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

FTR says both spot rates and contract rates are heading up in a full capacity environment and with the fall shipping season rapidly approaching, it explained conditions for shippers could further deteriorate.

Read how others are using Business Process Management to achieve ERP success with Microsoft Dynamics AX. Download the free white paper now.

Now that Congress has issued another highway funding Band-Aid – a $10.9 billion highway bill through next May that former Transportation Secretary Ray LaHood blasted as “totally inadequate” – what can we expect as the infamously do-nothing 113th Congress winds down in the next month before taking yet another recess to prep for the mid-term elections?

Seasonally-adjusted (SA) for-hire truck tonnage in July headed up 1.3 percent on the heels of a 0.8 percent increase in June. The ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, was 133.3 in July, which outpaced June’s 132.3 by 0.8 percent, and was up 2.8 percent annually.

Volumes for the month of July at the Port of Long Beach (POLB) and the Port of Los Angeles (POLA) were mixed, according to data recently issued by the ports. Unlike May and June, which saw higher than usual seasonal volumes, due to the West Coast port labor situation, July was down as retailers had completed filling inventories for back-to-school shopping.

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