Note To C-Level Executives: Get Serious, Or Get Seriously Hurt!
Overall, CEOs and C-level executives are not happy about soaring freight costs, and they have questions about the CODE RED conditions in the transportation marketplace. They also are questioning what their companies should be doing to address how supply chain issues are impacting their operations and…
One of our recent Two Minute Warnings raised an important question for C-Level executives: “How serious are you about addressing your transportation and supply chain issues?”
The response has resulted in some very interesting conversations with CEOs and C-Level executives. Overall, they are not happy about soaring freight costs, and they have questions about the CODE RED conditions in the transportation marketplace. They also are questioning what their companies should be doing to address how supply chain issues are impacting their operations and bottom line profitability.
Answering their questions about events in the logistics industry is pretty straightforward. Answering their questions about cost mitigation strategies or what their company could be doing to protect their supply chains is another issue. That is why I preface my comments with this reminder: When it comes to managing supply chain and logistics issues, your company has two choices: get serious or get seriously hurt.
Most C-Level executives want to believe that their company is serious about supply chain issues. But there are a number of indicators that show C-Level executives may not be as serious about their supply chains as they need to be.
As MIT Professor David Simchi-Levi noted in a recent webcast we hosted for C-Level executives, most companies have never stress tested their supply chains and identified their vulnerabilities.
Many C-Level executives can’t pass a brief, three question Supply Chain Diagnostic quiz that identifies “must have” supply chain capabilities.
With no written Transportation/Supply Chain Spend Management Plan that includes contingency planning, they often find themselves in a reactive, or “firefighting,” mode to keep their business running.
They overlook the impact of how their “siloed” and “turf protecting” organization is affecting their supply chain and ability to compete in the marketplace.Participants in two of our recent webcasts heard a common message: Read more here
By: Mike Regan