Accenture says global research shows that companies can fundamentally improve their businesses through supply chain enhancements.
Accenture and research universities Stanford and INSEAD analysed financial data from more than 600 global companies and applied statistical models to assess supply chain performance relative to growth in market capitalisation.
Supply chain leaders - companies with frequent inventory turns, low cost of goods sold as a percentage of revenue and high return on assets - were shown to have a market capitalisation compound annual growth rate (CAGR) between seven and 26 percentage points higher than their industry averages.
However, the market capitalisation CAGRs of companies with poorly performing supply chains trailed the industry average growth rate by up to five percentage points.
"The supply chain, with the key outcome measures of product availability and working capital, is an increasingly frequent target for senior executive attention," says Accenture SA director Sally Bean.
"A growing number of companies are looking to the supply chain to help transform their cost structures, open new channels and fundamentally improve their businesses. This study validates those choices with clear evidence that superior supply chains enhance companies` ability to grow."
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