SUPPLY CHAIN PROGRESS EUROPE CHARGES AHEAD by ProQuest

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Results from the 6th Annual Survey of Supply Chain Progress from CSC, a global IT solutions and services company, show that companies are continuing to make steady supply chain progress across a range of competencies -- although some have advanced a lot faster than others. The survey found that moving from a laggard to a follower level of maturity is accompanied by improvements in fill rates, perfect orders, response time, total supply chain costs, productivity, cash-to-cash cycle times, inventory and other asset turns, and forecast accuracy. The gains recorded by the leaders also appear to correlate with the continued movement from a "cost-only" perspective to a focus on revenue growth -- as a result of supply chain advancement with primary objectives such as faster and more personalized order fulfillment, reduced order fulfillment lead time, perfect orders, and cash-to-cash cycle and asset turn improvement. Again, leaders are more than twice as likely to see growth across these metrics.

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suppLy cHain progress
europe cHarges aHead
R         esults from the 6th annual Survey of
          Supply chain Progress from cSc,
          a global IT solutions and services
company, show that companies are continuing
to make steady supply chain progress across
                                                     order would read Europe, north america, asia-
                                                     Pacific. Europe topped the list because of a
                                                     broader scope of supply chain initiatives among
                                                     European respondents and the relatively better
                                                     performance in cost reduction and revenue
                                                                                                            advancement. The 2008 survey reveals that
                                                                                                            whereas 40% fail to indicate movement in this
                                                                                                            area, a concern in its own right, those that
                                                                                                            relate supply chain improvement with revenue
                                                                                                            increase indicate ranges of 1–20% or more in
a range of competencies — although some              generation compared with respondents from              revenue increases — as indicated in Figure 2.
have advanced a lot faster than others.              north america and asia-Pacific.                           The data show wide differences in the
Supply chain initiatives in Europe have greater         Table I shows that Europe scores highest in         reported revenue gains and cost savings. The
scope and deliver greater value in terms of          the adoption of the listed activities in almost        best performing organizations indicated 3-year
cost reduction and revenue enhancement               every case, with standout scores in selective          revenue gains of about 11%, as opposed to
compared with similar initiatives run outside        outsourcing, supplier segmentation and green           a more typically reported 3–4% average gain
the region. If a general ranking were made           issues. The 85% of European firms reporting            for other organizations. Leading firms achieved
on overall performance, Europe heads the             the use of selective outsourcing is significant,       approximately 9% savings in cost, on average,
list, followed by the north american and             providing evidence that this strategy is fast          compared with a more typical reported average
asia-Pacific regions. Furthermore, Europe            becoming an established supply chain                   savings in the 4% range.
is taking a lead in sustainability and green
                                                      Activity                                Europe               N. America              Asia-Pacific
issues. The results from the survey also
                                                      Lean manufacturing techniques            63%                     62%                     62%
showed that there are significant differences         Six Sigma quality standards              46%                     49%                     47%
in the adoption and outcome of supply chain           Selective outsourcing                    85%                     77%                     77%
improvement initiatives, with companies               Customer segmentation                    67%                     59%                     63%
falling into three distinct categories of leaders,    Supplier segmentation                    70%                     57%                     60%
followers and laggards.                               Environmental/Green issues               76%                     61%                     64%
                                                      Ethical trading concerns                 78%                     76%                     78%
Europe Leads the World                                 Table 1: Global comparison of supply chain initiative uptake.
The survey covered a number of key question          practice. The differences between green                         Characteristics of
areas, revealing a basic similarity in terms of      issues could be partially explained by the                      Supply Chain Leaders
worldwide forward progress in the following ten      relative price differences of fuel between                      The 2008 survey once again documented the
supply chain management competencies:                Europe and north america, and is a possible            difference between mature, moderately mature
1 alignment with corporate strategy                  reflection of local legislation/environmental          and immature supply chain performance. as in
2 Strategic customer integration                     targets. Europe has been an early adopter              past surveys, results comparing the practices
3 Strategic supplier integration                     in sustainability initiatives, although evidence       and performance of the responding firms
4 cross-functional internal integration              shows increased global activity in this area           indicate that organizations tend to fit into one of
5 Supply chain responsiveness                        with more progress 
								
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