- Industry: Industrial and consumer markets, Automotive, Industrial Products, Chemicals and Pharmaceuticals, Energy and Natural Resources, Retail, Food and Drink, Consumer Products
- Type: Business and industry issue
- Date: 9/21/2010
A clear majority of leading industrial companies still see cost as their main priority when managing supply chains, despite emerging evidence that excessive focus on cost has damaged relationships, and that new approaches to supply chain management are gaining hold among leaders in the field, a survey from KPMG International has found - September 2010
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The survey, entitled Global Manufacturing Outlook – Relationships, Risk and Reach, polled nearly 200 senior-level executives from the aerospace, metals, engineering and conglomerates sectors across North America, Western Europe and Asia-Pacific to understand how their supply chains were changing as a result of prevailing economic uncertainty.
It revealed that cost still reigns among 66 percent of respondents as the leading consideration of their supply chain models. But 63 percent of respondents agreed that more attention should be paid to non-financial elements of the supply chain and 38 percent said that an acute focus on cost has harmed relationships with suppliers.
The survey also showed that many of the world’s leading companies are applying new methods of supply chain management designed to weather an economic climate where various forms of risk have become the norm. These new approaches – more strategic than tactical – could well emerge as best practices.
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