Content thumbnail Partnering for Performance Part 1

Ten steps for CFOs toward a business partnering relationship with the supply chain Take the pulse of your relationship with the supply chain. How collaborative is it? Is finance perceived as a gatekeeper or policeman? If so, these steps will help you to put the relationship on a more collaborative footing to drive higher performance . Make time for the supply chain . Business partner CFOs 6 Help drive supply chain performance through 1 spend an average of one day a week working with the an integrated operating model. Ensure that supply chain or on supply chain issues . direct taxes, indirect taxes, transfer pricing and the legal entity are integrated to the model . Allocate finance resources to the supply chain . 2 Determine whether the right finance resources are 7 Focus the supply chain on the metrics that matter. in the right places to enable a business partnering KPIs should consistently encourage the behaviors relationship . This may require a combination and outcomes that drive value . of “embedding” finance executives within the supply chain function and closer collaboration 8 Identify performance incentive misalignment. with the main finance function. Performance incentives across functional areas should be consistent and should support the broader Review the S&OP process . Your involvement can help business strategy . 3 to build stronger bridges between the commercial and operational sides of the business, and ensure that their Consider centralizing business functions. objectives are aligned . 9 Centralization of functions, such as procurement, can reduce costs, enhance risk management, Ensure business decisions are driven by a data- streamline processes and increase tax efficiency. 4 based single version of the truth. Discourage multiple interpretations of master data by different functional 10 Look deep in the supply chain for risks. Risks that lie areas. Position finance as the owners of the data. in secondary or tertiary layers are more difficult to manage, but they can be just as damaging . Support investment decisions. Business partner 5 CFOs are involved throughout the investment life cycle, from choosing an asset for investment through to managing its performance, retiring it or reinvesting in it . 34 Partnering for performance Part 1: the CFO and the supply chain

Partnering for Performance Part 1 - Page 36 Partnering for Performance Part 1 Page 35 Page 37