Supply chain and the executive agenda

Abstract

In recent years, supply chain pundits and consultants emphasized the importance of strategies such as just-in-time, lean manufacturing, off- shoring or frequent deliveries to retail outlets. However, with significant economic changes, rising labor costs in developing countries, huge volatility in oil and other commodity prices, and new regulations such as carbon emission caps, some of these strategies may imperil the supply chain. At the same time, logistics and supply chain management have been the focus of executive meetings, business columns and research institutes as never before. The importance of integrated, globally optimized supply chains is well understood and it seems that in many companies executives have discovered the impact on business performance that can be achieved by effectively managing their supply chains. With all these changes and pressure, it will be quite remarkable if supply chain is not an important topic in the agenda of today's CEOs and CFOs. This study tries to answer questions such as - Is Supply Chain Management an important topic on the agenda of today's business leaders, in particular CEOs and CFOs? If it is on the agenda, what specifically is included? - risk management, cost cutting or new channels? If SCM is not directly on the CEOs/CFOs agenda, what is on their agenda? Is there a link between SCM and these topics? To gain insight into these issues, the research team collected data from about 200 companies across a variety of industries. Our results indicate not only a link between the executive agenda and supply chain strategies but also that business and financial performance go hand in hand with supply chain performance. The research results indicate significant difference between Cost-Efficient and Responsive supply chain strategies and an overall increasing drive towards flexibility. The research identifies the key supply chain strategies that could give the optimal results from operational, business and financial perspectives.