Supply chain competence affects your bottom-line in more direct ways than you might realize. In this book we reviewed the role of controlling cost of sales through supply chain competencies and its effect on the corporate financial statements.
The balancing act of maintaining a high level of service and low costs is becoming harder for supply chain directors as businesses try to meet the growing customer mantra of “more for less.” This pressure comes at a time when business is becoming more global, supply chains are lengthening, and competition is on the rise.
Although this challenge is not new, the outlook is that it will intensify as a number of factors; economic, regulatory and market-driven become more acute. Consequently, supply chain performance will have increasingly significant impact on overall business success.
Globally, forward-thinking companies are also redefining the way they do business with their customers and their suppliers, adopting innovative ideas to respond to market trends and developing new channels to meet consumer shopping preferences, many of which are being brought about by shifting lifestyles in Western economies.
Supply chain practitioners have emerged as a vital partner in the most strategic aspects of managing complex, global companies. In years past, the procurement function (the sourcing of essential products and services on the best possible terms) occupied centre stage. But more recently, the relentless focus on driving out costs has taken a backseat to such issues as supply market risk, revenue enhancement and managing complex supplier relationships.