Fleet News

Businesses have too many supply chain priorities

Businesses have too many supply chain priorities to pursue all of them with equal vigour and ultimately deliver success, according to new research.

The survey, conducted by Hitachi Consulting (the global management consulting and IT services business of Hitachi Ltd), spanned nine European countries and identified 14 different supply chain priorities.

Hitachi Consulting suggests that a clear hierarchy of supply chain priorities, based around overarching business goals, is needed.

Jesper Jelmteg, senior vice president of the industrial sector at Hitachi Consulting, said:“Management teams must give the required amount of attention to deliver on supply chain objectives.

"They must step back, build the picture, align and prioritise their objectives and then deploy the appropriate change resource.

"Pursued diligently, activities such as supplier and customer collaboration, footprint optimisation, and the development of a more customer-centric supply chain model, all need significant resources.

"From what we can see, businesses need a clear transformation roadmap – complete with prioritisation, sequencing change management – to align communication at all levels of an organisation, from the factory floor to the boardroom.”

The survey also showed that when faced with a situation where a significant change in their business’s supply chain strategies, processes, and priorities would be called for, nearly three-quarters (72%) of supply chain managers and directors admitted that they are not anticipating the requisite level of change.

Cedric Parentelli, vice president supply chain at Hitachi Consulting, said: “For operational execution to be truly successful, it’s necessary for organisations to align a clear hierarchy of supply chain priorities, based on overarching business goals, and engage people at all levels across the organisation. This alignment and engagement enables the creation of a shared vision, sense of urgency, and a focus on specific improvement projects.”

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Comments

  • Patriot - 14/01/2014 16:25

    "Fotprint optimisation. Sequencing Change Management."
    Why don't these people use English? Is it any wonder companies are wary of people who are dedicated to management speak? Footprint Optimisation has superceded the other buzzword; Change Management.
    If anyone walked into my office spouting this garbage excuse for our Mother tongue he would be out of the door in than 5 minutes. Using words and phrases like this is not clever nor relevant.
    Just how much more remote from the real world do these Garbologists want to be?
    Say what you mean and mean what you say.

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  • Brian - 14/01/2014 21:32

    It's easy to get lost in the process of supply chain management. That is why there is software out there to help the process, otherwise you'll be lost. www.eshipglobal.com provides awesome transportation management software, which is one solution to your problem!

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