Supply chain management, benchmarking, Best Practices
Supply chain management: Driving process improvement & organizational value
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Best Practices, LLC, a benchmarking research firm, is offering two benchmarking reports that present supply chain management best practices to maximize productivity and successfully demonstrate the value of supply chain operations.
Companies across most industries have applied Six Sigma or Lean principles to optimize supply chain efficiency. Supply chain executives can further use successful process improvement as a testament to the value supply chain operations offer to the overall business value chain.
With stricter budgets and higher emphasis on organizational service quality, demonstrating and communicating supply chain value to internal and external customers is becoming increasingly important. Sharing ROI of supply chain efforts secures and expedites senior management buy-in and financial support for future supply chain initiatives, according to Best Practices.
Captured through two studies of leading companies, these research initiatives detail 45 best practices and 118 metrics from leading companies. Key findings presented in the two reports include:
- 26% of surveyed companies report supply chain costs less than or equal to 5% of total revenue.
- One third of the benchmark partners report needing nine or fewer employees to carry out the organization's purchasing function.
- 92% of companies surveyed use face-to-face executive meetings between supply chain managers and internal customers to discuss supply chain initiatives and communicate value.
- Over half of benchmarked order management executives consider quality of service provided to be the most defining factor in the value of their operating processes.
- Organizations are increasingly outsourcing non-core activities, and require transparency in measuring and monitoring the value chain performance.
These studies also include metrics in the following areas:
- Supply chain cost management & supply chain information technology cost
- Delivery performance, cycle time, return rate, inventory and cash management
- Inventory and cash management measures, collaborative planning, forecasting, and replenishment program implementation
- Complexity drivers such as delivery policies, order options and automation levels
- Tactics for communicating supply chain value
To download the reports' complimentary summaries, including sample best practices, visit the following sites:
1. Supply Chain Management Best Practices
2. Managing the Supply Chain: Communicating Value to Key Constituencies
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