Manufacturers hope cloud computing will handle supply chain complexity

That is the key implication of a survey of the top 500 companies, which finds that they are driving aggressive change in their supply chains, which is, in turn, making managing complexity a major challenge for suppliers. The global research, sponsored by business-to-business e-commerce solutions firm GXS, and led by Martin Christopher, emeritus professor of marketing and logistics at Cranfield School of Management, concludes that the big manufacturers are driving a wave of 'disruptive' innovation across their supply chains. Prof Christopher reports that 84% of companies said they anticipated that the level of supply chain complexity will increase. As a result, he expects the pace of innovation to demand new technology solutions. "An increasing number of suppliers are enlisting the help of a combination of new cloud-based technology platforms and specialised B2B outsourcing providers to wage war against complexity," comments Christopher. "The manufacturing companies that master complexity in their demand chains will be the long-term winners in the marketplace," he adds. Interestingly, he points to 73% of participants who agreed that the number of requests from large customers for customised processes have been on the increase in the past three years as the top 500 firms pursue supply chain optimisation. "We are standing on the cusp of a potentially major shift in the balance of power between very large customers and their suppliers," comments Steve Keifer, industry and product marketing vice president at GXS. "Suppliers are faced with more customisation as they struggle to comply with the support services requested from their largest customers," he adds. "As a result, suppliers are forced to support a myriad of different order forecasting, fulfilment and logistics processes and a wide variety of technology standards for visibility, collaboration and synchronisation."