According to a recent report from Boston-based AMR Research Inc., companies that excel in supply-chain operations perform better in almost every financial measure of success. Where supply chain excellence improves demand-forecast accuracy, companies have a 5% higher profit margin, 15% less inventory, up to 17% stronger "perfect order" ratings, and 35% shorter cash-to-cash cycle times than their peers. Companies with higher perfect-order performance have higher earnings per share, a better return on assets, and higher profit margins --- roughly 1% higher for every three percentage-point improvement in perfect orders.
AMR further states that...supply-chain leadership means more than just low costs and efficiency - it requires superior ability to shape and respond to shifts in demand with innovative products and services.
Dell, Nokia, Proctor & Gamble are some of the companies who have embraced the demand-driven supply chain practices and technologies and are winning as a result.
Key success factors for supply-chain and for this matter any IT/BPO integrated solutions might be an effective marriage of - Cash in Hand, Fast Reflexes, Go with the flow, Just-In-Time workforce, Pinpoint Accuracy and above all THINK BIG, START SMALL.
source: Business Week, Forbes, Anshul's thoughts
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1 comment:
Wal-mart is the most successful example of successful supply chain implementation. "Time to market" is one of the best in the industry.
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