Today’s supply chain is facing unprecedented demands due to a number of factors like globalization, changing consumer sentiment, digital transformation, market uncertainty, legacy systems, and lack of talent. Additionally, without end-to-end visibility and an understanding of supply chain data, businesses cannot measure the true predictability of their operations, and as a result, are unable to realize sustained financial gains. In fact, according to the “Supply Chain Impact Survey” commissioned by Capgemini and conducted online in October 2013 by KRC Research, 54% of global supply chain managers reported that supply chain issues has had a negative impact on their company’s revenue or profitability in the past few years.
As more Fortune 1000 companies start to see a gradual shift of supply chain management moving into the C-Suite, today’s executives need to give consideration to altering the way they perceive the supply chain – it is not just a strategic function but when effectively managed, supply chain is a key driver of competitive advantage and business success. It can directly impact revenues and end customer service and not just direct supply chain costs and working capital.
Despite this shift, key findings from the Supply Chain Impact Survey found that there is a need for greater attention and focus on supply chain management:
Only 34% of supply chain managers believe executives and business decision makers in their company have an understanding of the performance of the company’s supply chain
Most of the supply chain managers (79%) do not have the right tools or resources in place to enable supply chain processes or leverage analytical modeling techniques to derive insights and enable decision making
Nearly three-quarters of supply chain managers (73%) report lost sales during the holiday season and over half (53%) report lost sales during the whole year, including holidays, due to lack of best-in-class supply chain processes
As businesses look for ways to improve revenues and positively impact supply chain costs and working capital, their corporate leaders need to start thinking about the critical role that supply chain management plays in transforming their organization’s top line and bottom line. With increasing globalization and volatility, the ability to design and run best-in-class processes with a high degree of rigor and discipline, leverage the right set of technology tool kits and analytical models to derive insights, and deploy people with the right skill sets to continuously improve supply chain processes is the key. Flexible business process management and outsourcing solutions with the right partner can help those in the C-Suite gain real value through revenue improvement, cost reduction, working capital improvement, and risk mitigation as well as make long-term improvements in customer service and increased customer loyalty.