安达信供应链管理2.pptx

The Value Proposition ofSupply Chain ManagementCost is one of the major drivers to extend the traditional enterprise.60% of variable costs of an organization are driven by decisions that are external to the organization.Tier 2SuppliersTier 1SuppliersManu-facturerWholesalerorDistributorRetailerorDealerConsumers“The Power of Business to Business Integration”Benchmarking Partners, December 1998? 1999 Andersen ConsultingThe past efforts have not been without considerable rewards.— North American Annual Total Logistics Cost Change in Percentage —50%30%Logistics expenseincludes:Finished Goods TransportationWarehousingOrder Entry/ Customer ServiceAdministrationInventory Carrying Cost @ 18%$/CWT10%-10%%of Sales-30%-50%838485868788899091929394959697Source: Council of Logistics Management 1997 Annual Conference Proceedings, Logistics Costs and Customer Service Levels (Herbert W. Davis William H. Drumm)$/CWT = Dollars per hundred weight.? 1999 Andersen ConsultingYet, supply chain cost reduction still represents a significant business opportunity …...Supply Chain Spend as a Percentage of RevenuesSize of Gapin Billions$ 34$ 37$ 34$ 20$ 15$ 8$ 4$ 10$ 162 Best in Class Average 12Source: Logistics Management, April 1997? 1999 Andersen ConsultingThe supply chain must continue to drive shareholder value.VALUE THEORYholds that to increase the value of a company, you must increase cash earnings in excess of its full cost of capital in a sustainable fashion? 1999 Andersen ConsultingSCM has contributed to increased shareholder value by impacting traditional value levers.— Impact of SCM —Greater customer service (i.e., higher market share, greater gross margins)RevenueProfitabilityLower cost of goods sold, transportation, warehousing, material handling and distribution management costsCostsShareholder ValueLower raw materials and finished goods inventoryShorter “order-to-cash” cyclesWorking CapitalInvested CapitalFewer physical assets (i.e., trucks, warehouses, materi