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

More talking remains before the deal is done

The transpacific U.S.-flag carrier has been ranked number one in the ocean carrier category for Logistics Management magazine's Quest for Quality award

This year, the Containerization & Intermodal Institute (CII) will be staging the “Connie” Awards dinner in conjunction with IANA’s Intermodal EXPO in Long Beach

Middlemen comprising the Transportation Intermediaries Association made money last quarter, say researchers.

Carload volumes were up 2.8 percent at 304,276, and intermodal volume for the week ending August 16 was up 5.4 percent at 270,316 containers and trailers.

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 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA