Challenges

Business success is increasingly linked to effectively managing international logistics. Growing low-cost country sourcing and rising sales to international customers are triggering companies to seek new ways to manage the costs, complexities, and uncertainties of moving goods across borders. Some groups have researched companies that are transforming their international logistics operations to find out how they are achieving improvements. Learn how the eight companies selected as Best Practice winners are able to invest less capital in international logistics yet provide better service to customers.

Companies are creating Dynamic Distribution Networks that can fulfill customer demand from any point in the supply chain. They are looking at new ways to control product movement and improve velocity at consolidation points, satellite facilities and supplier warehouses, with the aid of technology and service providers. The world has become a warehouse without walls. In a study, the majority of executives say that the reduction of cycle time and inventory within supply chains, along with providing high levels of customer service, are their top priorities.

Best in Class companies combine the skills of internal resources, service providers and suppliers to create a responsive, cost-effective network. Traditional inventory management practices are being made obsolete by increasing global supply chains and contract manufacturing, more dynamic product life cycles and multi-channel distribution. These trends are driving the need for companies to adopt new inventory management technologies and processes that better account for supply chain complexity and can reduce inventories by 20-30%, while simultaneously increasing customer service levels.

In a study on inventory management technology adoption and ROI, it was determined that inventory management processes and technologies are being actively re-evaluated by companies today. Nearly two-thirds of respondents indicated they have made or been asked to provide recommendations in the past six months to management on how to improve inventory management technology. Intense price competition, margin erosion, and industry consolidation mean that you need to lower costs and work more efficiently. Oracle Applications deliver built-in business process optimization and best practices, to help you eradicate inefficient paper-based processes, and standardize the way all your business units work, without compromising the flexibility you need to handle local currencies and business customs.