Advanced Supply Chain Capabilities Needed for Strong Financial Performance

According to a new study from Deloitte, organizations with superior supply chain capabilities achieve significantly higher levels of performance on both revenue growth and EBIT measures when compared to the industry average

The Deloitte study, Supply chain leadership – Distinctive approaches to innovation, collaboration, and talent alignment, reveals that 79 percent of organizations with superior supply chain capabilities (”supply chain leaders”) report revenue growth that is considerably above the industry average.

Conversely, only eight percent of the organizations with lower supply chain performance report significantly above-average revenue growth. Furthermore, 69 percent of supply chain leaders have an EBIT margin that is well above the industry average compared to only nine percent of supply chain followers.

“At a fundamental level, manufacturing organizations compete on their supply chain capabilities,” said Kelly Marchese, principal, Deloitte Consulting LLP and a leader in Deloitte’s supply chain practice.

“At the same time, supply chains are increasingly complex, as linear trade flows evolve into intricate webs of global operations and third-party collaboration. It’s an incredibly challenging time to be a supply chain executive and in this demanding environment it’s useful to learn from the organizations that are excelling.”

Read More about this article here: Advanced Supply Chain Capabilities Are a Crucial Catalyst for Strong Financial Performance