Supply chain strategy enters the boardroom

Perhaps it's related to the uncertainty factor, but ops strategy is becoming a boardroom topic. The effect of supply chain failings on shareholder investments is the likely elevator of supply chain strategy to the strategic level from its tactical perch.

The thought may be just a neatly disguised version of the "senior leadership buy-in is required" refrain, but results of a Cranfield University survey indicate a need for the highest level of organizational attention. "When the process has the active support of the board, senior executive buy-in and sponsorship, there is much greater likelihood of success," concludes Supply Chain Strategy in the Board Room.

When the strategy is driven by the CEO, however, data suggest a lower probability of success.

Of 181 respondents, 72 percent report that their company's senior supply chain person is a member of the board.

Just 2 percent of 181 respondents across industries say their supply chain strategies have been implemented on time and within budget. Twenty-three percent placed their initiatives in the "abandoned" and "severe difficulties" categories.

Some 13 percent of the survey respondents identify themselves as pharma supply chain decision-makers. They report having supply chain strategy reviews at about 1.8-year intervals, compared with electronics on the high end (every 1.2 years) and the automotive industry on the low end (2.4 years).

- see the report