Global Supply Chain Limits Highlighted in New Study

When a recent study that shows that 50% of supply chain professionals polled say crucial data is either late or inaccurate, it’s worth pondering.

According to LLamasoft, a provider of software solutions, results of a recent poll it conducted show that the majority (60 percent) of supply chain managers say “their organization is too focused on internal, tactical concerns to be able to collaborate effectively with external partners, at a time when globalization is forcing companies to view and use their supply chain more effectively.”

One half also believe their ability to react to unexpected events is hampered because of incorrect or late inventory and replenishment data.

A fifth of respondents (20 percent) believe the reason cross-enterprise collaboration fails to yield the expected benefits is because executives do not engage with their counterparts at a strategic level, while a quarter (25 percent) said robust information technology (IT) support was the foundation for success.

The poll also revealed that 52 percent of participants saw supply chain optimization as the main tool for reducing costs while maintaining standards of service in the face of globalization. More than a third (36 percent) said new inventory and replenishment strategies were the most relevant to meeting the same important goal.

However, while many recognize the potential to overcome key challenges, well over a third (37 percent) indicated that currently, talent is developed with insufficient end-to-end understanding of the supply chain, compounding an existing silo mentality that inhibits optimization.

“As globalization increases cost pressures and data availability, collaboration and talent become the foundations of success,” said Kevin Boake, Senior Director of Supply Chain Visibility Solutions for LLamasoft. “Organizations seeking greater cost-effectiveness in their supply chain globally need to ensure they have the right solutions in place, delivering accurate and timely information to teams for full end-to-end visibility.”

Category: General Update, Management