Financial Consultant, Peru
Common Barriers to SC Improvement
Some of the obstacles that threaten your Supply chain improvement include:
Resistance to change. Without vision, without executive leadership, and without a rewards system that recognizes sought-after achievements and efficiencies, it is difficult to move forward.
Refusal to share savings. When your suppliers work with you to make your supply chain more efficient, you ought to find a way to cut them in on the profits. After all, this is what will give them an incentive to continue to help you in the future.
Insufficient resources. The teams are resource-poor, the company is focused on downsizing, and its easier to ignore the supply chain than to invest more resources.
Withdrawal of executive commitment. The status quo is adequate. When senior sponsors return to their normal sphere of activity, interest in new initiatives wanes.
Ignoring inaccurate forecasts. Get better information involves developing closer relationships.
Source: Charles C. Poirier, Advanced Supply Chain Management