It’s
a simple question really. How confident are you in your organization’s supply
chain, and its ability to actually perform in a way that supports your business
needs? If you answered ‘not very’ you may be surprised to learn you aren’t
alone.
According
to the results of Deloitte’s third annual supply chain survey, a measly 38%
percent of executives claim to be ‘extremely’ or ‘very’ confident their current
supply chain has the competencies required to meet their needs. To me, that
number seems frightening. It means almost two-thirds of executives aren’t
confident about their supply chain’s capabilities!
What’s
more, just 43% consider their supply chain organization to be ‘excellent’ or
‘very good’ when it comes to strategic thinking and problem solving.
But
it’s not all bad news. Most of those surveyed recognize the rapidly changing
landscape means they need to start increasing their supply chain’s
capabilities. Deloitte asked respondents about what it calls 13 fast-evolving
technical capabilities:
Optimization
Tools
Demand
forecasting
Integrated
Business Planning
Supplier
collaboration and risk analytics
In-memory
computing
GPS
and/or RFID
Real-time
shipment tracking
Control
tower analytics and visualization
Advanced
robotics in manufacturing
3D
printing
Wearable
technology
Artificial
intelligence
Advanced
delivery systems
The
vast majority, 94%, said they are currently using or expect to use Integrated
Business Planning in the future, while nearly half have already implemented
Supplier Collaboration and Risk Analytics. Of the 13 capabilities, Deloitte’s
survey found just 27% of respondents are currently using Control Tower
Analytics, but 53% they expect to use them in the future, while 37% are utilizing
In-Memory Computing, with another 52% saying it’s something they’re planning on
implementing.
In
addition to adding new technical capabilities, respondents were also asked
about the likelihood of making changes to their supply chain operating model
over the next five years.
“Locating
high-value added activities into Centers of Excellence” is a move that 48% say
they’re ‘extremely’ or ‘very’ likely to make in the next five years. The survey
gives Gartner’s definition of what exactly a ‘center of excellence’ is – “a
physical or virtual center of knowledge concentrating existing expertise and
resources in a discipline or capability to attain and sustain world-class
performance and value across the supply chain.”
Many
others expect to increase outsourcing of low value-added activities (44%),
segment supply chain strategies and offerings with customer/product segments
(42%) and align their physical network with an evolving customer footprint
(41%).
Roughly
one-third of executives also said their company plans to increase the span of
control of their supply chain function over the next five years. Deloitte
believes these changes aren’t just being undertaken for the sake of change, but
rather, are in response to “a business environment of ongoing globalization,
waves of disruptive innovation, and rising consumer expectations for “anytime,
anywhere” service.”
http://blog.kinaxis.com/2015/06/how-confident-are-you-in-your-supply-chain/