The English language is full of potentially polarizing statements. But few are more likely to inspire mixed feelings among DC professionals than some facsimile of this: "Our facility is getting a labor management system."
Analyst Insight: Supply chain has often been an afterthought for pharmaceutical manufacturers. The patent cliff, increasing reliance on generics, and price pressure from payers all create considerable margin pressures on pharma companies as well. This forces them to pay closer attention to operational efficiencies, including the supply chain. However, less noticed is the impact that evidence-based medicine and outcome-driven payment strategies have, compelling pharmaceutical manufacturers to more closely manage their entire end-to-end chain, especially on the downstream side. - Bill McBeath, Chief Research Officer, ChainLink Research
Analyst Insight: For the better part of 40 years truly leading-edge firms have made supply chain design/redesign using network optimization models an integral part of their overall corporate strategy. The focus has gradually evolved from a myopic consideration of the number and location of warehouses to a comprehensive examination of the entire supply chain, from sources of raw materials to the customer. The principal impediments to success are myopic scope and failure to institutionalize the process. - Jeffrey J. Karrenbauer, President, Insight Inc.
Analyst Insight: Supply chain challenges were plentiful during Superstorm Sandy. Both physical and electronic supply chain operations were disrupted. Private sector operators responded with creative solutions, and public sector entities were better prepared than in previous disasters, but recovery will be a slow and arduous process. Approaches to ensuring resiliency in the face of such events cannot be singular in nature. Actions taken during response and recovery have far reaching implications for supply chains.
- Jock Menzies, President, American Logistics aid Network
A recovering housing market, record level U.S. exports and improved unemployment numbers are all key factors pointing to a slow but steady economic recovery in the United States. But while companies are celebrating their profits and looking at improved sales in the months and years ahead, far greater concerns loom on the horizon for shippers as the ever talked about driver shortage becomes a reality.
Analyst Insight: During 2012, high-tech industry executives recognized that optimizing supply chain operations is directly related to profitable growth, higher operating margins and capital efficiency - each of which helps create value. While new products matter, factors such as selection, price, availability and service also enhance the buying experience. - Gene Tyndall, Executive Vice President, Tompkins International
Analyst Insight: The worldwide logistics market has experienced a growth rate of approximately 7 percent annually, which is notable given logistics costs average about 12 percent of total revenues globally. Of this total, an average of 46 percent is spent through outsourced relationships, which drove total spend in North America alone to $134bn in 2011. Given this growth and the increasing complexities of global trade, selecting the appropriate services to outsource and structure mutually beneficial relationships with logistics providers is critical. - Aaron Pernat, Senior Manager, and Gary Allen, Executive Director, both in Ernst & Young's Supply Chain Advisory Practice
Analyst Insight: "Big data" software and analysis will be the most important supply chain technology for forecasting and demand planning in the years to come. Through analysis of huge quantities of data it provides a competitive advantage by providing unparalleled insights. The challenge for companies will be staying ahead of the technology in a cost-effective manner, and developing organizational processes to effectively utilize the huge amounts of data and absorb the information into their organizational decision making processes.
- Nada R. Sanders, Professor of Supply Chain Management and Iacocca Chair, Lehigh University
Now more than ever, the supply chain is being buffeted by forces nearly impossible to predict - making increased levels of efficiency and agility more important than ever before. But you can become a Supply Chain Top 25 Peer Voter and help rank manufacturers and retailers who are leading the way in supply chain.