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World Economic Forum report

Nestlé, SAB Miller Increase Revenue up to 20% with Supply Chain Improvements

World Economic Forum reportNestlé, SAB Miller and UPS are among the 25 companies that have increased their revenue as much as 20 percent and cut supply chain costs up to 16 percent by implementing sustainable supply chain practices, according to a World Economic Forum report written in collaboration with Accenture.

Beyond Supply Chains – Empowering Value Chains identifies 31 practices to help companies achieve a “triple supply chain advantage” of increased revenue, a reduction in supply chain cost and added brand value. The practices, which span product design, sourcing, production and distribution through to the end of the product lifecycle, can help companies shrink their carbon footprints by 13 percent to 22 percent, the report says.

It finds that companies included in the analysis have improved their competiveness through increases in revenue (5 percent to 20 percent), a reduction in supply chain costs (9 percent to 16 percent) and a boost in brand value (15 percent to 30 percent). Their operational risks were also reduced.

The World Economic Forum report echoes a PricewaterhouseCoopers survey of supply chain executives from earlier this year that found the potential of value chain improvements to help businesses increase resilience, reduce costs and attract consumers is driving action. More than two-thirds of supply chain executives say sustainability will play an important role in managing supply chains through 2015 due to the potential to improve resilience, reduce costs and support growth.

 

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