Let me challenge a common assumption for a moment.
It is often taken for granted that the Sales function is the one that “makes the money.” I would argue that this perspective deserves a closer look—because Supply Chain has a direct and measurable impact on the company’s bottom line.
Here are four points worth considering:
1. COGS is one of the most powerful profit levers.
In most industries, selling prices are largely dictated by the market and competitive positioning, leaving limited room to improve margins through pricing alone. Protecting and expanding margins through systematic Cost of Goods Sold (COGS) optimization, however, is a core responsibility of Procurement and Supply Chain. This is where sustainable profitability is created.
2. Logistics costs in the P&L are largely driven by inventory.
More precisely, by how much inventory you hold, what inventory you hold, and where it sits. These outcomes are determined by the quality of demand forecasting, supply network design, inventory policies, risk management, and replenishment algorithms. Yes, Excel often plays a role—but it is only one piece of a much larger system.
3. Cash flow—and your CFO’s peace of mind—starts with Supply Chain.
Predictable supplier, customs, and transportation payments are not simply a finance team’s aspiration; they are a prerequisite for a financially healthy business. Fewer surprises lead to fewer cash flow disruptions, which enable stable supply, better customer service, stronger sales performance, and ultimately a more resilient business.
4. Inventory is either a growth engine or a financial trap.
For trading and manufacturing companies, inventory typically represents one of the largest asset categories on the balance sheet. Managed effectively, it fuels growth. Managed poorly, it creates the classic paradox: warehouses full of products, yet nothing available that customers actually want to buy. Supply Chain determines inventory turnover—and, consequently, the efficiency with which working capital is deployed.
So let me leave you with two questions:
Who really creates value in a business?
And perhaps more importantly…
Have I managed to shake the long-standing belief that Sales is the only function that “makes the money”?
