We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Selling your CEO on logistics
big picture

Selling your CEO on logistics

October 6, 2009
Peter Bradley
No Comments

Joel Sutherland has had a remarkable career in logistics and supply chain management, a career that was recognized by the Council of Supply Chain Management Professionals (CSCMP) when it presented him with its highest award this fall.

While accepting the Distinguished Service Award, Sutherland remarked that as he left his hotel that morning, he mentioned to the doorman that he was off to a supply chain conference. The doorman wondered just what that was all about. I'm sure we have all had similar experiences: Logistics and supply chain management, Sutherland noted, has a long way to go to get the recognition and respect it deserves. It is a profession that touches everyone and has made vast improvements in the way products move around the world, but it's largely invisible to the general public.

Not only is it invisible to the public, but the profession—and its role in corporate success—often goes unacknowledged in the executive suite. In a recent issue of consultant ARC's online publication Logistics Viewpoints, Adrian Gonzalez observed that CEOs have historically viewed logistics as more of a cost center than a competitive differentiator. That's why many are willing to outsource logistics operations to 3PLs. He added that the true test of whether a CEO values logistics is his willingness to invest in it.

Gonzalez argues that there's more to persuading senior management of the value of logistics than simply translating that value into financial terms. "Most of them are supply chain and logistics illiterates," he writes. The only way to get the CEO to understand supply chains, he suggests, is to get his hands dirty—picking orders in a DC, working on a dock, riding along in a truck—to see first hand what's involved. At the very least, Gonzalez says, you ought to drag execs along to some of the major industry conferences.

It's a great idea, although I'm not sure how practicable it is. The CEO who should go is the one who doesn't understand that he needs to go. The one who does understand probably doesn't need to go.

Some businesses do get it. Cliff Lynch, executive vice president of CTSI and author of a well-read column in this magazine, argues that for the last couple of decades, Wal-Mart has been one of the most important forces driving the evolution of logistics and supply chain management. (Indeed, the keynote speaker following Sutherland at the CSCMP conference was Gary Maxwell, senior vice president of international supply chain for Wal-Mart.) By investing in its logistics operations, Wal-Mart has developed a hyper-efficient supply chain that has proved time and again to be a powerful competitive advantage. Maybe the way to get your CEO to understand the value of logistics is to remind him of that.

Supply Chain Services
KEYWORDS ARC Advisory Group CSCMP - Council of Supply Chain Management Professionals
  • Related Articles

    Amware Logistics Chosen to Handle U.S. Fulfillment for Immunotec, a Top 100 Direct Selling Company

    Warehouse space sharing startup finds new CEO on dating app

    President and CEO, Michael Manzione, Shares Insight on eCommerce Industry Growth and the Future of R

Peterbradley
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.

Recent Articles by Peter Bradley

From temp to management: interview with Diane Garforth

Watching over intermodal's interests: interview with Joni Casey

Building resilience into the supply chain: interview with Yossi Sheffi

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Schneider welcomes first battery-electric truck

  • Fred Smith is not worried about Amazon

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

Now Playing on DCV-TV

D991bf51 52ad 4867 98ff b56f4fe5dd93

State of the Industry: Fluctuations & Normalcy

DCV-TV 4: Viewer Contributed
In this second of a four-part State of the Industry video series, Greg Orr shares insights on the shifting fortunes of a cyclical truckload market and what passes for normalcy in this economy. The truckload market is famous for its boom-and-bust cycles. A downturn in the economy sends the market reeling with too...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing