In order to respond promptly to the continuous changes in the markets, it is necessary to have an effective system for monitoring the “state” and performance of the supply chain. According to the data collected by the Supply Chain Planning Observatory of the Politecnico di Milano, the Italian companies seem to be aware of this need, but there are still gaps to fill.
The results of the Observatory
According to the data detected by the Politecnico di Milano, more than 50% of the sample do not measure performance in a sufficiently comprehensive manner, but limit themselves to evaluating technical performance indicators, such as punctuality and completeness. Only 30% measure an adequate number of technical and economic KPIs in order to capture both strong and weak signals, i.e. those that can only be perceived from within the organisation. Of these, 19% only consider the most urgent problems. These data testify to a relatively limited degree of maturity of many Italian companies in knowing the “health status” of their supply chains. Furthermore, around one fifth of the SMEs in the sample (21%) still do not recognise the need for roles dedicated to supply chain planning. In large companies, on the other hand, this lack is much less widespread (9%), indicating greater management maturity.
The support of digital tools
As far as technology is concerned, companies show some resistance in adopting advanced digital tools for Demand Planning, Production Planning, Inventory Planning and Transportation Planning processes. Most do not yet adopt tools (which have been widespread for decades) to support the digitisation of the supply chain, such as MRP, DRP or Advanced Planning and Scheduling, but continue to operate manually.
“Digital technologies – says Giovanni Miragliotta, Director of the Supply Chain Planning Observatory – represent a crucial element for the supply chain planning, but their true value emerges when they are integrated in a coordinated manner and used in a mature way, within a broader management strategy that also embraces the organisational change and the re-design of the planning processes. Only in this way they can give a contribution in order to effectively addressing current and future challenges, exploiting the digital opportunities to create resilient and agile supply chains”.
Supply chain re-design
According to the Observatory, half of the companies in the sample do not use any kind of tool for the supply chain re-design, but rely on the experience and sensitivity of managers. Among those who have formalised review and re-design processes, about one third (both SMEs and large companies) rely on analysis and evaluation tools – developed in-house or by external specialists – to understand the impact of major strategic decisions.
“Today, talking about a digital supply chain means considering not only a technological path, but also an organisational one, in order to include in the companies new skills for the continuous re-design and adaptation of the processes in relation to the growing capabilities of the technology – says Alessandro Perego, Scientific Director of the Supply Chain Planning Observatory –. To be competitive in an uncertain scenario, today, it is not enough for the Italian companies to be innovators in product, design, technology or quality. They need to become ‘expert sailors’ in the global waves of the value chains, with the best digital tools and skills”.
