A report published this month by Accenture has produced a key finding that more than half (52%) of Irish companies have no clearly defined supply-chain strategy integrated into their businesses. The report further claims that 30% revealed they have no supply chain strategy at all.
I don’t think we needed this report to tell us that one of the biggest supply chain concerns is around environmental and regulatory challenges but it is a timely reminder for Irish companies. As initiatives like PEPPOL and Digital Europe gather pace it is incumbent upon Irish companies to be up to speed on environmental and regulatory requirements otherwise they will not be permitted to tender for new EU wide contracts.
The report threw up some other interesting findings:
- The biggest supply chain cost pressure at present is coming from three areas:
- Fuel costs @ 65%
- Staff costs @ 46%
- Raw material costs @ 41%
- Only 17% of Irish businesses believe that their supply chain is highly sustainable in terms of environmental, energy and regulatory trends
- To minimise supply chain risks some of those interviewed have:
- Established relations with other suppliers @ 69%
- Conducted risk appraisals of key suppliers and parts of the supply chain @ 52%
- Used business process outsourcing to reduce potential risks @ 33%
Armin Samali who is head of Accenture’s supply chain practice in Ireland commented on the results saying, “While there is an appreciation of the role of the supply chain in delivering returns for business, getting companies to align both their business and supply chain strategies remains a significant hurdle to be overcome if organisations are to minimise risk and maximise efficiency.”