Companies are missing growth opportunities in the supply chain
Smart investments and customer focus
In today’s era of ever-growing focus on the customer, only a small number of forward-thinking companies are realizing the unique opportunity their supply chains offer to better meet customer needs, fuel competitiveness and uncover growth, according to a new report from Accenture.
Based on a survey of 1,350 business executives, the report “From Inventory to Influencer: The Mover Becomes the Shaker” reveals that more than three-quarters (78 percent) of executives and their companies – named the “Laggards” – are missing opportunities to leverage the power of the supply chain as a driver of revenue growth. The remaining 22 percent of companies, referred to as “Leaders,” are making smart moves in three areas – digital investments, customer-centricity and ecosystems. This is enabling them to shift their supply chain strategy from driving cost efficiencies to powering growth opportunities and achieving competitive agility.
According to the report, the Laggards need to quickly transform the supply chain and operations function into a collaborative engine of growth and innovation or else they risk their future success.
Building the digital enterprise
While most supply chain and operations executives recognize the benefits of digital technologies, Accenture’s study shows that the Leaders actively infuse digital intelligence throughout their supply chains and operating models. Leaders scale digitally-enabled solutions in the supply chain at a rate almost equal to that of their product design and customer engagement functions, and even surpass the digital investments made in their sales functions. And their efforts are paying off, with nearly two-thirds of Leaders (46 percent) meeting or exceeding the return on invested capital in digital over the past three years, compared to just 36 percent of Laggards.
Collaborating across the C-suite on customer centricity
The report notes that Leaders have a unique approach to customer centricity – i.e., putting customers at the center of everything. They recognize that each C-suite member can benefit from the insights that are generated across the supply chain and operations and enable the entire company to become more customer-centric. That puts chief operating officers (COOs) and chief supply chain officers (CSCOs) in a unique position to help accelerate collaboration that leads to customer-fueled growth.
Maximizing ecosystem opportunities
The majority of both Leaders (78 percent) and Laggards (64 percent) embrace the idea of becoming ecosystem orchestrators. However, Leaders look beyond traditional partners like suppliers and recognize that technology partners, universities, innovation incubators, start-ups and even competitors can help drive relevant new offerings to customers as quickly as possible.
“The intense focus on digital, customer centricity and ecosystems has enabled the Leaders in our study to shift their supply chain strategy from chasing incremental cost savings to creating new value, as part of a zero-based mindset, that fuels sustained growth,” said Kris Timmermans, senior managing director and Supply Chain, Operations & Sustainability Strategy lead at Accenture Strategy.
Learn more about “From Inventory to Influencer: The Mover Becomes the Shaker”.