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Supply Chain Executives Expect Complexity To Increase

Mike Sachoff
Staff Writer
Published: 2010-10-01

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More than 87 percent of supply chain executives say that having a flexible business-to-business ecommerce program provides differentiation and more than 92 percent agree that the strength of their B2B e-commerce program is important to growing business at key customers, according to a study published today by SCM World and sponsored by GXS. 

A key factor driving the need for stronger and more flexible B2B programs is the growing complexity in supply chains. More than 86 percent of supply chain executives expect complex requests from customers, such as vendor-managed inventory (VMI), cross-docking and floor-ready merchandise, to increase through 2013. 

Highlights of the research include:

*94 percent of respondents agreed that increasingly companies like theirs will compete as much through superior processes and service solutions as through superior products.

*86 percent of respondents expect an increase in the number of requests from large customers for more complex inventory management and replenishment models over the next three years.

*77 percent of respondents agreed there is still a lack of trust amongst supply chain partners that is impeding the flow of information.

"Manufacturers are facing greater levels of complexity as their larger customers require them to support complex processes such as vendor-managed inventory, cross-docking and supply chain finance, and more advanced technology programs such as CPFR, data sync and e-invoicing," said Steve Keifer, vice president of industry and product marketing, GXS

"Companies who can use their B2B e-commerce programs to overcome process complexity and technology variability will be able to delight customers with better service."

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