Globalization also looms large, particularly for supply chain Companies’ existing structures and processes present an respondents. Global supplier relationships create significant opportunity to improve alignment and efficiency. Over the years, complexity, but also bring huge potential to optimize performance many have invested in the supply chain in a piecemeal fashion by reducing costs and driving economies of scale . Global by bolting on extra capacity to meet new demand, introducing companies also need to realign themselves to meet demand surges new outsourcing relationships or obtaining new capacity as a in emerging economies while, simultaneously, managing flat result of M&A . Supply chain functions, including procurement, growth in the developed world . “Meeting the needs of this highly manufacturing and distribution, are often poorly connected and diverse global customer base demands constant innovation as well rely on disparate interpretations of data and manual processes as huge variety and choice,” says Andrew Caveney, Global Supply that are often inconsistent . In turn, the supply chain itself is Chain and Operations Advisory Leader at EY . “It also introduces frequently not integrated with the commercial side of the business . even greater complexity, and requires companies to re-evaluate This leads to difficulties in matching demand with supply, and traditional supply chain configurations.” an uneven flow of inventory from manufacturing through to the Fluctuating demand, shrinking product life cycles, volatile customer . exchange rates and a constantly shifting risk landscape mean that Bringing different perspectives to problem solving companies need a highly responsive and flexible supply chain to be can lead to breakthroughs confident that they can deliver the right products to the right place at the right time . Equally, many sources of competitive advantage A cross-functional relationship between finance and the are now temporary at best . Rising labor costs, particularly supply chain can be the catalyst for addressing these issues . in core manufacturing hubs, mean that many price arbitrage “Breakthroughs in business performance occur when looking opportunities may be reaching their limit . at the business or supply chains from an end-to-end perspective,” says Brian Meadows, Americas Leader of Supply Chain and Growth opportunities are now more fluid and dependent on Operations at EY . “When operations are aligned with strategy, non-traditional markets. “Companies are operating in a world in and organizational functions are aligned with operating strategy, which tried and tested approaches will no longer be sufficient,” innovation breakthroughs occur . These breakthroughs can says Mark Yeomans, Leader of Supply Chain Strategy, Europe, drive greater productivity and can help the business performance at EY. “Growth is taking place in non-traditional markets and exceed customers’ expectations . Without this alignment, channels, many of which have unknown risks . Capturing this performance improvements tend to center on functional growth will require new models and collaborative approaches to improvements . A “partnering” mentality is a core cultural leadership .” attribute behind innovative breakthroughs, where the success of your colleagues is as important to you as your own success, with everyone focused on delivering the customer promise .” 10 Partnering for performance Part 1: the CFO and the supply chain