“Supply chain improvements generate value for any company that buys, makes, moves, stores or sells a product or service,” says Jim Tompkins, President and CEO of Tompkins Associates, a global supply chain consulting and execution firm. “Profitable growth, along with margin improvement and capital efficiency, helps companies reach the end goal: increased shareholder value.”
To develop a profitable growth strategy for capturing new markets, companies are advised to examine all high-risk (diversification, market development, and product development) and low-risk (market penetration) options. The paper notes two vital questions for each strategy: (1) Can the existing supply chains be leveraged, and (2) can they handle the additional capacity the growth strategy promises to deliver?
“By answering these key questions and applying leading practices, a company’s growth strategy will be successful and contribute to overall revenue and profitability,” says Gene Tyndall, EVP, Global Supply Chain Services, and co-author of the paper. “Regardless of the type of growth strategy deployed, the supply chain will continue to be a driver for operational efficiencies while delivering growth-inducing services.”
To learn more about achieving profitable growth through supply chain strategy, download the whitepaper, Leveraging the Supply Chain for Increased Shareholder Value (http://www.tompkinsinc.com/publications/monograph/shareholder-value/download.asp).