Overcoming Supply Chain Complexity: Align for Success
BOSTON, Nov. 28, 2023 /PRNewswire/ -- Introduction
Prioritization and Incentive Alignment
Organizational alignment is a key pillar that is often overlooked, but when recognized and prioritized is a successful driver of growth. When asked about alignment within the supply chain team itself, less than 40% of leaders responded that their teams were very aligned. This percentage falls as we expand the scope to be between the supply chain teams and the overall organization. Alignment within the supply chain team is not an easy feat considering the different metrics and incentive structures at play. Plant managers care about unit cost, transportation managers care about utilization, planners are worried about forecast accuracy, inventory levels, and so on. Traditional incentive structures expect everyone to continually improve their part and often fail to account for the whole system and the tradeoffs between functions. These alignmnt issues are only exacerbated when viewing the complete organization. When organizational alignment suffers, the ability to implement change within an organizational also suffers.
Technology and Implementation
Supporting these difficulties in implementation and technology value capture, leaders report that adopting new technologies and training or upskilling have been the two most significant challenges for employers in the past 12 months. The ability to construct an ecosystem for employees with the support and focused training to adopt and leverage new technology and new capabilities as an enabler to achieving operations goals will be paramount for Supply Chain leaders. Additionally, 60% of the respondents cited insufficient resources, difficulty in cascading change through the organization, or organizational alignment as a barrier to implementing change. An increased focus on the people-centric elements of change management will smooth necessary transitions and allow businesses to leverage capabilities and capitalize on their investments.
"Leaders need to look at their S&OP efforts as an opportunity to address misalignment. By focusing and understanding pain points and key trade-offs, they will bring in supply chain functions as well as other organizational units together to improve overall performance. Systems investments need to be focused on enabling the aligned processes with sufficient focus on training and continued education of the team to sustain results and enable continuous improvement – Steve Vielmetti, Creo Managing Director
About Creo Advisors
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SOURCE Creo Advisors LLC