Capgemini Consulting Research: Supply Chain Executives Still Concerned with Demand Volatility in a Post-Recession World

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This annual global supply chain study consults leading companies from various sectors across Europe, the US and Canada, Asia-Pacific and Latin America on challenges for realizing supply chain initiatives, and provides insight on how to overcome them.

Although the general economic outlook at the start of 2011 seems positive, a significant number of the respondents to this year’s survey indicate they are uncertain about market demand in 2011 and that they are therefore determined to improve visibility in the supply chain.

The study reveals that the top 2 business drivers for supply chain executives in 2011 are operating a reliable supply chain in a volatile environment, while simultaneously dealing with rising material costs:

  • 40% of respondents answered that demand volatility was their number 1 business driver
  • 35% placed increased material/service costs at number 2

Meeting this twin challenge will mean improving control of both the internal and external supply chain. Consequently, when the respondents were asked to name their top supply chain projects in 2011, improving supply chain visibility ranks as top for 45% of them. Visibility was defined as knowing where products and inventories are, being able to monitor order progress and being able to anticipate unplanned events in the supply chain, like delayed transport or non-conformance quantities in the production process of subcontractors. Business process redesign (44%), business innovation (41%) and improving long term (demand) forecasting and planning (41%) follow closely on the list.

Other key conclusions:

  • Sustainability remains high on the list of business drivers (33%), making it still a top priority for supply chain executives
  • The economic downturn, while moving to the bottom of the list of business drivers, is still mentioned by 8% of the respondents

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About Capgemini Consulting Supply Chain Agenda 2011
In this year’s edition of Capgemini Consulting’s annual global supply chain study, 300 leading companies participated from various sectors in Europe (59%), the US and Canada (25%), Asia-Pacific (10%) and Latin America (6%). In addition to the survey, Capgemini Consulting conducted face-to-face interviews with 30 supply chain senior executives, which provided additional insights. The survey also looks back on bottlenecks for realizing supply chain initiatives in 2011 and gives insight in means to overcome them.

About Capgemini
Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, the Collaborative Business ExperienceTM. The Group relies on its global delivery model called Rightshore®, which aims to get the right balance of the best talent from multiple locations, working as one team to create and deliver the optimum solution for clients. Present in 40 countries, Capgemini reported 2010 global revenues of EUR 8.7 billion and employs around 110,000 people worldwide.
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Capgemini Consulting is the Global Strategy and Transformation Consulting brand of the Capgemini Group, specializing in advising and supporting organizations in transforming their business, from the development of innovative strategy through to execution, with a consistent focus on sustainable results. Capgemini Consulting proposes to leading companies and governments a fresh approach, which uses innovative methods, technology and the talents of over 3,600 consultants worldwide.
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