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News Release from: Imark Communications | Subject: Supply chain management
Edited by the Manufacturingtalk Editorial
Team on 17 December 2002
Companies are responding slowly to SCM
benefits
Supply chain management survey reveals companies slow to respond to customer needs and companies are failing to use Internet for SCM, despite the need to satisfy customer demands.
Companies are failing to adopt Internet technology to enable effective supply chain management (SCM), despite citing improved customer service as the biggest driver of change, according to a recent Softworld survey The survey was conducted on a sample of both past and pre-registered visitors to the Softworld Supply Chain events
This article was originally published on Manufacturingtalk on 17 Mar 2004 at 8.00am (UK)
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It revealed that only 48% currently use Internet technology to manage product order and delivery, yet over half state that responding to customer demands and improving service is the main reason for changing supply chain requirements.
Only 15% use Internet technology right through the supply chain at all levels, with 23% planning to implement a total web-enabled supply chain soon.
Interestingly, almost half of companies interviewed currently outsource parts of the supply chain using an Application Service Provider (ASP).
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Research conducted on visitors following the Softworld event earlier in the year revealed at that time only 14% outsourced, indicating that this is a potential growth area.
"Earlier in the year when we conducted the research we found that only 37% of companies were using the Internet to streamline their processes" comments Justin Opie, Portfolio Director at Softworld organiser Imark Communications.
"Despite the fact that this statistic has now risen, it is still a very small percentage of companies that are appreciating the benefits the Internet can bring to SCM, particularly when changing customer demands are forcing companies to constantly re-evaluate their strategies.
There certainly appears to be a gap between identifying the drivers for change, and actually responding to them.
It is interesting to note that outsourcing is a growing trend with many companies finding third-party management a viable option." Other results revealed that over half of companies (67%) currently manage their supply chains on a global level, as opposed to a national level.
Integration within the supply chain also featured in the results, with 72% claiming that their supply chains are integrated internally, but with only 20% fully integrated externally.
28% of respondents plan to integrate in the near future.
Softworld Supply Chain 2003 takes place next year from 26 - 27 March 2003 at the NEC, Birmingham and will showcase all of the latest technologies for effective SCM.
The event features an exhibition of around 75 leading players, including Finmatica-Mercia, J D Edwards, LIS, Manhattan Associates, Sage (UK) and SAP (UK), as well as an educational programme made up of vendor seminar, breakfast briefing and masterclass sessions.
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