Survey Finds Having a Defined Supply Chain Strategy Leads to Growth and
50 per cent of Canadian businesses have a supply chain strategy in place
84 per cent of businesses agree that understanding and effectively
managing their supply chain and shipping were key factors in driving
growth and profit
Businesses with a supply chain strategy are 12 per cent more likely to
meet or exceed their growth targets compared to those that do not
30 per cent of businesses suggested that supply chain and shipping is
important, but that it is not a priority because they are too small
MISSISSAUGA, ON, Nov. 5, 2013 /CNW/ - Supply chain strategy has emerged
from the shadows and is increasingly being recognized as a key pillar
of growth and profit. More than 80 per cent of business leaders agree
that a well-managed supply chain is a key competitive advantage in
today's global economy. This insight comes at a time when consumers and
businesses are increasingly demanding a more consistent experience
across the multiple channels and jurisdictions. As a result, businesses
are leveraging the power of a streamlined global supply chain in an
effort to improve mobility, visibility and scalability.
According to a survey of Canadian businesses commissioned by UPS Canada
and conducted by Leger Marketing, 80 per cent of businesses with a
supply chain/shipping strategy met or exceeded their growth targets
last year, whereas businesses without a defined strategy were 12 per
cent less likely to reach their targets.
"These results indicate that businesses with a defined supply chain
strategy perform better than those that don't and that businesses of
all sizes can leverage this opportunity to increase competitiveness and
profitability," said Jim Ramsay, vice-president of Global Freight
Forwarding, UPS Canada. "Customers are demanding improved visibility,
scalability and mobility — be it via ecommerce or commercial shipping —
and the supply chain is essentially the nervous system that delivers
the end experience in the most efficient, cost effective manner. High
tech and well managed supply chains are a potential cash cow for
The survey also indicated that of those businesses with a defined
strategy, 84 per cent agreed that understanding and effectively
managing their supply chain and shipping operations were key factors in
driving growth and profit opportunities in the last year.
"The results show that business leaders know the value of a streamlined
global supply chain and are constantly looking for ways to more
creatively and effectively manage inventory in a way that enhances the
customer experience while reducing costs," adds Ramsay.
Does Size Matter?
While the survey found that businesses of all sizes can benefit from
having a defined supply chain strategy, small-to-medium sized
businesses are less likely to integrate supply chain and shipping into
their core business model. Nearly one-third of business leaders in this
category suggested that supply chain and shipping is important, but
that it is not a priority because their business is too small.
The survey found that 65 per cent of large businesses (i.e. those with
annual supply chain expenditure in excess of $100,000 and annual
revenue of more than $10 million) had a defined strategy in place.
Mid-sized organizations (i.e. those with annual revenue of less than $10
million and more than 100 employees) were less likely to have a
strategy in place (53 per cent).
Organizations with fewer than 100 employees were the least likely to
have a strategy in place (45 per cent).
A Little Planning Goes A Long Way
Nearly half of businesses (46 per cent) with a defined strategy have
considered leveraging services and expertise from a third party to
assess and manage their supply chain/shipping operations. The benefit
of third-party engagement is substantial as it allows any business,
regardless of size, to advance their capacity to manage supply chain
and logistics in a way that facilitates a high performance customer
"This is an opportunity for businesses of all sizes to compete on a
level-playing field - it is a powerful equalizer that allows small
business to punch above their weight and large businesses to build
market share," said Ramsay. "The real benefit of working with a partner
like UPS is that businesses no longer have to waste precious resources
on creating their own networks - they can simply tap into ours."
About the survey
The survey was completed online between July 31 and August 7, 2013 with
a sample of 301 Canadian business decision makers (CEO, executive
level, senior managers and managers). The margin of error for a sample
of this size is accurate within ± 5.6%, 19 times out of 20.
UPS (NYSE: UPS) is a global leader in logistics, offering a broad range
of solutions including the transportation of packages and freight; the
facilitation of international trade, and the deployment of advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, Ga., UPS serves more than 220 countries and
territories worldwide. The company can be found on the web at UPS.com and its corporate blog can be found at blog.ups.com. To get UPS news direct, visit pressroom.ups.com/RSS.
SOURCE: UPS Canada Ltd.
For further information:
Alex Thomas, APEX Public Relations