Saturday 22nd Oct 2016 - Logistics Manager

Study highlights diconnect between SC and strategy

80 per cent of managers do not see their supply chain as an enabler of business strategies, according to Hitachi Consulting’s latest research.

The study questioned 100 supply chain managers and directors across nine European countries, aiming to identify how supply chain management activities are aligned with a strategic transformation agenda.

It revealed that 55 per cent of respondents do not regard their business’ supply chain as a fundamental source of business value and competitive advantage, with 29 per cent seeing it as only an operational function.

33 per cent of those questioned believe their company’s supply chain would deliver an improved customer experience over the next five years.

But 45 per cent said it would not deliver increased profitability, and 46 per cent said it would not offer a reduced working capital requirement.

Only 43 per cent said their firm’s supply chain would improve sales revenues over the next five years.

“These results reveal the disconnect between a company’s business transformation strategy and the day-to-day management of the supply chain, which remains a serious, yet hidden, problem for many organisations,” said vice president of marketing, EMEA, at Hitachi, Greg Kinsey.

“Our real concern is the lack of alignment, sense of urgency and change readiness within the operations. This should be a wake-up call for both senior executives and operational managers.”