**Europe:** Medium-sized European producers outperform North American and Asian counterparts by sharing planning and demand data earlier and more strategically with supply chain partners, enhancing cooperation, reducing disruptions, and lowering stock levels according to a Remira report.
Medium-sized European producers are reportedly gaining a competitive edge in the global market by exhibiting a greater level of transparency in their planning and forecasting processes. According to a user inventory conducted by the software company Remira, these European companies are not only sharing more information, but are also doing so earlier and in a more strategic manner with their supply chain partners compared to their counterparts in North America and Asia.
The Remira report suggests that the effectiveness of data sharing hinges less on the mere availability of information and communication technology, and more on the quality and extent of data exchanged among partners. European firms are notable for their willingness to share vital market intelligence, particularly demand-related information. Among different sectors, leaders in data sharing are primarily found in the consumer goods arena, including manufacturers of white goods, audio and video electronics, and luxury items. However, producers in the food and fast-moving consumer goods sectors within Europe are perceived to be lagging in this regard.
Cultural factors emerge as pivotal in influencing the approaches to data sharing across different regions. Johan van Hemert from Remira asserts that competitive business cultures, such as that of the United States, often foster a mindset where supply chain partners view one another as rivals. He notes that in several Asian countries, a more autocratic business culture prevails, marked by conglomerates like South Korea’s ‘chaebols’ and state-owned enterprises in Vietnam and China, where cooperative engagement tends to be less pronounced. In contrast, van Hemert highlights a more collaborative spirit within European businesses, particularly among family-owned medium-sized firms, which cultivate understanding and cooperation in negotiations.
On the basis of these findings, Remira offers several recommendations aimed at enhancing data sharing among supply chain partners. For instance, they advise that interventions based on specific incidents may create a stronger shared urgency for implementation as opposed to conventional, strategically deployed processes. Additionally, initiatives that involve collaborations between various business functions at partner companies—such as aligning supplier production planning with buyer procurement—are championed to improve data utilisation.
The report further emphasises that it is critical to tailor the data derived from supply chains for various business functions, suggesting that raw or unedited data can be counterproductive. Cross-chain data must not only be compatible technically but should also be comprehensible and uniformly interpreted. To support this, organisations may need to adapt their procedures and invest in training programmes.
Van Hemert remarks, “The information is based on a qualitative survey and on a specific segment within the business community. This ensures that percentages can quickly give a distorted impression.” He suggests that the overarching conclusion is clear: fostering transparency and investing in supply chain partners can lead to reduced stock levels, shorter delivery times, and less disruption in processes. “Companies are selling themselves short by not using the infrastructure already invested in more intelligently,” he concludes.
However, challenges to data sharing persist, particularly internal organisational hurdles that impede the uniform delivery of data flows. The report notes that apprehensions surrounding the exposure of sensitive competitive information and insufficient data availability also contribute to a reluctance to share. Current willingness to engage in data sharing is noted as 75% in Europe, 60% in North America, especially the US, and 65% in Asia.
Source: Noah Wire Services
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