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Economic Growth Continues In 2014; Manufacturing Growth Expected in 2014; Revenue to Increase 4.4%; Capital Expenditures to Increase 8.0%; Capacity Utilization Currently at 80.3%; Non-Manufacturing Growth Projected in 2014; Revenue to Increase 3.6%;
Date:12/10/2013

make in 2014. Sixty-nine percent stated they plan to take steps during the coming year to improve their supply chain management practices. The five most frequently cited approaches are listed below:

  • Strategic sourcing/supply base rationalization
  • Process and information systems improvements
  • Supplier relationship management
  • Inventory management and control
  • Improved cross-functional planning and scheduling.
  • Non-Manufacturing
    Responding to the special question regarding supply chain improvements in 2014, 70 percent of non-manufacturing respondents stated that they plan to take steps during the coming year to improve their supply chain management practices. The five most frequently cited approaches are listed below:

  • Technology and process improvement
  • Strategic cost and contract management
  • Strategic sourcing
  • Supplier relationship management
  • Professional development.
  • INVENTORY-TO-SALES RATIOManufacturing
    Purchasers will be increasing inventory on hand, by an average of 0.9 percent, to support their planned level of sales during 2014. In this forecast, 22 percent expect to increase their purchased inventory-to-sales ratio during 2014. This is in contrast to 16 percent who expect the ratio to decrease, and 62 percent who predict no change. The diffusion index of 53 percent for 2014 indicates the inventory-to-sales ratio will be higher than the level predicted for 2013.

    Non-Manufacturing
    Of the 78 percent of non-manufacturing purchasers who answered this question, 14 percent anticipate increasing their purchased inventory-to-sales ratio during 2014. An additional 8 percent expect their ratio to drop, and 78 percent see no change. The diffusion index of 53 percent suggests the inventory-to-sales ratio will grow in 2014.Predicted Change in Purchased Inventory-to-Sales RatioManufacturingNon-ManufacturingFor 2013

    Predicted

    Dec 2012'/>"/>

    SOURCE Institute for Supply Management
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    All rights reserved

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