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.
  • ::COVID-19 COVERAGE::
  • 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
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
Home » Cost reductions, product quality top of mind for supply chain executives
Forward Thinking

Cost reductions, product quality top of mind for supply chain executives

May 19, 2010
Supply Chain Quarterly Staff
No Comments

Cost reductions and product quality are uppermost in the mind of business executives, according to the results of a survey by IDC Manufacturing Insights.

In February, the research firm canvassed 415 U.S. manufacturers about their top business and supply chain issues. Respondents performed various functions across their organizations, including procurement, supply chain management, manufacturing, and information technology.

When asked to name their top supply chain priorities over the next 12 months, 49 percent of respondents—not surprisingly—cited reducing costs for procurement, manufacturing, transportation, and logistics. One-third named improving forecasting capability and forecast accuracy as top priorities. Another 27 percent said becoming more responsive to demand changes in the marketplace was most important, while 25 percent said they would seek to establish deeper collaboration with suppliers, enhance supplier management, or focus on purchasing spend analytics. (Multiple responses were allowed.)

As for their top supply chain initiative in the coming year, respondents rated improving product quality number one. Report authors Simon Ellis and Kimberly Knickle attributed that response to the growing number of recalls in categories such as automotive, toys, and grocery as well as the increasing pressure on brands from retailers' private labels. "Product quality will continue to be an important initiative in the wake of significant recalls, to strengthen consumer trust and loyalty in the market," said Knickle. Respondents cited streamlining new product introductions, product development, and manufacturing as their next most important supply chain initiative for the coming year.

When asked about their plans for supply chain information technology (IT) investments in the next 12 months, respondents most often named sales and operations planning (S&OP), cited by 27 percent. The authors noted that a desire for better coordination with customer-facing departments was driving the interest in S&OP. The second priority for IT investment was strategic sourcing and procurement spend management applications, cited by 25 percent of survey takers. The reason for that emphasis, the authors said, is that many manufacturers plan to use this type of software as a means of controlling costs.

  • Related Articles

    Demand forecasting top of mind for supply chain leaders

    Survey: Cost, IT, strategy, transportation are top concerns for supply chain managers

    Cost control remains the top supply chain goal for manufacturers

Recent Articles by Supply Chain Quarterly Staff

IBM survey says digitalization trends will sweep trucking industry by 2030

Report tracks rise in cargo theft from storage facilities

Policy groups posit plan to support supply chains hit by Covid-19, winter storms

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

Report Abusive Comment

Most Popular Articles

  • The 3PL industry: time to reset

  • Resiliency starts with supplier mapping

  • Freight market growth expected to slow in 2021

  • Retailers designing stores to support inventory and logistics work, not just shopping

  • Seizing the helm

Featured Video

6cabd6ef 64df 4460 bb11 e90c2bdea0a5

Identifying Intralogistics Solutions to Fit Your Operation: LinkedIn Live Ep. 4

Viewer Contributed
As technology evolves, the advantages of using semi- and fully automated solutions to increase productivity and address labor shortages are clear. However, before an organization jumps fully into automation, optimization is a key step that must happen first. Intralogistics solutions, such as Raymond’s iWAREHOUSE and...

FEATURED WHITE PAPERS

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

  • Shaping Up Last Mile Delivery to Surpass Customer Expectations

  • Finding the Right Transportation Management Partner

View More

Subscribe to Supply Chain Quarterly

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

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing