According to the Chief Supply Chain Officer Report 2013 published by SCM World, the proportion of respondents who feel that supply chain’s contribution to business strategy through operating cost reduction is “very important” has actually increased, from 64% in 2012 to 68% this year. Economic conditions may explain this. In the US, for example, GDP increased by 2.2% in 2012, but the corresponding rate is projected to be only 1.5% in 2013.
More than half of our survey participants (52%) say supply chain is on an equal footing with other functions like sales and marketing, R&D and product development. Nearly 4 out of 10 (37%) see it instead as an enabler for sales or product development strategies. The corresponding figures from 2012 were 59% and 31% respectively.
Survey participants also reaffirmed, as in previous years, that the most significant way that supply chain can create value is through enhanced customer service and loyalty, with 83% indicating that the value here is high or very high. This is followed by stronger supplier relationships, with three-quarters seeing high or very high value; and acceleration of new product introduction, with 72% believing that supply chain makes a major contribution here. These findings are in line with those of 2012.
Source: Lee, H., O'Marah, K., Geraint, J., Blake, B. 2013. The Chief Supply Chain Officer Report 2013: Pulse of the Profession, SCM World, September 2013.