The fifth annual survey by CSC, Michigan State University’s Eli Broad Graduate School of Management and Supply Chain Management Review identifies how firms differ in terms of their “maturity” in supply chain competence. The data indicate companies tend to fit into one of three groups: mature, moderately mature and immature (respectively referred to as leaders, followers and laggards in the report).

The survey revealed several patterns that explain the differences and ways to achieve greater overall success.

Lower level companies continue to have difficulty establishing collaboration.

Planning Effectiveness — We use formalized, disciplined planning processes in most supply chain areas.

Most supply chain professionals surveyed recognized
the necessity to involve multiple constituents across the
enterprise in both planning and execution.

It’s not about how much money respondents spent
on supply chain improvement, but how wisely.

What is your supply chain spending as a percentage of revenue?

Leaders’ spending on supply chain was 20 percent of revenue
compared to 28 percent for followers and 29 percent for laggards.

Greater involvement of top management is not where it should be.

Does your firm have an executive officer who manages all
supply chain functions, such as a chief supply chain officer?

Nearly 40 percent responded positively, while roughly one-third
of respondents indicated a “low to no support” rating in this area.

Results continued to validate a concerted supply chain effort.

In the past three years, what has been the overall impact of your supply chain initiative on costs?

Respondents indicating cost savings increased from 75 percent in 2006 to nearly 82 percent in 2007. About 25 percent of leaders and 20 percent of followers showed cost improvements of 16 percent or more. Only 3 percent of the laggards achieved this level of improvement.

Revenue growth showed another substantial move upward.

In the past three years, what has been the overall impact of your supply chain initiatives on revenue?

More than 50 percent of the leaders showed at least 6 percent gain in revenues attributable to their supply chain initiatives. About 32 percent of the followers and only 23 percent of the laggards showed this level of improvement.