We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » The quest for global payback continues
Forward Thinking

The quest for global payback continues

September 22, 2008
Supply Chain Quarterly Staff
No Comments

Supply chain executives are still struggling to make global initiatives pay off for their companies. That's one of the conclusions of an annual study of global supply chain trends conducted by PRTM Management Consultants. The consulting firm polled more than 300 manufacturing and service companies in Asia, North America, and Europe about the state of their global supply chains.

Researchers concluded that globalization is accelerating, and that future globalization initiatives will focus on product and technology development in addition to manufacturing and assembly. The primary drivers of accelerated globalization are the twin pressures to reduce costs and penetrate local markets.

Article Figures
[Barriers to supply chain globalization]
[Barriers to supply chain globalization] Enlarge this image

Although globalization initiatives brought down overall costs by an average of 17 percent, internal barriers are preventing many companies from realizing the expected savings in the area of management. For example, respondents said that global supply chain programs brought about a 26percent cost reduction in labor and an 18-percent reduction in material cost, but they achieved only an 8-percent drop in management and overhead costs. Globalization didn't cut costs for all respondents, however. Many reported that global operations actually increased their companies' costs because of the complexity of coordinating domestic and international activities.

The most important concerns right now for companies that are expanding their supply chains globally are product quality and safety, as well as delivery and security. Companies also consider environmental sustainability when planning future globalization strategies, but that's mostly because of the need for regulatory compliance and the desire to satisfy customer demand. A "green" supply chain is not yet a strategic differentiator, the researchers said.

Among the barriers to globalization cited by respondents are limited supply chain flexibility and the lack of internal competency to manage partners. Accordingly, PRTM predicts that within two years, supply chain flexibility will eclipse product quality and customer service as the main reasons for improving global supply chain strategies. Internal training in how to manage global supply chains, meanwhile, would help to prepare companies to better manage supply chain partners. In addition, companies still have not mastered the technology necessary to achieve worldwide visibility.

[Source: Global Supply Chain Trends 2008-2010: Driving Global Supply Chain Flexibility Through Innovation, PRTM Management Consultants, June 2008]

    • Related Articles

      Study: LSPs aim for two-year software payback

      Third-party logistics industry continues to feel the effects of the economic downturn

      Future continues to look bright for transportation, logistics industry

    Recent Articles by Supply Chain Quarterly Staff

    DAT Freight & Analytics says new tool tackles spike in identity fraud

    Ryder rolls out BrightDrop electric rental vans at sites in CA, TX, and NY

    FourKites launches generative AI product to uncover insights from supply chain data pools

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Wabash opens trailer manufacturing facility in Indiana

    • Six defining challenges of omnichannel fulfillment

    • Postal advocacy group says “excessive” July 9 stamp price hike will hurt consumers

    • CPKC and CSX buy rail assets from Genesee & Wyoming

    • Distribution, supply chain innovation, and a brighter a future

    Featured Video

    8757b894 244c 4429 b5d8 e6df7b479d82

    Penalties for Wood Packaging Material Violations

    Viewer Contributed
    Our Services Include: Customs Broker Denver Freight Forwarder Denver Global Logistics Denver Cargo Insurance Denver Customs Bond Denver Customs Clearance Denver Customs Duty Denver Isf Filing Denver More details: Phone : 281-445-9779 Email: info@gallaghertransport.com Website: gallaghertransport.com

    FEATURED WHITE PAPERS

    • Five questions to ask before electrifying your indoor forklift fleet

    • Operator assist system myths busted

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing