Management Dynamics’ CEO, Jim Preuninger, was featured as an IT Thought Leader in last month’s issue of Inbound Logistics. In the feature, Mr. Preuninger discusses trending topics such as the role of technology in the optimization of global supply chains, and steps to simplify the import or export process.
These [global trade management software] tools provide an immediate and visible return on investment, enabling companies to reduce costs, improve operations, shrink manual data entry errors, facilitate cross-border movements, and improve customer service. In addition, reducing cycle times, eliminating bottlenecks, improving distribution networks, lowering out-of-stocks, and determining the best way to ship freight can also lower emissions, an ecological goal for many companies.
He also offers some sound advise for companies who may be looking to take the next step toward globalization:
Companies no longer have to take on all facets of international trading at once. And with the advent of cloud computing, otherwise known as Software as a Service (SaaS), companies can collaborate with trading partners around the globe with minimal start-up costs and headaches using a pay-as-you-go model.
For this research report, Aberdeen surveyed 136 global exporters and importers in August and September of this year. Their findings revealed that trade compliance teams are actively revamping and augmenting their Global Trade Management (GTM), specifically their Global Trade Compliance programs, to stay current with supply and demand fluctuations, growing global operations, increasing operational complexity and risk, and trade lane changes.
Here are a few key findings in the report:
Best-in-Class companies had 8.2%in average trade compliance cost to value ratio
Best-in-Class companies achieved 95.0%perfect order ratereceived on imports received from international suppliers
Best-in-Class companies experienced 96.0% for perfect order rate delivered on exports to international suppliers/customers
Best-in-Class companies improved their average trade compliance cost to value ratio by1.4% improvement, year over year
Best-in-Class companies increased their total land cost per unit handled versus prior year by0.6%, a 5.5 percentage point advantage over all others
According to a recent survey done by Tompkins Supply Chain Consortium, companies are now more likely to have executive-level supply chain leaders. Nearly half of the retail and manufacturing companies who responded have a supply chain leader at the executive vice president level or above (the chart below shows a breakdown by industry.)
The executive director of the Consortium explains this increase in an SDCExec article:
“With supply chains becoming more dynamic and agile, organizations need to able to keep up with the pace,” says Bruce Tompkins, executive director of the consortium and author of the briefing. “And these companies are beginning to realize the significance of having a high-level supply chain executive influence their business strategies.”
Companies seem to be realizing that the supply chain can be a fundamental value driver in an organization, but in order for this to happen, procedures need to be in place across the board to ensure the entire supply chain runs as smoothly as possible. By having a voice high up in the executive level of a company, supply chain teams can ensure that supply chain management tactics are taken into consideration when operational decisions are made.
Although this is progress, some companies still have improvements to make when it comes to collaborating: about a quarter of the respondents said they have no formal process for aligning supply chain goals. If a company is large and has several different business units, it can be a problem if these units don’t communicate with one another. Even if each unit has its own supply chain, it will benefit everyone to share ideas and best practices.
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