Focus on Customers, Your Supply Chain Must
Are you the master of your supply chain? Accenture says 10 percent of organizations it studied were able to significantly contribute to top-line growth by focusing their supply chains on the customer experience.
In a report released today, Accenture called these elite organizations “masters” of their supply chains. These companies achieved 13% higher growth, 3 times higher contribution to total revenue and 2.5% higher EBITDA margin than the other several hundred organizations studied.
Those results were no Jedi mind trick. Instead, Accenture said supply chain masters shared these 4 traits:
- They focus on the customer — Their supply chain strategy is based on what the customer values, Accenture said, “which is a more complex endeavor than it used to be because customer experience is now tailored and personalized.”
- They turn insights into innovation — This involves investing in a digital architecture to foster collaboration inside and outside of the company.
- They focus on select capabilities — In the B2B realm, this can include blockchain or predictive asset maintenance, among others. In B2C, customer and product segmentation on a real-time basis is a top priority for many.
- They engage their CEOs — “Masters’ CEOs are more likely to drive supply chain discussions with the board,” Accenture reported. “And they translate those discussions into results — actively allocating funds and talent that fuel innovation capabilities and transformation for their supply chain.”
In its report, “Customer-centric supply chains: A license for growth,” Accenture noted that large companies have invested an average of $153.4 million to transform their supply chains to support growth in the past three years. “With investments that significant, efficiency alone is no longer the measuring stick for successful supply chains,” the firm said. “They must deliver return on that investment in the form of growth.”