Asia Differs From U.S. in Supply Chain Practices
Oct 25, 2005
By a margin of almost 3 to 1 compared to their counterparts in the United States and Europe, business leaders in Asia say they have turned to outside experts to manage their supply chains, according to a UPS-sponsored survey.
Asian business leaders are also much less likely to view "customer loyalty" as a business problem. Some 14% of the U.S. and European executives surveyed listed customer loyalty as the most important business issue they faced, compared to only 2% of the Asian executives. The latter say a much more important business issue facing them is "expanding to new markets."
The Asian leaders addressed those and other business issues in a survey conducted by Harris Interactive for UPS. The executives, more than three-quarters of whom are director- or vice president-level managers, were in attendance at the Longitude '05 symposium, co-sponsored by UPS, last week in Shanghai. Their answers then were compared to those of business leaders who attended three earlier Longitudes conferences in Chicago, Paris, and New York City.
In discussing their embrace of outside expertise in running supply chains, 29% of the Asian executives said they had moved "very extensively" or "completely" to outsourcing. In contrast, only 11% of the U.S. and European executives had gone so far.
Some 27% of the U.S. and European business leaders said their embrace of supply chain outsourcing was "not extensive at all." The corresponding number for Asian executives was just 9%.
The survey results suggest, according to UPS, that executives who have made the leap to reliance on outside supply chain partners are able to focus on a different set of business problems than those who run their own supply chains.
There was one topic on which all the executives, regardless of location, agreed: whether you manage your own supply chain or rely on outside expertise, the most common problem with supply chain management right now is "difficulty accurately forecasting demand." Some 77% of the Asian leaders listed this as a problem, just as did 76% of the U.S. and European leaders.
From an email on indologistician mailing list
By a margin of almost 3 to 1 compared to their counterparts in the United States and Europe, business leaders in Asia say they have turned to outside experts to manage their supply chains, according to a UPS-sponsored survey.
Asian business leaders are also much less likely to view "customer loyalty" as a business problem. Some 14% of the U.S. and European executives surveyed listed customer loyalty as the most important business issue they faced, compared to only 2% of the Asian executives. The latter say a much more important business issue facing them is "expanding to new markets."
The Asian leaders addressed those and other business issues in a survey conducted by Harris Interactive for UPS. The executives, more than three-quarters of whom are director- or vice president-level managers, were in attendance at the Longitude '05 symposium, co-sponsored by UPS, last week in Shanghai. Their answers then were compared to those of business leaders who attended three earlier Longitudes conferences in Chicago, Paris, and New York City.
In discussing their embrace of outside expertise in running supply chains, 29% of the Asian executives said they had moved "very extensively" or "completely" to outsourcing. In contrast, only 11% of the U.S. and European executives had gone so far.
Some 27% of the U.S. and European business leaders said their embrace of supply chain outsourcing was "not extensive at all." The corresponding number for Asian executives was just 9%.
The survey results suggest, according to UPS, that executives who have made the leap to reliance on outside supply chain partners are able to focus on a different set of business problems than those who run their own supply chains.
There was one topic on which all the executives, regardless of location, agreed: whether you manage your own supply chain or rely on outside expertise, the most common problem with supply chain management right now is "difficulty accurately forecasting demand." Some 77% of the Asian leaders listed this as a problem, just as did 76% of the U.S. and European leaders.
From an email on indologistician mailing list
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