Looking at the productivity of the supply chain for the next generation
As businesses navigate an increasingly complex and competitive landscape, the role of supply chains has evolved drastically. Consumer expectations are always rising, and the modern supply chain has had to undergo significant adaptations in response, becoming more agile, responsive, and innovative. But if supply chains are to meet the ever growing demands of customers and market dynamics, then there’s one problem that needs solving, and that’s how to boost productivity.
For years, companies have been trying to make their supply chains more efficient and productive. For example, giants like Amazon have revolutionized their networks with advanced technology and rapid delivery services. But despite these efforts, overall supply chain productivity has seen limited progress. A recent Gartner report indicated that, whilst there has been a slight increase in productivity from 40% in 2019 to 41-44% today, it is not a big enough increase to boost overall supply chain value. This stagnation poses a risk of inefficiency, increased waste, and frequent disruptions and reinforces the fact supply chains need to become more efficient.
As the demand for faster, more reliable supply chains grows, companies which fail to improve productivity risk falling behind. A more productive supply chain is not just about cost-cutting; it’s about creating systems which are resilient and responsive to unforeseen challenges – whether that’s a global pandemic or a cargo ship blocking a vital trade route. Building more productive, adaptable, and agile supply chains for future generations isn’t just an opportunity; it’s a necessity, and that building process starts by focusing on a few key areas.Enhancing employee engagement
Employees are the cornerstone of driving productivity in any business but investing in the workforce means so much more than just retaining staff – it means enhancing employee engagement and motivation to help boost their output.
