What role does supply chain management play in your organization? When analyst firm Aberdeen Group asked that question of 800 supply chain executives worldwide, most (56%) regard SCM as a market strategy differentiator, a customer service differentiator or a profit center, rather than simply a cost of doing business. Nearly half (49%) indicate that escalating customer service demands are driving their supply chain transformations, which prompted Aberdeen Group to develop the following PACE (pressures, actions, capabilities and enablers) scenario to explain how companies progress from identifying a problem to focusing on a solution.
Pressures
- Escalating customer service demands
Actions
- Improving supply chain visibility
- Improving sales and operations planning
- Improving inventory optimization
- Improving order fulfillment
Capabilities
- Formalized supply chain risk management
- Centralized supply chain organization
- Executive position with end-to-end supply chain responsibility
- Closed loop integration of supply chain planning and execution
- Cross-functional metrics
Enablers
- Supply chain visibility tools
- Sales and operations planning tools
- Transportation management tools
- Inventory optimization tools
- Order fulfillment tools
Source: Aberdeen Group
See Also
About the Author
Dave Blanchard
Senior Director of Content
Focus: Supply Chain
Call: (941) 208-4370
Follow on Twitter @SupplyChainDave
During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeek, EHS Today, Material Handling & Logistics, Logistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.