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Thursday, November 20, 2008
Thursday, November 20, 2008
Supply Chain Management (SCM) News
Posted: Tuesday, August 19, 2008, 11:56AM
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KNOWLEDGE MANAGEMENT TAGS
"Supply Chain Management"
Supply chain management a risky business
Supply chain management is struggling to keep up with increasing supply chain risk, according to a new McKinsey survey.The study, which involved 273 global executives from across the world, identified rising energy prices and financial volatility as the major supply chain risks, although the majority of respondents said that their companies were failing to meet strategic supply chain management goals.
"Relatively few have acted on the global trends with the most influence over supply chains," the survey suggested.
The report also found an increasing propensity for companies to manage their supply chains centrally, not locally.
"When possible, companies seek to maximize economies of scale in the supply chain, and many companies treat it as a shared utility of the broader organization-not only to take advantage of synergies, but also to strengthen their operational expertise," the report said.
Environmental concerns were also failing to establish themselves as major strategic supply chain considerations.
"That will probably change," McKinsey acknowledged. "Trade-offs between emissions and profitability may lead companies to explore new kinds of supplier relationships, including the transfer of best practices to supply chain partners."
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