3 Ways the CFO Can Improve the Supply Chain and Profitability
This article, published on CFO.com, discusses the crucial role CFOs can play in improving the supply chain.
The supply chain is the backbone of any company, and its performance and efficiency can make or break a company’s competitive advantage and profitability. However, many mid-sized supply chains are plagued by silos, fragmentation, and complexity, leading to high costs, limited visibility, and increased risks. To overcome these challenges, companies must excel in three key areas: aligning their supply chain strategy, managing risks, and achieving full integration and standardization.
Key Insights for CFOs from the Article:
- Strategy: Aligning Supply Chain Performance with Business Goals
- Many mid-sized companies struggle to effectively manage their supply chain strategies, leading to profit losses. CFOs must ensure that pricing policies and other measures are regularly evaluated and adjusted to minimize the effects of inflation and identify hidden margin losses.
- Risk Management: Resilience in the Supply Chain
- Ensuring continuity in the supply chain through resilience is crucial, especially in light of unforeseen events such as pandemics. CFOs need to conduct thorough risk assessments and implement strategies to reduce vulnerabilities and ensure business continuity.
- Integration and Optimization of the Supply Chain
- Integrating the supply chain through processes, data, and technology is essential to improving efficiency, reducing costs, and enhancing visibility. CFOs must ensure that their supply chain is fully integrated into their ERP systems and continuously work on optimization to support better decision-making.
These insights highlight the crucial role of the CFO in improving supply chain performance to enhance the company’s profitability.
Sources:
'3 ways mid-size company CFOs can strengthen their Botton line' gepubliceerd op CFO.com
https://www.cfo.com/spons/3-ways-mid-size-company-cfos-can-strengthen-their-bottom-line/719825/
