When presenting at a conference, one of my favorite questions to ask an audience is this: “Please raise your hand if you believe that most senior executives around the world understand the enormous potential of modern supply management.” At best, 10 percent of the audience raises their hands.

The follow-up question takes the next logical step: “Keep your hands raised if you believe that those same executives understand how to achieve that enormous potential—how to build the transformation roadmap.” Typically, no hands remain raised.

Is this an indictment of most senior executives? Or, is it an indictment of supply management leadership for failing to create executive awareness and develop the business case for what we can do? Or perhaps both?

This article addresses those tough questions. It offers real-world ideas on getting top management's attention to the real potential of supply management by highlighting the bottom-line implications. That's followed by the presentation of a set of guidelines, or “dimensions,” for transforming supply management from a transaction-based reactive function to a powerful strategic force. Included in this discussion is practical advice on selecting the right organizational design to support the transformation effort.