During Down Economy, Companies Turn to Supply Chain

During the economic turmoil of the past few years, companies have turned to their supply chains in order to maintain profits and respond to consumer demand for lower prices.

As a result, supply chain management (SCM) is now considered a core competency, according to the vast majority of respondents (82 percent) in the 2010 Global Survey of Supply Chain Progress, conducted by Supply Chain Management Review, The Eli Broad Graduate School of Management at Michigan State University and CSC, with assistance from The Council of Supply Chain Management Professionals (CSCMP) and Supply Chain Europe magazine.

The survey was completed by 164 supply chain executives from 20 different industries worldwide, split evenly between manufacturing and service organizations. The results also show that:

SCM has matured as a business discipline and sits front and center as the area in which to find cost reductions and revenue increases, especially in periods of economic downturn.

In difficult times, companies turn to their supply chains for help.

Supply chain leaders are more likely to react more quickly and gain market share in times of a depressed economy.

Market share gains are reflected by increases in revenues.

Sustainability remains an initiative and supply chain leaders are taking a more proactive role in green initiatives.

The survey report concludes that success and superior performance involve:

Strong supply chain strategy, linked directly to business results.

Solid professional management staff, with help from IT and the CFO.

Defined metrics and objectives for continued improvement, along with the application of collaboration and technology to derive network enhancements.

The complete report is available here.

TAGS: Finance
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