This report, "The Challenge of Complexity in Global Manufacturing: Trends in Supply Chain Management," is the first part of Deloitte's global benchmark study of supply chain trends and issues. Here, we examine how intense pressure to reduce costs, innovate products and expand into new markets has manufacturing companies worldwide shifting production and spreading out supply chain and other operations well beyond their home geography. The report looks at the increasingly complex and fragmented supply chain environment, the implications on manufacturers, the resulting challenges and best practices.

This first study uncovers five emerging paradoxes that are the result of supply chain complexity:

• Despite globalization, most supply chain optimization is done locally;
• Supply chains are not fully equipped to support accelerating innovation;
• Flexibility is becoming more difficult to achieve in the face of shorter product cycles, increased customer demands, the pursuits of lower-cost locations and the race to new markets;
• While managing risk is a priority, current fragmented supply chain initiatives are increasing potential risk;
• While customer service is a priority, fewer than 8% of companies have a high level of collaboration with customers on key initiatives.

To date, more than 800 companies from Asia Pacific (10 percent), Central and Eastern Europe (10 percent), North America (34 percent), and Western Europe (44 percent) participated in the benchmark study. Industries represented include aerospace and defense, automotive, industrial and consumer products, life sciences, process, paper, chemicals, high technology and telecommunications equipment.

Read the press release and the full report, which is available as a PDF file attachment below. Or, view the rest of our Global Benchmark Study materials or learn more about our Global Manufacturing Industry practice.