Company News • 13.08.2015

83 percent of supply chain executives struggle with globalization

60 percent of enterprises cite the complex needs of multiple supply chains

83 percent of supply chain executives struggle with globalization...
Source: Barloworld SCS

Supply chains are being held back by the effects of globalisation, according to a new survey, with 83% of executives from leading enterprises claiming to see only average or poor performance.

Over 60% said this is primarily due to the number of partners involved and the risks this creates, which is in turn limiting their flexibility.

Barloworld Supply Chain Software, a leading provider of strategic and tactical supply chain solutions to optimise network design, demand and supply planning and inventory management, polled 90 cross-industry supply chain executives, the majority of which were from companies with over £1bn turnover.

Today, the globalisation of the supply chain is largely unavoidable, argues Barloworld SCS CEO Richard Forrest, who says that cost containment and market expansion go hand in hand and are essential to achieve growth. The survey reflects the fact that this is impacting the way companies view and use their own supply chains, he said.

"The risks globalisation creates are not solely attributable to the number of partners involved in the now extended, internationally far reaching process of getting a product to a customer," Forrest said.  

These latest findings echo an earlier PWC survey of over 500 executives across Europe. It showed that, for many organisations, profitability, cost management and customer satisfaction, together with supply chain flexibility, are front of mind.

The strategies currently being investigated by many organisations to mitigate the risks and costs associated with globalisation hinge on three key themes, including collaboration, visibility and performance management capabilities. While these are not new, the survey shows that the expansion of supply chain around the globe has brought new meaning to them.

In this changing environment, more than half (54%) of executives felt collaboration needs to be cross-functional and cross-enterprise with shared accountability of how the supply chain performs, as well as delivering better data transparency (44%).

While better visibility of demand was only seen as fundamental by 26%, having accurate inventory and replenishment insights was identified as important by 33%, together with building flexibility and elasticity in the logistics network (49%).

The final essential component of dealing with the many elements of a global supply chain is the ability to gauge performance, which 54% of executives say requires the right functional and cross-functional KPIs.

Barloworld SCS CEO Richard Forrest reflected that, while the survey highlighted a lot is being achieved in the development of the supply chain to overcome new risks and complexities, there are challenges which remain.

For example, to harness globalisation, many companies are focusing on the right process-based elements but when it comes to enabling these initiative with the right technology, the survey highlights incongruity in their attitudes. While the majority (89%) are confident in articulating a business case requesting investment, 64% also feel that the benefits are seen as disproportional to the cost of the technology and that, inevitably, other parts of the business will be prioritised for this budget.

Source: Barloworld SCS

related articles:

popular articles:

Thumbnail-Photo: BAUHAUS introduces new click and collect technology...
10.03.2021   #electronic shelf labels (ESL) #price labelling

BAUHAUS introduces new click and collect technology

New solution helps store associates pick items for Click & Collect orders

With help from electronic shelf labels and handheld terminals, it has become much faster and easier for BAUHAUS to navigate through the store to find the right items. A new solution that also saves a lot of time on replenishment.With a product range ...

Thumbnail-Photo: Successful co-op association has the largest profit in the country...
24.12.2020   #electronic shelf labels (ESL) #price labelling

Successful co-op association has the largest profit in the country

The local Kvickly store has found the recipe for making profit. In the future, even more energy will be spent on customers and staff members

Electronic shelf labels play a crucial role here.

Thumbnail-Photo: What the payment future is about
08.03.2021   #mobile payment #brick and mortar retail

What the payment future is about

Interview with John Kolthof, Chief Commercial Officer, CCV GmbH

We asked our CCO John Kolthof about the future of the payment industry. What megatrends does John see and how do they influence CCV’s day-to-day business? Read more in our interview. ...

Thumbnail-Photo: Checkout-free hotel convenience store in Yokohama, Japan...
17.02.2021   #self-checkout systems #self service

Checkout-free hotel convenience store in Yokohama, Japan

Using biometric authentication technology

Zippin announced the launch of its latest retail format: a hotel convenience store. Zippin's partner, Fujitsu, the leading systems integrator in Japan, has worked with Koyo Group to implement the world's first checkout-free store within a ...

Thumbnail-Photo: Touchless Feedback
16.03.2021   #customer satisfaction #customer relationship management

Touchless Feedback

The Wall Street Journal published an article about Instant Feedback ‘Smiley’ Buttons

The Wall Street Journal, after interviewing our co-founder and Executive VP of Strategic Alliances, Ville Levaniemi, published an article titled “Instant Feedback ‘Smiley’ Buttons Go Touchless in Pandemic”. The article ...

Thumbnail-Photo: Danish supermarket chain implements ESL in all stores...
10.02.2021   #electronic shelf labels (ESL) #price labelling

Danish supermarket chain implements ESL in all stores

The chain is investing in modernization and more digital initiatives

The privately owned, Danish supermarket chain Løvbjerg is doing well, and has experienced a great development in 2020 with a 18% growth. The chain is therefore also investing in modernization and more digital initiatives. Most recently, ...

Thumbnail-Photo: The 6 technology trends affecting the security sector in 2021...
15.01.2021   #security #brick and mortar retail

The 6 technology trends affecting the security sector in 2021

The trends are shaped by how and why technologies are used

It’s useful when looking forward to first look backward: hindsight has a wonderful way of providing context for future-gazing activity. And when looking back over the past year, one insight could understandably be that attempting to predict ...

Thumbnail-Photo: The rise of the virtual fitting room with the corona pandemic?...
30.11.2020   #fashion #virtual reality

The rise of the virtual fitting room with the corona pandemic?

Trying on clothes via AI, AR or VR

The rising usage of smartphones is expected to take the virtual fitting room market to $19,250.4 million by 2030, from $3,128.6 million in 2019, at an 18.5% CAGR between 2020 and 2030.A virtual fitting room is a digital representation of a fitting ...

Thumbnail-Photo: Robotic canteen set to change the global food and hospitality industry...
10.12.2020   #food retail #food technology

Robotic canteen set to change the global food and hospitality industry

Karakuri showcasing its pre-production machine

Karakuri, a food robotics company, lifts the lid to unveil the world’s first automated canteen to make meals, the DK-One. Karakuri’s robotic system will revolutionise how and what we eat in restaurants, canteens, buffets, hotels and ...

Thumbnail-Photo: Tackling sustainability challenges in the food packaging industry...
04.02.2021   #sustainability #food retail

Tackling sustainability challenges in the food packaging industry

Tetra Pak calls for collaborative innovation

Tetra Pak has introduced a new collaborative innovation model with leading paperboard producers, a move aimed at tackling the food packaging industry's sustainability challenges. The traditional operating model of a linear supply chain has ...


Gewerbering 1
84072 Au i.d.Hallertau
Axis Communications GmbH
Axis Communications GmbH
Adalperostraße 86
85737 Ismaning
Innere Kanalstraße 15
40476 Düsseldorf
Stockumer Kirchstraße 61
40474 Düsseldorf
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
Citizen Systems Europe GmbH
Citizen Systems Europe GmbH
Otto-Hirsch-Brücken 17
70329 Stuttgart
iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
GMO Registry, Inc.
GMO Registry, Inc.
Cerulean Tower, 26-1 / Sakuragaoka-cho, Shibuya-ku,
150-8512 Tokyo
Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen