Supply chain executives want to invest in powerful new technologies and business innovations to improve their supply chains, but are hampered by a shortage of qualified talent and never-ending pressure to cut costs, according to a new study by MHI and Deloitte Consulting LLP titled "The 2014 MHI Annual Industry Report – Innovations That Drive Supply Chains."
In a manner similar to product or customer segmentation, supply chains can be segmented based on service capabilities, says Lalit Wadhwa of Avnet. Identifying different supply chains within an organization through segmentation can help companies improve service levels and lower costs, he says.
Global supply chains are becoming increasingly complicated. But they also need to respond to demands by customers for simplicity. Padman Ramankutty, chief executive officer of Intrigo Systems Inc., explains the apparent paradox.
In today's globalized economy, supply chain professionals work together to deliver products to the end customer while working with different organizations and different business units within the same organization. During this process, supply chain managers face a challenge in controlling inventories and costs while maximizing customer service performance.