‘Innovation Distinguishes Between a Leader and a Follower’

The title of this CEO Update for the Third Quarter issue of MHI Solutions is a quote from the late Steve Jobs. When it comes to the supply chain, these words could not be truer. The ability to effectively innovate has emerged as a key attribute of successful supply chains.

A recent study by Deloitte found that 79 percent of organizations with superior supply chain capabilities (“supply chain leaders”) report revenue growth that is considerably above the industry average. As a comparison, only eight percent of the organizations with lower supply chain performance (“supply chain followers”) report significantly above-average revenue growth.

What do supply chain leaders do to succeed in today’s challenging and demanding supply chain environment? They innovate.

Today’s global supply chains require a focus on technology and innovation as well as a willingness to invest in these areas for the long term. A true commitment to innovation helps organizations better prepare for the future, manage supply chain risks and stay ahead of the curve.

MHI recently released a new report titled the 2014 MHI Annual Industry Report – Innovations That Drive Supply Chains that found that supply chain executives want to invest in powerful new technologies and business innovations to improve their supply chains, but are hampered by a shortage of qualified talent and the never-ending pressure to cut costs.

Despite these barriers, supply chain leaders are using emerging trends and technologies like analytics, omni-channel fulfillment, mobile/machine-to-machine solutions, 3D printing and sustainability to innovate.

According to Deloitte, 75 percent of supply chain leaders are using optimization software, 75 percent are using mobile technologies and 67 percent are using visualization software.

It’s crucial for leaders to keep a close eye on emerging technologies and have a strategy for incorporating them into their operations. Innovation efforts should not only focus on new products, but should also include business model innovations focused on improving networkshttp://s354933259.onlinehome.us/mhi-blog/wp-admin/post-new.php#edit_timestamp, processes, services or channels which can have a big impact on supply chain performance.

This issue of MHI Solutions focuses on ways to successfully innovate your supply chain from best practices in omni-channel fulfillment to changes in parcel shipping to the impact of emerging markets and public/private partnerships.

Supply chains are complex systems to manage, but the financial payoff of innovation can be huge.

Get started today. Spend money on research and development. Learn about other industries and best practices. Get customer feedback. Listen to, and empower, your staff. You can also download the MHI Annual Industry Report at MHI.org.

I hope this issue of MHI Solutions helps provide the information and resources you need to innovate and continuously improve your business.