Supply Chain Management Pain Points Remain Consistent in 2011

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SCM World’s Supply Chain Predictions for 2011 report gathers the thoughts and insights of more than 400 business leaders across industry verticals, focusing on predictions for the key supply chain challenges that 2011 will present. The key statistics from this report include:

  • 62.7 percent of respondents identify demand volatility as their key pressure point in 2011 as the impact of the global recession continues to affect demand patterns.
  • 38.6 percent of surveyed organizations will be looking to consolidate the supplier base this year.

These trends for the supply chain management industry seem to continue year over year.  Nevertheless, it is not an easy task to keep business running smoothly when you’re unsure of demand and cannot depend on your suppliers’ capacity or shortage of product. So what is missing within organizations that can make this industry pain unbearable? Insight.

Let’s take a closer look at these two potential pain points for SCM organizations and define the root of the problem.

  • Demand volatility as key pressure point: Companies cannot depend on constant customer demand within the current economy, which is characterized by rapid change.  But those companies with greater insight into customer buying history can identify demand trends and prepare for upswings and downturns.  They are often able to influence buying decisions by taking appropriate actions, like offering discounts or promotions , and keep the demand on a more consistent path.  Business intelligence will let you pull all the available insight from the data you already have in your ERP and other databases.
  • Consolidation of your supplier base: Companies are looking to save money by leveraging their buying power across fewer suppliers. Further, by weeding out the lesser performing vendors, companies all along the supply chain can save further by reducing purchasing and administration efforts and more important, by reducing the costs associated by lower quality components or products, like returns.  Without deep insight into vendor inventory, buying cycles/schedules, and purchase history, your business will be  unable to make an informed decision that may be vital to the sustainability of your operation.  Business intelligence gives you the ability to analyze vendors by any criteria with just a few clicks.

BIO Analytics, Corp. provides business intelligence solutions for Microsoft Dynamics® GP, Microsoft Dynamics SL, and Microsoft Dynamics NAV. With BIO you will be able to analyze customer demand and supplier history almost as quickly as you can think of the questions you need to answer.  For a demo or more information, email me at [email protected] or give me a call at 203.705.4648.

By Sandi Forman of BIO Analytics, Corp., a Business Intelligence (BI) Microsoft Dynamics ISV

BIO Analytics Corp. provides business intelligence software and services for Microsoft Dynamics. Visit our website to learn more and to view demos.

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