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The Growing Importance of Supply Chain Leadership

TAKING THE LEAD IN THE SUPPLY CHAIN CSC CSC's annual supply chain survey took a closer look at the key areas that are driving success and promotions in the supply chain. LEADING Our survey classified corporate supply chain operations in three groups: leaders (aaaa), followers Caa) and laggards (asaa). BY EXAMPLE Leaders tend to have a more global view of supply chain management and are typically early adopters of new technologies. In this year's survey, leaders influenced revenue gain at double the rate of laggards. They were also 33% more effective at cost reduction. SUPPLY CHAIN IMPACT ------- COSTREDUCTION 8% 5% 6% FOLLOWERS 6% 8% 11% LEADERS LAGGARDS LAGGARDS LEADERS FOLLOWERS REVENUEINCREASE SUPPLY CHAIN IMPACT At what level in the company is the highest ranking supply chain official? With their unique ability to drive cost reduction and increase revenues, TODAY'S SUPPLY CHAIN OFFICERS ARE O O O O O WIELDING MORE INFLUENCE OO0OO THAN EVER BEFORE. 23% 40% 24% 13% C-Level Senior VP/VP Director Other GAINING AN EDGE WITH VISIBILITY We asked respondents to tell us whether they had good visibility into each of 10 key 'dimensions' of the supply chain. The results show that many firms are lacking visibility in important areas - both downstream and upstream. WHO SEES WHAT BEST LOOKING BOTH WAYS Visibility into the 10 key supply chain dimensions varies greatly by industry. Total scores below are industry averages out of a maximum score of Amounts below represent the percentage of survey respondents who said they had visibility into each area. 10. UPSTREAM DOWNSTREAM *** MANUFACTURERS Dimensions z Z Downstream: 1.5 Visible cost of supplies revenues from sales Upstream : 1.8 SUPPLIER INVENTORY 52% 44% POINT OF SALE RECORDS IWHOLESALERS MARKET Z0% 56% DEMAND SUPPLY Dimensions Visible 3.9 Downstream: 2.0 Upstream 1.9 FORECASTS 83% OVERALL MARKET DEMAND RETAILERS 10 DIMENSIONS OF VISIBILITY Downstream : 2.1 Dimensions Visible 4.1 Upstream : 2.0 54% LOCATION OF FINISHED GOODS ORDER 80% 49% CUSTOMER LEAD TIMES MANUFACTURING RETAILERS PROMOTIONS Dimensions Visible 4.9 Downstream : 2.5 Upstream: 2.4 SHIPMENT NOTIFICATION 63% 44% CUSTOMER INVENTORY KOUTPERFORMING WITH ANALYTICS Getting reports on vital supply chain information has always been important, but what's now equally important is having the analytics in place to interpret and act on that data. INSIGHTS TO GROW FASTER High Visibility AVERAGE BUSINESS GROWTH The ability to analyze, visualize and interpret data from a wide variety of sources is essential to gaining an advantage in today's supply chain. ANALYTICS BY INDUSTRY 3.75% 3.9% With an average analytics capability score of just 17 out of a possible 30, most firms have a ways to go in maximizing their use of analytical tools and techniques. Low Analytics 3.55% 3.7% High Analytics 18 170 16 19 30 1730 Auto Retail 14M 16 Machine Wholesale Chem/Pharm Food 18 30 Elect Non-Product 17 17 16/x Consumer Mining/Petrol Low Other Mfg Manufacturing • Service Visibility Our report shows that a firm that combines high visibility with high analytics capabilities is almost twice as likely to be a fast grower (top 20% of growth) than one that is below average in both skill areas. OUTMANEUVERING WITH FLEXIBILITY AGILITY TO SEIZE OPPORTUNITIES High Visibility Flexibility means being able to act quickly when change is needed in products, AVERAGE INCREASE processes or your organization as a whole. Flexibility enables lower inventory, higher "PROFIT customer service, and timely response to new threats, opportunities or trends. High Visibility 4.1% AVERAGE BUSINESS GROWTH 3.25% Low 3.1% Flexibility High Flexibility 3.3% 3.3% 4.0% Low Visibility 3.25 3.4% High Flexibility Low Flexibility Our survey indicates that, on average, companies that combined high visibility with high flexibility achieved significantly higher business growth and profits. Low Visibility THE BEST OF ALL WORLDS The CSC global supply chain survey included firms from 20 industries with annual sales from $250 million to well over a billion. VISIBILITY The results clearly indicate that taking the lead in the supply chain today requires high scores in visibility, analytics and flexibility. CSC ANALYTICS Leaders have numerous visibility systems in place, the analytical capabilities to make sense of that data, and the flexibility to respond to challenges and opportunities as they arise. To learn more, download our Ninth Annual Global Survey of Supply Chain Progress at FLEXIBILITY Sro Nh alvey of Sy Chu Progs 2012 2012 COMPUTER SCIENCES CORPORATION

The Growing Importance of Supply Chain Leadership

shared by KerryNoone on Apr 24
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Firms that combine visibility with analytics are 2x as likely to be in the top 20% of the fastest growing companies.






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