Optimizing their own supply chain is an important strategic task for many companies. But where do they currently stand in implementing their goals and what challenges do they have to overcome? The 21st SupplyX Barometer, formerly the Hermes Barometer, on the topic of “Need for optimization along the supply chain” provides some insightful answers. The survey shows that although companies are increasingly recognizing the importance of an efficient and flexible supply chain, they are also confronted with considerable obstacles.
Where do companies stand when it comes to optimizing their supply chain?
The survey results make it clear that many companies see a systematic and comprehensive approach to supply chain optimization as an important success factor for the future. A total of 67 percent of the 150 logistics managers surveyed stated that optimizing their supply chain plays a central role for them. In larger companies with more than 1000 employees, almost nine out of ten survey participants agree with this assessment.
This shows that companies increasingly understand that an inefficient supply chain not only jeopardizes competitiveness in times of globalized markets, but also limits the speed of response to market changes or potential disruptions. Every second company surveyed (51 percent) has therefore already taken initial steps to holistically analyze and improve its own supply chain.
The biggest obstacles on the way to improved performance
However, despite the growing importance of an optimized supply chain, many companies face considerable challenges. One of the biggest obstacles is the substantial amount of time and cost involved in implementing the necessary technologies and processes: 51 percent of respondents see this aspect as a key hurdle, while the figure for medium-sized companies with 250 to 1000 employees is as high as 71 percent.
At the same time, companies are not only faced with financial investments, but also have to cope with considerable resource requirements in terms of planning and personnel. Almost every second logistics manager surveyed (49 percent) cites legal regulations as a critical factor, as supply chains not only have to be efficient but also legally compliant. Also, there are communication problems between the partners involved. Around half of the survey participants report that a lack of information flow and insufficient coordination with suppliers and customers make the path to supply chain optimization more difficult. This lack of coordination can quickly lead to delays, inefficiencies and misunderstandings that have a negative impact on overall supply chain performance.
So what can companies do to meet these challenges effectively and what measures are they relying on? Find the answer to this as well as more information in our 21st SupplyX Barometer “Optimization needs in the supply chain”, available here for free download.