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 » Demand-driven planning both a focus and a challenge for large companies
Forward Thinking

Demand-driven planning both a focus and a challenge for large companies

September 24, 2013
Supply Chain Quarterly Staff
No Comments

Larger companies are starting to place more emphasis on demand-driven planning while smaller companies are focusing on centralized procurement. Yet gaining the necessary visibility for demand-driven business remains a challenge for many of them, according to the 2013 Global Manufacturing Outlook: Competitive Advantage report by the consulting firm KPMG International. The report surveyed 335 senior executives worldwide from five industries: aerospace and defense, automotive, conglomerates, engineered and industrial products, and metals.

Regardless of company size, the number one supply chain strategy cited by respondents was improving operations. Fifty-six percent of executives from large companies (defined as more than $5 billion in revenue) said their top strategy was operational improvement, while 58 percent of small companies (revenue under $5 billion) said the same. More than half of all respondents (57 percent) said that optimizing inventory, transportation, logistics, and other operational costs is central to achieving operational priorities.

But the two categories diverged when it came to their second most important strategy: 41 percent of large companies said it was demand-driven planning, while 46 percent of small companies cited centralized procurement.

The number three strategy priority also differed between large and small companies. Large companies ranked integrated business planning (36 percent) third, and smaller businesses named supplier management (39 percent).

The survey also found that end-to-end visibility remains a concern for manufacturers. Forty-seven percent of respondents said a top challenge was aligning operations to real-time fluctuations in consumer demand. The second most-often cited challenge was supplier performance in terms of risk, cited by 45 percent. Nearly half of the companies of all sizes said they lack visibility beyond their Tier 1 partners. Only 9 percent said they have "complete visibility" beyond Tier 2 suppliers.

Fifty-eight percent of respondents said they would regionalize/ localize supply chains to improve the management of their supply chain risk. Moreover, 55 percent said they would diversify their manufacturing locations, and half said they would diversify their supply bases.

Companies also are increasingly considering the supply chain as crucial to their innovation strategies. About half of respondents said they see their suppliers as a source of not just production and logistics, but also of ideas.

The complete report can be downloaded from KPMG's website.

    • Related Articles

      Many companies place demand planning in supply chain area

      Creating a consumer-friendly supply chain continues to challenge retailers

      Running a large supply chain without advanced analytics is "increasingly unrealistic," says Gartner Research

    Recent Articles by Supply Chain Quarterly Staff

    Shippers and 3PLs strengthen ties as supply chain dynamics shift in 2023

    Pepsi exec highlights four key structural changes in the supply chain

    Supply chain visibility key to tackling resource scarcity

    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

    • California bill would require large corporations to disclose their greenhouse gas emissions

    • Panorays extends risk management throughout the digital supply chain

    • Orchestrating the new, heterogeneous robot fleet

    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

    • A Brighter Future: How COVID-19 Continues to Change Freight Procurement Strategies for the Better

    • Five questions to ask before electrifying your indoor forklift fleet

    • Operator assist system myths busted

    • Three layers of forklift safety: Promoting operating best practices

    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