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24 October 2011 | Adam Leach
Almost three quarters of US
manufacturers see supply chain management as important for the next five years
but less than a third are on their way to being world-class at it, according to
a report.
The Next Generation Manufacturing(NGM) Study, commissioned by the American Small Manufacturers Coalition and published last week, found that 72.2 per
cent see supply chain management as important or highly important to the
success of their organisation, a rise of four per cent from 2009.
However, the study, which
surveyed 824 manufacturers, found that despite its increasing importance just
29.4 per cent believe they are at or progressing towards world-class SCM
status. Referring to the disparity, the report said: “The execution gap
represents a substantial barrier to long-term success for US manufacturing.”
The findings also revealed a
significant split in the quality of SCM at small and large organisations. The
survey found that 25 per cent of small manufacturers – businesses with less
than $10 million in annual revenues – believe they are at or getting near
world-class status, compared with 41 per cent of large organisations (those
with annual revenues of $100+ million).
Carrie Hines, executive director
at the coalition, said: “The manufacturing industry is widely recognised as a
critical component of America’s economic recovery, but it is important
that we provide small manufacturers with the tools to continue to be
competitive in the global market.”
The study, which followed up from
an initial 2009 survey, found that the issue rising furthest up the business
agenda was sustainability. In the latest report, sustainability was identified
as a business priority for the next five years by 59.2 per cent of respondents,
a rise of 24.1 per cent on the 2009 figure.
