MHI Annual Industry Report: Supply Chain Faces Ongoing Cost Cutting Pressure

This year’s annual MHI Industry Report, developed in collaboration with Deloitte, delves more deeply into these supply chain challenges with a specific lens on how technology innovation can help illuminate the path to the supply chain of the future.

Materials Handling Industry (MHI)
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 After years of cost-cutting and efficiency improvements,  the pressure to reduce costs while simultaneously boosting  performance continues unabated—with no end in sight. These conflicting challenges are putting pressure on margins and creating headaches for supply chain  executives who are often stuck between the rock and hard  place of slashing expenses and building new capabilities, according to the 2015 MHI Annual Industry Report: Supply Chain Innovation – Making the Impossible Possible.”

A preview of the 47-page report was presented at the ProMat show at Chicago’s McCormick Place South by George Prest, CEO of MHI, and Scott Sopher, a principal at Deloitte.

As many supply chain organizations have spent years cutting costs and eliminating waste, incremental improvements are leading to diminishing returns. This is driving the need for supply chain executives to seek more innovative solutions.

“The speed at which supply chain innovation is being adopted coupled with rising consumer expectations for anytime, anywhere service is stressing traditional supply chains to near-breaking points,” said George Prest, CEO of MHI. “Companies that continue to rely on traditional supply chain models will struggle to remain competitive and  deliver orders that are complete, accurate and on-time.”

According to the survey, customer pricing pressure (51 percent), demands for faster response times (50 percent), and rising customer service expectations (49 percent) are the top three issues that supply chain leaders and professionals find very or extremely challenging.

For information on the report, go to www.mhi.org.

This year’s annual MHI Industry Report, developed in  collaboration with Deloitte, delves more deeply into these supply chain challenges with a specific lens on how technology innovation can help illuminate the path to the supply chain of the future.

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