By integrating procurement and supply chain into the C-suite, Jabil navigates global fragility and unlocks new revenue through practitioner-led services
JABIL
By integrating procurement and supply chain into the C-suite, Jabil navigates global fragility and unlocks new revenue through practitioner-led services
In the volatile landscape of global manufacturing, some see disconnection between the procurement and supply chain management functions as a liability. For Jabil, a company with over 150,000 employees across more than 25 countries, the solution was not merely to encourage cooperation between these departments, but to fuse them under a single executive mandate.
Frank McKay, Chief Supply Chain Officer( CSCO) at Jabil, represents a new breed of leadership in the manufacturing sector. As the first CSCO in the company’ s history to report directly to the CEO, his elevation marks a shift in how the organisation perceives the value of its external ecosystem.
A seat at the top table The decision to elevate the supply chain function to the C-suite was a pragmatic response to a world of increasing complexity. With approximately 70 % of Jabil’ s revenue tied to material acquisition, the procurement function is a fundamental engine of the firm’ s financial health.
“ I think it was a decision that our CEO at the time made primarily based on the fact that it was a bit of a recognition of just how fragile supply chains really are across the globe,” Frank explains.
“ If we don’ t get it right on the procurement and supply chain side, it has a massive material impact on the company. And the CEO said,‘ I want to sit and look the person who’ s responsible for those fragile supply chains in the eye and have a seat at the table and, quite honestly, be held accountable’.”
By removing the layers between the supply chain lead and the CEO, Jabil has ensured that procurement considerations are baked into the larger enterprise conversation regarding investment strategy and company direction. For Frank, this transparency is vital. He notes that the shift allows him to hear about strategic developments firsthand rather than receiving them“ second or third hand”, an advantage he believes more organisations should adopt.
Breaking the silos The integration of procurement and supply chain functions under Frank was born of a theory that knitting together the entire ecosystem, from downstream suppliers to customer-facing logistics, would yield more“ intelligent answers” for Jabil’ s clients. These clients include over 400 of the world’ s most recognisable brands in sectors ranging from automotive and healthcare to aerospace and defence.
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