A survey by Consultancy UK has found that supply chain executives are concerned about the changing face of the sector, and believe that further digitisation is urgently required.
In reporting the results, Consultancy UK pointed out that in a global economy supply chains are often the weakest link. Their disruption can have a domino effect, not only across the operations of one business but across the wider business landscape and even affecting multiple sectors. While new technology can help to minimise the risk of such disruption, improving supply chain visibility and planning, it also brings new challenges in terms of increasing competition and higher standards of accountability.
The survey asked 200 operations executives working in major global markets about the present and future state of supply chain management. While 75% said that they felt their supply chain performance satisfied their current business requirements, only 50% believed it would meet future requirements, meaning that another 50% thought it needed to be radically overhauled to be fit for purpose.
The survey then asked how far developments in digital supply chain planning had been successfully implemented. 56% responded that the present SCP IT landscape did not adequately and effectively support their requirements. 75% said that there was not a high level of digitisation in demand planning.
In terms of the impact on SCP variables, 77% believed digitisation was reducing stock levels. 67% said it was allowing increased lead times, and 68% said it had reduced the number of short-term planning changes. But responses were more mixed when it came to increasing forecasting accuracy, reducing inventory levels and reducing slow-moving or obsolete inventory. 42%, 50% and 55% respectively agreed that digitisation had helped in these areas.
Consultancy UK is an online platform for the UK’s advice and consultancy industry, and regularly conducts research into social, economic, management and organisation trends.
Nick has over 30 years procurement experience in consulting, outsourcing and line roles within industry with international experience across many sectors and industries and led many procurement programs with blue chip organisations.