In a previous series we talked about the CFO’s interest in supply chain logistics. In this four-part series we discuss another leader’s concerns—profitable growth through supply chain excellence from the perspective of the CEO.
Part One: CEOs Set the Direction
In a slow economy CEOs are more aware of their supply chain. Manufacturers, retailers and distributors all rely on their logistics professionals to pull the right levers to improve profitability, maintain customer satisfaction and manage inventory levels. These decisions are critical to maintain focus on priorities and achieve positive customer outcomes.
How can you tell if critical decisions align with the CEO’s vision? A hint: check the company’s mission statement. If it says the organization “will deliver products at the lowest price,” there are levers to be pulled. If it says you will be the “absolute best in on-time delivery,” different levers come into play. That may sound straightforward, but today’s CEO knows the supply chain is a complex system on which all areas of the enterprise are highly dependent. The CEO also knows that a forward-thinking supply chain strategy will maintain visibility, improve customer satisfaction and increase profits.
CEOs rely on their supply chain executives to make sure that materials, information and money move in lockstep to keep the business engine running smoothly. The Co-managed form of 3PL provides these executives greater access to information and scenario planning that support their critical business decisions while leaving total control within the business. Accurate, actionable reports of leading indicators such as transportation profitability and least cost carrier selection show the CEO exactly how day-to-day supply chain decisions based on an overarching continuous improvement strategy will help the company stay true to the mission statement on the wall.
Part Two will talk about how supply chain decisions help the CEO protect the company reputation…