Heads of supply chain heading for the boardroom

Survey statistics suggest that organisations are generally positive about moving out of recession and are growing their businesses. 66% think ‘the worst is over and things are improving‘, although this view is more prevalent in Europe (76%) than in North America (59%). There is, however, an element that still retains the view that the second dip of a larger recession is yet to hit. To add to positive news statistics, the report shows that 35% of companies are hiring staff, and, of the companies not hiring staff, 41% say that their staff levels are stable.

Another positive result from the survey is supply chain representatives reporting that they feel their division is recognised by their organisation and that they are ‘a source of real business value and competitive advantage, rather than a purely operational function‘.

The majority of respondents believe their business considers supply chain important to business recovery, although this trend is more positive in North America (68%) than in Europe (52%). The importance of supply chain to business is also reflected by the fact that 51% of companies ‘either have a head of supply chain on the board or will within the next two years.‘ Here, European organisations are leading the way with more supply chain board members than reported in North America.

Looking ahead, the survey asked about potential challenges and projects that organisations would face this year.

The top five are: demand variability (forecasting) (42%), cost containment and reduction (39%), supply chain visibility (35%), inventory management and optimisation (33%), and escalating customer expectations (33%).

Half of the respondents record implementing or planning for many supply chain management projects in 2011. The top projects listed are: cost reduction/containment, inventory optimisation, supply chain visibility, global sourcing and procurement, aligning supply chain with business goals, business process (re)design programs, strategic sourcing and supplier management, sales and operations planning (S&OP), long-term forecasting/demand planning, performance management/scorecarding and operational excellence (LEAN).

This survey was conducted in September and October 2010, and reveals the current mindsets of supply chain practitioners in North America and Europe. Key figures representing major companies were targeted and their responses collated and analysed. The majority of respondents held directorial or head of section positions (28%) or were functional managers (41%), with responses also submitted by people in C-Level positions (5%) and VPs, EVPs and GMs. Respondents were in a wide variety of industries, including hi-tech, manufacturing, healthcare, retail, food and automotive – to name a few.

"We’re very buoyed by the findings of this year’s survey," said eyefortransport’s executive director Katharine O’Reilly. "The importance of supply chains to overall corporate strategy has been underplayed for too long – it’s time supply chain executives were recognised and leaned on for the key difference their success can make to the largest business."

The report has been released in preparation for the Chief Supply Chain Officer Forums to be held later this year in North America (Atlanta) and Europe (Antwerp), where the findings will be discussed and debated by the heads of manufacturer and retailer supply chains.

To download a complimentary full copy of the report please visit: http://events.eft.com/csco/report.shtml