Supply chain partnerships help optimize operations

One of the biggest trends in  the current business landscape is collaboration between departments and tearing down the walls that separate employees. For example, technology departments have been brought out of the shadows and into the mainstream as tech systems become central tools to the success of nearly every company.

Another place where this kind of partnership is starting to develop is between finance and the supply chain. According to a recent article from CGMA Magazine, a strong relationship between CFOs and supply-chain decision-makers can help any organization boost earnings.

A study from EY Research also backed this idea up. A survey of 423 finance and supply-chain executives from 20 countries said their relationship has become closer over the last few years. However, only 26 percent of financial executives and 21 percent of supply-chain executives said the contributions of the CFO toward the supply chain is primarily based on an enabling and collaborative business partnership.

For those that are working closely together toward the same goal, an increase in production was reported. There were 48 percent of respondents citing a close business relationship and they reported a more than 5 percent increase in earnings. The report says this collaboration is like "unlocking hidden value within the organization and strengthening financial performance."

The traditional partnership sees CFO monitoring supply-chain matters but working more closely with COOs than the actual supply-chain executives. However, with increased internal and external costs, emerging new markets, shorter product life cycles and ongoing economic uncertainties, the role of the supply chain is more critical than ever.

"Finance should never be a policeman just throwing a report over the fence and telling the business it's their problem," Mutlaq Al-Morished, executive vice president for corporate finance at Saudi Arabia-based petrochemicals manufacturer SABIC, said in the EY report. "We should be helping the supply chain to work toward a solution, not just identifying problems."

Being able to form this kind of relationship is not always easy, especially when many companies are struggling to optimize their supply chain solutions. With the help of a third party logistics firm, any company can maximize their shipping, warehousing and logistics services while setting the ground work for solid collaboration with other parts of an organization.