CEOs are highly involved in purchase decisions within their companies regarding supply chain, distribution and logistics systems and services. Of those with a logistics function in their organization, 65.0% of CEOs say they help make investment decisions.
In the past, functional decisions affecting logistics may have been handled below the C-suite. But CEOs, citing the need to integrate multiple operational areas, are now heavily involved in the purchase process. “The CEO has a more holistic view of the organization,” says one CEO. “Investments have to provide return and value in many dimensions – a functional or siloed perspective is not adequate.”
For major investments made throughout their companies, 93% of CEOs maintain either a high degree or total authority to award business to a specific vendor, or reject working with that vendor.
CEO involvement in a purchase decision has a positive impact on moving the purchase forward. Specifically, the likelihood is greatly increased (+92.3%) that the organization will forward quickly in the evaluation and adoption process, it will become a priority that others in their organization will give serious consideration to and remove roadblocks in the evaluation process (+91.5%), and ultimately become a reality (+89.4%).