New PwC Survey Identifies Leading Edge Supply Chain Practices
Room for improvement and using next-generation technologies are some of the key messages from the latest Global Supply Chain Survey from PwC (PricewaterhouseCoopers).
Erratic macroeconomic cycles along with disruptions caused by natural disasters have made supply chain management both more difficult and important to business success. To adapt to this dynamic environment, executives are actively managing their supply chains utilising strategic and operational levers at their disposal to transform vulnerabilities into competitive advantage.
“Leaders are investing in next-generation supply chain capabilities that enhance profitability while meeting the needs of individual customers,” says PwC Ireland’s Partner for Supply Chain, Garrett Cronin. “Responsive supply-chain configurations not only drive performance, but allow companies to serve their customers seamlessly in turbulent market conditions.”
According to PwC’s just launched Global Supply Chain Survey, there are six key findings that define leading edge supply chain practices:
* There is room for improvement – less than half of survey respondents say their companies view the supply chain as a strategic asset. 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.
* 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.
* 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 minimising supply chain cost.
* Leaders have a clearly defined go-to-market approach, and 83% 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.
* Supply chain leaders in both mature and emerging markets invest heavily in advanced capabilities that differentiate them from their competitors.
This year’s Global Supply Chain Survey 2013 is the ninth such survey conducted by PwC, and covered 503 supply chain executives from a broad range of industries in Europe, North America and Asia. The full report on the survey can be found at www.pwc.com/GlobalSupplyChainSurvey2013.
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Pictured launching the survey (left to right) are: Catherine Phelan, Supply Chain Director, Mars Ireland; Garrett Cronin, Consulting Partner, PwC; and Gordon Colborn, PwC UK Head of Supply Chain.
