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-August 28, 2008

 
 

Supply Chain Graphic of the Week - Executive Priorities for the Supply Chain

 
  Cost Reduction Tops the List, in the Face of Spiraling Input Prices; Carbon Emissions Barely on the Radar  
 

By SCDigest Editorial Staff

 
 

What is at the top of mind in terms of the supply chain for CEOs and other high ranking corporate executives?

A recent study of nearly 300 executives by McKinsey sheds some insight. As shown in the graphic below, reducing supply chain costs, not surprisingly, is strongly at the top of the priority list, driven in part by the pressure rising energy and commodity prices are putting on the bottom line.

CEO Priorities for the Supply Chain

Source: McKinsey Quarterly

Improving customer service, reducing the innovation lifecyle, and reducing supply chain risks also scored highly on the results.

Perhaps more surpisingly, reducing the corporation's carbon footprint scored extremely low on the priority scale.

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