Why Smart Companies Bring Supply Chain Into the Boardroom
While it has become more common in recent years to see the title Chief Supply Chain Officer on a company hierarchy, the role rarely reports directly to the CEO and is likely to be denied a place at the C-Suite conference table—but not in a smart company.
Some of the most successful companies today are those that have elevated the supply chain executive’s standing and opened the boardroom door to the CSCO, or have placed a supply chain professional in one of the more traditional leadership roles such as COO.
Why Should Supply Chain Leaders Have a Boardroom Seat?
Among the reasons for such a decision, and why it is one that should be emulated by many larger companies reliant on a supply chain, are the following:
- In many companies, supply chain activity has a direct effect on at least 37% of operating costs, according to a recent CFO article.
- Few companies could exist without the presence of a supply chain, which is surely reason enough to ensure the supply chain’s leadership has a place at the boardroom table.
- The supply chain touches, influences, and is influenced by nearly every aspect of a company’s business.
- Most supply chains are complex operations, and require a skilled, experienced, and knowledgeable leader, who has procurement and logistics expertise to oversee them.
- CFO’s and other executives that often have accountability for the supply chain, may not have the qualities mentioned above, and anyhow, hold other responsibilities that may not leave time to focus sufficiently on the “high maintenance” supply chain.
- When leveraged effectively, the supply chain can be a significant source of value. To achieve that leverage, decisions must frequently be taken or approved at the highest level in the organisation.
Supply Chain Executives are Welcome in Our Boardroom
As time goes by, there is little doubt that a CSCO will be present at the majority of boardroom tables, as companies increasingly seek to achieve success through supply chain excellence. In the meantime, if you are a supply chain executive, with or without a C-Suite office, you are very welcome to join our Supply Chain Leaders Boardroom program.
SCLB is a unique executive forum at which you can gain new insights, engage in knowledge sharing, and network with your peers in a confidential and exclusive environment.
The program aims to help you increase effectiveness in your current role, and to support you as your executive career continues to develop, perhaps to a point where you finally gain that hard-earned place in your company’s C-Suite.
Applications are open now, so to register your interest in this unique development program, just complete and submit the form on the SCLB homepage.