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Research & Studies

Logistics and Supply Chain Report 2009

KPMG International in cooperation with Lean Enterprise Research Centre at Cardiff Business School conducted a survey which aims to examine, in-depth, the shape of logistics and supply chains within UK manufacturing today. In addition, it provides six lessons on cost reduction.

Main findings of the study:

• More than 80% of the sample thinks a fully integrated, collaborative supply chain management strategy could considerably enhance their revenue and profitability.
• However, in nearly a quarter of the supply chains covered by this survey there is no senior level representation for the supply chain function, e.g. at board level. At the same time, nearly half of the respondents seem to have no formal or written plan for managing the supply chain.
• Regarding what supply chain improvement initiatives typically lead to, 94 respondents said they have delivered cost savings and 73 reported inventory reduction, only 39 stated that their value chain initiatives have improved time-to-market.
• In our sample, more than 60% of companies have partial or full outsourcing of distribution. This clearly shows the vital role 3PLs and 4PLs can play.
• Finally, a surprisingly large percentage of companies who participated in our survey use offshore sourcing (only 6% don’t do any off-shoring!). Even more interesting is that 85% of the respondents seemed to be satisfied with their offshore sourcing arrangement decisions.

To find out more about cost performance and to download the study follow this link

AmCham Partners