Content thumbnail Partnering for Performance Part 1

Chart 2 “CFOs should be taking active steps to align the finance Which of the following factors have been most influential in creating the need for a closer relationship? (percentage) organization with the manufacturing and supply chain to make Which of the following factors have been most influential in creating the sure that finance is right at the heart of that discussion,” says need for a closer relationship? Select up to three. Simon Dingemans, CFO of GlaxoSmithKline, a pharmaceuticals 30 company . “From my point of view, the supply chain is a very high Rising external costs 32 priority in terms of shaping the operations of the company to support the strategy, but also to make it more efficient and agile.” The pace of change 27 Mutlaq Al-Morished, Executive Vice-President for Corporate 34 Finance at SABIC, a petrochemicals manufacturer, agrees . Rising supply chain complexity 27 “A collaborative relationship between finance and the supply 20 chain is of paramount importance,” he says . “Finance should never be a policeman just throwing a report over the fence and telling Changes in strategy 27 the business it’s their problem . We should be helping the supply 25 chain to work toward a solution, not just identifying problems .” Globalization of the supply chain 27 38 Rising external costs, globalization and the rapid pace of change drive a more collaborative approach Rising internal costs 26 26 Asked what has influenced the need for a closer relationship between finance and the supply chain, finance respondents point Shrinking product life cycles 24 to external costs as the number one factor while, for supply chain 27 executives, it is among the top three (see Chart 2). Increasing supply chain risks 24 19 Need for more strategic 20 oversight of supply chain 21 Inefficiencies in the supply chain 20 11 Unpredictable demand for 16 products or services 19 Impact of regulation and 15 compliance on supply chain 10 Return of the growth agenda 10 15 % 0 5 10 15 20 25 30 35 40 Finance Supply chain Partnering for performance Part 1: the CFO and the supply chain 9

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