PwC Survey: CEOs Focus on Supply Chain Performance for Reducing Costs, Improving EfficiencyMay 22, 2013
Earlier this year PwC released its 16th Annual Global CEO Survey, which highlights trending topics affecting today’s CEOs. Of the 167 CEOs surveyed, more than half have led their companies for less than five years, which makes this survey an interesting snapshot of the attitudes of a new generation of corporate leaders.
These young CEOS are focused on reducing costs and driving new growth, and they are looking to supply chain performance as a key enabler for corporate goals. According to an article in Material Handling & Logistics, in the coming year "more than half of U.S. CEOs responding (53%) plan to strengthen engagement with key suppliers to both minimize costs and maximize supply chain flexibility and delivery performance...specific areas of focus include delivery issues and tailoring products to consumer needs." The article noted that 80 percent of consumer goods companies plan to focus on supply chain engagement as a major area for improvement.
At NGC, we're not surprised that supply chain emerged as a top corporate strategy. Our customers, which include consumer goods companies as well as leading fashion brands and retailers, look to Product Lifecycle Management and Supply Chain Management as key technologies for improving profitability, reducing cost, streamlining business processes and dramatically reducing the "concept to cash" cycle. These are the core reasons that our customers turn to NGC solutions.
What we've also seen in recent months, though, is an acute need to also strengthen supply chain visibility, so that companies can ensure that their products are manufactured ethically, in full compliance with accepted standards for worker safety. Products must also meet the highest quality and product safety standards. After all, no CEO wants to see his or her company in the news because of unsafe products or inhumane working conditions at overseas factories. These are scenarios that can keep CEOs up at night.
As CEOs focus on improving supply chain engagement, minimizing costs and improving overall supply chain flexibility, they must also maintain a strong focus on quality and sourcing practices – areas where PLM and SCM systems have proven their value time and again.