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After a few months in her new position at Supply Chain Management Unlimited, LTD, the Vice-President of Supply Chain is lamenting the fact that she is not considered to be one of the “insider” “C-level” executives who influence overall corporate strategy and set policy. Rather, she is regarded as a competent manager who oversees certain necessary but annoying supply chain functions that mostly generate unavoidable costs, such as warehousing, transportation, and inventory control. Her span of control includes finished goods distribution but nothing else. There are separate vice-presidents of manufacturing and procurement. Each vice-president has his/her own budget and performance goals and is responsible for fully allocated (“fully burdened”) costs.
The new Vice-President solicits your help in developing compelling arguments that will convince the CEO of the strategic importance of supply chain management and that will lead to an invitation for her to join the “insider” deliberations of senior management. How would you approach this assignment? Illustrate by providing specific examples of the linkage between supply chain management and the world of the CEO.
Finally, what do you think of the organization chart at the vice-president level?
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