Lack of transparency leads to rising costs

Many companies could manage their stock of inventory more efficiently and boost profitability through real-time responses to increases in demand or disruptions to the supplier network. However, the annual study “Vendor Managed Inventory Strategies”, which Gate Point Research conducted on behalf of E2open, points out some fatal trends in recent years.

More than half of surveyed companies in manufacturing, trade or telecommunications are not capable of exchanging detailed daily forecasts with their partners. This results in too much capital being blocked in the stock. For example, 29% of respondents state that they have obsolete stocks. The majority also finds that exchanging information with partners is time-consuming. Only 22% leverage automated B2B technologies for this purpose. (Source: E2open/bs)