Lack of visibility, process automation are leading causes of elevated supply chain risk, says Gatepoint Research, E2open

Increasing complexity of the supply chain creates paramount need for multi-tier visibility and fully automated supply chain processes. See chart.
December 22, 2009

E2open a provider of on-demand multi-enterprise demand-supply network solutions, and Gatepoint Research, a business-to-business research organization, today announced the results of a Supply Chain Benchmark survey focused on trends in managing supply chain risks. More than half of respondents have in excess of 500 componentsuppliers or manufacturing partners, 44 percent have deficientvisibility into tier one suppliers, and 75 percent have deficientvisibility into tier two and three suppliers. More than 80 percent of respondents have not automated or only partially automated their supply chain processes.
"Executing on revenue opportunities accurately is extremely important during this time of economic uncertainty," said Mark Woodward, president and CEO of E2open. "Global corporations stand to lose potential sales due to the lack of end-to-end visibility, including into true customer demand. The survey shows that clear, multi-tier visibility and effective inventory management are keys to succeeding in any economic climate."
Survey findings also revealed the following:

Results from the survey highlight the importance supply chain visibility plays in brand owners’ daily collaboration with suppliers — including their ability to perform mission-critical processes such as forecasts, order and inventory management, and orchestration of global communications, the sources said. Moreover, supply chain visibility deficiencies decrease corporate profitability and competitive advantage, in addition to disrupting customer service.

The study was conducted in Q3 and Q4 2009. Gatepoint Research surveyed more than 4,000 executives, including CIOs, COOs, CFOs, and supply chain executives with a 3.25 response rate. Of these, more than 70 percent represent companies with annual revenues in excess of $10 billion.

Also read from MBT: New E2open solutions link demand and supply chains .

Lack of process automation poses these risks, Gatepoint Research says

More than 60% of responders to a Gatepoint Research survey said that schedule maintenance and accurate forcasting are particularly sensitive to a lack of process automation.

– Edited by Mark T. Hoske, online products editor, Manufacturing Business Technology , MBT www.mbtmag.com