McKinsey Quarterly
McKinsey Quarterly surveys are detailed, informed and well-written. The current one on logistics and supply chain risk is typical. It surveys 256 companies and comes back with interesting and, perhaps, disturbing information.
It states: ‘worldwide business complexity is rising sharply. However, supply chain management isn’t keeping pace: most respondents say that their companies aren’t meeting strategic goals for it, and relatively few have acted on the global trends with the most influence over supply chains.
‘The increasing complexity of products and services tops the list of global factors that executives say most influence their supply chain strategies.
Reducing costs is even more important for companies in developing markets; perhaps companies in China (and other countries in Asia) are trying to anticipate the effect of rising costs (including labor costs and appreciating currencies) on the competitive advantages they currently enjoy as low-cost manufacturers.
When executives are asked to reflect on the greatest management challenge their companies face as supply chains become more global, they highlight the total resources required, followed by the recruitment and retention of sufficient local talent and the integration of the IT systems of companies and their vendors.
Well worth reading because of the picture of universal and international complanency that it paints. For this full report click HERE. You may have to register but it is worth it.
Source: The McKinsey Quarterly