Majority of Manufacturers Do Not Have Chief Supply Chain Officer

Global Risk Management Solutions (GRMS)

More than 40% of manufacturers experienced a supply chain disruption in the last year, yet less than a quarter of these companies have a chief supply chain officer in place to oversee and manage these business interruptions, according to the recent State of the Global Supply Chain report from GT Nexus. The supply chain solutions provider said this “gap in strategic direction to address broader supply chain agility” is a major concern.

GT Nexus surveyed about 250 U.S.-based manufacturing executives for the report. Just 2% said they were chief supply chain officers. A total of 32% said their company did not have a CSCO but did have a similar role. Another 2% said their companies did not have a CSCO at the moment but had plans to create the position. Most troubling, however, was the 41% of executives that said their companies did not have a supply chain executive position and had no intention of creating one.

Making the Case for Supply Chain Officers

2015 was a highly disruptive year for global supply chains, with weather-related events causing delays and damage, specifically in Asia. About a quarter of manufacturers in the GT Nexus report said they experienced external supply chain disruptions in 2015, which includes weather-related events as well as labor strikes. Additionally, nearly 20% of manufacturing executives said their company experienced internal supply chain disruptions like a technology problem or a lack of supply chain talent in their workforce, the GT Nexus report showed.

If a company lacks proper leadership in its supply chain, how is it able to properly respond to these events? As the GT Nexus report pointed out, proper management or “behind-the-scenes” finesse of one’s supply chain can prove to be a competitive tool for organizations.

Not having a chief supply chain officer can be detrimental to a business, GT Nexus also argued in a blog post. A company’s supply chain has a huge impact on overall business, and it needs to be managed and controlled, GT Nexus said. Without a c-level leader overseeing the supply chain, enterprise initiatives, goals and strategies will fall short.

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