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Supply Chain Graphic of the Week: Barriers to Supplier Integration


 

In an Increasingly Outsourced World, Visibility and Integration have Never Been More Important

Aug. 4, 2016
SCDigest Editorial Staff

It is clear we are increasingly operating in an outsourced supply chain world, as companies look to suppliers for manufacturing, logistics, packaging services and more.

But many companies are finding they are having trouble managing those outsourced supply chains, due to a lack of visibility and thus control, or are unable to take their supply chains to the next level because of those limitations.

 

An excellent new report from SupplyChainDigest,  based on a benchmark study of more than 100 companies, looks at a variety of issues and opportunities with regard to supplier integration, and discusses how a new generation of Cloud-based tools combined with the growing recognition of the costs of low levels of electronic integration with suppliers may just spur changes to the status quo.

 

From that report is the following graphic, in which companies were asked to rate various barriers to supplier integration on a scale of 1 to 7, with one the lowest  barrier and 7 the highest:

 

Barriers to Supplier Integration

 

 

Source: SupplyChainDigest

 

As can be seen, the IT capabilities and/or resources of suppliers is ranked as the top barrier, with an average score of 4.9, well above the 4.0 mid-point.

 

That was followed naturally enough by the cost of supplier integrations, and then the hub company's own IT capabilities and we guess especially resources, all also comfortably above the mid-point.

 

The modest good news is that partners being unwilling to share the data ranked lowest on the list, though at 3.9 was just under the mid-point of the scale.

 

We also asked respondents to rate another set of barriers, and from that group data security concerns topped the list, with a score of 4.6.

 

You can find both those great charts and the rest of the data and commentary here: Supplier Integration in an Outsourced Supply Chain World: A Benchmark Report


Any Feedback on our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback section below.

 

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