Just the facts please… March 7, 2008
Posted by Jonathan Gatrell in Actionable Intelligence.Tags: EDI, Errors, Invoice, logistics, Ordering, Procurement, Transportation
trackback
David’s recent post on how the Supply Chain is becoming increasingly important for businesses, got me to thinking about why is this trend emerging. To that end, I spent some time reading analyst information, looking up industry trends and understanding the events in the supply chain and their impact on a business. Here is a list of 10 industry metrics which support the rising importance of the supply chain for manufacturers, transportation providers and retailers:
-
8-10% of a companies revenues are impacted by deductions
-
47% of Out of Stocks are caused by Ordering and Forecasting Issues
-
A 2 percentage increase in your perfect order rate correlates with 10 cents in Earning Per Share
-
Between 20-24% of orders are not delivered on time for CPG and F&B manufacturers
-
Consumer Product Manufactuers on average spend 21% of revenue on the supply chain
-
Transportation spending averages 6%, but leaders can reduce this to 3%
-
Corrugated slip sheets produce 2.6 times as much solid waste, require 18 percent more total energy and produce 4% more greenhouse gases than a pallet pooling initiative/system.
-
80% of the US Gross National Product begins with a purchase order placed through traditional ANSI X12 EDI
-
30 percent of the data in retail catalogs are in error, and each error costs $60 to $80 to correct
-
Up to 37 percent of invoices a year error out with either bad item numbers or prices
