European manufacturers are failing to effectively use data and analytics when it comes to supply chain planning and segmentation, according to a new report from JDA Software Group, Inc., and WMG, at the University of Warwick. The ‘Supply Chain Segmentation: A Window of Opportunity for European Manufacturing’ report surveyed 100 manufacturing organisations across Europe to benchmark their supply chain segmentation practices. The report revealed that only 18 per cent of respondents considered historic, present and future data in the supply chain planning process (tweet this), while only 39 per cent of respondents stated that their segmentation models were data-driven (tweet this). In fact, nearly a quarter (23 per cent) of organisations stated they simply utilise ‘rules of thumb’ over any kind of data-driven methodology (tweet this).

“The survey highlights that the majority of organisations are not using dynamic or data-driven models. Indeed, more organisations are driving their supply chains forward by looking in the rear-view mirror, rather than looking at the road ahead. It is not just that there’s an over reliance on historic data, it is quite possible that organisations are being driven along the wrong road altogether,” said Hans-Georg Kaltenbrunner, vice president manufacturing industry strategy, EMEA at JDA. “The research suggests that some organisations may not have the capability to accurately navigate their supply chain along the business roadmap, and a lack of analytics capabilities is widespread, along with a consistent end-to-end analytics approach. Given the apparent general lack of maturity across the space, the first movers will quickly gain a competitive advantage.”