The path of supply chain progress is never easy, but the drive to improve never ends.

One problem: Many of the road signs along the way are now obscured, or difficult to understand.

That’s why now is a great time to take a step back and assess where you are and where you’re going.

The biggest influence to take into account: the role of IT in improving your supply chain performance.

But instead of IT spending, expect pressure to “make do and mend,” experts caution. You’ll be called upon to make the best use of what’s already in place. This means there’ll be little discretionary funding available, but you’ll still need to find some money (perhaps under the couch cushions!).

You’ll still be expected to squeeze a few pennies out of procurement, logistics and distribution functions.

One idea: You might switch over to a pay-per-use technology license, rather than an annual contract.

Three areas experts have targeted as ripe for change:

• Supply chain flow management. In response to pressure to improve lead-time indicators and supplier flexibility, you’ll be expected to work with tech vendors that offer detailed analysis and higher visibility of business functions.
• More efficient inventory management. More supply chain operators will be asking vendors to integrate their tools as part of operations, and might even begin purchasing software services from vendors.
• Production and distribution management. Supply chains will need to ramp up contingencies for a growing number of “what-if” scenarios, to be even better prepared to react quickly when conditions change.

Tags: inventory, IT, performance, procurement, supply chain