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When Supply Chain Leaders are Chiefs and not Middle Managers, Companies Perform Better: Survey Insights

June 7, 2017 | Category: Latest News | Author: Monica Frager

A recent article in Becker’s Hospital Review summarized 7 findings from the Geodis’ 2017 Supply Chain Worldwide Survey.  The primary takeaway: Operational performance increases when companies have supply chain leaders in the C-suite, as opposed to middle management.

This conclusion was the result of an independent research institute survey that polled 623 business professionals in upper management from 17 countries on their companies’ supply chains.  According to the report, all respondents have direct contact with, or management of, their organizations daily supply chain operations. 

Becker’s shared these seven findings: 

1.    Seventy percent of respondents said their supply chains were "very or extremely complex."

2.    Nearly three fourths of respondents said their companies used four to five different forms of transportation within their supply chain.

3.    Thirty-two percent of respondents cited containing cost increases as the most concerning market constraint, followed by facing global competition (28 percent) and adapting to changes in consumers' quality expectations (27 percent).

4.    A majority (81 percent) of companies are using one to three key performance indicators to assess their supply chain performance.

5.    Seventy seven percent of companies dedicate more than 5 percent of turnover to supply chain, and 43 percent dedicate more than 10 percent.

6.    More than two-thirds (67 percent) of supply chain leadership positions are held by top management or c-suite leaders.

7.    Twenty three percent of organizations with supply chain leaders in middle management had a 10 to 15 percent earnings before interest, tax, depreciation and amortization increase, compared to 74 percent companies with supply chain leaders in C-suite roles or top management roles.

To view the complete survey, click here.


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