Sharing supply chain best practices is on the rise within the chemical industry, but there are still areas for improvement, says Christopher Lange, senior executive in consulting firm Accenture's Chemicals practice. "While companies have traditionally looked at the supply chain as a way to cut costs, they now look at it as a strategic and financially important part of the business and a way to generate value and revenue," Lange reports. "In a competitive global landscape, sharing best practices will be critical to increasing performance."
In a recent study of best practices, Accenture discovered that while there is an awareness of the importance of resilience planning, there is relatively little action being taken by the chemical manufacturers. For instance, only 30% of participants feel their level of spending is appropriate. Other findings from the study:
40 Percent of respondents who believe their customers, markets and channels are diverse enough to virtually eliminate risk from customer concentration
59 Percent who say it would take multiple losses to put their business at financial risk
17 Percent who say losing a major channel would put the company at financial risk
32 Percent who think losing a major customer would put the business at financial risk
17 Percent who say losing business in a specific geography would put them at financial risk
See Also
- Global Logistics is on the Move
- Supply Chain Solutions
- Bookshelf: Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR Model, 2nd Edition
- U.S. Military Launches Supply Chain Partnership
- The Five Myths of Import Compliance
- Portrait of a Best-in-Class Warehouse
- Supply Chain Spending Spree
- MIT Launches Supply Chain Center in Latin America
