New research from Aberdeen sought insights into the importance of supply chain management at companies and found that it is a critical function that can make a strategic difference.  Aberdeen found that companies are struggling with globalization of supply, increasing competitive pressures, and dwindling product life cycles – which is forcing them to look at supply chain transformation initiatives.  Aberdeen found that companies were concerned with cost containment and meeting increasing customer demands.

The and is the key word there.  For years supply chain management was focused mainly on cost containtment.  But more recently, increasing global competition combined with decreasing customer loyalty have forced manufacturers to pay even more attention to customer demands.  Along with this came the realization that supply chain management was not just a tactical necessity, but a strategic imperative.  Done right, huge competitive advantages can be achieved through customer-focused supply chain management practices.

To achieve this, manufacturers need to enable responsiveness.  Responsiveness serves both needs – it enhances customer satisfaction while simultaneously improving operations performance through cost reductions.  Increased responsiveness requires front-line decision makers to be empowered to act quickly and decisively.

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