Wednesday 18th Jul 2018 - Logistics & Supply Chain

Six factors that separate supply chain leaders from laggards

PwC has identified six factors that set the leaders apart from the laggards in a new survey that highlights the need to actively manage supply chains to transform vulnerabilities into a competitive advantage.

Gordon Colborn, partner, PwC Consulting said: “We are seeing the best companies investing in next-generation supply chain capabilities that enhance profitability, but still meet the needs of individual customers. Responsive supply-chain configurations not only drive performance, but allow companies to serve their customers seamlessly in turbulent market conditions.”

[asset_ref id=”529″]    Gordon Colborn

The six factors identified by PwC are:

* Supply chain leaders deliver both better than average financial results and customer responsiveness. Leaders enjoy a 2X profitability advantage as compared to laggards, and a 17-point on-time delivery percentage advantage. It starts with recognition of the supply chain as a strategic asset, but less than half of survey respondents say their companies view the supply chain as a strategic asset.

* 83 per cent of leaders tailor their supply chains to meet the needs of different customer segments. Laggards are more apt to take a ‘one-size-fits-all’ approach with fewer supply chain configurations.

* Leaders often outsource production and delivery, but retain global control over core strategic functions such as new product development, sales and operations planning (S&OP) and procurement.

* Interest in next- generation technologies and sustainability is growing. More than half of survey respondents said they are implementing or plan to implement new tools for process automation or transparency. More than two-thirds think sustainability will play a more prominent role in supply chains in the future.

* Supply chain leaders in both mature and emerging markets invest heavily in advanced capabilities that differentiate them from their competitors.

* Leaders focus on best-in-class delivery, cost and flexibility to meet increasingly demanding customer requirements. The two factors that create the highest value are maximising delivery performance and minimizing supply chain cost.


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