A CFO is intimately aware of the deficiencies his/her supply chains might face any given day. Here is a perspective on how a CFO might be able to revamp supply chains to better serve the company he/she caters towards.
Meta: There is a lot of opportunity in innovating the mode of functioning of the supply chains that make up for your organisation’s continued mode of functioning. A CFO is not only perfectly placed to make these changes but at the same time can drastically innovate for a better future.
Supply chains can often be described as the life blood of an organisation. Supply chains are implicitly responsible for transforming a resource from its initial raw state into finished goods that are ready for the market at large. Supply chains are a critical feature of how capitalism thrives and organises itself as a means from which everyone benefits. The modern day CFO has an awesome responsibility when it comes to successfully integrating supply chains with the advanced technological barometers that he/she has available at hand. At an intricately nuanced level, there is also the question of cost cutting that can be forced out of an effectively managed supply chain management system. Here is a look at the strategic shift CFOs need to adopt in order to manage their supply chains in a better manner that can complement their companies and lead to overall success.
Making Use of Data Analytics
Supply chain disruptions cost money. They lead to serious money flow issues and negatively impact the company at a macro level. Data analytics has immense potential to solve this issue. The CFO, with the best access to account receivables, manufacturing data and vendor records is rather well placed to combine all of these data streams for the purpose of effective analytics. Hence, risk mitigation when it comes to supply chains will help CFOs function better and possibly avoid future risks. Data analytics patterns can also be repurposed to find reliable supply chains that would be supported by the weight of sheer numbers to be able to perform adequately for the long term.
Generating More Value
The CFO can collaborate with supply chains in a bid to maximize the value created inside an organisation. This can happen through a thorough study of the tacit deficiencies that make up for the diminished functioning of supply chains that a company deals with on a regular basis. The need at the moment is to make informed choices that can measurably improve the modes of functioning that supply chains of today take for granted. Making these choices will alter the frame of reference with which most organisations interact with their supply chains and help bring in value-added benefits at a macro level. The CFO is again well placed to spearhead these changes because of his/her access to valuable data.
Business Partnering Models
This is another way in which supply chain systems can work in close quarters with CFOs and administer specific changes for the practical viability of innovative business practices. Developing a partnership model of business function with the supply chains you choose to work with can offer very tangible rewards. This is because this mode of specificity helps a CFO choose the right partners as supply chains and consequently decrease the number of firms he/she would deal with. Not only can this bring down costs but the importance this decision would hold for the increased efficiency of your organisation will also be practically immense. Adopting this level of specialisation will exemplify your future growth prospects and limit the risks that your company would go through while dealing with supply chains.
Supply Chain Reinvention
It is possible to revamp the entire process system that is already in place for how an organisation interacts with its supply chain. This can lead to positive reinvention and add the potential for huge growth for any company that needs to set up improved supply chain management systems. A CFO can essentially move a supplier closer in order to cut out the operating costs that come out of bypassing lengthy transportation protocols. Scenario planning is another step that would have packaged benefits for the growth of a company. If a CFO can successfully optimise his/her supply chain in regard to the constantly changing demand forecasts of today’s markets, such an action would pioneer valuable cost-cutting methods. This is, in fact, possible through the advanced data analytics techniques that are available in the market today. The results are there to be achieved, it is only a matter of combining technology intelligently with basic business acumen.
Supply chains are a critical part of how businesses run today. The level of dependency on supply chains has only managed to grow over the years. These ushers in a time frame that requires old protocols to be upended for innovative new ones, the kind that will disengage already established systems and form new alliances that are invariably formed to generate efficiency.