In an increasingly complex global market framed by local specificities, many GCC companies start to see Supply Chain Management as a key competitive differentiator

After the nervousness perceived in 2009 due to the global recession,and particularly after the latest events in Dubai, Optimism is back in the Middle East. Senior managers of global companies based in the GCC are optimistic about the economic recovery, but only few took the opportunity to strengthen their operational capabilities during the crisis. This poses an important question to companies which were only driven by short-term strategies: How will these companies face the upcoming supply chain challenges to cope with a significant and quick upturn in demand?

The “State of Supply Chain Management 2010 Middle East Series” represents B2G Consulting largest annual review of global supply chain performance focusing on the GCC region with nearly 230 participating companies. In summary, the respondents expressed the following points:

Putting Supply Chain Management on the strategic agenda: In today business world, supply chain management is the backbone of many companies. In this regard, more CEOs are including supply chain management on their strategic agenda. In fact, 28.9% of respondents perceive SCM as strategic.

Considering ‘People’ as the most important asset: The global supply chain has become more complex, and one of the most important drivers for success in deploying and running an efficient supply chain is People. However, investment in Education is still low.

Using Outsourcing as an alternative for scarcity of skilled resources: The noticeable shortage of supply chain professionals makes the recruitment and retention of talents very challenging. With 76.3% of respondents who outsource at least one logistics function, outsourcing is considered as a potential alternative.

Improving end-to-end visibility amongst business partners: The lack of visibility: both, internally amongst critical processes, and externally between business partners, usually incurs high inventory levels, significant operating costs, longer lead times and lower customer satisfaction.

Investing in Information Technology to fasten supply chain operations: The importance of information is often overlooked as a critical competitive resource, but its role in supply chain management is crucial to achieve higher productivity, responsiveness and lower costs.

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The State of the Supply Chain Management Middle East aims to draw a concise portrayal of the current situation as seen by supply chain practitioners in the Gulf region.

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