Subscribe to our free, weekly email newsletter!


Study: Purchasing, logistics and operations professionals acknowledge collaboration shortcomings

University of Tennessee’s Global Supply Chain Institute reports on successful strategies for supply chain integration.University of Tennessee’s Global Supply Chain Institute reports on successful strategies for supply chain integration.
By Josh Bond, Contributing Editor
June 17, 2014

A new study has found organizations that closely integrate supply chain functions, cultures, metrics and operations – especially ties between purchasing and logistics—deliver better business results.

These are among the results from a new study from the Global Supply Chain Institute (GSCI) at the University of Tennessee, Knoxville, which reflects the views of more than 180 supply chain professionals.

In a recent interview, Mike Burnette, supply chain executive for GSCI, said advances in recent years and global progress in terms of business process integration were steady. However, in a key part of the study, a number of purchasing and logistics professionals acknowledged pitfalls resulting from their lack of collaboration, ranking performances below expectations in areas that required the two groups working together.

“This research suggests that some of the silos have stubbornly persisted,” said Burnette. “This is particularly true with regard to supply chain integration and especially the connection between purchasing and logistics functions. Some companies even still have separate budget lines for the two, which was surprising to me; I didn’t think anyone did that anymore.”

Click here to read the full story and more study highlights at the Modern Materials Handling website.

About the Author

Josh Bond
Contributing Editor

Josh Bond is a contributing editor to Modern. In addition to working on Modern’s annual Casebook and being a member of the Show Daily team, Josh covers lift trucks for the magazine.


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The PMI, the ISM’s index to measure growth fell 0.8 percent to 52.7 (a PMI of 50 or greater represents growth). PMI growth has been at 50 or higher for 31 straight months (with the overall economy growing for 74 months), and the current PMI is 1.7 percent below the 12-month average of 54.4.

The current status of FedEx’ planned acquisition of Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion, which was initially announced in April, remains in flux, with continued actions being taken by the European Commission.

Panjiva said that the 1 percent sequential growth was in line with typically flat growth from May to June, as higher monthly growth typically takes hold in July and August in advance of the holiday season.

Hackett officials described this new offering as a short-term index that offers up “the sentiment for trade at a glance,” akin to other key economic metrics like the PMI and Consumer and Carrier confidence indices, while providing access to specifically see where a group of economic indicators are in relation to trade for the current month, too.

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA