CFOs: Your Supply Chain May Be Undermining Your Financial Commitments And Your Credibility! You can build a solid financial plan, commit to an EBIT target, and present a confident forecast to your board. But how much of that plan depends on a supply chain you cannot fully see, predict, or control? Supply chain risk is not just an operational problem. It directly threatens financial performance and your credibility as CFO. One supply chain disruption can erase 30-50% of a year’s EBITDA (McKinsey). Often 50-80% of your revenue depends on a supplier network you don’t control. Here is what is at stake: EBIT and profit: Expediting fees and emergency freight quietly eat the margin you promised the board. Production stoppages, lost sales, idle capacity, and unexpected sourcing costs turn planned profit into missed targets. Cash flow and working capital: Disruptions force unplanned spending, tie up cash in precautionary inventory, and delay customer payments. Regulatory failures can trigger penalties, compensation claims, and additional costs. Forecast accuracy: Every supply chain shock that hits cash flow makes your forecasts look wrong. Every unexpected revenue shortfall puts your financial plan under pressure. Your credibility & reputation are on the line: This is where the issue becomes personal. When your financial commitments repeatedly miss the mark due to supply chain issues, your credibility is on the line. What should CFOs do now? ✅Sit at the table when the risk map is built. ✅Demand a clear picture of exposure. ✅Demand a clear picture of exposure. ✅Insist on prevention, not just crisis response. ✅Make risk management cross-functional ✅Build supply chain risk into your financial governance Supply chain risk is a finance risk. Treat it like one, or keep explaining variances you could have seen coming. Supply chain risk belongs on the CFO agenda. The CFO who owns it walks into the next earnings call with answers. Now, let’s turn those insights into capability. Build people and organizations who are ready to act. My training/workshop will perfectly prepare you for it. —- Hi. I am Jan, your SCRM Builder. Not a consultant who theorizes about risk. A procurement leader and risk practitioner who has built 15 SCRM programs globally, trained 1,200 people, and led procurement and risk organizations through crisis. I share what works and help you build an effective SCRM. I work globally.
CFOs: Supply chain risk is a finance risk.