Lack of visibility, process automation top causes of supply chain risk

RP news wires, Noria Corporation

E2open, a leading provider of on-demand multi-enterprise demand-supply network solutions, and Gatepoint Research, a leading business-to-business research organization, on December 17 announced the results of a Supply Chain Benchmark survey focused on trends in managing supply chain risks. Survey findings show that while more than half of respondents have in excess of 500 component suppliers or manufacturing partners, 44 percent have deficient visibility into tier one suppliers, and 75 percent have deficient visibility into tier two and three suppliers. Additionally, more than 80 percent of respondents have not automated or only partially automated their supply chain processes.


"Executing on revenue opportunities accurately is extremely important during this time of economic uncertainty," said Mark Woodward, president and CEO of E2open. "Global corporations stand to lose potential sales due to the lack of end-to-end visibility, including into true customer demand. The survey shows that clear, multi-tier visibility and effective inventory management are keys to succeeding in any economic climate."


The survey findings also revealed the following:

·        86 percent of respondents regard the supply chain as a critical competitive differentiator

·        The top three operational risk areas respondents plan to address include the ability to: leverage supply chain data for decision making; make real-time decisions; and process demand across the end-to-end demand-supply network

·        The top two strategic initiatives of responders involve optimizing inventories and synchronizing supply management with customer demand


Results from the survey highlight the importance supply chain visibility plays in brand owners' daily collaboration with suppliers – including their ability to perform mission-critical processes such as forecasts, order and inventory management, and orchestration of global communications. Moreover, supply chain visibility deficiencies decrease corporate profitability and competitive advantage, in addition to disrupting customer service.


Gatepoint Research surveyed more than 4,000 executives, including CIOs, COOs, CFOs and supply chain executives with a 3.25 response rate. Of these, more than 70 percent represent companies with annual revenues in excess of $10 billion. The study was conducted in Q3 and Q4 2009.


For a copy of the findings, visit e2open.com/gatepoint.

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