiple channels, delivering products directly versus delivering through drop shipments, and selling items with one-time charges as well as recurring fees. This transformation is having a tremendous impact on organizations of all shapes and sizes. As supply chain complexity builds, it's important that companies aren't spending more time entering and managing data rather than focusing on growing their business. They should have a well-integrated, audited and secure system that can be precisely reported on at every level.
The corporate failures that led to the 2008 global market collapse and subsequent recession had an unexpected outcome. They raised the profile and mandate of the CFO, who was taken out of the silo of finance and tasked with implementing enterprise-wide initiatives to create transparency, boost financial results and find areas to cut costs and make improvements.
"Predictive commerce" is a new concept that links customer demand data, planning and the execution of transportation. Pat Smith, general manager of ToolsGroup, tells how it was implemented at Costa Express, the U.K.'s fastest-growing coffee shop chain.
Marquis, a specialist in energy and agricultural commodities, needed a new approach to supply-chain planning and optimization. Bart Pieper, director of business technology and integration, tells how the company found the right technology vendor for the job.
The condition of emerging-market economies seems to seesaw from week to week. But one thing remains constant: the failure of a lot of companies to shore up their supply chains in those countries with up-to-date information technology.
As the global economy picks up, working capital optimization will continue to be a high priority for corporate treasurers in 2015. In their drive for competitive advantage, treasurers are increasingly looking beyond the traditional forms of finance to explore a wider range of alternative funding options that support their working capital requirements, ranging from supply chain finance (SCF), to trade receivables securitisation (TRS), to factoring.
Increasingly, the supply chain and procurement departments are turning to digital solutions, rather than traditional manual systems, to maximize results. Recent research points to a substantial potential upside.