More and more companies are starting to consider their supply chain as a driver of revenue growth and competitive advantage, and not only as operational excellence, as per the recent annual Chief Supply Chain Officer Report. This global study of nearly 1,400 executives found that better customer service, faster new product introduction and stronger supplier relationships are among the key drivers for supply chain professionals to create added-value for their businesses.
Almost two-thirds of survey participants considered operating cost reduction as a “very important” driver for their supply chain function, fifty percent also stated that increasing sales revenue and differentiating customer service from that of their competitors was also “very important.”
According to those surveyed, supply chain excellence can boost top-line growth through:
- the ability to launch new products on schedule,
- ramp up production quickly,
- encourage repeat purchases through enhanced customer loyalty and,
- receive priority treatment from suppliers during periods when key materials and components are in short supply.
Six out of ten respondents agreed that “supply chain is understood as an equally important part of business success as sales and marketing or R&D/product development,” compared with just ten percent who believed it was still seen as a cost center or service function.
Key Findings of the Survey Include:
- Digital and eCommerce:
The steady growth of online shopping is increasing supply chain complexity at many levels and forcing those closest to the consumer to adapt.
- Social and environmental responsibility (SER):
The trend towards SER initiatives seems unstoppable, and companies are becoming less tolerant of violations.
- Risk management:
The vast majority of companies have been hit financially by disruptions recently, and executives are on high alert when it comes to their suppliers.
- Talent management:
Supply chain leaders report increasing difficulty in the past year in finding, hiring and retaining skilled people – particularly in China.
Download a full copy of the report here: www.e2open.com/csco2012