文档介绍：The Value Proposition of Supply Chain Management
The Value Proposition of
Supply Chain Management
? 1999 Andersen Consulting
Cost is one of the major drivers to extend the traditional enterprise1>.
60% of variable costs of anization are driven by decisions that are external to anization.
Manu-
facturer
Tier 2
Suppliers
Tier 1
Suppliers
Wholesaler
or
Distributor
Retailer
or
Dealer
Consumers
“The Power of Business to Business Integration” Benchmarking Partners, December 1998
? 1999 Andersen Consulting
The past efforts have not been without considerable rewards.
Logistics expense
includes:
Finished Goods Transportation
Warehousing
Order Entry/ Customer Service
Administration
Inventory Carrying Cost @ 18%
— North American Annual Total Logistics Cost Change in Percentage —
Source: Council of Logistics Management 1997 Annual Conference Proceedings, Logistics Costs and Customer Service Levels (Herbert W. Davis & William H. Drumm)
-50%
-30%
-10%
10%
30%
50%
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
%of Sales
$/CWT
$/CWT = Dollars per hundred weight.
? 1999 Andersen Consulting
Yet, supply chain cost reduction still represents a significant business opportunity …...
Supply Chain Spend as a Percentage of Revenues
Best in Class Average
1
2
Source: Logistics Management, April 1997
$ 34
$ 37
$ 34
$ 20
$ 15
$ 8
$ 4
$ 10
$ 162
Size of Gap
in Billions
? 1999 Andersen Consulting
The supply chain must continue to drive shareholder value.
VALUE THEORY
holds that to increase the value of pany, you must increase cash earnings in excess of its full cost of capital in a sustainable fashion
? 1999 Andersen Consulting
SCM has contributed to increased shareholder value by impacting traditional value levers.
Revenue
Costs
Working Capital
Fixed Capital
— Impact of SCM —
Greater customer service (., higher market share, greater gross margins)
Lower raw materials and finished goods inventory
Shorte