Atlanta, Georgia/August 23, 2003/ -- A majority of corporate America's chief financial officers view supply chains as crucial to achieving corporate objectives, yet only 33% said business and operational plans are well integrated, and 62% said their companies seem capable of making only incremental improvements today, according to a survey released by UPS Consulting, the strategic consulting arm of United Parcel Services, Atlanta.

The survey also found that an increasing number of CFOs said they would make improvements. In fact, UPS said, nearly half anticipate playing a lead role in supply chain decisions by 2005, compared with 34% today.

"The supply chain is a critical and influential component of any business strategy and can impact, on average, 75% of operating results," said Gene Long, president of UPS Consulting. "The role of the supply chain has long been underrated. As the chief caretakers of value creation, many CFOs are working to correct this by literally taking matters into their own hands. In the end, it's important for a company to empower the CFO to ensure that business strategies and operational plans are well-integrated."

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The survey, conducted by CFO Research Services, a unit of CFO Publishing Corp., polled senior financial executives on their involvement in and perceptions of supply chains within their companies. Some 61% agreed management of their supply chains was crucial to corporate success.

Supply Chain Management: Demand management solution optimizes material planning, improves inventory control

The survey found that chief financial officers cited two key objectives in explaining the importance of supply chain management: 93% said the need to reduce operating costs was a key factor, and 82% identified the need to improve customer service.

Chief financial officers also cited fragmention as a major weakness in the supply chain as well as an inability to measure total supply chain costs and numerous obstacles when trying to implement systems like resistance from operations and lack of internal leadership.

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