Supply chain models lack strong IT

Traditional supply chain models are coming under increasing pressure as companies move their business towards ecommerce, according to a study from Aspect Consulting.

The survey - conducted on behalf of logistics specialist, Cert - claims over 50 per cent of respondents in UK manufacturing, retail and wholesale companies do not expect ecommerce to have a major effect on their supply chain.

Jeff Stanton, group chief executive at Cert, explained that many companies are rushing into ecommerce without considering its effect on traditional distribution systems. "They feel they need to do this but they don't know how or what the implications are. Most companies have only just got to grips with the Internet," he said.

Teresa Moon, consultant at Aspect Consulting who worked on the report, said the supply chain is not used as a strategic tool. "Thirty five per cent of those interviewed don't consider IT to be part of the supply chain," she said. "It's no wonder it doesn't work with ecommerce."

The problem, according to Stanton, is no individual person is willing to take responsibility for the entire business issue. "The business view is lacking. This is not just a supply chain issue - the whole business will be radically different in five years.

"This change has to be brought in from the top. There is a danger that the energy comes from IT - it's got to be the business manager, with IT fulfilling that vision," he continued.

According to Moon, the survey revealed only one market area which has got to grips with ecommerce. "The big food retailers are well into ecommerce," she said. "Everyone else is talking about it but there is not much actually being done."

The survey also revealed that 90 per cent of respondents expect their customers to demand faster delivery and better customer service because of the advent of ecommerce.