Fearne: consider the bigger picture

20 June 2007
More news

21 June 2007

Premier Conference coverage

Most firms and departments try to manage their part of the supply chain alone, according to Andrew Fearne.

Fearne, director for the centre of supply chain research at Kent Business School, said 90 per cent of businesses do not understand their departments are operating in "boxes": "We are not incentivised to understand the problems other departments have. The only ones with the full vision are the customers, but everyone in the supply chain is concentrating on themselves."

He argued that business was so focused on the current financial situation that it was failing to consider a long-term supply chain strategy. "Far too many of us in a mature market are focusing on the next quarter. We continue to work in our functional boxes."

Many firms are investing in making their supply chains leaner, but he likened this to "sticking plasters over wounds". He added: "Those who rationalise are missing the point. Power, like information, is of no use if you don't use it correctly."

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