A survey by a leading consulting firm has found that most Fortune 1000 executives have employed supply chain management strategies to aid their companies during tough economic times. About 80 percent of the 150 executives polled by New York-based Accenture (www.accenture.com) said that supply chain initiatives had allowed their companies to curb costs, improve efficiency and enhance customer service and revenues.

The survey also found that executives were giving more thought to outsourcing supply chain functions, including procurement, to third parties. Commenting on the survey results, William C. Copacino, global managing partner for Accenture's Supply Chain Management Practice, said that the recession, coupled with the need to enhance competitiveness, was driving the trend toward outsourcing supply chain functions. He cautioned, though, that a sole focus on cost-cutting could overshadow long-term strategic needs, proving to be counterproductive when supply chains need to be more global and customer-focused.

"Outsourcing key supply chain activities involves major changes," said Copacino. "When approaching these endeavors, we advise clients to view it as a merger rather than outsourcing. If the relationship is more transaction-based, it's not likely to work as well. Company leaders need the right mindset. That includes moving beyond the status quo ."

The survey also indicated that most executives viewed the Internet as integral to supply chain management. More than 70 percent of those surveyed said that they saw the Internet as one of the most important factors in facilitating greater collaboration with key trading partners.