Most companies are woefully inadequate in their automation and staff support for global
trade. To keep up with global trade growth and increased competitive pressures,corporations
are finding they must make significant changes in how they run their global supply
chain operations. According to Aberdeen best practice research, among the most critical
areas that companies arerevamping are:
• Supply chain visibility to increase the transparency and velocity of global activities
• Business-to-business collaboration to improve supply/demand synchronization
• Tradecompliance to ensure undisrupted movement across borders and take advantage
of preferential trade agreements to lower total landed costs
• Risk management to ensure resiliency in face of supply chaindisruptions
This report looks at these key improvement areas and how large, mid-market, and small
companies are building game plans for success. Trends in strategies for increasing logistics
agilityare also addressed. The findings are based on benchmarks in May and June
2006 of more than 150 companies. Fully 45% of respondents were vice president or Clevel
executives, with most others at adirector of supply chain or manager level.
A Critical Lack of Global Supply Chain Automation
A lack of automation and visibility is handcuffing companies with longer lead times,
bigger inventorybuffers, budget overruns, and continued demand-supply imbalances.
Three-quarters of respondents report they don’t have enterprise-wide automation for
global supply chain processes (Figure i). On average,large companies report that their
global supply chains are only 50% as automated as their domestic supply chains.
Figure i: Technology Maturity Remains Dismal for the Global Supply Chain
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