Capgemini supply chain study reveals uncertainties about market demand

Capgemini’s latest supply chain survey has indicated that there are uncertainties about market demand, with most respondents stating their determination to improve visibility in the supply chain.

The study, Supply Chain Agenda 2011, is an annual global supply chain study that consults leading companies from various sectors across Europe, the US and Canada, Asia-Pacific and Latin America on challenges for realising supply chain initiatives.

The study reveals that the top two business drivers for supply chain executives in 2011 are operating a reliable supply chain in a volatile environment, while simultaneously dealing with rising material costs:
• 40% of respondents answered that demand volatility was their number 1 business driver.
• 35% placed increased material and/or service costs at number 2.

Meeting this twin challenge will mean improving control of both the internal and external supply chain.

Consequently, when the respondents were asked to name their top supply chain projects in 2011, improving supply chain visibility ranks as top for 45% of them. Visibility was defined as knowing where products and inventories are, being able to monitor order progress and being able to anticipate unplanned events in the supply chain, like delayed transport or non-conformance quantities in the production process of subcontractors.
 
Business process redesign (44%), business innovation (41%) and improving long-term (demand) forecasting and planning (41%) follow closely in the list.
 
Other key conclusions:
• Sustainability remains high on the list of business drivers (33%), making it still a top priority for supply chain executives.
• The economic downturn, while moving to the bottom of the list of business drivers, is still mentioned by 8% of the respondents.

Read more here.