Each quarter, more companies create the position of "Chief Supply Chain Officer," or similar title to designate a single individual who has responsibility for all - or nearly all - of the traditional supply chain related functions.

In the graphic below, taken from the just released 8th Annual Global Survey of Supply Chain Progress from the consultants at CSC, readers will see a variety of places where the Supply Chain Management Organization (SCMO) fits in the corporate power structure. (We believe "DU" refers to Division Units or something representing a strategic business unit).

The Place of Supply Chain in the Organization Varies Widely

Source: CSC 8th Annual Global Survey of Supply Chain Progress

The report correctly notes there are at least three important dimensions to how comprehensive a supply chain leader's responsibilities really are:

• Centralization — degree to which a company’s Supply Chain activities are directed by a single SCM organization

• Global control — number of regional activities that are coordinated globally

• Functional span — number of supply chain activities (e.g., logistics, purchasing, planning) controlled by a SC office

The report says that supply chain performance leaders "tend to have greater global control and functional span, and the results suggest that these organizational competencies are correlated with better responsiveness and lead time performance."

Agree or disagree? What is your perspective? Let us know your thoughts at the Feedback button below.