Global Supply Chain Management Forum: Research Excellence October 18, 2007
Posted by Jonathan Gatrell in Business Community Management, Industry Publications, News.Tags: Risk Management, SCM, Security Management, Stanford GSB, Supply Chain Research
trackback
The Global Supply Chain Management Forum at Stanford GSB provides relevant information for understanding the trends and best practices for managing efficient supply chains. The analysis an examples of the type reports available is “Innovators in Supply Chain Security: Better Security Drives Business Value” which provides some interesting metrics on the types improvements which increased security in the supply chain can provide:
- Improved product safety (e.g., 38 percent reduction in theft/loss/pilferage, 37 percent reduction in tampering)
- Improved inventory management (e.g., 14 percent reduction in excess inventory, 12 percentincrease in reported on-time delivery);
- Improved supply chain visibility (e.g., 50 percent increase in access to supply chain data, 30 percent increase in timeliness of shipping information);
- Improved product handling (e.g., 43 percent increase in automated handling of goods);
- Process improvements (e.g., 30 percent reduction in process deviations);
- More efficient customs clearance process (e.g., 49 percent reduction in cargo delays, 48 percent reduction in cargo inspections/examinations);
- Speed improvements (e.g., 29 percent reduction in transit time, 28 percent reduction in delivery time window);
- Resilience (e.g., close to 30 percent reduction in problem identification time, response time to problems, and in problem resolution time); and
- Higher customer satisfaction (e.g., 26 percent reduction in customer attrition and 20 percent increase in number of new customers).
The growing focus on security is yet another way to better manage risk in the supply network as well. Risk varies from supplier failures to brand risk associated with compliance requirements, be them green or government. Recent news from the Stanford forum confirms these trends with HP and Wal-Mart’s social responsibility requirements/initiatives, which ultimately represents a competitive advantange for many enterprises.
