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ASCM Insights

Supply Chain Resilience Key to Outperforming the Stock Market

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Navigating supply chains demands a constant balancing act — often pitting the needs of our communities or the environment against the lure of operational speed and efficiency. But it turns out that doing the right thing is also often the best thing. For instance, this concept is proven true time and again in cases of sustainability and fair labor. And now, a new report shows that prioritizing resilience also offers a clear return on investment.

According to the  report by software provider Cleo, companies that invest in real-time visibility, automation, operational agility and diversified supply chains consistently outperform their peers on the stock market. The report analyzed more than 1,000 earnings calls between 2019 and 2025, evaluating them for key supply chain terminology and then reviewing stock prices of the firms, explains Supply Chain Management Review: “The findings draw a clear line between market winners and underperformers — and the supply chain is at the center of that divide.”

Unsurprisingly, supply chains experiencing stock market success employed many of the same strategies:

1. Capitalizing on post-pandemic demand: Companies that took advantage of the combination of increased demand and decreased restrictions saw the greatest gains post COVID. Plus, 26% of companies attributed this growth to improved workforce development.

2. Turning backlogs into future stability. Successful businesses saw backlogs of high-margin products as a sign that there would be long-term supply side stability, despite increased inflation. “Companies that adjusted pricing in real time managed to offset inflationary pressures and maintain healthy profit margins.”

3. Cutting costs while increasing productivity. Investments in lean manufacturing, strategic staffing and diversified sourcing produced high returns.

4. Prioritizing product and technology innovation. Businesses that adopted automation, AI-powered analytics and connected services strengthened both efficiency and customer satisfaction.

5. Balancing investments in people and automation. In the study, companies that upskilled workers to improve their agility and future readiness and focused on automating rote processes saw the most success. Additionally, aligning hiring with digital transformation goals was more fruitful than staying dependent on manual processes.

Conversely, supply chain organizations that experienced visibility issues, increased costs without considering value or did not modernize foundational technologies have not thrived, notes Supply Chain Management Review.

Here’s an interesting example: Tupperware, known for its plastic food-storage containers, filed for bankruptcy last year. CNN says this was largely due to eco-conscious consumers rejecting plastics. Meanwhile, Pyrex has a thriving vintage market and even TikTok devotees because of its longtime commitment to eco-friendly glass products, which are good for both the environment and the bottom line.

Empower your resilient team 

Supply chain resilience is about more than simply reacting to disruptions; it's about proactively developing agility throughout your entire organization. To achieve this transformative power, it’s necessary to instill within your teams the vision and know-how to navigate uncertainty and turn obstacles into strategic advantages. 

Partnering with ASCM to design a customized corporate training program empowers your supply chain to withstand challenges and become stronger and more competitive. Begin your journey to proactive resilience with our free supply chain maturity assessment. You’ll discover how to identify your team’s critical capability gaps and receive a tailored roadmap to future-proof your operations. Start building a more resilient future with ASCM today.  

About the Author

Abe Eshkenazi, CSCP, CPA, CAE CEO, ASCM

Abe Eshkenazi is chief executive officer of the Association for Supply Chain Management, the largest organization for supply chain and the global pacesetter of organizational transformation, talent development and supply chain innovation.