2007 Global Survey Identifies Characteristics of Supply Chain Leaders Liz Batson Lyndsey Shaver Di Wu From CNNMoney.Com

About the Survey This is the fifth annual survey of leaders in supply chain management conducted by Computer Sciences Corporation (CSC), Supply Chain Management Review and Michigan State University (MSU). The survey, completed by supply chain professionals in 21 industries, identifies collaboration as a major differentiator between leaders and those identified as "followers" and "laggards." The 2007 Survey was completed by 179 people, from a diverse group of companies. 57% indicated they were from a company that had over $500 Million in yearly Sales, where 43% had yearly revenues less than $500 Million.

“Collaboration is the Key to Success!” Eight Dimensions of Supply Chain Competence: 1.Alignment with Business Strategies 2.Strategic Customer Integration 3.Strategic Supplier Integration 4.Cross-Functional Internal Integration 5.Supply Chain Responsiveness 6.Planning and Execution Process and Technology 7.Supply Chain Realization/Segmentation 8.Risk Management

Responses to the Survey Q: What is your Supply Chain Spending as a percentage of yearly revenue? A: Less Than or Equal to 5%: 17% of those surveyed 6%-10%: 21% of those surveyed 6%-10%: 21% of those surveyed 11%-20%: 19% of those surveyed 11%-20%: 19% of those surveyed 21%-30%: 9% of those surveyed 21%-30%: 9% of those surveyed 31%-40%: 8% of those surveyed 31%-40%: 8% of those surveyed 41%-50%: 9% of those surveyed 41%-50%: 9% of those surveyed Greater than 50%: 17% of those surveyed Greater than 50%: 17% of those surveyed

Responses to the Survey Q: Does your firm have an executive officer who manages all supply chain functions, for example a Chief Supply Chain Officer or similar office? A: Yes: 38% No: 62% No: 62% Q: Supply chain strategies and goals are communicated to all employees? A: Strongly Agree: 6% Agree: 31% Agree: 31% Neutral: 28% Neutral: 28% Disagree: 27% Disagree: 27% Strongly Disagree: 8% Strongly Disagree: 8%

What Conclusion Was Reached? Those Conducting The Survey Said: We conclude with a note for the previous survey. In general, companies across the industries represented are continuing their relentless march forward with supply chain as a business driver. But the roadmap is not being followed in many instances, as firms slip on the path to optimization. To reach the highest levels of potential improvement it is time to get the train on the tracks and move forward with what are clearly proven techniques. That means collaborating better internally to optimize processing, and then working with key suppliers and customers to pinpoint the remaining areas of needed improvement and more effectively apply technology as an enabler and factor in achieving total success.

What Conclusion Was Reached? From the Article: 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." Additionally, survey responses reveal that many companies, primarily the followers and the laggards, still struggle to gain the full benefit of their technology investments.

Sources CnnMoney, (2007, October, 3) Global Survey Identifies Characteristics of Supply Chain Leaders. CnnMoney, Retrieved October 6, 2007, from 1.htm Computer Sciences Corporation, (2007).The fifth annual global survey of supply chain progress.