New Study Focuses On Cutting Supply Chain Costs

Report by the Aberdeen Group and Supply Chain Consultants finds that Best in Class companies are more aggressive in adopting supply chain technology.

Aberdeen Group and Supply Chain Consultants said Tuesday that a joint study found three-quarters of process industry participants focus on supply chain transformation to address manufacturing and logistics costs.

The report also found that Best in Class companies are ahead in regards to achieving transformation goals, as well as being more aggressive in adopting supply chain technology.

“Best in Class companies are four times more likely than their lower-performing peers to have established a centralized supply chain management organization and to have achieved data and process visibility across their supply chain, enabled by their higher adoption rate of technology,” said Beth Enslow, SVP of Enterprise Research at Aberdeen. “The study also found that Best in Class companies have a 2.5 to a 9 time advantage in key performance improvements since 2005, including improving perfect order percentages and lowering supply chain costs.”

The study included 74 companies in process industries, such as chemicals, pharmaceuticals, food and beverage, oil and gas, and pulp and paper.

Eighty-two percent of the companies that participated in the survey indicated that they have spending plans for new supply chain technology projects in 2007.

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