Economic Recovery Tops Supply Chain Agenda

Economic recovery has surpassed economic downturn in the list of business drivers for 2010, according to results of Capgemini Consulting's new study of 300 leading companies across Europe, US, Asia-pacific and Latin America.

Specifically, the study found that:

Over 58 percent of the supply chain managers say their main business driver for 2010 is "Meeting (changing) customer requirements".

More than 50 percent of the participating companies indicate they will start up or continue with operational excellence / LEAN.

37 percent of the participating companies plan to centralize supply chain organizational functions.

On average, supply chain IT projects (e.g. TMS and WMS implementations) increased by 3 to 12 percent, compared with the results of Capgemini's 2009 study.

Sustainability is the second most important business driver for 2010 up 16 percent over last year. However, the survey results suggest that this has not yet directly translated into a significant increase in supply chain sustainability projects.

These findings indicate that businesses have begun the shift from survival to revival. There's a hint of optimism, as well as a growing recognition of the vital role supply chain management plays in a successful business strategy. Previous research has shown that those companies that had been continuously focused on supply chain performance were best positioned during the recession. The ongoing trend for centralization of supply chain functions suggests that companies now realize the importance of supply chain excellence going forward, as well.

TAGS: Finance
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