A survey by UPS suggests Canadian businesses may soon need a bigger supply chain to meet export demand, given the recent implementation of CETA (Comprehensive Economic and Trade Agreement).
A total of 301 Canadian business higher-ups took part in the online survey between July 31 and August 7, 2013 – with the question being: does a business need a supply chain to survive?
While 84 percent of businesses agreed that an effective supply chain was indeed beneficial to their growth, only 50 percent of Canadian businesses actually have a supply chain strategy currently in place.
So is it worth the risk to invest in supply chain strategy?
Here are five reasons why we think so:
1. Supply chain strategies make a difference
According to the survey, 80 percent of businesses with a supply chain and shipping strategy met or exceeded their growth targets last year, whereas businesses without a defined strategy were 12 per cent less likely to reach their targets.
2. Now’s the time to invest
An estimated 98 percent of tariffs are expected to be duty-free upon activation, so now is the time for businesses to invest in a supply chain strategy to meet incoming demand. Meaning, with an extended business arm overseas, Canadian product can travel faster and further away. UPS says a supply chain does just that, since it improves your company’s mobility, visibility and scalability on an international level.
3. Size matters not
An interesting contrasting effect appeared in the survey: the smaller the businesses are, the less likely they are to invest into a supply chain strategy. Businesses big and small can effectively leverage the 500 million consumers living in the European Union by investing in supply chain strategies that are flexible, scalable and visible.
4. You don’t have to do it all alone
Nearly half of businesses (46 per cent) with a defined strategy have considered leveraging services and expertise from a third party to assess and manage their supply chain and shipping operations. The whole point being that businesses don’t have to waste precious resources on creating their own networks – they can utilize the existing ones by big fish like UPS.
5. Levels the playing field
Smaller businesses agree a supply chain is a good idea, but they don’t necessarily believe it’s a strategy they currently need. Naturally, bigger businesses can afford bigger and more complex networks of shipping, but with a single supply chain network available for both ends of the business spectrum, the playing field – at least in theory – becomes equal.