Page 9 - Case Study Annual 2015

also focus areas.
supplychainforesight surveys the lack or shortage of
skills has been viewed as a major business constraint,
it is the first time that a lack of necessary leadership
and visionary skills has been identified as a skills gap at
managerial level.”
With greater investment in skills being identified as
one of the smartest approaches for long-term gains, it is
imperative for organisations to identify what skills they
currently have in their organisation, understand the
trends that will impact the business and then identify the
types of skills and abilities they will need to best adapt
to and evolve with market shifts.
Top ranking strategic objective
Across the board, change is firmly on the agenda
with respondents selecting ‘identifying and managing
change’ as the top ranking strategic business objective
for 2015. ‘Growth and expansion into new markets’
ranked second, is a continuing theme from last year, as
opportunities in Africa and abroad become potentially
more lucrative and diversification proves to be a smart
strategy.
The ‘cost of doing business’ is the top ranked
constraint by respondents, up from second place in
last year’s survey. With most input costs increasing,
high levels of uncertainty, competition from low cost
producing nations and a relatively stagnant economy,
companies are focusing on cost effectiveness to remain
competitive. The ‘cost of doing business’ is typically
only a factor where a company has a competitive
disadvantage in relation to its competitors.
With regards to supply chain objectives over the
next 5-10 years, the top three rankings in this section
are consistent with last year’s survey: ‘Improvement of
service levels to customers’ remains the foremost supply
chain objective, while the ‘integration of technology,
improving the flow of business intelligence, lowering
procurement costs, and reducing order lead times’ are
When questioned about
supply chain challenges,
respondents ranked the
top supply chain challenge
as the ‘willingness to
change/breaking old
habits/relationships’,
which is invariably a
leadership, management
or communication issue.
The issue may well be
identifying the need to
change before being forced
by circumstances to do
so – which relates to the
role of seeking change for
continuous improvement. Interestingly, seven out of the
top ten ranked supply chain challenges relate to people.
“These views support the fact that change is difficult
– and the greatest obstacle is to change people,” adds
Stubbs. “Leaders are required to create the context and
environment for change to effect change seamlessly and
successfully.”
This year’s survey also endeavoured to understand
respondents’ views on the emerging megatrends, and
their potential impact on supply chains, businesses
and industries. The major observation is that all the
megatrends are viewed as opportunities and less so
as threats. The greatest perceived opportunity is from
‘technology innovation’, and the greatest threat is seen
as ‘the rise of Asian economies’.
Short-term focus
Worryingly, it appears there is little faith in the ability
of organisations to identify and respond to trends.
Only 42% of respondents said their organisations are
constantly in touch with anticipated shifts in the market
and predicting game changing trends. With the current
speed of change and rising trends, this response supports
the view that most companies do not yet see the need
to raise the profile of managing, predicting and creating
change (or are too busy with existing challenges to take
the time to do so). This results in a short-term, tactical
focus rather than strategically anticipating and planning
for the future.
With regards to capabilities to implement change
within organisations, 45% of respondents believe it
is well executed but needs improvement, and only
7% responded that it is extensive and comprehensive.
With these activities being vital to the success and
sustainability of businesses in today’s environment,
mediocrity or the lack of high levels of competence is
concerning. Furthermore, 68% of respondents believe
that the health of their companies is at risk in the face
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