Though the supply chain has traditionally been seen as a cost center for manufacturers, distribution companies and retailers, more of these businesses are taking a unique approach to the way they’re treating their logistics operations. Many companies have begun to view their supply chain logistics as strategic assets, moving them from the liabilities side of the balance sheet. Not only can this methodology reveal hidden value that stakeholders have overlooked through applying the traditional approach, but it can also result in getting a leg up over your competitors. At the same time, seeing your supply chain as a strategic asset can help you better respond to customer needs and provide better, more timely, service.
Recovering Hidden Value
While many CEOs have increased confidence in the worldwide economy, they are still expressing critical concerns when looking at supply chain logistics. Current business uncertainties are continuing with a stagnant economy, leading to doubts as to profitable growth. As such, it’s necessary for executives to find ways to streamline operations, boost employee productivity, and improve the performance of existing assets, rather than downsize the supply chain.
One approach to seeing supply chain logistics as a strategic asset involves bringing more operations in-house, thereby internalizing both costs and benefits. The more modern view of the supply chain means thinking outside the box of the logistical constraints from decades ago. Freed from these chains, CEOs are making sophisticated decisions about geographical location for operations, automating certain sectors, and outsourcing labor. These executives are realizing that a strong, efficient supply chain is beneficial for customers, and provides value as a result.