Visibility Study Reveals Management Perception Gap

Compiled ByDeborah Austin End-to-end visibility -- crucial for supply-chain excellence -- faces hurdles in today's survival-mode economy as top leadership scrutinizes supply-chain function more for cost reduction than for transformative potential. So suggests "Visibility: Tactical Solutions, Strategic Implications," the 11th annual logistics/transportation issues report by consulting organization Cap Gemini Ernst & Young U.S. LLC, Georgia Southern University and the University of Tennessee. Of 365 logistics/supply-chain professionals surveyed, 31% described their strategy-driving leadership role as customer service; 25%, product/market innovation; and 23%, cost competition. But 52% said their organization considers logistics a cost center (non-revenue-producing element) and 54% said cost reduction is their primary focus. Study authors outlined six visibility building blocks for truly adaptive supply chains: extended connectivity, enterprise transparency, exception-based alerting, performance metrics, event-based response controls and enabled control.