In the survey for its December 2011 Institute for Supply Management’s semiannual forecast, ISM asked a question about supply chain improvements respondents plan to make in 2012. Seventy-four percent of manufacturing respondents said they plan to take steps during the coming year to improve their supply chain management practices. The five most frequently cited approaches were:
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- Supplier performance management
- Strategic sourcing/supply base rationalization
- Demand planning to reduce supply lead times
- Inventory management and control
- Process and information systems improvements
ISM also asked respondents the most important problems facing their businesses as they plan for 2012.
Related Resource: DVD – 2012 Economic Outlook for Manufacturing and Construction
More than 40 percent of manufacturing respondents noted poor sales, and 22 percent said government regulations were critical. Inflation was the third most frequently noted problem in the survey. Other issues for manufacturers, all noted by fewer than 5 percent of respondents:
- Cost of labor
- Quality of labor
- Taxes
- Interest rates and finance
Non-manufacturing respondents, including wholesale trade, said:
- Poor sales (34.4%)
- Government regulations (26.4%)
- Inflation (10.4%)
- Interest rates and finance (9.6%)
- Cost of labor (8.8%)
- Taxes (5.6%)
- Quality of labor (4.8%)
Find the full ISM semiannual forecast results at the ism.ws website.
