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Poor data and lack of focus hurting global supply chain optimisation

Sixty per cent of supply chain managers can’t work properly with their external partners because they’re too focused on internal concerns. Those are the results of a new report released by supply chain optimisation software firm LLamasoft and maintenance, repair and operations firm Sabena Technics.

The report surveyed 120 senior supply chain professionals and it explored the main areas able to deliver realistic medium-term improvement to supply chain performance.

Outdated data and incorrect inventory are to blame for the companies’ failure to react to unexpected events in 50 per cent of cases, the report also says. What’s more, 25 per cent said daily replenishment requirements are not being supported with the right investment.

For 20 per cent of those surveyed, the problem lies in the lack of communication between executives at a strategic level. A quarter (25 per cent) said robust IT is essential to success.

Still, more than half (52 per cent) thought supply chain optimisation is the main tool to reduce cost while maintaining standards.

“As globalisation increases cost-pressures, data-availability, collaboration and talent become the foundations of success,” said Kevin Boake, senior director for supply chain visibility solutions at LLamasoft. “Organisations seeking greater cost-effectiveness in their supply chain globally need to ensure they have the right solutions in place, delivering accurate and timely information to teams that have the benefit of full end-to-end visibility.”

“It’s clear from these results, that currently, value is not derived from existing investment in software. We also see, unfortunately, that organisations that have supply chain talent development programmes tend to focus on developing expertise in a particular node of the supply chain and end up promoting a cause-and-effect decision mindset.”