80% of Companies Indicate Dissatisfaction With Their Existing Supply Chain Technology, Aberdeen finds

Filed in archive Research on February 5, 2007

Packaged supply chain applications are turning a corner in the automotive, aerospace and defense industries. This is according to a report from Market Wire based on a new benchmark report from Aberdeen Group.

"80% of companies surveyed indicate dissatisfaction with their existing supply chain technology," says Nari Viswanathan, Research Director, Supply Chain, at Aberdeen Group. "Part of the reason for dissatisfaction lies in the fact that the vast majority of automotive, aerospace, and defense companies run major parts of their supply chain operations on custom or in-house developed technology. Many of these companies are now looking to their ERP vendors or other packaged software providers to help them with the technology needed to enable supply chain transformation and more flexibly adopt to changing business requirements."

Best-in-Class automotive, aerospace, and defense companies are much more likely than their peers to have standardized on a common supply chain platform through ERP and supply chain software. Aberdeen defines the Best in Class as the top 20% of companies with the lowest average finished goods inventory levels, lowest order to delivery lead-times, and the lowest supply chain costs as a percentage of sales revenue.

Best-in-Class companies are:

- 3X less likely to have manual or spreadsheet intensive supply chain
processes
- 2X more likely to have standardized on a common, company-wide supply
chain platform