Spanning nine European countries, Hitachi Consulting’s survey aimed to identify the extent to which supply chain management activities and priorities are aligned with a strategic transformation agenda. The survey found that a little over half of the respondents (55%) do not regard their business’s supply chain as a fundamental source of business value and competitive advantage, and almost a third (29%) see it as purely an operational function.
“These figures are far from reassuring,” said Cathy Johnson, vice president at Hitachi Consulting. “For the most part, it seems that senior executives understand the strategic importance of the supply chain, yet the managers who deal with the supply chain on a day-to-day basis do not. A supply chain that doesn’t support the overarching business strategy, and which doesn’t deliver competitive edge (and which isn’t going to deliver a material change in performance over the next five years) is clearly not a desirable asset.”
Greg Kinsey, vice president of marketing for the EMEA region at Hitachi Consulting, said: “The results from our survey make one thing very clear: the disconnect between a company’s business transformation strategy and the day-to-day management of the supply chain remains a serious, yet hidden, problem for many organisations.
“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 senior executives and operational managers.”
© FoodBev Media Ltd 2024