1
The full report, “Connecting With the Bottom • Transformer. Supply chain perfor-
Line: A Global Study of Supply Chain mance moved from the inferior
Leadership and Its Contribution to the range during the first time period to
High-Performance Business,” is available at the superior range during the second
www.accenture.com/supplychain. time period.
40 www.accenture.com/Outlook
• Decliner. Supply chain perfor-
mance declined from the superior
From there, the team cross-tabulated
the companies studied in the supply
Is there a relationship
range during the first time period to
the inferior range during the second
chain and financial performance
categories. What they observed was
between supply
time period. an exceptional degree of consis-
tency. Supply chain leaders showed
chain mastery and
• Laggard. Superior supply chain
performance was not achieved dur-
a higher-than-expected probability
of also being financial leaders,
shareholder value?
ing either time period. supply chain decliners showed a
higher-than-expected probability of
A similar exercise was used to cate- also being financial decliners, and
gorize each company’s financial so on. This pattern strongly suggests
performance across the same time a direct relationship between a com-
periods. Superior financial perfor- pany’s supply chain performance
mance was defined as a better-than- and its financial performance.
average compound annual growth
rate (CAGR) of market capitalization As seen in the chart below, supply
within an industry. Again, each chain leaders showed a market cap
company was defined as a leader, CAGR that was between 7 and 26
transformer, decliner or laggard percentage points higher than the
based on financial performance industry average. Over time, trans-
across both time periods. formers showed an average increase
+30%
+20%
+10%
-10%
-20%