PwC’s 16th Annual Global CEO Survey reveals continued focus on supply chain

The good news contained in these findings, says Brad Householder, principal, supply chain practice, at PwC, is that supply chain management is working its way up the command ladder in corporate America.
By Patrick Burnson, Executive Editor
January 29, 2013 - LM Editorial

The latest results on supply chain and operations from PwC’s 16th Annual Global CEO Survey, suggest that U.S.-based CEOs remain reluctant to abandon cost-cutting until the economy shows further signs of strengthening.

The 16th annual survey, based on the responses of 167 US-based CEOs, lead to the following observations:

Operations:

In 2012, 81% of CEOs implemented cost-cutting measures; in 2013, 71% of CEOs are planning cuts

44% of CEOs are investing to increase the operational effectiveness of their company

29% of CEOs plan to outsource a business process or function

17% of US CEOS plan to “insource” a previously outsourced business process or function

Business are looking for opportunities for innovation and competitive advantage in their operating model to offer customers more, and to do so at a lower cost.

The good news contained in these findings, says Brad Householder, principal, supply chain practice, at PwC, is that supply chain management is working its way up the command ladder in corporate America.

“C-level executives everywhere are viewing this discipline as a strategic asset,” he said. “It’s completely in keeping with a trend to focus resources on continuing improvement.”

Other points made in the Supply Chain survey include:

90% of US CEOs see economic volatility ahead

In 2013, 53% of US CEOs plan to strengthen engagement with key suppliers to both minimize costs and maximize supply chain flexibility and delivery performance

Globally, industries most focused on supply chain engagement include:
Industrial manufacturing (84%)

Consumer goods (80%)

Energy, oil, and gas (79%)

Technology (76%)
43% of US CEOs say 2013 will bring more shifts in consumer spending behaviors

41% of US CEOs are concerned about energy and raw material costs

Sustainable supply chain – reducing the company’s environmental footprint – is of interest to 43% of CEOs.
Householder told Supply Chain Management Review—a sister publication—that he’s seeing a “piling on” of supply chain imperatives as well:

“Companies are continuing to work on becoming the ‘desired key supplier,’” he says. They won’t be doing this by concentrating on price, however. Those gain shares are too often temporary. We expect a great emphasis placed on service for the long-term growth of these enterprises.”



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Earlier today, the United States Senate signed off on a six-year surface transportation authorization, according to various media reports. The bill, entitled the Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act, passed by a 65-34 margin and comes at a time, when the most recent extension for surface transportation funding expires tomorrow, July 31.

Demand for the $500 million in available funding for the United States Department of Transportation’s TIGER (Transportation Investment Generating Economic Recovery) competitive grant program was easily trumped, with applications for the seventh round of TIGER grants coming in at $9.8 billion, or nearly twenty times the available amount, DOT said this week.

Global logistics managers will be tracking the progress of the controversial Trans-Pacific Partnership (TPP) talks in Maui, Hawaii this week, as negotiating parties hope to finalize the agreement.

As has been noted in recent coverage on this site in regards to Peak Season, one underlying theme has been, and remains, how Peak Season is not what it used to be. That is not to say there will not be any Peak Season-related activity. Make no mistake, there will be and things driving it from the seasonal nature of business activity and cargo flows to higher demand and increased e-commerce activity, among others.

UPS Access Point locations serve as a replacement delivery address when consumers are not at home to receive a package or when consumers want a delivery to go somewhere other than their residence.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA