Supply Chain Responsiveness Not Enough

The Supply Chain Executive Board, a program of the Corporate Executive Board (Washington), reports that in the last two years of investor conference calls, the link between supply chain and revenue growth has risen 74%. Helping to deliver such growth is a challenge when many executives believe that supply-chain performance does not necessarily drive business performance, as the organization discovered in a survey of more than 100 supply-chain executives.

By over-focusing on efficient response within the supply chain, many supply chain executives have abdicated responsibility for the business as a whole, the research firm states in a news release. Making it easier for the business to proliferate more items, features, services and variety, also makes it easier for business managers to dodge critical decisions.

In a handful of organizations, the Executive Board reports, supply chain executives are solving the problem by pursuing a more “activist” agenda that focuses on helping business managers make better decisions in the first place. This includes analyzing the total profitability of SKU portfolios and making better trade-offs in new product introductions.

The Corporate Executive Board is a provider of best practices research and analysis focusing on corporate strategy, operations and general management issues.

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