17 May 2012

Ten issues that keep supply chain leaders awake at night

Published:: 08 November 2011
Channel:: Distribution

Inventory management and planning tops the list of ten issues that keep supply chain leaders awake at night, a survey by consultancy Crimson & Co has revealed.

The top ten are:

1. Inventory Management and Planning
2. Demand Management and Forecasting
3. Supply Chain Network Optimisation
4. Supply Chain Segmentation
5. Training and Development
6. Supply Chain Risk Management
7. Sales and Operations Planning
8. Performance Improvements in Warehouses and RDC’s
9. Material Purchase Price Reductions
10. Green Supply Chains

The survey of 300 senior decision makers from more than 200 companies, highlighted the pressures resulting from the continued economic downturn, along with a combined desire to squeeze every last drop of cost and cash out of the supply chain while supporting revenue growth, largely in emerging markets.

“For most, the issues included within this top ten will come as no surprise, especially when it comes to Supply Chain Segmentation, given the recent increased emphasis on this subject,” said Crimson director Dave Alberts.

“There is general agreement on the need to define and execute different supply chains within each organisation. However, what factors should be used to define the segments and how many you should have, is a subject that remains unclear. This confusion seems to have been partly fuelled by poor results from organisations that have relied on customer driven factors to make the segmentation decisions.

“The subject of supply chain segmentation is clearly on the rise but for most companies it’s not yet real, despite the growing recognition among those interviewed who agreed that “one size fits all” supply chains are a thing of the past,” said Alberts.

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