Supply Chain Management Review

Robert A. Rudzki

Survey Results - II
February 1, 2008

The survey results reinforce key themes that we have been talking about.

For example, less than one-third of the respondents agreed with the statement: “Our top management has given the supply management organization a strategic role in our company.”

Driving that to a greater level of detail, less than 25% feel they have a strategic role in revenue initiatives, and about half feel they already have a strategic role in cost reduction initiatives across all areas of spend. With regard to working capital, and capital expenditure initiatives, only about one-third of the respondents felt that supply management has been given a strategic role in their organizations.

Rather sobering statistics. Why might that be?

The answer may relate to the ability of supply management leaders to conduct credible opportunity assessments, and their willingness to develop and present a compelling business case to top management. Consider these two data points from the survey:

·        Less than one-third of respondents indicated that they have conducted a comprehensive opportunity assessment and presented the results to top management.

·        Less than half of respondents indicated that they developed and presented a business case.

·        Not surprisingly, only slightly more than one-third of respondents indicated that “top management strongly supports the supply management organization with sufficient resources and budget.”

More in my next posting.

Posted by Robert A. Rudzki on February 1, 2008 | Comments (0)