Europe leaped ahead of North America and Asia Pacific in achieving significant cost reductions, revenue gains, and sustainability improvements through supply chain advancements, according to the 2008 Global Survey of Supply Chain Progress from Computer Sciences Corp. (CSC), Supply Chain Management Review magazine, the Council of Supply Chain Management Professionals, Michigan State University, and Supply Chain Europe magazine.

The survey, completed by supply chain professionals representing 22 industries and more than 32 countries, showed that Europe has a significantly broader scope of supply chain optimization vs. North America. Asia-Pacific, (which includes New Zealand and Australia) fell into a lower position as compared to the other geographical sectors in most areas of supply chain advancement, such as strategic alignment, customer integration, and supplier integration. However, the region ranked slightly ahead of Europe and North America in innovation management.

In terms of industries, survey results show that aerospace and defense, chemicals, and consumer goods are leaders in overall supply chain performance. As their supply chain efforts mature, leaders are shifting focus from traditional core competencies, such as excellence in warehousing and transportation, to broader process improvements that help distinguish them within market segments.

“Industry characteristics reflect movement beyond the internal ‘four walls’ of expertise to attaining best practice across the enterprise in areas of importance for each market, such as strong internal integration for the chemical and consumer goods segments, and leadership positions in customer integration by third-party logistics providers and wholesale distributors,” says Charles Poirier, author and partner in CSC’s supply chain practice. “Companies in these industries are forging ahead by ensuring that best practices in areas such as order management are practiced across the network, and root-cause problems are eliminated throughout the end-to-end supply chain. One positive impact is a dramatic reduction in reconciliations.”

Supply chain improvements result in cost savings, better customer satisfaction, and new sales. According to the survey, leaders also have a greater correlation between executive involvement and development of specific supply chain plans that become an integral part of the corporate strategy and planning system.

“This type of improvement continues to validate the efforts leaders are making to enhance top-line revenues, as well as bottom-line costs,” says Poirier. “Firms are moving from a ‘cost-only’ perspective to a focus on primary objectives such as faster and more personalized order fulfillment, lead-time reductions from placing orders to products delivered, cycle-time improvements across what are now becoming global networks, creating and delivering perfect orders, improving customer satisfaction ratings, shortening the cash-to-cash cycle so all parties get paid in a timely manner, and asset turn improvement.”

Sustainability initiatives were also studied in this year’s survey, and the results reveal that Europe is ahead in this area as well. “Europe was an early adopter due to its greater focus on customer relationships, but sustainability is starting to be accepted as a supply chain initiative across all regions now, and more progress can be expected,” adds Poirier.

Another issue receiving a central supply chain focus is including green initiatives in the portfolio of efforts. The effort is picking up momentum as these leaders increasingly place responsibility for “being green” onto suppliers and promote positive results in their marketing campaigns.

The 2008 survey was completed by 294 individual respondents. Sixty percent of the firms indicated a size of $500 million or greater, while 40 percent have revenues of less than $500 million. The companies responding were largely corporations with a heavy emphasis on manufacturing and distribution, with five percent indicating a focus on retail operations.

For further information, visit www.csc.com/newsandevents/news/15089.shtml.