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14 February 2011 | Adam Leach
A lack of
cross-functional expertise across company departments is the biggest issue
preventing supply chain executives transform their supply network in 2011.
That was one
of the key findings of research by SCMWorld which
surveyed more than 400 supply chain directors. The majority (47.2 per cent) said
they believe this to be the case.
The Supply Chain Predictions for 2011
survey, showed a significant proportion of respondents (36.5 per cent) feel
their companies are suffering from a ‘business-as-usual’ approach where they
prefer to maintain the status quo than
pursue innovation and development.
said that despite an appreciation of the need for the supply chain to be
a customer-focused, collaborative and cross-functional in order to be
competitive, this has yet to be achieved.
recognition of supply chain’s strategic nature, and the fact that supply chain
management needs to be a boardroom-driven initiative, “a significant number of
organisations still do not appear to genuinely appreciate the role supply chain
can play in competitive differentiation”.
half consider their key pressure points to be supplier capacity shortage and
constraints (50.6 per cent), increasing supply chain complexity (51.0 per
cent), rising transportation costs (50.6 per cent), increasing commodity
pricing (54.5 per cent), and demand volatility (62.7 per cent).
global recession has squeezed budgets and customers have become increasingly
price-sensitive, demand has become far more difficult to predict. Manufacturers
are unable to react quickly to swinging demand patterns at the other end of the
Priorities for improvement in 2011 reveal that
businesses are urgently seeking ways to counter demand volatility. Priorities
are customer service (56.4 per cent), inventory optimisation (55.4 per cent), sales
and operational planning (44.6 per cent), and supply/demand balancing (43.6 per
☛ The report is only available to members of SCM World.