Supply Chain Is All About Value
A blog post by the chairperson of the American Council of Sourcing and Procurement Executive poses a very interesting idea. That the job of the chief procurement officer has changed so much over the past few years that the title is no longer accurate. Most who conduct this job today do far more than source, buy and manage the supply chain.
As a company that works closely with those involved in supply chain, we know firsthand that supply chain touches every area within an organization. As a result, supply chain has the direct ability to create value across all areas of an organization.
The blog post suggests a title of chief value officer. Now, I am not sure that this doesn’t come with the unintended consequence of implying that creating value isn’t everyone’s job but I get the underlying point and agree with it. Creating value through the supply chain is what every exec in supply chain cares about. Because supply chain literally touches every department in an organization—healthcare or otherwise—looking for value every step of the way simply makes sense.
Sure, supply chain is looking for cost savings, but value goes far beyond that and includes revenue, profitability, customer/patient satisfaction, employee satisfaction and so much more. Recognition of supply chain’s strategic value contribution needs to continue/increase.