Managers ‘underestimate supply importance’

80% of supply chain managers do not see their supply chains as enablers of business strategies within their organisations, according to a report.

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Hitachi Consulting’s survey found that more than half of managers do not see the supply chain as a fundamental source of value and a competitive advantage, while 29% see it as purely operational.

Vice president Cathy Johnson said: “These figures are far from reassuring. 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.”

Just a third of respondents said that their firms’ supply chains would improve customer experience over the next five years, and nearly half doubt it will improve profitability.

Less than half said it would improve sales revenues over the next five years.

For more information, see the Hitachi Consulting website.

© Business Reporter 2021

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