Analyst Insight: Innovative and strategic supply chain segmentation is a key strategy for effective supply chain analysis, enabling greater responsiveness and the ability to focus resources. Competition requires a better identification of key supply chain segments, considering that 80 percent of results come from 20 percent of items. An additional factor adding complexity is that increasingly manufacturers are adding services as part of their offerings - termed "servitization." Effective segmentation is the key to managing these complexities. - Nada R. Sanders, Professor of Supply Chain Management and Iacocca Chair, Lehigh University
Walmart, Macy's, JCPenny, Marks & Spencer, Façonnable, American Apparel, and others are implementing item-level RFID in a big way. Last year, well over one billion apparel items were tagged. That number is expected to rise substantially this year.
This year is expected to be one of growth, with many product development companies looking to make new technology investments and expand their supplier base, according to a survey of 8,840 sourcing professionals by MFG.com, an online manufacturing marketplace.
A study that polled procurement managers and directors from a range of firms across the UK found that while mid-market firms are often less likely to have robust processes and systems in place to counter bribery risk, companies at both ends of the spectrum appeared complacent when it came to vetting their suppliers for compliance with the Bribery Act.
According to a survey of 600 manufacturing and retail executives conducted by Deloitte, 71 percent of the executives surveyed view supply chain risk as "an important factor in their companies' strategic decision making, including 20 percent who view it as extremely important." Yet, 42 percent of the executives from large companies said their supply chain risk management programs are only somewhat or not effective.
Melting polar ice could create a new shipping lane through the North Pole by 2050, according to research by the University Of California at Los Angeles. In the future, melting sea ice could mean that ordinary shipping vessels will be able to navigate parts of the Arctic Ocean which were previously inaccessible, without the use of icebreakers to clear their route.
Tesco is reorganizing its distribution network with new sites in Reading and Dagenham to move products closer to stores and to keep up with its growing convenience business in the South East.
Analyst Insight: Based on a survey of 160 supply chain leaders in a recent webinar conducted by Steelwedge, we found that companies captured a whopping 70 percent more data (product, supply, demand and finance) to manage their organizations in 2012. Yet, 77 percent of these businesses are not actually leveraging this data in their S&OP processes, thereby leaving "blind spots" in their decision making processes around critical supply/demand trade-offs.
- Nari Viswanathan, Vice President of Product Management, Steelwedge
Analyst Insight: Neither a lack of cogent definitions re: what these services and technologies are nor confusion in pricing models is slowing down interest in cloud, SaaS and on-demand solutions. Our research shows a consistent increase in buyer adoption of enterprise and consumer applications - cloud-accessible - from desk top, smartphones and tablets of all size companies in all industries.
- Ann Grackin, CEO, ChainLink Research
Analyst Insight: For the past 30 years, sales and operations planning (S&OP) has been espoused by the Oliver Wight organization based on its founder's concepts. It has manifested itself to include inventory (SIOP) and has morphed into integrated business planning (IBP). However, only within the last five years, has it been heralded and crossed the chasm to mainstream business practice. We think it may only be the tip of the iceberg though, not the core solution to step-change improved performance. - Rich Sherman, Supply Chain Discipline Expert at Trissential
The latest news, analysis and trends regarding technology solutions and their impact on supply chain management. New technologies in forecasting and demand planning, supply chain visibility, big data analytics, the internet of things (IoT), cloud and software as a service (SaaS), enterprise resource planning (ERP) and transportation management systems (TMS) and WMS are transforming the way companies do business - and allowing them to stay ahead of the competition in their industries. As these solutions continue to evolve, businesses are discovering new ways to increase efficiency and cut costs. Learn how companies around the world are improving operations through their strategic use of supply chain technology solutions.
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