For Chapter 8 I found an article in which IBM conducted a survey on over 400 senior executives from many different countries about their supply chain management. In the article it stated that supply chain management is growing increasingly which means there is more room for disruption and shocks. If one is not careful they can cause a chain of mishaps from network to network.

In conducting their survey they found five key elements that are putting executives in charge of the supply chain under great pressure and stress. According to IBM’s survey these key elements include; Cost containment, Visibility, Risk, Customer Intimacy, and Globalization. The constant changing is challenging the executives to adapt to each aspect while the constant piling of information is making it a tough decision for an executive to choose the right information. As the senior executives are dealing with these problems they are also having to keep in mind the risks at hand which the CFO’s are also having to deal with. Risk management is the highest ranking concern on the senior executives plate. Even with all the growing demand companies are still better connected with their suppliers than their customers and globalization has only led to revenue growth more so than cost savings.

Current research has shown IBM that supply chain need to not only be efficient, and demand-driven but they also need to be smart. IBM believes they need a supply chain that is much more instrumented, interconnected, and intelligent. However to achieve this goal it involves strategy and a different set of responsibilities for senior executives to take on.

2009 February, “The Smarter Supply Chain of the Future” Retrieved from IBM.com. 18 October 2009. Website: ftp://ftp.software.ibm.com/common/ssi/pm/xb/n/gbe03183usen/GBE03183USEN.PDF