- Firms have made signiﬁcant and in some cases surprising progress in the last decade and in each of the 10 areas.
- Some companies have achieved top levels of performance in individual categories, although no ﬁrm has excelled in all categories. Thirteen years ago, no one reported a top level of performance in any category.
- There are laggards in each category as well. These ﬁrms appear to be ﬁghting the same battles in the same way.
- Respondents feel that most progress has been made in customer relationships and cross-functional integration. Firms seem to be better focusing on their customers outside the ﬁrm and shoring up the emphasis on cross-functional processes inside the ﬁrm.
- Talent management clearly emerges as the linchpin required for advancement in all areas.The remainder of this white paper is divided into 10 sections, one for each trend. We have used the survey information as one input but also included the leading edge thinking from all of our research and industry contacts.
Developing collaborative relationships with suppliers and customers is a game changer because so few ﬁrms really accomplish true win-win partnerships. But the few that do have experienced dramatic and even breakthrough improvements in product availability, cash ﬂow, cost, and shareholder value. Supply chain professionals have been talking about collaboration for years, but unfortunately, as one executive lamented,
- Historic low inventory level, down almost $100 million
- Record high service levels
- Total cost down over $20M, ignoring inﬂation
- A major customer satisfaction improvement, with typical customer survey responses being
5. Absolute value for the ﬁrm to relative value for customers:
To succeed, must companies embrace Supply Chain Excellence as a core competency at all levels throughout the company and recognize that supply chain management is executed in many areas, not just the functional supply chain organization ?