In a global marketplace, managing a supply chain is a much more complex challenge because of the new–and constantly changing–demands of shorter product life cycles, industry consolidation and the need to take advantage of emerging technologies. Our research shows that most companies believe they haven't extracted the potential of their supply chains–only 12 percent think they are effectively managing their global supply chains. The cost is huge, resulting in unnecessary spending and missed sales. And, there's a correlation between poor performing supply chains and lost profits.
Organizations that take a broad strategic approach, instead of making improvements in bits and pieces, are rare but they emerge as the winners, with lean and effective supply chains. They've learned how to make the most of growth opportunities, achieving high fill rates for high margin products and appropriate levels of inventory. In our work with more than 5,000 cases across all industries, supply chain overhauls consistently have delivered rapid results. For example, fill rates have increased from 47 percent to 67 percent in three months, inventory has been reduced by 25 percent while at the same time companies have improved customer service.
Bain & Company offers objective advice, focusing on the biggest levers of value that will deliver the fastest improvements. We conduct a thorough eight- to 10-week analysis, measuring defects, delays and returns; mapping organizational processes; and assessing systems to identify the largest opportunities. In the following six to eight months and beyond, we provide our clients' implementation teams with Bain support for the most critical and difficult initiatives.
