CEOs and CFOs express concern about materials management

In a recent survey, CEOs and CFOs expressed concern regarding the effectiveness of their materials management departments. Both groups of executives would like to see more improvement in their materials managers' supply expense reduction efforts and leadership skills. More than a third of CFOs are even considering outsourcing the materials management function. Both CEOs and CFOs did admit, however, they needed to learn more about materials management, and both groups of executives could lend their authority to materials management programs to ensure their success. CEOs and CFOs need to reach consensus regard materials management priorities, performance levels, and professional characteristics and desired skills. They also should hold materials managers accountable for operations they can and should be managing by using performance-based compensation.