Partnering for Corporate Performance - Finance & Supply Chain  

7 December 2015:

The importance of both the CFO and the supply chain have grown in recent years. In fact, their rise in the corporate hierarchy appears to have occurred almost in tandem since the financial crisis, and as CFOs have positioned themselves more as a business partner, so too has the supply chain gained a seat at the table.

This has led to something of a coming together for the two. An EY report in 2013 found that a closer working relationship between CFOs and supply chain leaders tends to yield the best results for the company. However, it also showed that building a real partnership between the two is yet to become common practice, with just 26% of the finance executives and 21% of the supply-chain executives saying that their CFO’s contribution to the supply chain is focused on creating an enabling and collaborative business partnership.

The benefits of integrating the two functions are many. It is essential to have a supply chain strategy that is aligned with the broader corporate and financial goals of the business. The CFO is perfectly positioned to provide a holistic viewpoint, offering end-to-end visibility across the supply chain that can help identify and manage risks. Perhaps most importantly, they have access to all of the firm’s data, including accounts payable, accounts receivable, manufacturing data, cost of goods sold, and vendor records. They can use this data to pinpoint risks to the supply chain and factors that may slow it down, and help to mitigate for them.

Read more

Source: The innovation Enterprise

Sign up for our newsletter to receive more financial insights once a month!

« Back   View List



Our Partners

The Corporate Leaders Network

Tangible Impacts of Accounting Transformation