PHILADELPHIA, May 22, 2007 – Nearly half (48%) of supply chain executives at multi-national companies in the chemical, consumer goods, industrial and retail sectors consider their supply chains to be global, yet operating decisions made on behalf of those supply chains would indicate otherwise.  Indeed 60% of these executives said supply chain decisions in their companies are regional or local in scope, according to a recent study conducted by BDP International’s Centrx™ consulting unit and St. Joseph’s University in Philadelphia.  Just 35% of respondents reported their companies’ supply chains are managed globally.

"These results suggest that some multi-national companies operate a series of what might best be described as multi-domestic rather than global supply chains," said Centrx Managing Director Yone Dewberry.  "The reasons for this vary, but the unrelenting pressure to achieve per-unit cost reductions, in tandem with the emergence of true global data visibility, must hasten supply chain integration to accommodate the exigencies of international trade."

The globalization of trade has brought with it a dramatic increase in companies’ sourcing and delivery points, which inevitably has resulted in longer lead times and a need to improve regulatory understanding.  Cited by 64% of all respondents (87% European; 55% North American), on-time delivery is the single most pressing issue facing their supply chains.

However, 43% of all respondents reported shorter lead times, reflecting investment by their companies in supply chain technology and management systems.  These included warehouse management, ERP and TMS systems.  Most of the 32% of respondents whose companies had not made such investments reported longer lead times.  More than a third (35%) of all respondents’ companies had not implemented advanced technology in their supply chains.

The second most frequently cited supply chain issues were total landed costs and logistic costs, each noted by 39% of respondents.   With the exception of respondents from the chemical and industrial sectors, most deemed landed costs an even greater challenge than on-time delivery.  Interestingly, respondents from chemical companies who identified inventory management as their greatest challenge have seen their supply chain costs increase over the past two years.

Among the strategies companies are pursuing to hedge against the vagaries of their far flung supply chains are increasing inventory levels, cited by 46% of study participants, and sourcing from multiple countries (43%).  Also cited were increased outsourcing activity and investment in trade compliance and security.  Significantly, over three-quarters of those surveyed reported increasing investment in compliance and security programs.  Among respondents from consumer goods companies, 83% reported increased reliance on external compliance specialists, compared with 55% of the total survey population.

"This intensified focus on complex regulatory issues reflects the diverse cultures and business climates of countries in which trade has expanded remarkably in recent years," said Michael Ford, BDP’s Vice President of Regulatory Compliance and Quality. "It also reflects the need for more and better information about international shipments in today’s hyper-security-conscious environment."  Most respondents said regulatory compliance is even more costly than supply chain visibility or RFID technology.
On-time delivery and supply chain visibility remain the most compelling supply chain issues, and respondents’ companies are putting metrics in place to measure them.  Most (80%) indicated they can measure on-time delivery to customers, and 69% can also measure on-time delivery from vendors.  In addition, they collaborate on shipment visibility with carriers (82%), suppliers (42%), and customers (20%).

The study was conducted using an online survey distributed to 220 executives with global supply chain responsibilities.  The 35% rate of response included respondents from a variety of industries, companies and regions.  Approximately two-thirds of the participants’ companies are headquartered in North America, 20% in Europe, and 14% in Asia and the Middle East / Gulf Region. Nearly half of the companies represented have annual revenues in excess of $10 billion, and another 20% have revenues of more than $2.5 billion.

About Centrx®
Centrx, a BDP Knowledge Venture®, helps clients develop and deploy successful global strategies and processes, including singular global standardization logistics processes, alignment of resources to markets, regulatory compliance, and common data flows and reporting.  Its service portfolio includes international supply chain/logistics design and assembly; deployment and management; global network design; global logistics benchmarking; order cycle analysis and design; compliance audit, program design and training; security assessments; and collaborative planning.   For more information, visit www.bdpinternational.com/services/Centrx.

About BDP
BDP International is one of the leading privately-held freight logistics/transportation management firms based in the U.S.   It operates freight logistics centers in more than 20 cities throughout North America and a network of subsidiaries, joint ventures and strategic partnerships in 121 countries.   The company serves more than 4,000 customers worldwide. Clients include Bayer, Cargill, Conoco Phillips, Dow, DuPont, Heineken USA, Honeywell, Johnson & Johnson, Marks & Spencer, Revlon, Rohm & Haas, Trek Bicycle, Wacker and others.   BDP provides a range of services including ocean, air and ground transportation; lead logistics process analysis, design and management; export freight forwarding; import customs brokerage and regulatory compliance; project logistics; warehousing/consolidation/distribution; and Web-based shipping transaction/tracking management systems.   For more information, visit www.bdpinternational.com.

About Saint Joseph’s University
Founded in Philadelphia by the Society of Jesus in 1851, Saint Joseph's University is home to 3,500 full-time undergraduates and 3,000 graduate, executive and non-traditional students.   One of just 142 schools nationwide with a Phi Beta Kappa chapter and AACSB business school accreditation, Saint Joseph's challenges its students to exceed their highest ambitions, fosters the mature development of values, and deepens a desire to help shape the world.  The Jesuit tradition of cura personalis -- care for the entire person -- is reflected in the university's rigorous academic experience; energetic, compassionate and spiritual campus; and focus on the common good.  For more information, visit www.sju.edu.