Why Operations Experts Are the New CEOs

As the era of Supply Chain CEOs beckons, have operational expertise and resilience replaced finance and sales as the primary pathway to corporate leader?

The corporate world is experiencing a transformation in the profile of the CEO.

Historically, the route to the chief executive's office was built on expertise in senior finance roles or the intensity of sales leadership.

Yet, in a period characterised by global instability and disrupted supply networks, the capability to source, produce and deliver products has emerged as the most valuable skill in the boardroom.

Could the era of "Supply Chain CEO" be upon us?

Supply chain management has evolved beyond a back-office operation; it could now represent the central nervous system of the modern corporation.

Professionals working in this field cultivate a decathlete skillset that appears uniquely aligned with the requirements of a global chief executive.

End-to-end visibility sets these leaders apart. Unlike a CFO concentrating on financial statements or a Head of Sales focused on customers, a supply chain leader must understand every aspect of the business.

From sourcing raw materials in far-flung markets to ensuring final delivery at a customer's location, they observe the complete big picture of value generation.

Resilience and crisis management form another critical dimension. The supply chain typically serves as the first department to navigate challenges such as a pandemic, geopolitical turbulence or climate-related catastrophes. These leaders are battle-tested in disorder, having refined the skill of making critical decisions under significant pressure.

Cross-functional diplomacy represents perhaps their most valuable trait. Success in supply chain demands continuous negotiation with marketing on demand forecasting, finance on capital investment and external suppliers. They are instinctive collaborators capable of aligning a dispersed organisation.

What this trend points to is the realisation that in highly competitive markets, your supply chain can be your competitive advantage. Also, that the supply chain is the lever that runs through every other department. And that collaboration and the aligning of incentives are the keys to achieving supply chain outcomes.

Source: Supply Chain Digital

Image Source: GEP