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Supply chains are too important to leave to junior management

Andrew Cave
Daily Telegraph 20 May 2008


In The Daily Telegraph's  'View from the Boardroom' series, this article argues that supply chain management is sufficiently business critical to merit Board-level representation. For example, supply chain disruption can result in a 20 % reduction in a company's share price, and key financial messages in the accounts can be linked to the supply chain function. The article continues:

'Indeed, Martin Smith and Chris Poole, of PA Consulting Group, point out in a Financial Times article in December 2007 that, back in 2004, consumer goods group Procter & Gamble was attributing some $1bn in annual sales growth to a new supply chain management approach.

' "P&G made a strategic choice and the CEP drove it through the business with the board giving it full and personal endorsement," they wrote. "The supply chain became a significant board-level topic with action plans driven down through the entire organisation." '

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