Supply Chain Experience at the C-Level
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There is growing support for C-level executives to bring supply chain management expertise to the boardroom. While not universal, this support has become more credible after Tim Cook ascended to the CEO position at Apple, when Steve Job’s physical health issues forced him to step down.
Michael Koplov (softwareadvice.com) supported this theory in his article “Consumer-Driven Technology Creates the Need for a C-Level Supply Chain Focus.” Koplov believes that the most intriguing facets of Cook’s career at IBM, Compaq and Apple are his manufacturing and supply chain experience. The author believes this reinforces that contemporary corporations should view this promotion as an indicator of the value of supply chain skills in the C-level suite.
Koplov goes even further to state that “a supply chain expert on the board of executives can push for the complete integration of business initiatives and supply chain strategy.” He also believes that there is a national lack of talent and expertise in the supply chain field that could lead to an executive management shortage in the future.
Observers Not Unified on Need for C-Level Supply Chain Expertise
Fellow author David M. Kasprzak, writing for myflexiblepencil.com (September 2011), reviewed Koplov’s article and had some interesting counterpoint views. Kasprzak’s opinions are well-founded, thoughtful and well worth considering.
While he seems to agree that strong supply chain expertise is valuable, it need not be a prerequisite to qualifying for the executive management suite. His reasons for this position include the following observations:
While efficient supply chains are important and can offer a strategic advantage, they can only excel if your company’s products are in demand. Efficiently overproducing products that the marketplace does not want is expensive and damaging to your brand. Should your products have finite shelf lives, as some technology products seem to endure, the most efficient manufacturing and supply chain operations will become a heavy anchor on your corporate ship.
Apple may be a poor example to use as a foundation for the needed supply chain expertise premise for senior management. Steve Jobs and Apple have been masters at creating demand well before putting product on the shelves. Their evaluation tools and pre-production hype have been wildly successful under Jobs’ leadership. Apple’s supply chains are noted for efficiency, but they typically have a devoted, hungry customer base ready for their new products.
Every division leader wants representation and a voice at the boardroom table. While understandable, even uplifting, different organizations and industries often need different voices than others. For example, HR leaders want a seat at the C-level table by proclaiming that all the financial, marketing and operations systems on the planet are useless without strong talent and an engaged, committed workforce. Although true, some organizations and industries may be less dependent on outstanding talent than others, minimizing the decibels of an HR voice in the boardroom.
While a responsive, efficient supply chain is critical to efficient operations, this function remains a cost,not a revenue center. Companies still focus first on revenue generation. Corporate bottom line success starts—and sometimes ends—on strong revenue streams. Cost control and superior supply chains are important, but, alone, seldom contribute to increasing revenue. For this reason, product development, marketing and financial operations will keep their boardroom seats, while other function leaders continue to strive for equal recognition.
Strong demand helps supply chain management gurus ascend the corporate C-level ladder. B-schools continue to tout the outstanding supply chains and evaluation tools of Toyota, Dell, Wal-Mart, and Southwest Airlines for good, solid reasons. Their promises create high demand for their products and services. Their superior supply chain management and operations increase that demand, as they consistently deliver on their promises.
As an important component of a corporation’s overall management/operations/marketing strategy, supply chain management becomes highly prized. The expanding volume of e-commerce and catalog sales presents diverse challenges to company senior management. C-level and boardroom candidates that bring outstanding supply chain credentials to employers are becoming ever more valuable.
To become business “superstars,” these candidates appear to need the cooperative efforts of other intra-company leaders, to maximize their supply chain expertise in the C-level suite. Those professionals leading “demand magnets,” such as Dell and Apple, can achieve noteworthy success.
However, other companies, still challenged to create high demand for their products and services, may need to equally focus on recruiting (or developing) talented product development, financial and operations leaders. Supply chain experts will still bring high value to the executive management team. Those with outstanding leadership ability and vivid global corporate vision can deliver the boardroom skills to achieve superior business success.
Source:
http://myflexiblepencil.com/2011/09/30/article-review-supply-chain-at-the-c-level/