Modern supply chains still don't deliver

Though companies are making strides in modernising their supply chains, most have yet to reap the benefits of implementing new technologies, according to recent research.

Part of the problem appears to be a lack of planning - over half of professionals said their businesses do not have a supply chain strategy or were just starting to create one, says a survey by IT services company Computer Sciences Corporation (CSC).

One in five said they had a comprehensive supply chain strategy integrated across the organisation.

Benefits from a modernised supply chain can include improved customer service, better communication with partners and higher revenues over the long term.

As for technologies, RFID appears to be the main up-and-comer as 40 per cent of respondents have implemented it or plan to within 5 years.

Even if they lack high-level plans, firms are experiencing greater success in certain areas than when CSC conducted a similar survey last year.

The relationship between IT and the people in charge of supply chain processes has improved, for example. This year 14 per cent of respondents said the relationship was ineffective compared to 39 per cent in 2003.

Effective collaboration, however, remains elusive. Individuals surveyed rated collaboration within an organisation and with partners as the thing they wanted most from supply chain technologies, but there was no change from last year in the number of people saying they'd seen improvements here.

The research is based on interviews with 236 supply chain professionals, the majority of whom were based in North America and Europe.