Supply chains face constant pressure to do more with less.After years of cost-cutting and efficiency improvements, the pressure to reduce costs while simultaneously boosting performance continues unabated—with no end in sight. These conflicting challenges are putting pressure on margins and creating headaches for supply chain executives who are often stuck between the rock and hard place of slashing expenses and building new capabilities.
As many supply chain organizations have spent years cutting costs and eliminating waste, incremental improvements are leading to diminishing returns. This is driving the need for supply chain executives to seek more innovative solutions.
In late 2013, MHI and Deloitte conducted their first MHI Annual Industry Report survey. The topic of this survey was “Innovations that Drive Supply Chains” and the goal was to provide an up-to-date perspective on emerging supply chain trends.
The survey found that 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.
The survey included more than 450 respondents from large and small companies across a wide range of sectors, including: Retail and Wholesale, Consumer Packaged Goods, Automotive, Consulting, Life Sciences and Healthcare, Transportation and Warehousing, Material Handling and Supply Chain Equipment and Related Services. The vast majority of respondents were senior executives, with more than half being C-level executives, Managing Directors, Senior Vice-Presidents, Vice-Presidents, or Directors.