Poor partnerships are biggest obstacle for supply chains

4 April 2007
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05 April 2007 | Antony Barton

Almost half of supply chain leaders say business performance is hindered by poor partnership strategies in distribution and supply.

Some 47 per cent saw a "lack of partner competencies" as a barrier to better performance, according to management consultancy PRTM's fifth annual supply chain study. Respondents said suppliers were a major source of innovation but the lack of integration was the biggest obstacle companies had to overcome.

Gordon Colborn, director at PRTM, said many companies were "pursuing poor partnership strategies by trying to balance too many suppliers and failing to appreciate the effort required to manage this process".

He advised companies to "cultivate a few deep relationships to guarantee greater success".

The survey also revealed 83 per cent of respondents said the supply chain was perceived as strategic by the company management team, compared with only 57 per cent the previous year.

European Supply Chain Trends Survey 2006-7 surveyed over 150 worldwide companies. Most of these were headquartered in Europe, with revenues in excess of $1 billion.

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