文档介绍:The Value Proposition of
Supply Chain Management
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© 1999 Andersen Consulting
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
Cost is one of the major drivers to extend the traditional enterprise.
60% of variable costs of anization are driven by decisions that are external to anization.
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© 1999 Andersen Consulting
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)
The past efforts have not been without considerable rewards.
-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.
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© 1999 Andersen Consulting
Best in Class Average
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2
Source: Logistics Management, April 1997
Yet, supply chain cost reduction still represents a significant business opportunity …...
Supply Chain Spend as a Percentage of Revenues
$ 34
$ 37
$ 34
$ 20
$ 15
$ 8
$ 4
$ 10
$ 162
Size of Gap
in Billions
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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
The supply chain must continue to drive shareholder value.
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© 1999 Andersen Consulting
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
Shorter “order-to-cash” cycles
Shareholder Value
Profitability
Invested Capital
SCM has contributed to increased shareholder value by impacting traditional value l