Management
Consultants
Where Innovation Operates
Table of Contents
Global Supply Chain Trends 2008–2010
Study Background and Motivation
Ten Global Supply Chain Trends
Global Supply Chain Trends by Industry
Automotive and Industrial
Software, Electronics, Telecommunication, Services
Consumer Packaged Goods
Life Sciences
Introduction to PRTM
Appendices
Additional and Detailed Results by Industry, Region and Supply Chain Maturity
Those who know how to set up, manage and rapidly re-configure the value chain
worldwide will outpace competitors in seizing market share.
Now in its sixth year, the annual Supply Chain Trends study has been modified
from a regional to a global focus to provide critical insights to supply chain
executives.
Focus Industries
Automotive and Consumer
Electronics Life Sciences
Industrial Goods
21%
21%
31%
32% 37%
52%
10%
42%
16% 32%
Director, Vice President North America Automotive and Industrial Other Industries
Manager, Others Asia Pacific Consumer Goods Electronics, Telecoms,
CxO Europe Life Sciences Services
10
10 44
The
The COO
COO agenda
agenda is
is China
China and
and India
India are
are primary
primary
converging
converging on improving supply
on improving supply targets
targets for
for globalization,
globalization, while
while
chain
chain flexibility
flexibility and
and delivery
delivery Eastern
Eastern Europe
Europe is
is catching
catching up
up
performance
performance
Ten Key Global
Supply Chain
99 55
By
By 2010,
higher
2010, the
higher supply
the need
need for
supply chain
for
chain flexibility
flexibility
Trends Product
Product quality,
quality, safety,
safety, and
and
supply
supply chain
chain delivery
delivery and
and
will
will be
be the
the major
major driver
driver ofof security
security are
are critical
critical concerns
concerns
supply chain strategy
supply chain strategy
88 77 Environmental
Environmental sustainability
sustainability
66
Supply
Supply chain
chain maturity,
maturity, Limited
Limited flexibility
flexibility and
and the
the lack
lack
is
is driven
driven by
by the
the need
need for
for
enabled
enabled byby advanced
advanced supply
supply of
of internal
internal competency
competency to to
regulatory
regulatory compliance
compliance
chain
chain practices,
practices, appears
appears manage
manage partners
partners are
are major
major
and
and satisfaction
satisfaction of
of
to
to have
have reached
reached aa plateau
plateau barriers
barriers toto globalization
globalization
customer
customer demands
demands
Source: PRTM Management Consultants, Global Supply Chain Trends 2008–2010, 2008.
Source: PRTM Management Consultants, Global Supply Chain Trends 2008–2010, 2008.
Source: PRTM Management Consultants, Global Supply Chain Trends 2008–2010, 2008.
Source: PRTM Management Consultants, Global Supply Chain Trends 2008–2010, 2008.
Despite significant cost disadvantages, both North America and Western Europe
will remain major destinations for globalization investments, especially in R&D,
technology, and supply chain coordination
Companies cite the available personnel and infrastructure resources, as well as the proximity to
target sales markets, as their primary reasons for planned investments
Source: PRTM Management Consultants, Global Supply Chain Trends 2008–2010, 2008.
Source: PRTM Management Consultants, Global Supply Chain Trends 2008–2010, 2008.
Managing supply chain flexibility to ensure efficient product flow and on-time
delivery is a major challenge
More than half of the survey participants state that they lack internal
competencies to adequately manage their external partners
Clearly, the push to globalize does not always go hand-in-hand with preparation for challenges
The lack of appropriate partner-selection process is also a major barrier
Strategic partners, managing substantial parts of value creation, are often selected too quickly
and with a pure cost focus in mind
The diligent selection of long-term strategic partners is key to enabling the globally integrated
supply chain and helps mitigate the risk of IP theft
A clear and consistent approach to partner management will become a
prerequisite for success as globalization of innovation and R&D functions
accelerate
Source: PRTM Management Consultants, Global Supply Chain Trends 2008–2010, 2008.
Source: PRTM Management Consultants, Global Supply Chain Trends 2008–2010, 2008.
54%
68%
26%
75% 21% Ø 24
27%
16%
4% 5% 14% 11%
28%
19%
15% 15%
11%
8%
Source: PRTM Management Consultants, Global Supply Chain Trends 2008–2010, 2008.
More than 90% of surveyed companies report that customer service and product
quality are key drivers of their current supply chain strategy
While these two drivers will continue to be a primary focus over the
next three years, increasing supply chain flexibility will be the top focus
between now and 2010
This focus on flexibility is consistent with reported plans to increase the level of globalization
Almost 90% plan to increase focus on delivery performance, including renewed
focus on demand and supply forecasting
Four out of five plan to better integrate key suppliers
65% plan to maintain higher buffer stocks along key supply chain functions
Source: PRTM Management Consultants, Global Supply Chain Trends 2008–2010, 2008.
By 2010, the COO agenda will be focused on supply chain flexibility, delivery
performance, and acceleration of globalization
The top priorities are almost identical across industries and geographical regions
While the challenges facing supply chain executives are similar, the solutions to
resolve these challenges differ significantly
Careful selection and integration of network partners is one key to success, whether or not
international facilities are managed by the company itself or are operated by external partners
A new focus on effective supply chain planning, with sophisticated demand and supply
balancing, is key
• Global planning
Flexibility • Network optimization
• Partner selection
Partner Integration • Cross-enterprise processes &
systems
Operational Innovation
Supply-Chain Operations Reference-model® (SCOR®) is a registered trademark of the Supply-Chain Council, Inc.
Business Strategy
Brad Householder
Director
bhouseholder@prtm.com
www.prtm.com