Actualidad -- Noviembre 09, 2007
SURVEY: SUPPLY CHAIN LEADERS REALIZE GREATEST GAINS
In previous years, the survey emphasized progress along the five levels of CSC’s Supply Chain Maturity Model , which ranks companies on a continuum of improvement — from Level I (enterprise integration) to Level V (full network connectivity). This year, the focus shifted to what type of progress was being made and why some firms are lagging across a range of 21 industries.
The data revealed several patterns that explain the differences and ways to achieve greater overall success.
“These patterns indicate future efforts will be favorably enhanced if those in the follower and laggard categories focus more attention on the lessons learned by the leaders — especially in terms of increased collaboration with suppliers and customers,” said Chuck Poirier, author of eight books on supply chain management and a partner in CSC’s Consulting Group.
Here are some highlights from the report:
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.
There is opportunity for more participation and support from financial officers.
Only 24 percent of firms rated the financial managers’ level of involvement in supply chain activities as “high.”
“They can be especially helpful in supplying cost data and drawing attention to the ways improvements can enhance financial performance,” said Poirier. “The leaders’ use of costing and financial information to impact strategy and tactics is evidence that a closer relationship can be quite beneficial.”
Similarly, greater involvement of top management is not where it should be.
Does your firm have an executive officer who manages all supply chain functions; for example, a Chief Supply Chain Officer or similar office?
Nearly 40 percent responded positively, while roughly one-third of respondents indicated a "low to no support" rating in this area.
“Leaders also turn the management of the supply chain effort over to a seasoned professional with full responsibility for results,” Poirier said.
Realized 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 gains 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.
Related Information:
Download the full report (298 KB).
Read the 2007 survey press release.