Manufacturers Target Supply Chain
by Richard Brown, Line56
Tuesday, March 06, 2001
Almost three-quarters of U.S. manufacturers this year aim to aggressively cut supply chain costs in a bid to boost profitability, with over a fifth planning to raise e-commerce activity to bolster customer relations and improve operating efficiencies.
According to a new report by the Washington, DC-based National Association of Manufacturers (NAM), 72 percent of the 327 small, medium and large U.S. manufacturers surveyed plan to slash costs in their supply chain. Meanwhile, 22 percent expect to increase their use of e-commerce to raise client relationships and efficiency.
Released in Chicago during National Manufacturing Week - the largest annual manufacturing trade show in North America - the NAM survey was conducted between February 15 and 22. The results emerged at a nervous time for the sector: 44 percent of those surveyed think the first half of 2001 will see negative (recessionary) growth, while 40 percent believe manufacturing will register less than 2 percent growth in Q1 and Q2.
NAM President Jerry Jasinowski, says “the survey also tells us that manufacturers are not as e-savvy as they should be. Less than one-quarter (24 percent) cite e-commerce as one of their top three business priorities for this year. But manufacturers plan to step up their activity on the e-commerce front.”
While just 35 percent sell over the Internet today, 50 percent expect to be selling online one year from today, the report discovered. Moreover, while 54 percent make company purchases over the Internet today, 65 percent expect to be purchasing online one year from now.
As for training, only 23 percent have developed an e-learning strategy for their employees, and another 10 percent plan to in the coming year. “Clearly, manufacturers have not yet fully maximized the productivity-enhancing benefits of e-commerce,” Jasinowski concluded.
NAM’s report comes after the National Association of Purchasing Management (NAPM) and Forrester Research in January published results of a survey of 368 purchasing executives from 700 manufacturing and non-manufacturing organizations. Issues affecting those surveyed by NAPM ranged from deciding on the appropriate B2B e-commerce initiative and problems with implementation to resistance to change and funding. |
