Charging a CSCO to head those efforts makes it easier to collaborate across the enterprise, with the goal of operating a more eco-friendly company.
Supply chain consolidating
Companies may look to other industry categories for executives with fresh perspectives on subjects such as supply planning and global manufacturing.
"Sectors are much more open to infusing talent from other sectors, as long as they've got that leadership expertise," Collins notes.
"We will see more supply chain leaders break through into the CEO or divisional president role," Collins says.
In the days when companies put different people in charge of planning, procurement, manufacturing, and logistics, none of those executives gained a view of the entire operation.
That increase makes it more important than ever to orchestrate a company's various supply chain functions so that a decision in one area—for example, to build more distribution centers—doesn't create unintended negative consequences in another, such as the company's inventory position.
"Now that inventory and distribution often fall under the same umbrella, decisions have to balance the impacts on both groups," Heaney says.The specific title says more about a corporation's naming conventions than about the power invested in the executive who holds it."What's important is not whether you have a 'C' in your title, but whether you have an audience with the corporation's key decision-makers," Heaney agrees. Are you in the know when major structural changes take place within the organization?"By centralizing control of those factors in one position, companies achieve a better balance and make more prudent decisions." One more reason behind the elevation of supply chain executives is the increasing importance of sustainability, according to Groysberg, Kelly, and Mac Donald."Companies are finding that they can create value by executing and sharing sustainability strategies throughout their supply chains, from suppliers to customers," the authors write."It's not that the pie is being divided differently," Groysberg says. Operational excellence is more important now than it was 10 years ago." But as the head of a large, often multinational organization, a CSCO also must be a talented leader, a change manager, and a strategic thinker.