Manufacturers in the UK say they need to improve their supply chain but are slow to reduce costsby outsourcing logistics activities, according to a new survey commissioned by DHL Supply
Chain.Although just 1% of respondents outsource inventory management processes, 30% recognise it as anarea of their supply chain that needs improving. Similarly, only 13% outsource their warehousingand storage, yet 16% feel it needs improving, the survey found.
It also exposed a lack of awareness about where supply chain efficiencies can be generated, withonly 54% expecting it to have a significant impact on the profit growth of their business.
One respondent said: “Supplier Management has been the key challenge for us. We agree in boardmeetings that we need to improve our supply chain, but unfortunately it is always last on thepriority list.”
The research also showed that maintaining deliveries at the right time and in the right quantityis a key concern for UK manufacturers’ customers, with 83% of respondents stating that this is akey area for enhancement within the supply chain.
Additionally, an agile and responsive supply chain also proved significant, with 75% ofrespondents suggesting this is a key customer demand, alongside shorter lead times (72%.)
Ian King, Business Director of Engineering and Manufacturing at DHL commented: “Manufacturersrecognise that there is room for further improvement in their supply chain, but it seems that onearea they might be overlooking is the impact that improving supply chain efficiency can have ontheir bottom line.
“There is a fine line between balancing customer expectations with your supply chain’s capacity– it’s an area that needs constant fine-tuning, especially given the spotlight on UK manufacturingto help rebalance the economy.”
The survey was carried out by Benchmark Research for DHL Supply Chain during April – June 2011.Representative of a cross-section of UK manufacturing organisations, 120 management level supplychain employees of companies with over 200 staff and a turnover of £20 million were surveyed tobetter understand how UK manufacturing defines its supply chain and how to understand thechallenges and issues faced within the sector.
