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Global Supply Chain Optimization Hampered by Poor Data and Lack of Focus on Strategic Collaboration

February 24, 2016

Fifty percent of supply chain professionals polled say crucial data is either late or inaccurate

ANN ARBOR, Mich. (February 24, 2016). Today LLamasoft, the global leader of supply chain design software solutions, shares results of a recent poll showing that the majority (60 percent) of supply chain managers say their organization is too focused on internal, tactical concerns to be able to collaborate effectively with external partners, at a time when globalization is forcing companies to view and use their supply chain more effectively.

Fifty percent also believe their ability to react to unexpected events is hampered because of incorrect or late inventory and replenishment data.

The results were revealed in a poll of 120 senior supply chain professionals which explored the main areas able to deliver realistic medium-term improvement in supply chain performance, with 25 percent of participants reporting that daily replenishment requirements as part of supply chain optimization are not being supported with the right investment.

A fifth (20 percent) believe the reason cross-enterprise collaboration fails to yield the expected benefits is because executives do not engage with their counterparts at a strategic level, while a quarter (25 percent) said robust information technology (IT) support was the foundation for success.

The poll was conducted during a webinar run jointly by LLamasoft and Sabena Technics to consider the challenges of increased focus on reducing internal costs while developing new markets, at a time when global customer demands and expectations are higher than ever before.

LLamasoft is the global leader in supply chain design software solutions, while Sabena Technics is a prominent supplier of maintenance, repair and overhaul services to civil and military aircraft operators.

The poll also revealed that 52 percent of participants saw supply chain optimization as the main tool for reducing costs while maintaining standards of service in the face of globalization. More than a third (36 percent) said new inventory and replenishment strategies were the most relevant to meeting the same important goal.

However, while many recognize the potential to overcome key challenges, well over a third (37 percent) indicated that currently, talent is developed with insufficient end-to-end understanding of the supply chain, compounding an existing silo mentality that inhibits optimization.

“As globalization increases cost pressures and data availability, collaboration and talent become the foundations of success,” said Kevin Boake, Senior Director of Supply Chain Visibility Solutions for LLamasoft. “Organizations seeking greater cost-effectiveness in their supply chain globally need to ensure they have the right solutions in place, delivering accurate and timely information to teams for full end-to-end visibility.”

Jacques Dumoucel, Vice President of Supply Chain Integration for Sabena Technics, said using the supply chain to reduce costs without compromising service required robust tools and the deployment of adaptable metrics and processes when implementing new inventory and replenishment strategies.

Media Contact
LLamasoft, Inc.
Lisa Hajra
734-418-3119 ext 1400