The supply chain has always had a direct impact on business performance, and its influence on the bottom line is undeniable. The supply chain’s contribution to revenue more than doubled, from 4% in 2011 to 8.5% in 2012. The most successful corporate leaders recognize that supply chain operations have a direct impact on sales, market share and competitive position. In fact, companies that acknowledge the supply chain as a strategic differentiator achieve 70% higher performance compared with those that do not.
Evidence aside, most companies fail to protect an incredibly important asset from disruption. This universal problem is rampant: 85% of companies have experienced at least one supply chain disruption in the last 12 months. These incidents led to decreased productivity for almost half of businesses, along with loss of revenue. The longer-term consequences of disruption included shareholder concern and damage to reputation.
