MHI Solutions

Human Resources

Ready to Transform Your Business? Add Supply Chain to the C-Suite

The emergence of the chief supply chain officer reflects the importance of the supply chain to all aspects of a business.

By Sheryl S. Jackson

The complexity of business—as retailers and manufacturers in all industries compete in an e-commerce, global world—has led to the emergence of new member of the C-suite: the chief supply chain officer, or CSCO.

This move is more than re-titling and rewarding a valuable employee—it is a reflection of the importance of the supply chain to all aspects of a business.

“In the past, supply chain usually meant procurement but today it means much more,” explains Ronald Hammond, chief supply chain officer at GOJO Industries, a global producer and marketer of skin health and hygiene solutions. “At GOJO, every process from the manufacturing to distribution and interaction with customers as we install dispensers is a supply chain responsibility.”

Hammond has seen recognition of the supply chain’s impact on business grow since he began his career in the 70s. “The most significant change that has increased supply chain’s visibility is access to data,” says Hammond. “When I began my career, information was siloed in each business division.” Not only was data kept separate, but employees in different departments did not share information or collaborate to analyze data from a holistic perspective.

“Now the velocity and veracity of the supply chain is tied to the velocity and veracity of data—how much do you know and how accurate is it?” points out Hammond. As data grows in volume and access to it requires an understanding of all parts of the supply chain and how each segment affects the other, the role is valued more as a strategic asset, he adds.

“When I began my career at PepsiCo, the direct store delivery distribution business model was seen as a competitive advantage, but only distribution was viewed as an advantage, not the entire supply chain,” says Hammond. “Today, access to data enables us to see how each segment of the supply chain affects the other—which means distribution alone won’t give you an advantage, but a strong supply chain will.”

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According to the recently released 2018 MHI Annual Industry Report, “Overcoming Barriers to NextGen Supply Chain Adoption,” eight out of ten survey respondents believe these supply chains will be the predominant model within just five years. However, the report found that the adoption of some of these technologies was slower than originally reported when MHI started the annual report in 2014. The report cites three top barriers to adoption of these technologies: 1. Making the business case for NextGen supply chain investments. 2. Tackling the supply chain skills gap and workforce shortage. 3. Building trust and security in digital, always-on supply chains. This issue of MHI Solutions focuses on the adoption of these digital solutions, from best practices in robotics and artificial intelligence to blockchain and innovations in last mile delivery.

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