Supply chain planning: Is it overrated?
Technology continues to help businesses from all industries flex their muscles and broaden their operational capacity. When it comes to supply chain management, this trend is no different. In fact, a number of analysts are projecting that companies will move to invest more in supply chain technologies this year.
"This will only increase the risk exposure to unplanned events of all shapes and sizes," said Henry Hicks, a vice president at Progress Software. "In order to not only survive but achieve success in this chaotic environment, supply chains will need to gain real-time visibility, understand the impact of these events and finally have the capability to react."
Surprisingly, Hicks predicts the dissolution of end-to-end supply chain planning. According to Manufacturing.net, the best supply chain plans yield less than 50 percent accuracy.
Of course, planning is a vital component not only of supply chain management but of general business strategy as well. Accordingly, Hicks argues that companies will begin to leverage planning for end goals alone, while allowing a sort of executive spontaneity to administer other aspects of strategy.
- New Research Points To Need For Improved Supply Chain Management
- Real-time Data Giving Businesses An Edge In Managing Inventory
- Supply Chain Management Depends On Transparency
- Warehouse Management Shifts With The Aid Of Data Management
File Under: Distribution & Warehousing