7 Things A CEO Must Be Aware of Regarding Supply Chain

Posted by   Jeremy   |   Categories :   Industrial

Company CEOs aren’t always aware of the details of their company’s supply chains strategy. For a CEO, one of the most significant differences between running a successful business instead of a struggling company is possessing an intimate knowledge of how their company’s supply chain operates.

Gaining control of the supply chain is a must for every CEO. Read on to learn seven things you should understand about your supply chain.

1. Determine if Your Supply Chain is Strategically Developed

Supply Chain

A company’s supply chain must be created strategically for it to be sustainable. Take a look at your supply chain to determine if your current model supports your company’s business strategies. When it comes to the supply chain, many companies fall short by failing to evolve as business trends change.

2. Put Qualified People in Charge of the Supply Chain

Educated People

In addition to analyzing the supply chain’s development, it is important to reconsider the people that are heading up the supply chain. In some companies, there is a designated position for a director of the supply chain. When determining who should be in charge of the supply chain, it’s important to start with someone that has experience in supply chain management. While this sounds like a no-brainer, far too many companies today have inexperienced managers in charge of their supply chain.

3. Compare Both Supply Chain and Business Strategies

When looking at your supply chain and business strategies, you’ll want to identify if they share common goals. If both of these strategies don’t align, you’ll find that your business will never run smoothly.

For example, a company that has a business strategy focused on growth and a supply chain strategy based on cutting back as much as possible, you may find that your company will never be on the same page. To ensure that your customers are getting their needs met, keep your supply chain in sync with the rest of your business.

4. Figure out if Your Metrics are Working


When thinking about supply chain management, it’s important to know whether or not your metrics are working. Reviewing your measurements with a service like Carpedia should help you determine if your current supply chain strategy supports growth on a company-wide scale or if it simply furthers the mindset of working as part of a functional silo.

5. Ensure the Supply Chain Allows for Quality

supply chain management

The operational performance of the supply chain is another important factor. Quality management in the supply chain isn’t necessarily about performing product inspections, rather, focus on building quality into the supply chain. Companies can improve their supply chain’s operational performance with the help of services like Carpedia.

6. Understand What the Supply Chain is Costing You


Knowing the ins and outs of the supply chain will help you determine how much it is costing you. In certain cases, some companies that run inefficient supply chains are losing money.

To avoid any unnecessary losses in the supply chain, be sure to measure your costs through your sales percentages and cost per order. Moreover, the cost of your supply chain should read as storage costs, inbound costs, and the total cost of the supply chain.

7. Practicing Supply Chain Efficiency

Supply chain triangle

When a company’s supply chain is running as efficiently as possible, your cost of goods sold and your operating costs will be much lower. In order to improve supply chain efficiency, businesses must tailor their service to provide customers with a tiered service experience.

CEO’s aren’t always in the know when it comes to the supply chain, but they should be. Use these seven strategies to get in control of your business’ supply chain and better understand how to improve your company.

July 13, 2018