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Companies 'fail to prioritise supply chain changes'

13 January 2012

Many businesses identify areas where their supply chain efficiency could be improved but fail to make the necessary changes, a new survey has indicated.

Conducted by Benchmark Research on behalf of DHL, the study found that only 54 per cent of respondents believe supply chain efficiencies can have a significant impact on their firm's bottom line.

One of the problems, as suggested by an anonymous survey respondent, appears to be that changes to the supply chain are often discussed by senior figures but then not followed up with action.

The contributor indicated that questions of supply chain efficiency tend to take a backseat to other business issues.

"Supplier management has been the key challenge for us. We agree in a board meeting that we need to improve our supply chain, but unfortunately it is always last on the priority list," they explained.

The survey, which questioned a cross-section of 120 supply chain managers over a three-month period, also revealed that issues such as shorter lead times and increased green performance are moving higher up the agenda.

Its reached similar conclusions as a report by the Chartered Institute of Purchasing and Supply (CIPS), published in October last year, which claimed that FTSE 100 firms are still not devoting enough attention to their supply chains.

The CIPS said the increased volatility of global markets has made issues of supply more important than ever before, but this development has not been mirrored with an adequate response from large companies.

Commenting on the DHL survey, the company's business director of engineering and manufacturing Ian King said: "Manufacturers recognise that there is room for further improvement in their supply chain, but it seems that one area they might be overlooking is the impact that improving supply chain efficiency can have on their bottom line."

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Categories: Procurement & Supply Chain

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