The DOs and DON’Ts of Chief Supply Chain Officers


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Presentations from eyefortransport’s 8th 3PL Summit & Chief Supply Chain Officer Forum in Brussels, November 2010. Visit for further resources.

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The DOs and DON’Ts of Chief Supply Chain Officers

  1. 1. In partnership with  SUPPLY CHAIN PLANNING  Press Release The DOs and DON’Ts of Chief Supply Chain Officers  TOOLS AND TECHNIQUES 06/12/10 For immediate release as agreed by over 80 industry leaders At the recent European Chief Supply Chain Officer Forum in Brussels, over 80 industry leaders debated the key DOs and DON’Ts for this growing role. The forum was organised by eyefortransport on 24/25 November in Brussels. It was run alongside the 8th 3PL Summit, attended by 300 decision makers from manufacturing, supply chain, logistics, and transport industries.  CONSULTANCY  EDUCATION  PEOPLE AND PROCESSES The CSCO Forum was chaired by Hugh Williams, Managing Director of Hughenden Consulting. The session entitled “the Rise of the Chief Supply Chain Officer” featured a panel of experts including Johan Jemdahl, Vice President Operations EMEA of Cisco; Susanna Heikkinen, Head of Global Supply Chain of Elisa; Jan Roodenburg, Former SVP Supply Management of Philips; Guillermo Fumero, Head of SCM and Procurement of Clariant International; Jaro Caban, VP Global Supply Chain of Provimi. Part 1 of the session (“If I was in your shoes”) began by inviting the panellists to offer a view on what they would have done in a variety of scenarios offered by the audience. In Part 2, the audience played the biggest part in the session, contributing their experience and advice, which resulted in the following key DOs and DON’Ts of a Chief Supply Chain Oficer: About Key Performance Indicators  Make them relevant to the lowest employee level you have  Make sure they drive down the Supply chain costs  Make them reliable yet flexible  Don’t pick too many  Don’t create a separate operational excellence or KPI team  SUPPLY CHAIN PLANNING About Roles and Responsibilities  Delegate, don’t control, but supervise and never abdicate  Have a clear agreement of the roles at the very start of your Sales & Operations Planning process  Go deep into the definition of roles: what does each mean in practice  Trust  Put people in the right rolesHughenden Ltd – The Old Courthouse, Hughenden Road, High Wycombe, HP13 5DT, England – Tel +44 (0)1494 535649 – Fax +44 (0)1494 525708 –– Reg No 4289927 – VAT No 777 1389 85
  2. 2. In partnership with  SUPPLY CHAIN PLANNING   Create high performing teams with clear responsibilities and then hold people accountable  Set up a high level business model so that people work towards the same goals  Don’t forget about the Roles & Responsibilities  Don’t create a function without knowing what it is to do  TOOLS AND TECHNIQUES About Personal Development  Do some networking  Set yourself a clear goal and be driven  Pro-actively influence the change you want  Take your time  Prepare yourself to elevate the perspective of this executive role  Don’t expect others to do it for you  Don’t cut budgets in personnel management  Don’t spend money on resources in the wrong place  CONSULTANCY  EDUCATION  PEOPLE AND PROCESSES About other departments  Involve them as early as possible  Involve finance into the supply chain through the forecasts and the process of managing gaps with the budget  Don’t speak Supply Chain language with other departments About SKU Management  Make sure you carry out a timed rationalisation  Categorise you SKU list: don’t look at it as one list  Take a global look and then be brave: eliminate! About dealing with the Board  Talk to them about costs but through the angle of profit, growth, investment  Talk to them about the personal development of employees The closing words from the Chairman Hugh Williams summed it up for everyone: “The Board still thinks Supply Chain is all about cost. Your challenge, as Chief Supply Chain Officers, is to make them understand what a strategic weapon it is. It is time to stand up and be counted!”.  SUPPLY CHAIN PLANNING  Copyright © Hughenden Ltd 2010  Page 2 of 2