Friday, December 4, 2009

How Tech-Savvy Are Canadian Supply Chains?

(Materials Management & Distribution – Deborah Aarts)

Are Canadian supply chain managers innovative enough when it comes to technology? Several sets of data go long way towards answering the question.

Recently, Industry Canada partnered with SCL Canada’s research committee to aggregate some research on how supply chain managers use technology. The two parties consulted several studies issued by Statistics Canada and other international research organizations and analyzed the findings. The result is a set of conclusions based on feedback from more than 20,000 firms.

In November, SCL Canada launched its Technology Tour to explain the findings, stopping in six cities across the country. Philippe Richer, associate director of the service industries and consumer product branch at Industry Canada, presented the information. […]

According to Richer, the lax adoption of e-based technology among companies in the supply chain is cause for concern. One big reason they should act, he said, is because they stand to gain so much. He cited an Aberdeen Group report that found 90% of companies embracing leading-edge collaboration applications achieved gains of at least 15% in order fill accuracy. Only 40% of low technology adopters have the same results.

High adopters of the technology are also achieving comparative advantages in total delivered costs, lead-time reductions, perfect orders and increased compliance to customer mandates. Read more here.