APQC Infographic: How supply chain can support innovation

This is an excerpt of the original article. It was written for the September-October 2021 edition of Supply Chain Management Review. The full article is available to current subscribers.

September-October 2021

This time every year, we publish Gartner’s Top 25 supply chains, the annual list of the supply chains that have made it to the top, a list that now also includes 5 Masters, or companies that have consistently outperformed year after year. You can read the article in this issue, along with the web exclusive material we publish on scmr.com, to find out what it takes to become a supply chain leader.

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Many supply chain organizations have adjusted to the last 18 months by adopting innovative ways of working and conducting business. In fact, a survey of supply chain professionals conducted in early 2021 indicated that innovation is a top area of focus for their organizations.

Supply Chain in Product Innovation

One of the most logical ways an organization can involve the supply chain in innovation is through the product development process.

At the median, organizations currently design 20% of their products with a “design for supply chain” philosophy.

This means the supply chain function provides input early on regarding supply chain costs and capabilities. Having this information at the start of the development process can lead to lower supply chain costs and a competitive advantage.

Encouraging Innoavation

To spur operational and process innovation, company leaders have to support an innovative culture across the organization.

This is done in part by encouraging employees to participate in and contribute to innovation activities.

However, at the median only 5% of employees are tasked with at least one innovation goal.

Organizations trying to develop their innovation capabilities are missing a key opportunity to demonstrate their commitment to innovation. Setting the expectation that most employees should contribute to innovation efforts can get staff thinking of ways to improve their work and the organization.

View the full size infographic here.

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