Last time, we discussed how corporate executives are increasingly looking for profitable growth, and the need for supply chain managers to more proactively support and promote the capability of supply chain excellence to meet this goal. This means moving beyond cost-only focus to embrace business-driven objectives.

More specifically, I believe there are several ways supply chain managers can support the corporate goals for profitable growth, consistent with the experiences of leading companies such as Dell, Procter & Gamble, GE, Samsung and many others. I’ve listed five of them below.

First, understand why customers buy your product(s). Or not. Good supply chains start and end with the customer. If your company is not #1 or #2 in your customers’ minds, then supply chain excellence can help get it there. How often does your company ask customers how to make their experience of buying from you more pleasurable?

Second, make sure you are measuring your supply chain(s) performance with “measures that matter”. If your measures are not yielding actionable information that affects your company performance, change them. Make sure you know how your supply chains are performing, and against your competitors, as well.

Third, ensure your supply chain/logistics managers are collaborating with their peers in sales and marketing, in finance, and in every other process or group in the company. Everyone in the company should be responsible for achieving the profitable growth goals, not just sales.

Fourth, promote collaboration with your trading partners…with customers, for sure, but also with suppliers, both components and services. The best companies work their end-to-end supply chains in teams for win-win results. It is always best if all trading partners grow profitably.

Fifth, promote innovation. The best companies grow profitably from both organic products and channels, and from new products, new services, and new ideas. New ways to enable customers to buy easier and faster, settle easier and faster, and be serviced easier and faster, always pay off. Especially if the new ways are low-cost, leverage existing resources, and are not overly complex. After all, if we’re going to think anyway, we might as well think big!

As we said last time, supply chain excellence, and supply chain innovations, both lead to profitable growth, if they are leveraged properly and focused on what matters most for the business. Both the supply chain profession and our companies will benefit if we can link what we do to our companies overarching market and growth objectives.