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- June 30, 2011 -

 
     
 

Supply Chain Graphic of the Week: The Top Barriers to Improved Supply Chain Success

 

As Usual, Forecast Error Tops the List, but Companies Also Cite Lack of Visibility and Functional Silos as Key Obstacles

 
     
 

By SCDigest Editorial Staff

 
 

 

Last week, SCDigest editor Dan Gilmore summarized key findings from the fourth annual Gartner-SCDigest Supply Chain study, which provides a rich array of insight into how companies are thinking about their supply chains. (See Results from the Annual Gartner-SCDigest Supply Chain Study.)

As promised then, we are offering one more graphic from the Gartner analysis, this one on the barriers companies perceive to improving their supply chain performance. From a long list, companies were asked to pick their first, second and third most critical barriers to reaching supply chain goals or potential.

As can be seen from the chart below, as other studies have consistently found, the combined choice of "forecast error and demand variability" tops the list, both in terms of the percent saying it was the number 1 barrier and the percent of respondents placing it anywhere in the top three.

 

 

Source: BP's Statistical Review of World Energy 2011

 

"Inability to synchronize the end-to-end supply chain" came out as number 2, although we aren't quite sure if this is a barrier or an end state goal. Regardless, that was followed by lack of supply chain visibility, and then lack of cross functional collaboration, or what might also be considered "supply chain silos."   Supply Chain network complexity scored somewhat low in terms of being the number 1 barrier for companies, but had a higher percentage who placed it in the top 3.

Gartner's Dwight Klappich also noted that "While complexity is sixth on the above list, it is clear that growing complexity is a contributing factor in all of the higher rated barriers."

 

 
 
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