A new study by Ernst & Young entitled Partnering for Performance Part 1: The CFO and the Supply Chain, reports that CFOs, by developing partnerships with internal supply-chain leaders, can boost their companies’ earnings. CFO.com’s David M. Katz summarizes the findings of the report. Here are a few highlights (directly quoted):
- Forty-eight percent of companies in which finance chiefs engage in such “business partnering” relationships with supply-chain executives reported EBITDA growth of more than 5 percent over the past year.
- Seventy percent of the CFOs and 63 percent of the supply-chain heads responding to the survey say their relationship has grown more collaborative over the past three years. (Half of the 423 respondents were CFOs, half supply-chain executives.)
- CFOs involved in such collaborative relationships report spending 25 percent of their time with supply-chain heads, while more traditionally oriented finance chiefs spend just 12 percent.
- Despite the perceived advantages of collaboration, just 26 percent of finance executives and 21 percent of supply-chain executives say that the CFO’s contribution to the supply chain is collaborative.