Getting a jump on supply chain challenges
October 29, 2008 by Charlie WalkerPosted in: In this week's e-Newsletter, Latest News & Views, Procurement costs, Procurement trends, Supply chain efficiency
Surprise! Your job is getting more difficult.
You probably didn’t need a major research study to figure that out.
Still, it doesn’t hurt to have your hunches confirmed by hard facts.
More than 75% of supply chain pros interview in 2008 said business has grown riskier, compared with 65% only two years ago. Only 15% of supply chain pros told McKinsey Quarterly there was no change in risk in 2008; 26% gave the same answer in 2006.
There are three core reasons giving rise to this unease: the increasing complexity of goods and services; skyrocketing energy costs, and overall financial instability.
What to do?
Many companies are taking a step back and identifying their priorities, to help sharpen supply chain focus.
When companies were asked to name their own top 2 strategic goals, the answer tallies showed:
- reducing costs: 57%
- improving customer service: 43%
- getting new products/services to market faster: 33%
- improving reliability of supply chain: 26%, and
- improving product quality: 18%
Your best bet: Take a fresh look at the challenges you’re facing, especially as one year winds down and a new one approaches. Are your priorities in tune with what your company expects — and will expect — of its supply chain?
Now’s the time to get in front of that and show your proactivity, rather than being forced into a reactive position.
Tags: customer service, reducing costs, strategic goals, supply chain

