Executive-level supply chain leaders on rise

The Tompkins Supply Chain Consortium study surveyed leading retail and manufacturing companies.

The executive briefing, The Structure of Today’s Supply Chain Organizations, based on the survey, observed that over the past five years, the organizational level of the most senior supply chain executive has moved gradually higher.

Nearly half the retail and manufacturing companies that took part in the survey were found to have a supply chain leader at or above the executive vice president level.

Bruce Tompkins, Executive Director of the Consortium and author of the briefing, acknowledged the increasing dynamism and agility of the supply chain.

With the pressure on organizations to keep pace with the ever-changing supply chain, Tompkins said companies are starting to realize the significance of having a high-level supply chain executive influence business strategies.

The survey found that the title of Chief Supply Chain Officer is growing in use, although there remain some areas within companies that lack collaboration between these executives and other areas of the organization.

The results revealed that over a quarter of retail companies and 14 percent of manufacturing companies have no formal process for aligning supply chain goals.

Within manufacturing companies, goal alignment is achieved through reporting to a single executive, while retail companies have their common supply chain goals established by senior leadership.

“These gaps in goal alignment indicate significant opportunity for better communication and integration of supply chain functions,” Tompkins added. However, he noted an increasing trend “toward resource sharing across divisions and business units”.

Download the executive briefing here.

www.supplychainconsortium.com