Businesses underestimate importance of supply chain management
Smart executives know it is important to consider every aspect of a company's operations when identifying ways to improve efficiency and lower costs, but surprisingly few decision makers consider the supply chain when it comes to developing the businesses' strategic goals.
A survey by PricewaterhouseCoopers found that only 45% of executives believe their companies view the supply chain as an important strategic asset. High-performing firms create more efficient order fulfillment procedures and see higher customer satisfaction without incurring additional costs, according to the survey. In fact 95.7% of leading companies see greater inventory turnover, forcing them to make smarter decisions with their supply chains.
"Responsive supply chain configurations not only drive performance, but allow companies to serve their customers seamlessly in turbulent market conditions," supply chain expert Garrett Cronin told Business and Leadership.
Despite these benefits from properly managing distribution networks, just 9% of respondents believe it gives them a competitive advantage over other firms. Companies can take a more strategic approach to warehouse management by working with a third party logistics specialist. The survey found that 60% of top-performers outsourced warehousing and logistics activities to reduce costs. Partnering with a specialist can provide additional savings as well as tighter control over inventory and transportation services.
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File Under: General Supply Chain