According to a survey by Deloitte, organizations with superior supply chain capabilities demonstrate significantly above average performance on both revenue growth and EBIT (Earnings Before Interest and Taxes) when compared to industry average:
- 79 percent of organizations with superior supply chain capabilities ("supply chain leaders") achieve revenue growth that is significantly above average
- Only 8 percent of the organizations with lower performing supply chains ("supply chain followers") have above-average revenue growth
- 69 percent of supply chain leaders have an EBIT margin that is significantly above average compared to only 9 percent of supply chain followers
Supply Chain Leadership: Deloitte Touche Tohmatsu Limited
The fiscal strength of a company is largely impacted by the success of their supply chain. A deficient supply chain can play a major role in a company’s inability to compete, or can even cause them to fail. A survey conducted by Tompkins Consortium reported that more than 50 percent of business leaders who participated considered their supply chain to be a standalone (autonomous) operating function. That’s a dangerous way to think.
This blog is an excerpt from our latest whitepaper, Supply Chain Efficiencies With Trusted Qualified Vendors. Click here or on the link below to download your free whitepaper!
Primary Sources Include:
- Defense Logistics Agency
- Ernst & Young Global Limited
- Logistics Bureau
- National Academies of Sciences, Engineering, and Medicine
- Spend Matters® Solutions Intelligence for Procurement