Transforming a company's supply chain is never easy, but
the payoff can be tremendous.
A downward spiral is the natural result of an
underperforming supply chain. The growth formula for any
consumer goods company is a balanced mix of innovation,
advertising and pricing optimization. If the supply
chain is not working properly, it undermines each one.
Poor networks and aging plants hamper the flexibility
necessary for profitable innovation, the funding needed
for advertising and the efficiency that enables
competitive pricing. And once growth starts to slow, the
pressures on the supply chain only get worse, making the
decline hard to stop.
The economics of a full transformation can be
extremely attractive, and the risks, manageable. 2013