Monday, March 11, 2013
The complexity of global supply chains, increasing costs, explosion in order and delivery channels, rising customer expectations and new consumer behavior have all contributed to the growing challenges faced by organizations when it comes to order fulfillment operations.
Capgemini, in partnership with Oracle recently announced the findings of its global supply chain and logistics management study entitled: "From Customer Orders through Fulfillment: Challenges in Manufacturing, High Tech, and Retail." The study surveyed almost 600 top supply chain executives in manufacturing, high-tech and retail businesses worldwide to analyze common fulfillment challenges and areas in need of improvement.
The research reveals that with increasing risk and system complexity, order fulfillment processes are becoming more intricate and inventory management and delivery performance is slipping. Only one in three manufacturers is happy with their order promising and 50 percent of respondents say exception handling needs improvement. As a result, customer satisfaction and retention are put at risk and businesses are forced to allocate additional spending on resources to address the situation, which, coupled with rising prices of raw materials and transport costs, are a growing threat to businesses’ bottom line.
Key conclusions from the report show:
“It’s clear that given the growth of multi-channel complexities, it’s time for industries to consider the impacts that these requirements place on their businesses," says Ben Pivar, Senior Vice President and head of North America Supply Chain Technologies at Capgemini. "Manufacturers should consider following retailers in embracing the new multi-channel reality by evaluating up-sell and cross-sell opportunities across product lines to create a consistent and profitable customer experience across all channels. In order to truly make this work, manufacturers need to consider how to integrate multi-channel requirements throughout their supply chain operations.”
“Value chain integration is a long-term trend and there is an urgent need for more collaborative planning and execution," says Jennifer Sherman, Senior Director of Applications Strategy, at Oracle. "The threats of volatility and change in the marketplace can be mitigated by the existence of an agile and scalable supply chain platform. Businesses need to consider investing in a technology platform to create a centralized view and single face to the customer and to ease the adoption of new business processes without mandating a replacement of existing supply chain execution systems.”
Click here to download the full report.