Content thumbnail Partnering for Performance Part 1

The majority of CFOs and heads of supply chain in a business Building end-to-end visibility improves the quality partnering relationship surveyed are in agreement that there is of decisions good or excellent alignment between the supply chain and broader The CFO’s access to numbers from across the business, and their strategy across all key metrics measured (see Chart 12). broader view of the day-to-day operations, gives them a different, Chart 12 and perhaps more neutral, perspective in interpreting data . This How would you rate the following aspects of alignment between the position enables them to produce a fact-based, single version of How would you rate the following aspects of alignment between the supply chain supply chain and broader corporate strategy? the truth for the whole business . Eliminating information silos also and broader corporate strategy? (percentage) (Shows 1 or 2 ratings on a scale from 1 “excellent” to 5 “poor”) helps to defuse arguments over which set of numbers to believe . Use of technology to achieve a “Having consistent data and systems frees up individuals to have holistic, enterprise-wide view of 87 a more constructive dialog about the value they can bring,” says the supply chain performance 91 Simon Coombs, E&P CFO of Reliance Industries . “They are no Level of communication between 83 longer fighting over which version of the truth is right.” finance and the supply chain 78 Mr. Dingemans, CFO of GlaxoSmithKline, agrees. “If every part of Operational alignment between 81 the supply chain has its own data, then you have lots of debate finance and the supply chain 87 over comparability . An integrated supply chain depends on data standardization, data comparability and simplification. This means Consistency of processes across 76 that people can see a total cost picture, which is what drives finance and the supply chain 84 commercial behavior .” Quality of governance and reporting lines to ensure alignment 65 CFOs also bring an element of consistency to the way that between finance and supply chain 69 decisions are evaluated, which can build trust throughout the Degree of alignment between business. Greater involvement from finance as a link, often supply chain and broader 65 alongside the COO, between commercial and operations, for corporate strategy 82 % example, can help to provide confidence that decisions are being 0 10 20 30 40 50 60 70 80 90 100 made from an informed standpoint . “Once we have a good idea Business partnering finance of how much product we are going to sell, we can build a strategy Business partnering supply chain around that and optimize our manufacturing footprint to deliver it,” says Matt Hilzinger, CFO of USG, a building supplies company . “As a CFO, it gives me comfort to know that we’ve got some science behind this and that the recommendations being put forward are analytical, fact based and not based on someone’s theory or emotional view of the industry .” Partnering for performance Part 1: the CFO and the supply chain 21

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