For many years the Supply Chain was seen just as a cost centre, an activity focused on cost reduction through standardisation and complexity reduction. But now many companies are beginning to differentiate themselves in the market by taking a Customer Driven Supply Chain approach which they claim improves service and generates top line growth. They claim that they can create a competitive edge by designing and operating the supply chain to deliver customer delight at the point of use. Is this too good to be true?
A recent survey commissioned by PA Consulting Group, and in co-operation with Supply Chain Standard, set out to answer this question. The survey was targeted at some 13,000 Western European companies across a wide range of sectors. The survey focused on the key dimensions of customer-driven supply chain.
The initial survey results have been analysed and these confirm that companies who adopt a Customer Driven Supply Chain approach do indeed enjoy better performance in their supply chain. Top performers in key supply chain measures - stock turn and on-time-in-full delivery - perform well across all dimensions of customer driven supply, while the poor performers do not.
In fact, Customer Driven Supply Chain is now of significant importance with 24 per cent of respondents saying this is ''the standard'' way they do business.
Full details of the survey will be shared by PA Consulting Group at the ESC2008 Conference on March 3th - 4th in London.