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New Research Report from APICS: What’s Keeping Supply Chain Leaders up at Night

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APICS and Michigan State University have recently partnered to research top concerns among leaders of supply chain management. This week, both organizations released their latest joint research report: Supply Chain Issues: What’s Keeping Supply Chain APICS- professional association for supply chain and operations managementManagers Awake at Night? (Report also available for complimentary downloading)

This research represents Michigan State’s research efforts profiling challenges among more than 50 supply chain organizations. Supply chain management executives were asked to assess the challenges their organizations are currently facing along with new opportunities. The research effort was led by David J. Closs, Department Chair and John H. McConnell Chair in Business Administration and Patricia J. Daugherty, Bowersox-Thull Chair in Logistics and Supply Chain Management at Michigan State University.

The six most common issues that were cited by executives were:

  1. Capacity /resource availability
  2. Talent
  3. Complexity
  4. Threats/challenges
  5. Compliance
  6. Cost/purchasing challenges

Upon reviewing the report, Supply Chain Matters noted lots of common theme similarities that have been identified by other multi-industry focused executive surveys. An important difference in this latest APICS-Michigan State report, however,  was how talent issues, namely  recruitment, retention, or skills development, permeates all of the other five areas of executive concern. Much of this was summarized in the citing of one executive’s statement:

It’s a different type of talent that we’re going to need if we’re going to keep up with the pace of change.

A further common challenge identified by this Michigan State as well as other surveys, is the impact that B2C or B2B Omni-channel business is having on supply chain complexity, SKU proliferation, process and system complexity as well as costs. Similar themes were raised in the third annual PWC Viewpoint study involving 300 retail and consumer goods CEO’s that was administered in late 2015. That survey concluded that over 80 percent of executives were still attempting to breakdown the organizational silos that were hampering a singular Omni-channel customer fulfillment experience. That activity invariably impacts the supply chain in many different dimensions.

Our readers will likely find other common themes and concerns identified in each of the areas. In conjunction with its latest research series, APICS has announced a series of upcoming webinars addressing topics such as capabilities, costing, global talent development, purchasing, sustainability, Omni-channel and complexity.

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