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Wednesday, December 17, 2008

Supply Chain Mystery to CEO's

I just read an article that blew my mind! Would you believe that nearly 47% of global businesses surveyed claimed that they need to pay more attention to their supply chain. Apparently 350 Senior Executives were surveyed and the results of these surveys are truly perplexing. In addition to the aforementioned numbers, 16% said that they paid an adequate amount of attention to their supply chain while a whopping 10% said they don't pay any attention at all!
In addition to those numbers, this is a snippet of the rest of the article;
"While 38 percent of companies did rate their supply chain as resilient, a more worrying 42 percent stated that their ability to manage risk had been outpaced by the expansion of their global supply chains.
According to the survey, while many companies knew the risks of supply chain, and the benefits to making sure their chain is resilient and well-managed, many glossed over this in their day-to-day operations. Nearly half of the companies only measured risk assessment annually.
“Businesses appear to be increasingly vulnerable to supply-chain disruptions that can have a catastrophic impact on business performance,” said Dan Brutto, president of UPS International."
Having worked in various shipping warehouses and other aspects within the supply chain, I have found that oftentimes the left hand has no idea what the right hand is doing. It is interesting to see that due to the growth of these businesses on a global scale that they are unable to manage their newer/larger supply chain with a hands on approach. 
Source Article: SupplyChainExec