Efficiency is table stakes
Large companies have invested, on average, US$153.4M to transform their supply chain for growth over the past three years. With investments that significant, efficiency alone is no longer the measuring stick for successful supply chains. They must deliver return on that investment in the form of growth.
Our research, with top-level executives across nine industries at 900 companies around the globe, shows a few select leaders are transforming their supply chains to contribute to a customer experience that leads to growth. We discovered 10% have been able to successfully reshape their supply chains to create significant impact on their topline growth, versus Others.
Masters sail above others
#1 Masters begin with the customer in mind.
They base their supply chain strategy on what the customer values, which is a more complex endeavor than it used to be because customer experience is now tailored and personalized.
As customers rapidly move toward products and services as experiences, they expect companies to provide a more holistic package. Supply chains play a crucial role in creating this value-driven customer experience.
Masters understand that addressing these changing customer expectations makes a huge difference, so they focus on the value propositions that matter most when investing in their supply chains.
#2 Masters help turn insight into innovation
They invest in digital architecture, creating a foundation for collaboration, inside and out.
Masters have recognized that creating value for customers relies on collaboration. Data has become the new currency feeding that value, so Masters are investing in new technologies to turn data into insights.
Accenture analysis shows that investing in building analytical, asset-light collaboration architectures may significantly increase the supply chain’s impact on revenue.
Collaboration, innovation and data-driven insight technologies accounted for more than two-thirds of Masters' 13% average revenue growth.
#3 Masters are more mature in select capabilities
They focus on the ones that enhance supply chain agility and foster innovation, while building in security into their operations.
Companies' most mature capabilities
#4 Masters engage their CEOs
Masters’ CEOs are more likely to drive supply chain discussions with the board. And they translate those discussions into results--actively allocating funds and talent that fuel innovation capabilities and transformation for their supply chain.
Creating your own license to grow
Higher growth rate. Higher contribution to total revenue. Higher EBITDA margin. All are the rewards reaped by companies moving their supply chains beyond efficiency into customer-centric growth.
The good news is that these rewards are within reach, following the example set by the supply chain Masters in our study. Never before has supply chain been so crucial to not only a company’s well-being, but also to society.
Making the most of your supply chain investments is within reach. And there’s never been a better time to do it, as not just business—but the world at large—relies on companies getting supply chain right.