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Electronics Production | January 11, 2007

The 10 biggest expectations<br>this year on the Supply Chain

A cautious optimism is prevalent across the European manufacturing industry, according to the Manufacturing Insights Report.
Global independent research and advisory firm, Manufacturing Insights, an IDC company, today released a new report anticipating EMEA Supply Chain Top 10 Predictions for 2007.

Globalization, elongated and fragmented supply chains, regulatory pressure, higher oil prices, flickering and scattering demand, and a strong euro are among the main challenges for the European manufacturing industry. Improving business performance, achieving lower operating costs, enhancing productivity gains, the ability to innovate, and increasing visibility across the supply chain are the business imperatives.

"Manufacturing Insights has gathered increasing signs throughout the industry that leading European manufacturers are revisiting both their low-cost manufacturing strategies and their emerging market support strategies," said Pierfrancesco Manenti, research director, Manufacturing Insights, Europe. "These signs call on companies to deploy resilient supply networks that enable them to become adaptable to changes in demand and apply supply-chain risk mitigation policies."

The following are the top 10 predictions for the EMEA supply chain in 2007:

1. Becoming Agile Through Real Time Manufacturing First

2. Demand Variability Drives Interest in Advanced Inventory Optimization

3. Sense Demand Signals in Real-Time, and Broaden Demand Visibility

4. Manufacturing Offshoring Will Continue, But With Lower Growth

5. Manufacturers Will Leverage on Aftermarket Services as a Competitive Advantage

6. SOA Will Gain Momentum, But Merely at the Level of Single Project or Application

7. Lack of Leading European Supply Chain Specialty Vendors Eases Market Consolidation

8. Risk Management Will Gain Interest, as Supply Chain Disruption Continues

9. Skyrocketing Fuel Costs Will Drive More Attention Toward Logistics and Transportation

10. Cautious Business Optimism Will Drive Selective Investments in Supply Chains in Europe

The report is the first in a series of reports focusing on European Supply Chain Strategies.

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