Although the economy is restricting IT budgets, manufacturers are placing more importance on deploying innovative technologies to help create competitive advantages. However, some regions around the world, such as those affected by the European financial crisis, are putting more emphasis on cost control, according to a recent IDC study.

These cost-restrictive strategies have moved beyond the factory and into the supply chain. According to IDC's survey, 77 percent of companies are aiming to reduce the number of suppliers, while 55 percent are trying to shorten their supply chain, the report noted.

"The current economic headwinds have brought with them lower business growth, presenting new challenges for manufacturers looking to compete on a global stage," said Pierfrancesco Manenti of IDC Manufacturing Insights. "While active cost management remains crucial, companies can only truly differentiate themselves through innovating with products and services."

The study also found that speed is a critical component of successful supply chains.

To make supply chains more efficient and cost-effective, supply chain managers should shift their focus to consumption, rather than demand forecasts, according to an EBN Online report. This will help save money by reducing just-in-case inventory, while improving flexibility.