Turning operations into outcomes by making the supply chain a strategic asset

Once considered a back-office function, the supply chain has emerged as a central driver of growth, resilience, and innovation. Yet only 29% of supply chain organizations are considered “future ready,” with the resilience and integration needed to support enterprise strategy.

In an era of economic uncertainty, shifting tariffs, climate disruption, and the rise of AI, that gap limits agility and competitive edge. The pandemic proved the point. Companies that treated their supply chains as strategic assets gained market share. Those that didn’t fell behind.

Speaking the language of the C-Suite

For executives, operational measures mean little unless they are connected to strategic goals and objectives. Supply chain goals and metrics must be translated or linked to these broader objectives, like growth, margin expansion, customer experience, or sustainability. A familiar metric like “shelf-in-stock,” for example, could be translated into its contribution to "supply chain-driven sales" so executives clearly see its impact on revenue.

The most effective leaders act as translators, showing how reduced lead times create revenue opportunities, or how improvements in master data can positively impact performance. They frame trade-offs in terms executives understand, presenting clear options with their respective costs, benefits, and strategic implications so leaders can make informed choices. Telling the story of the business and functional integration play a critical role in making these connections real. In one example, a company avoided millions in capital investment by adjusting product specifications in ways that enhanced customer experience and improved capital utilization. This required a broader understanding of business impact and multiple functions working together to achieve those results. This led to a “win-win-win” across finance, operations, and sales. By presenting operational results in business terms, supply chain leaders gain credibility at the executive table.

Closing the gap between strategy and supply chain 

Despite their critical importance, supply chains often fail to reinforce linkages to strategic goals and objectives. Metrics may track service, cost, and cash without connecting them to enterprise value such as revenue gain, margin expansion, cash conversion cycle, and cash improvement. On the flip side, a misalignment might look like a company pursuing aggressive growth while operating networks built primarily for cost containment. Underinvestment can persist when the function of the supply chain is seen as a necessary evil rather than a growth driver. These disconnects weaken agility and competitiveness.

Leadership commitment is essential to overcome this gap. In one inventory reduction effort, supply chain leaders modeled the long-term costs of old practices against the gains of new behaviors. Once executives saw the stakes, they actively backed the change, working alongside the organization to shift behaviors such as improving forecast accuracy and building changeover capabilities, among others. That sponsorship proved critical to the effort’s success.

Embedding supply chain in enterprise decisions

Processes such as Integrated Business Planning (IBP) can help institutionalize the role of supply chain in corporate strategy by embedding it into portfolio, capital, commercial, and financial decision-making. In addition, scenario planning capability can provide the impact of options and quantify their outcomes. A robust data strategy underpins both approaches. Clean, reliable metrics not only prove results but also allow leaders to tell compelling stories about the value they create, building credibility at the board level. 

From cost center to competitive engine

When the supply chain is fully aligned with corporate strategy, it can transform from a functional necessity into a competitive engine. The results can be dramatic. For example, companies that have successfully implemented a capable IBP process often see substantial top-line growth, significant increases in shareholder value, and stronger profitability. In the food and consumer goods sectors for example, organizations have demonstrated that it’s possible to achieve service levels above 99% while also maintaining lean inventories, balancing capital efficiency with exceptional customer experience.

Connecting the supply chain with the C-suite is no longer a functional upgrade, it is a strategic imperative. Leaders who recognize this and act decisively will set the pace in their industries. Those who do not will be left reacting to the moves of better-aligned competitors.

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