Customer-centric supply chains: A license for growth
June 16, 2020
June 16, 2020
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.
13%
Masters realize a 13% growth rate.
3x
Masters contribute 3X more to total revenue.
2.5%
Masters achieve a 2.5% higher EBITDA margin.
Masters begin with the customer in mind. They base their supply chain strategy on what the customer values.
Masters help turn insight into innovation. They invest in digital architecture, creating a foundation for collaboration, inside and out.
Masters are highly mature in select capabilities. They focus on those that enhance supply chain agility and foster innovations, building security in.
Masters engage their CEOs to move beyond conversation into true transformation. These CEOs ensure board-level support while funding supply chain innovation and talent.
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.
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.
They focus on the ones that enhance supply chain agility and foster innovation, while building in security into their operations.
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.
52%
of CEOs drive discussions on supply chain transformation during discussions with the board.
53%
of CEOs allocate funding to drive innovation required to accelerate supply chain transformation.
49%
of CEOs allocate top talent to drive supply chain transformation.
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.
7 minutes