Global Supply Chains Lack Automation

Three-quarters of companies lack enterprise-wide automation for global supply chain processes, according to new research by The Aberdeen Group. International supply chains are only 50% as automated as their domestic supply chains, according to early findings of Aberdeen's Global Supply Chain study indicate.

"The critical lack of visibility and automation in the global supply chain leaves companies unable to balance supply and demand effectively across their multiple tiers," explains Beth Enslow, senior vice president of enterprise research at Aberdeen. "This leads to inventory pileups, longer lead times and increasing cost control challenges."

The fallout of under-automated global supply chains affects not only operations but finance as well. In fact, 89% of the more than 100 supply chain organizations surveyed report they are unable to give the corporate finance organization the information it needs on accurate costing and delivery dates for budget and cash flow planning.

Onslow asserts that linking automation benefits to the CFO suite is the new key to success. She adds, "Winning supply chain executives are making their CFO a cheerleader of global supply chain automation initiatives by improving cash flow visibility and predictability. Automation also helps ease corporate concerns around supply chain resiliency -- another emerging executive hot button."

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