Why are CEOs allocating more of their valuable time to thinking about their supply chain?
Traditionally, when a CEO paid attention to his or her supply chain, it meant something had gone wrong. Strategically, compared to other areas of the business, the supply chain was a relative backwater. The conventional wisdom held that so long as you kept pace with your industry’s averages, you were doing fine. Although companies were only too eager to participate in arms races with competitors that saw sky-high R&D, marketing and legal spends, for some reason when it came to their supply chain, they were content to march lock-stop with even their most bitter rivals.
Having spent a lot of my time in 2013 in the board rooms and corner offices of companies around the world, I can say without a doubt that this is no longer the case. If the supply chain was once about the status quo, now it’s about disruption. The continued march of globalization, as well as diverse technology trends such as automation, “Big Data” and cloud computing have all brought the supply chain to the CEO’s attention.
Image by flickr user photojenni