Supply Chain Collaboration Continuing to Emerge as Strategic Imperative
A recent post on logisticsviewpoints.com discusses a number of points from a Deloitte survey
of manufacturing and retail executives on supply chain risk. This one
jumped off the screen: “Lack of acceptable cross-functional
collaboration was the greatest challenge to effectively manage supply
chain risk. In other words, since collaboration is at the heart of
building stronger relationships, it is also at the heart of effectively
managing supply chain risk.” In today’s increasingly complex, networked
global markets, perhaps the greatest risk is posed by ignoring the
strategic role of collaboration.
The SupplyChainStandard.com blog
points out that despite the current focus on supply chain
collaboration, an understanding of that role is lagging in some sectors.
They point to a recent survey by consultants, Expense Reduction
Analysts (ERA) that shows only one of five CFOs view their company’s
suppliers as strategic partners. Who let out the dinosaurs in those
Given today’s business environment,
lack of collaboration across the supply chain is a significant barrier
to success. When groups and individuals are “siloed” by systems that
fail to communicate, the flow of information and data across the supply
chain breaks, resulting in fractured decision making and greater risk.
By synchronizing the activities of suppliers, partners, and customers,
collaboration maximizes supply chain performance while driving down
risk. Fortunately, technologies that enable greater collaboration are
becoming increasingly accessible and prevalent.
Cited by Supply Chain Standard,
Gartner indicates that 70 percent of high-performing companies will
manage their business processes using real-time predictive analytics or
extreme collaboration by 2016. "Human or automated actions can be
initiated for proper decision making to achieve the desired business
outcomes,” says Jim Sinur, vice president, research at Gartner. “If the
situation dictates, knowledge workers can collaborate in and around the
process, case, or instance to decide on and effect change.” In markets
where accelerating change and volatile demand is increasingly the norm,
having this ability is a key advantage.
Increasingly, it is clear that supply
chain collaboration will be a central practice of those companies that
do have solid programs in place.
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