The first graph shows companies’ challenge in supply chain management. Global competition, increasing complex patterns of customer demand, increasing financial volatility, increasing global labor market, and growing exposure to different regulatory requirements are becoming more severe in the following 5 years; volatility of customer demand, customer expectation about service and quality, cost pressure in logistics/transportation, and volatility of commodity price are still the main issues while their significance in the long run has declined.
The second graph shows companies’ top 2 goals for supply chain management. In the five year prediction, improving quality, improving customer service and the faster speed of getting products or service to market are becoming more important goals than in the 3 year prediction. After applying the advanced supply chain management tools, the future competition has shifted from merely reducing cost to more concentrating on quality and speed.
- The need to continue to reduce costs while improving customer service and supporting expansion in new markets and product lines.
- The need to manage the “complexity of ‘omnichannel’ selling and customer fulfillment”.
- The fact boards expect lower costs and greater efficiency
- Safety and quality incidents are at the top of the risk index
- The issues of facilitating career progression, developing new production skills and demonstrating a return on investment.