Supply Chain Goals ‘Misaligned’ with Execution
An optimal supply chain relies on alignment – between supply and demand, or goals and execution – for success. But a recent report has found a significant misalignment between the business objectives of a strategic supply chain and the resources dedicated toward achieving that goal.
Of 250 senior manufacturing executives polled by GT Nexus, which operates a cloud-based supply chain management platform, and researcher YouGov, 40 percent reported a supply chain disruption that impacted their business over the past 12 months. Yet, despite the struggle with disruptions, less than a quarter (24 percent) of these businesses currently has a Chief Supply Chain Officer (CSCO) in place.“It’s clear in the report that manufacturers expect to face major supply chain challenges in 2016 stemming from external factors beyond their control,” said Greg Kefer, VP for corporate marketing at GT Nexus. “The data suggests their execution roadmap may be misguided, being focused more on cost cutting, for example, than more mission-critical things like having a senior supply chain leader in place.”Kefer said he found a number of elements in the report surprising, such as manufacturers’ technology priorities. Thirty-eight percent of respondents don’t believe their supply chain will be impacted by technology this year. This may suggest a lack of knowledge regarding the impact technology-based systems can have on mitigating supply chain disruption and the role of these systems in supply chain strategy and control, according to GT Nexus.