Saturday 19th Aug 2017 - 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.

 

Get Weekly Logistics & Supply Chain News
Get Weekly Logistics & Supply Chain News
Thank you for your subscription