A holistic oversight is crucial to ensure a resilient, agile and efficient supply chain that aligns with the company’s strategic objectives – including, its environmental, social and governance (ESG) ambitions – and therefore ensures the business maintains its competitive edge. Businesses failing to continually evolve to respond to a complex and dynamic array of influences are at serious risk of disadvantage.
Our latest guide for corporate boards, Strategic Oversight in Supply Chain Management, created in conjunction with Board Agenda, explores why supply chains are a priority for C-suite executives, highlights key challenges, and discusses how businesses can build stronger, sustainable, and responsible relationships with suppliers, strategic partners, and stakeholders, while ensuring supply chain transparency and regulatory compliance. Download the full report below.
The key is to align the business’s plans for meeting customers’ needs with its overall purpose, vision and strategy with regards to supply chain activities, with a focus on both governance and execution
Akash Patel, Director, Management Consulting, Forvis Mazars, says: “Businesses need to start with setting out a strategic direction for supply chain activities,” he says “this should be aligned with the business’s mission to fulfil demand and drive customer expectations.”
Conducting a strategic review could be the first step, including: the risks and vulnerabilities of current supply chain arrangements, how to mitigate potential supply chain disruption and governance. But it is also an opportunity to consider broader issues, from the impact of the Trump presidency to the need to reduce reliance on China.
To achieve transparency and visibility in supply chain activities, it's crucial to build a better understanding of who the key suppliers in those chains are – and, in turn, who are they dependent upon? This includes recognising geopolitical and other key risk exposures within the network and determining potential workarounds if a link in the chain is compromised.
Establishing metrics that encompass all relevant players in the supply chain will offer insights into the sustainability and resilience of vendors and other third parties, which may require extensive due diligence.
Sustainability sits at the heart of the supply chain review. Incorporating sustainable practices into supply chain activities helps reduce environmental impact and comply with regulatory requirements. This approach can also enhance brand reputation and foster customer loyalty.
“Environmental risks and broader sustainability issues, as well as social risks, loom large in the supply chain”, says Alice Strevens, Director, Human Rights and Social Impact.
Establishing clear and formal governance structures for engaging and collaborating with third-party suppliers is essential. Key governance considerations include the processes for supplier appointments, the awarding of critical contracts, and the ongoing management of supplier scrutiny.
Supply chain management is increasingly subject to regulatory scrutiny, both directly and through expanding ESG regulations. Consequently, businesses are increasingly exposed to a wide range of legislative and reputational risks. To address these challenges, organisations must establish a robust and flexible framework to fulfil their responsibilities in areas such as operational resilience, financial crime, product safety, and ESG compliance.
Risk runs throughout the supply chain and should be managed but not looked at in isolation. Effective oversight requires senior management to take a holistic approach, aligning their risk appetite with the organisational strategy, and closely monitoring key reports.
“The key is to pinpoint the triggers that necessitate action,” says Sophie Lees, Internal Audit Manager at Forvis Mazars. “Identifying risks is great, but without getting the right people informed before these risks materialise it is wasted.”
High-quality supply chain management can provide businesses with a valuable competitive edge—but poor practices can prove disastrous.
If you want to learn more about building a resilient and strategic supply chain in 2025 and beyond then get in touch with a member of our team.
Join us for our webinar and expert panel as they explore how supply chains have become increasingly complex and interdependent. C-suite leaders recognise that good supply chain management can drive competitive advantage — and a failure at any point has the potential to drive delay, disruption and damage throughout.
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According to our latest C-suite barometer, reviewing supply chains, operations and processes is the 3rd top priority for UK leaders. Beating talent attraction and retention strategies for their global counterparts. Why are executives so concerned about their supply chains and what can they do to ensure they are resilient and sustainable?
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