Collaboration matters in supply chain area

Filed in archive Research on October 6, 2007

CNN Money, PR Newswire and Kinaxis Blog covered earlier this week the release of a global supply chain survey: The results of the fifth annual Global Survey of Supply Chain Progress from Computer Sciences Corporation , supply chain management review and Michigan State University (MSU) was published a while ago and not-surprisingly, one of the main point among the results was this:

The survey, completed by supply chain professionals in 21 industries, identified collaboration as a major differentiator between leaders and those identified as "followers" and "laggards."

The data revealed several patterns that explain the differences and what leads to greater overall success. "These patterns indicate future efforts will be favorably enhanced if those in the follower and laggard categories focus more attention on the lessons learned by the leaders - especially in terms of increased collaboration with suppliers and customers," said Chuck Poirier, author of eight books on supply chain management and a partner in CSC's Consulting Group. "This is the one area that can make the most impact in terms of supply chain improvement. Without effective collaboration, the followers and laggards will not realize the benefits the leaders enjoy."

Survey findings also indicate a significant opportunity for financial officer involvement in supply chain efforts. "They can be especially helpful in supplying cost data and drawing attention to the ways improvements can enhance financial performance," said Poirier. "The leaders' use of costing and financial information to impact strategy and tactics is evidence that a closer relationship can be quite beneficial."

The survey report, which includes the complete set of questions and responses, and an executive summary, can be found at http://www.csc.com/2007SupplyChainSurvey.