Supply chains in engineering and manufacturing lag ten years behind other industries. So says research by Lisa Harrington of lharrington group, who argues that engineering and manufacturing businesses must re-evaluate their approach to supply chain management and respond to their industry's driving trends to remain competitive in today's volatile business environment.
What is the fastest-growing phenomenon in supply chain? We all know about the impact of online shopping on strategies, but even so, there is a good case to be made for supply chain finance. A recent study by Demica suggested that such schemes have been growing at the rate of 40 percent a year and are set to continue growing albeit at a slightly less frenetic rate.
Supply chain optimization is at the heart of a four-year plan by Kellogg's to save up to $475m a year by 2018. The company estimates that by the end of 2017, Project K will reduce the company's global workforce by about seven percent.
The UK government and the automotive industry are investing Â£500m ($755m) each to double the number of jobs created or secured in the automotive supply chain by developing an Advanced Propulsion Centre.
Retailers in the non-food sector, are set to invest some Â£5bn ($7.7bn) in making the transition to omni-channel over the next five years. A study by LCP Consulting, Retail Supply Chain Management: The Omni-channel Revolution, suggests that the "omni" revolution is accelerating with retailers, now spending on average the equivalent of three percent of annual turnover on the change.
Almost two thirds of businesses have experienced disruption to their value chains as a result of events beyond their control, according to an Oracle survey of large organizations in the Europe-Middle East-Africa (EMEA) region.
The credit squeeze resulting from the recession put the focus firmly on supply chain finance as major corporations got to grips with the fact that some of their suppliers were struggling to finance their activities.