PwC’s 16th Annual Global CEO Survey reveals continued focus on supply chain
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:
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%)
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.”
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