What are the advantages of Supply Chain reporting independent to Operations? Matrix organisations are used to deal with geography and cost constraints. But do you find that the matrix reporting dilutes the focus of the function?

813 viewscircle icon4 Comments
Sort by:
Sustainable Supply Chain Adviser in Healthcare and Biotech7 months ago

Great replies so far from the others! I'd add that beyond all these, the people factor is always there.
One has to have very strong organisational capabilities and structure already in place to keep that alive and find the right leadership to it.
If that is lacking, then it may be a good option to choose a different organisational structure and strategy.

Founder8 months ago

Good question. This is the organizational authority issue where companies may not have a clear vision of what roles and strength of having a true SC function where it can either integrated well into the Operations as a cross-functional department or as a separate department. Either way, SC should have the authority to bring transformation by reporting to a CSCO (whom reports directly to CEO) and You probably already realized how challenging it is to be reporting to Operations as it hinders the strength of SC function to comply/confusing with Operations objectives/goals instead of focusing on the end customer's needs which is the end goals of why the business has ever existed in the first place.

Lightbulb on1
Director of Supply Chain in Manufacturing8 months ago

I have seen that when operations includes supply chain, it results in lack of strategic supply chain focus and skill development so the SC team stagnates relative to the real value supply chain can bring to the business.

Lightbulb on1
Director of Supply Chain in Manufacturing9 months ago

this one is always a balance. Having supply chain/supplier management directly reporting to operations may appear to give greater accountability for near-term deliverables and make ops feel more 'loved' but often dilutes the overall supplier relationship, linkage to contracting and long term strategy with suppliers. It also potentially pigeon-holes buyers and other staff in the function such that 'strategic' and 'operational' buyers get further apart and become non-interchangeable.

Lightbulb on1

Content you might like

Reducing Carbon Emissions and Energy Usage47%

Ethical Sourcing and Fair Labor Practices52%

Waste Reduction and Recycling Initiatives44%

Implementing Eco-friendly Packaging Solutions43%

Supporting Local Communities and Social Welfare Initiatives44%

Enhancing Supply Chain Transparency and Traceability Using Technology22%

Investing in Renewable Energy Projects and Carbon Offsetting28%

View Results

< 40 hrs11%

40 - 55 hrs68%

56 - 65 hrs21%

66 - 75 hrs7%

76 - 85 hrs1%

> 85 hrs

View Results