Service levels sweep to top of supply chain priority list

Increasing service levels to customers is the top priority of supply chain managers, according to the ninth annual Barloworld Logistics supplychainforesight survey. Just over half of the more than 350 respondents surveyed mentioned it as a top supply chain objective. “This is a very significant finding because it has never even featured as an objective on previous surveys and it has become the top priority,” said Johan Dekker, head of solution development for Barloworld Logistics. “Supply chain management is about servicing the end customer and it seems the realisation has finally hit home that getting closer to the customer is essential in modern-day business.” Other important objectives include lowering procurement costs, improving communications with customers, aligning the supply chain with the business strategy, optimising the distribution network and improving inventory deployment across the supply chain. “It is clear that the cost focus of the last couple of years has to some extent been replaced by a renewed commitment to service orientation,” said Dekker.