New research by Aberdeen Group on supply chain disruption

Filed in archive Research on September 20, 2006

The average company has experienced 10 supply chain disruptions during the last five years, according to a recent study by Aberdeen Group, a Boston-based research firm. To help avoid or manage these disturbances, Aberdeen suggests creating a global supply visibility and performance program.

Modern Material Handeling has summarized processes and technology that should be included in such program in an interesting way:

- provide visibility into supplier activities, including detailed knowledge of the status of manufacturing, distribution and transportation performed by the supplier,

- provide an understanding of supplier costs, including the costs of the transportation, warehousing, packaging and raw materials associated with a product,

- manage supplier performance by measuring and tracking key performance indicators such as on-time delivery, quality and order accuracy, and

- enable supplier collaboration, allowing two-way sharing of information between a company and a supplier.