Supply organizations in North America: A 24 year perspective on roles and responsibilities 1987–2011

Abstract

The recent completion of a major survey of 249 large North American supply organizations in 2011 permits a longitudinal perspective on supply roles and responsibilities over a 24 year period. The latest survey complements three earlier CAPS studies in 1987, 1995 and 2003, thereby providing a valuable opportunity to examine trends and changes over time. Data was collected from 112 firms that responded in 2003 and 2011, which included 53 firms that responded in 1995, 2003 and 2011 and 24 firms that responded to all four surveys. Major areas of investigation included supply organizational structure, purchase category and supply chain responsibilities, supply involvement in major corporate activities, teams, and CPO reporting line, title and background. Findings indicate that the pace of organizational change remains high, which can represent significant challenges for supply executives. Cluster analysis was used to assess the relationship between supply organizational changes and firm performance. Firms in the “underperforming” category more frequently changed their supply organizational structure, and these changes were more likely directed towards greater centralization, compared to the “growing” and “profitable” clusters. Findings provide important implications for supply executives and opportunities for future research are also identified.