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Showing posts from December, 2012

Next-generation supply chains: Efficient, fast and tailored

PwC recently published a new survey about the "Next-generation supply chains: Efficient, fast and tailored". Following are some key statements: Companies that beat the competition on supply chain performance also achieve significantly better financial results. Supply chain Leaders deliver on time in full (OTIF) on 95.7% of occasions and have an impressive 15.3 inventory turns, while the Laggards achieve only 3.8 turns. That means greater efficiency and customer satisfaction without driving up working capital — essentially, having it all. Those are metrics that really impact the bottom line; the Leaders in our survey enjoy average earnings before interest and taxes (EBIT) margins of 15.6%, whereas the Laggards can manage only 7.3%. But, surprisingly, only 45% of respondents say their companies view the supply chain as a strategic asset, and just 9% say the supply chain is helping them outperform their peers. That needs to change, because better supply chain ef