With the right definitions in place, the leadership team can Chart 14 make a decision about the most important metrics to drive In which of the following areas do you see the key opportunities for the throughout the organization . When teams are incentivized on CFO to play a more active role in the supply chain? Select up to three. too many different metrics, the result can be confusion and lack Optimization of excise 48 of clarity around what the real priorities of the organization are . and trade incentives 47 “Over time, reporting becomes more comprehensive, everything Better understanding of 48 is being measured and what is lost is the focus on what is most working capital 51 important .” says Mr . Meadows, Americas Supply Chain and Strengthening analytical support 39 Operations Leader at EY . “A great area for a CFO to build a strong around supply chain data 31 working relationship with the head of supply chain is in the area Improving understanding of 33 of performance management . They can help align operational the cost of inventory 33 objectives to the business strategy, in order to determine the most Improving organizational design 26 critical measures to monitor strategy execution .” to aid tax effectiveness 24 Better understanding of 26 More broadly, CFOs can play a pivotal role in benefits realization — total delivered costs 44 the process of determining whether the intended outcomes of Better understanding of 26 a particular investment are actually achieved . CFOs can help to manufacturing cost and efficiency 22 set the right expectations, provide a clear understanding of the Improved compliance 17 resources required to achieve a particular benefit and ensure that with contracts 7 the benefits — which may not always be easily quantifiable — are curement More rigorous pro 13 fully understood . assessments 24 % 0 10 20 30 40 50 60 Tax incentives, customs, excise and trade incentives Business partnering finance can improve bottom-line performance Business partnering supply chain Twenty-six percent of business partner CFOs and 24% of business partnering supply chain executives see improving organizational design to aid tax effectiveness as one of the top three opportunities Joost Vreeswijk, Tax Effective Supply Chain Management for the CFO to play a more active role in the supply chain Leader, at EY for Europe, Middle East, India and Africa (EMEIA), (see Chart 14). says, “When a company is designing its supply chain and operating model, the CFO can make sure tax is brought into the equation early . If tax is left as an afterthought, the consequences can be severe. We have seen instances where make-versus-buy decisions and location choices have had to be completely revised due to the late inclusion of customs and indirect tax effects .” Partnering for performance Part 1: the CFO and the supply chain 27