Measuring The Value Of The Supply Chain

In a company ecosystem the supply chain manager is tasked with duties and objectives primarily aimed at controlling and reducing costs, while optimizing the material flows. Yet, in many organizations, common perception limits supply chain management to product logistics, materials handling and warehouse management. The supply chain manager must learn how to communicate the results of his work to show the importance and impact supply chain management operations have on a company. In this book, Enrico Camerinelli provides the supply chain manager and the chief financial officer with the means to link the value of the supply chain to an organization's bottom line. He explores the problem with current supply chain metrics, shows how to close the gap between financial decisions and supply chain performance, suggests a model to provide a lingua franca for supply chain, financial and other managers throughout the company and points to ways in which new technology can help measure the value of the supply chain. Using case studies and interviews with supply chain and financial experts, Measuring the Value of the Supply Chain will help financial and supply chain managers achieve strategic advantage through effective supply chain management.

In a company ecosystem the supply chain manager is tasked with duties and objectives primarily aimed at controlling and reducing costs, while optimizing the material flows. Yet, in many organizations, common perception limits supply chain management to product logistics, materials handling and warehouse management. The supply chain manager must learn how to communicate the results of his work to show the importance and impact supply chain management operations have on a company. In this book, Enrico Camerinelli provides the supply chain manager and the chief financial officer with the means to link the value of the supply chain to an organization's bottom line. He explores the problem with current supply chain metrics, shows how to close the gap between financial decisions and supply chain performance, suggests a model to provide a lingua franca for supply chain, financial and other managers throughout the company and points to ways in which new technology can help measure the value of the supply chain. Using case studies and interviews with supply chain and financial experts, Measuring the Value of the Supply Chain will help financial and supply chain managers achieve strategic advantage through effective supply chain management.

The case for measurement - Connecting measurement with strategy - Implementing an effective measurement program - Increasing the odds for success - The past and current state of logistics - Preparing for the future - The supply chain revolution is just beginning - Three winners in action.

Supply chain management is emerging as one of the most powerful logistics management concepts for improving performance across the entire logistics network. Companies that have already streamlined their internal business process are now working to realise further savings by improving the external business relationships within the more and more complex, linked value-adding business processes in logistics networks. Although the benefits of SCM are well-known in industry, until now companies have only put this concept into practice in a limited way. Therefore, the newly developed integral model of collaborative performance measurement in this book will make a contribution towards easing and supporting improvements in supply chain management as well as giving specific guidelines for its implementation. Furthermore, the author provides newly developed key performance indicators that enable the measurement of the performance of co-operation across the extended enterprise in a supply chain environment. Based on case studies, the integral model, in close connection to the SCOR model, was applied and has proven its applicability in industrial practice. This book presents a rich variety of concepts and methods for industrial engineers, business managers, engineers and consultants as well as success stories in supply chain management.

Research Paper (undergraduate) from the year 2010 in the subject Business economics - Supply, Production, Logistics, grade: 1,2, European School of Business Reutlingen (Business Adminstration), language: English, abstract: The environmental surroundings of most companies have changed radically in recent years. Especially the competitive pressure has risen substantially over the past decades, fuelled by an increased globalization of markets and supply chains. In order to continuously satisfy consumer needs in a timely manner, organizations have to focus on performance and efficiency improvement measures. In terms of supply chain management, performance includes the three dimensions efficiency, effectiveness and flexibility which have to be dealt with on an equal basis. One mean to improve supply chain performance is the linkage between various IT applications involved in the whole supply chain. These efforts and trends are treated under the term electronic supply chain management (E-SCM). There are three major critical success factors for the successful operation of an electronic supply chain. These can be clustered into decision motivation (e.g. a shared vision and a strong motivation), implementation process (e.g. the tight integration of inter-organizational information systems and the re-engineering of inter-organizational business processes) and infrastructure conditions (e.g. agreement upon a shared industry standard). There are numerous benefits of an E-SCM implementation such as increased communication speed and decreased cost in terms of communication, inventory and customer service. Furthermore, E-SCM allows mitigating the bullwhip effect by improv-ing the availability of information throughout the entire supply chain. In addition E-SCM allows organizations to implement an entirely pull-based approach. One downside of E-SCM is the need to make a company’s entire business processes transparent, also towards supply chain partners who might be engaged with competitors. A further danger of E-SCM is to over-rely on speed rather than on flexibility.

What to measure? How can the value of a measurement be balanced against the cost of performing it? How can the needs of different organizations requiring similar measures of the same thing be reconciled and those needs be met efficiently? What are the implementation issues? How can redundant measures be simplified?This executive briefing discusses these questions and outlines a catalog of more than eighty measurements for consideration. Some of the cataloged measurements are common, some are industry-specific, and some have unique and special purposes. Each measurement is discussed in terms of its usefulness and application. Implementation difficulties are reviewed and the executive is cautioned where inaccuracies may result from assumptions made by implementers. A review of the list may suggest metrics that should be considered for implementation, may help users avoid the GIGO syndrome, and may reduce business complexity by pointing out duplication in existing work.

Value creation is no longer achieved through a single company alone, or through a network of local suppliers, but rather through wide ranging, even global supply chains. This reduces the transparency of the benefits and risks of the various supply chain setups and activities used for improving the performance of the supply chain. Such supply chain initiatives usually result in an investment by all supply chain partners involved, including the respective Chief Financial Officer (CFO). The supply chain partners therefore need a tool to show what improvements they can provide in logistics ¿ generally the reduction of inventory and reduction of lead time ¿ in terms of those financial variables that describe the value added to the company.The connection between supply chain management and financial management is currently very important. The integration of the two management levels is extremely important for the success of a supply chain initiative. Showing the possible benefits and risks for all concerned is a pre-requisite for assessing the economic value of the initiative and perceiving the win-win situation.This book and the "Supply Chain Value Contribution (SCVC)" method described therein provide: - An approach to showing the cause and effect of supply chain initiatives on supply chain performance and working capital utilization, on the basis of the wellestablished Supply Chain Operations Reference (SCOR)-model. - A clear and traceable approach on how to measure and sell the value created by the resulting operational supply chain performance improvements.The application of the SCVC method is described in two use cases. Due to the comprehensive but pragmatic presentation of the content, this book will be of value to both practitioners and academics alike.