@Risk

Accenture recently polled 1,000 chief financial officers (CFOs) and chief marketing officers (CMOs) and found that most are “holding the reins tightly” when it comes to price competitiveness and increasing costs.

The vast majority (85 percent) of those who participated in the study said they do anticipate growth. But they also reported that continued economic uncertainty is forcing a more disciplined approach, one that focuses on cost management and the prudent use of cash.

For example:

• Nearly 90 percent of survey participants said price competitiveness is a primary strategic issue and that they expect to continue to maintain or cut costs and build cash positions further.

• Nearly three out of four CMOs surveyed (71 percent) said pricing is now among their companies’ top three strategic priorities. More than two thirds (71 percent) of the combined group of CMOs and CFOs believe they will have to maintain pricing, or even drop prices, given the current economic environment.

• Virtually all are eyeing additional cost-cutting. Continued pricing pressure, combined with persistent uneasiness among executives about the prospects sustainable global economic growth led 99 percent of survey participants to indicate that their companies would be pursuing some additional level of cost-cutting.

• 70 percent of respondents indicated that their companies have optimal-to-excess cash positions relative to current business demands, and nearly 90 percent have teams in place (some permanent, some temporary) focused on continuing to improve working capital productivity.  Roughly one third of the CFO participants indicated the need to continue generating cash to allow for opportunistic investments, increased R&D and/or future operational necessities.

Coupled with this disciplined approach to cost management, the study found that the CFOs and CMOs polled expect major impacts to their growth to result from improved product value, innovation and promotion across their businesses. (more…)

Supply chain flexibility requires considerable investment, as well as a top-down commitment from C-level execs.

However, that “extra” effort is proving very worthwhile, as companies that implement operational flexibility are now realizing significant business benefits, according to new survey results released last week by PRTM.

Based on interviews with senior executives from 150 companies across diverse industries, the new research identifies five specific “levers” that increase operational flexibility, drive revenues and cut costs. According to PRTM, companies that have implemented the five supply chain flexibility levers have achieved, on average, a 12 to 15 percent revenue increase while reducing supply chain costs by eight to 10 percent.

Here are a few survey results, grouped around PRTM’s supply chain flexibility levers: (more…)

Compared to other global manufacturers, today’s Canadian companies have certain advantages. The economic, tax and regulatory regime in Canada is generally more stable than in other parts of the world, as are the Canadian capital and credit markets.

But, will Canadian manufacturers be able to capitalize on these benefits?

New research from KPMG suggests that they will –provided that these companies continue to focus on supplier risk management and cost containment.

After polling more than 80 senior Canadian manufacturing executives, KPMG found that: (more…)

Trucks are the most-used mode to move freight — especially for distances less than 500 miles –and even though there were declines in 2008 and 2009, new figures from the US Department of Transportation’s Federal Highway Administration (FHWA) indicate a return to growth in 2010.

The new data, released in the FHWA Freight Analysis Framework, shows that tonnage will continue increasing 1.6 percent per year, reaching 27.1 billion tons by 2040 –that’s a 61 percent increase in tons between 2010 and 2040.

In 2007, nearly 18.6 billion tons of goods worth about $16.5 trillion were moved on the transportation network, which equates to 51 million tons of goods valued at more than $45 billion a day moved throughout the country on all transportation modes. (more…)

During the economic turmoil of the past few years, companies have turned to their supply chains in order to maintain profits and respond to consumer demand for lower prices.

As a result, supply chain management (SCM) is now considered a core competency, according to the vast majority of respondents (82 percent) in the 2010 Global Survey of Supply Chain Progress, conducted by Supply Chain Management Review, The Eli Broad Graduate School of Management at Michigan State University and CSC, with assistance from The Council of Supply Chain Management Professionals (CSCMP) and Supply Chain Europe magazine.

The survey was completed by 164 supply chain executives from 20 different industries worldwide, split evenly between manufacturing and service organizations. The results also show that: (more…)