A 2003 research study by Accenture, INSEAD, and Stanford University found that the main reason for supply chain project failures is an inability to make the technology work as promised. Such failures generally can be traced to:1. The immense complexity of bringing supply chain optimization science into an operational environment

1. Supply chain solutions use very intricate optimization algorithms and leading-edge, constraint-based planning techniques that are complex and not widely understood.

2. Lack of deep implementation experience

Superior technology development and implementation skills are manifested best in the resources that do it most often. Such experience is particularly hard to find in a corporate environment, since the same large-scale implementation is almost never completed more than once. Moreover, some supply chain solutions are so new that company-resident experience – and even external expertise – is rare.

3. Lengthy lead times

Long delivery time can increase risk, compromise quality, undermine resource continuity, engender cost overruns, and make it difficult to sustain sponsor support and enthusiasm.

4. Insufficient focus on the management of change and the delivery of real business value

Supply chain projects nearly always require the successful implementation of new or redesigned business processes and the inculcation of organization wide change. Unfortunately, the effort needed to create high-performing, low-risk, integrated systems can sap a company’s ability to effect process and culture change. Simply put, there is insufficient time, energy, or money remaining to properly manage the change!