By Nikhil Sonawane - January 03, 2023 4 Mins Read
Shareholders have an inseparable relationship with the supply chain performance and expect the CFOs to play crucial roles in managing cost-effective supply chain to ensure a higher ROI.
The chief financial officer role has evolved tremendously and is expected to deliver more than traditional financial data reports and control expenditures. The supply chain today has become more complex and hyper connected globally, which has exposed it to various unexpected threats and risks.
For instance, the biggest example of supply chain disruption was seen during the pandemic. The Covid–19 is still continuing to create disruption in various parts of the globe. The CFOs need to evaluate the entire global geopolitical risk factors that can have an impact on their supply chain to make short-term and long-term supply chain management decisions.
Here are a few ways that CFOs can consider developing a cost-effective supply chain to increase the ROI:
It has become increasingly pressurizing, especially in healthcare, to consolidate supply chain tools, technologies, and business operations to minimize operational costs. However, CFOs need to consider that consolidation might expose them to risk. This is especially true for supply chain teams that are under-resourced to accomplish their task.
It is crucial for businesses to enforce a standardized single-group purchasing organization (GPO) policy for their entire distribution chain teams to maintain cost-effective supply chain.
The CFOs can even work cohesively with the CIOs to select all the tools to form a single vendor to consolidate the entire supply chain without exposing it to risks. It will be a challenging task for the supply chain leaders to design an effective GPO or find a vendor that fits into all the requirements of the supply chain teams and grows with them.
However, executing the tasks through a single solution restricts the team’s ability to make the most out of best-of-breed products and get a competitive advantage through it.
Supply chains that depend on a single source of truth let, that be in data or products, will not be productive or cost-efficient because it does not offer valuable insights of best-of-breed data throughout all the high expenditure areas.
CFOs can create tasks for their supply chain teams to gather valuable information from multiple sources, datasets, and products from various vendors to get better visibility. While gathering information from various vendors, enterprises can discover solutions that overlap with others and lack interoperability.
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It will be a daunting task for supply chain leaders to achieve supply chain resilience and efficiency and ensure strategic purchasing without integrating the right technology. CFOs should consider working cohesively with the CIOs and CTOs to evaluate their entire business operations to identify the tools that will help their business to improve its supply chain efficiency.
Enterprises need to look out for cost-effective supply chain solutions that are more efficient and create alignment between the processes and organizational goals. CFOs should consider migrating to a digital supply chain to stay competitive in this digital-first era. The chief financial officers can get better visibility and deeper valuable insights that determine the economic value of their supply chain and its performance.
Finance teams need to look out for opportunities that help businesses to generate higher ROI for all the participants in the end-to-end supply chain. Digital supply chains will enable businesses to gather and manage an m overwhelming volume of data to get valuable insights to make strategic changes to improve performance.
It is crucial for the C-suite to focus on investing in integrating the right tools to develop more value-driven supply chains.
CFOs can consider the above-mentioned ways to create cost-effective supply chain to generate a higher ROI.
Nikhil Sonawane is a Tech Journalist with OnDot Media. He has 4+ years of technical expertise in drafting content strategies for Blockchain, Supply Chain Management, Artificial Intelligence, and IoT. His Commitment to ongoing learning and improvement helps him to deliver thought-provoking insights and analysis on complex technologies and tools that are revolutionizing modern enterprises. He brings his eye for editorial detail and keen sense of language skills to every article he writes. If he is not working, he will be found on treks, walking in forests, or swimming in the ocean.
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