Firms Need to Double Down on Customer-Centric Supply Chains
10% of companies were on the right path to building customer-centric
supply chains that are resilient and enable growth prior to the COVID-19
pandemic, according to a
new report from Accenture. While supply
chains have traditionally been a driver of efficiencies and scale, the
report discusses how their role in recent years has evolved beyond mere
efficiency and toward lasting growth.
“The supply chain has always been the lifeline to humanity. The COVID-19
health crisis has brought to light the critical need for a resilient
supply chain that produces and delivers all essential goods and services
quickly, safely and securely,” said Kris Timmermans, a senior managing
director and global supply chain and operations lead at Accenture.
“Companies have moved quickly to prioritize transparency and enable
faster decision-making. Now they must double down on building more
customer-centric, purposeful supply chains that will lead to growth as
Turn insight into innovation. Invest in building analytical, asset-light collaboration architectures, which could significantly increase the supply chain’s impact on revenue and shared success within and outside their ecosystems. In fact, more than half of the average revenue growth that the leading companies experienced came from collaboration tools and data-driven insight technologies.
Develop targeted capabilities. All of these leading companies, whether B2B or B2C, have built capabilities to segment customers and products in real-time. They’ve partnered with procurement to design products and services and identify potential suppliers to achieve target margins. They also invest in advanced cybersecurity capabilities to address the growing security threats from data breaches and data theft.
Engage the CEO beyond conversation. Support from the top is key to true supply chain transformation. The CEOs of these leading companies are more likely to drive supply chain discussions with their boards and translate those discussions into results. More than half (53%) of these CEOs allocate funding to drive supply chain innovation, and 49% allocate top talent to accelerate supply chain transformation
report also includes analysis proving that the efforts taken by these
leading companies have paid off. Accenture’s financial analysis of these
leaders has found that during the period from 2017-2019, they have
outperformed other companies in several areas. For instance, they grew
[revenues] 13%, on average, compared with an average revenue decline of
5% for the other companies. Moreover, their supply chain contribution to
total revenue was triple that of the other companies’ (52% vs. 17%); and
they delivered EBITDA* margins 2.5% higher than those of the other