Supply chain matures, but chain collaboration remains challenging

Author without image icon
Editorial
16 April 2018
2 min

Supply chain management is becoming ingrained in Dutch business, yet companies still struggle with external chain cooperation,while the need for it is rapidly increasing due to the fast pace of market change.

This is according to the National Supply Chain Monitor 2017. The biennial survey - set up by BLMC Supply Chain Optimisation in cooperation with Nyenrode Business University - measures the application of supply chain management in the Netherlands. The 181 respondents responded to 60 statements. The results show what stage of supply chain maturity Dutch businesses are at.

External cooperation is a big step

On a scale of 1-5, the Netherlands now scores a 2.8. This is 0.1 points lower than the 2.9 in 2015. According to the report, this means that companies are struggling to move from internal (level 2) to external (level 3) chain cooperation. "That the score remains stuck here indicates that this external cooperation is a big step for many companies."

Number of laggards decreases

However, the number of 'laggards' has fallen sharply since 2015. The number of companies with a score below 1.67 is now only 4 per cent, compared to 30 per cent in 2015. "This means that at the level of level 2, internal alignment, progress is still being made," he said.

Need for agile chain

So although internal chain cooperation is taking off, it often falters at the door to the outside world. As a result, companies miss out on opportunities. Especially now that the need for an 'agile' chain is increasing, the report argues. Professor Jack van der Veen of Nyenrode Business University: "The market is increasingly characterised by complexity, uncertainty and constant variability. In a static market, central top-down control can work fine. However, increasingly the chain needs to be 'agile'. Supply chains must be able to respond flexibly to rapidly changing market needs and conditions. Learning ability, responsiveness and innovation are essential in this respect. This is only possible with supply chains based on trust, data exchange and strategic cooperation."