Are Companies Reaping Benefits From Supply Chain System Investments?

In a word no, according to a recent study by PMP Research. Only 7% of the respondents report realizing benefits from supply chain technology investment, but they are hopeful (65%) that the investments will pay off in the long run.

In research commissioned by United Kingdom-based The Evaluation Centre, 21% of those polled will invest more next year in both their supply chain and manufacturing systems than then did three years ago. In fact none reported decreasing investment in 2006 compared to 20% who cut spending last year.

Three-quarters of the sample say they revise their strategy for their supply chain systems on a regular basis -- 13% do so every six months, while 60% plan an annual overhaul.

The majority (86%) say their products are now more customized or personalized than before, while a quarter (26%) also report that the lifecycle of their best-selling products has become shorter.

And despite the fact that 82% of those polled say their supply chain and manufacturing systems are now more flexible than ever, only just over a third of companies (37%) claim to be able to make incremental adjustments to any part of their systems, rather than wholesale re-plans.

Companies have had more success in moving to online working; nearly all (92%) are using online services for communication, with the main benefits identified as reduced costs (77%), improved service (63%), greater responsiveness (63%) and improved supplier relationships (63%).

The Evaluation Centre

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