ProcurementAlert.com » Getting a jump on supply chain challenges

Getting a jump on supply chain challenges

October 29, 2008 by Charlie Walker
Posted 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.

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