According to John Henderson, CEO of Frank Lynn & Associates, a nationally recognized market strategy consulting firm, Integrated Supply and emerging hybrid supply chain structures continue to be a powerful force in the industrial marketplace. These supply chain structures are now responsible for over $14B of the MRO spend in the US and almost 20% of large industrial end-users’ MRO spend.
Over the past 14 months, Frank Lynn & Associates conducted structured discussions among manufacturers, supply chain partners, and end-users to examine current utilization of integrated supply structures and identify the growing impact of “non-traditional” supply chain structures designed to improve MRO spend management and costs.
Frank Lynn & Associates began tracking Integrated Supply issues and trends in the early 1990s and produced the industry’s first detailed report in 1996 with subsequent studies including Integrated Supply 2 ’ Shaping the Future of the Industrial Marketplace, Integrated Supply 3.5-The Overlooked Giant, Integrated Supply and the European Market and Integrated Supply and Six Sigma.
Frank Lynn & Associates has compiled their current findings into a fact-based report providing an overview of various types of emerging supply chain structures, current adoption rates and use levels, and the potential implications of industrial manufacturers and distributors. The new report is entitled, “Integrated Supply and Emerging Hybrid Channels in Industrial Markets.” The report is being offered for $295 on the Frank Lynn & Associates website HYPERLINK “http://www.franklynn.com"www.franklynn.com
Report findings suggest that over 80% of suppliers are now using integrated supply chain routes to market and 78% believe hybrid channels, including integrated supply models, will continue to expand.
The United States and Canada lead the world in adoption of these new supply chain structures, however large end-users are driving their adoption on a global basis. This trend will likely put pressure on industrial suppliers to incorporate these supply chain partners into their distribution models, and on distributors to offer clear and differentiated value propositions for end-users. Over 60% of suppliers who have targeted these new channels report having been successful in expanding sales through them.