If you think your supply chain is looking a little rough around the edges, you are evidently not alone. Mike O’Brien writes an article reporting on the findings of a new study from PwC, which states among other things that 83 percent of retail executives surveyed believe their supply chains are not optimized for an omni-channel world.
Subpar and Under Par Mean Very Different Things
More than 400 retail CEOs were involved in the PwC study. Among the top 250 companies, the percentage of executives confident in their optimization rose from 17 to 33. The numbers in the study reveal that retailers’ expansion plans are being undone by a lack of understanding that supply chain optimization is how healthy expansion really occurs. In fact, two-thirds of respondents did not see any connection between one affecting the other. The most successful companies do not share this attitude:
Based on the survey results, retail leaders who focused on supply chains investment have 15% lower supply chain costs, less than half the inventory levels and more than three times shorter cash-to-cash cycles. It also found a clear linkage between supply chain proficiency and confidence in revenue growth.
Supply chain leaders need to help change their organizations’ attitudes about what supply chain is and what it can do. For more details on the study, you can read O’Brien’s article here: http://multichannelmerchant.com/opsandfulfillment/warehouse/study-83-retail-execs-say-supply-chain-optimized-24062014/