**Europe**: Medium-sized European manufacturers lead globally by embracing exceptional transparency and collaborative data sharing in supply chains, outperforming peers in North America and Asia. Benefits include lower stock levels, faster delivery, and reduced disruptions, driven by cultural openness and tailored data exchange practices.
Medium-sized European manufacturers are reportedly leading the way in the global industrial landscape through their exceptional approach to data sharing within their supply chains. A recent survey conducted by Remira, a software company, highlights that these companies exhibit above-average transparency in their planning and forecasting processes, enabling them to outperform rivals in North America and Asia.
The investigation underscores that the critical factor setting European firms apart is not merely the availability of information and communication technology, but rather the manner and extent to which they exchange vital data with supply chain partners. Remira’s findings suggest that European companies share a greater volume of business-critical data, particularly regarding market demand, compared to their counterparts in other regions.
Among the sectors observed, producers of consumer goods—including white goods, sound and video electronics, and luxury items—are identified as the foremost leaders in data sharing. Conversely, the study reveals that sectors such as food and fast-moving consumer goods are lagging behind in this respect, reflecting significant variability in practices within Europe itself.
Johan van Hemert from Remira cites cultural differences as a key factor affecting data sharing practices across different regions. He explains that the competitive business culture prevalent in the United States leads partners to perceive one another more as competitors rather than collaborators. In contrast, certain Asian business environments, characterised by a more autocratic culture, show limited cooperation, particularly among large conglomerates and state-owned enterprises, which in turn can influence private medium-sized businesses.
Van Hemert highlights the collaborative spirit prevalent in European negotiations, stating, “In Europe, negotiations are also hard, but there is more understanding of each other. Moreover, here the family medium-sized company is stronger.” This cultural backdrop appears to favour a more communal approach to data sharing among European manufacturers.
In light of these findings, Remira offers several recommendations aimed at enhancing data sharing practices. They suggest that initiatives designed to address immediate issues may be more effective than those grounded in strategic long-term planning. Encouraging collaboration among multiple functions—such as supplier production planning and buyer procurement—could potentially bolster shared urgency and implementation across the supply chain.
Moreover, Remira emphasises the importance of tailoring data generated from the supply chain to be applicable across different business functions. They warn that sharing unprocessed data may be counterproductive and advocate for ensuring that data compatibility extends beyond technical aspects to include a uniform readability across supply chains. This may necessitate adjustments in procedures, education, and training to support effective data exchange.
The insights from this survey suggest that investing in relationships with supply chain partners can yield significant benefits. Van Hemert states, “Transparency and investing in chain partners pays off in terms of lower stock levels, faster delivery times, and less process disruption.” He cautions, however, that internal organisational issues can obstruct effective data flow, along with concerns regarding the exposure of sensitive competitive information.
Interestingly, the willingness to share data varies significantly across regions, with a willingness rate of 75% among European companies, compared to 60% in North America and 65% in Asia. This disparity further emphasises the importance of fostering a collaborative culture to optimise supply chain performance.
Source: Noah Wire Services
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