Whether you’re running an expanding corporation or the owner of a mom-and-pop shop, each business is prone to an undeniable truth: The success of your business can be directly linked to the performance of your supply chain. If you want success in your business (try naming someone who doesn’t), you must make your supply chain successful too.
Of course, it is always helpful to have some statistics on hand to validate these statements. These figures from a 2014 study from Deloitte clearly highlight the critical relationship of an enterprise and its supply chain.
- · Approximately 79% of companies with what is classified as a “high-performing supply chain” are poised to achieve above-average revenue growth within their industries.
- · On the other hand, just 8% of businesses with “less-than-capable” supply chains report above-average growth.
- · For companies with global supply chains, many of these companies can attribute approximately 90% to supply chain expenditure.
Once again, looking at these figures, it’s not difficult to see how the overall financial wellbeing of a business can be directly linked to the health of the supply chain. This leads us to our next question – for something that can calculate approximately 90% of an organization’s overall expenditure, and can be so directly linked to an organization’s success, why is it being overlooked? Here are a few more sobering facts, to complete the big picture of business success and its dependency on supply chains.
- · In many businesses, large and small, the idea of a full-fledge supply chain has never been fully designed as a process but has instead just evolved with time.
- · According to a 2012 study into corporate businesses, nearly 44% of businesses failed because of poor strategic management. Supply chain strategy is imperative to success in business, but companies often underestimate its importance, leading many organizations to pay less attention than other areas of operation.
So, where does all this information lead us? Well, to put it lightly, it demonstrates just how important the supply chain and its management are to the success of businesses operating in today’s local and global markets.
Planning and developing an effective supply chain strategy is well worth the short- and long-term investment, although it is often overlooked by small and large companies alike, costing hundreds of thousands – if not, millions, annually. Do you have a supply chain strategy formulated to help your business flourish? Get in touch with our supply chain and logistics experts to build out an effective strategy, turning your supply chain into an efficiency that allows your company to grow and expand for years to come.