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John
B. Matchette,
Partner, Accenture Supply Chain Management Service Line
 The
Bureau of Economic Analysis reported that the 10-year period from
1991 to 2001 represented the longest uninterrupted economic expansion
in U.S. history. Then the millennium’s first recession began – which
lasted for eight months – before the economy began its recovery,
according to bureau statistics.
Perhaps some
executives felt a meager eight-month blip in an otherwise blazing
13-year run of strong sales and prosperity. But we doubt it. Most
companies, more likely, suffered with limp sales and intense downward
price pressures for several years, not several months. Even in early
2004, some may have yet to feel the recovery.
Our point is
simple. Statistics are agglomerations, and thus they fail to tell
individual stories. But their ubiquity also makes it easy to forget
that companies are still responsible for determining their future.
Economic conditions can certainly help or hurt, but that doesn’t
change the reality that organizations need solid strategies for
navigating lean and flush times.
One of these
strategies is improving supply chain performance. In fact, leading
companies know that superior supply chain management capabilities
can help them achieve high performance regardless of the economic
conditions they face. Supply chain masters are better positioned
to attract and retain customers because they:
- Get products
to market faster;
- Procure supplies
and components more effectively and economically;
- Respond
more readily to customers’ special demands; and
- Provide exceptional
aftermarket support.
Perhaps the
most important characteristic of supply chain masters is that they
generally have superior supply-demand matching capabilities, which
makes them more responsive to changing market conditions. These
companies are also likely to require less inventory and operating
capital than their peers, and use this advantage to expand product
variety and increase speed to market.
This sixth anniversary
issue of ASCET continues the exploration of our previous volumes
around supply chain leadership. It also offers countless new insights
and ideas and is certain to appeal to any company that values high
performance above statistics.
John B. Matchette
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