DOMESTIC
EURO PE
LATIN AM
ASIA
XX
XX
XX
XX
FILENAME HERE
CMYK
VERSION
00
As seen in
S p e c i al Advertising Section
Special Advertising Sections
© Copyright The McGraw-Hill Companies, Inc.
SUPPLY CHAIN
EXCELLENCE
TODAY’S BEST DRIVER OF BOTTOM-LINE PERFORMANCE
A
fter you’ve fiddled with labor costs, R&D, procurement, and such, if you’re looking for ways to boost financial performance (and who isn’t?), there’s still one slice of uncharted corporate terrain where additional business value is there for the taking. Pick your head up a bit and you just may notice it: the supply chain.
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.
“The basis of competition for winning companies in today’s economy is supply-chain superiority,” says Kevin O’Marah, vice president of research at AMR Research. “These companies understand that value-chain performance translates to productivity and market-share leadership. They also understand that supply-chain leadership means more than just low costs and efficiency — it requires a superior ability to shape and respond to shifts in demand with innovative products and services.”
INCLUDES AMR RESEARCH
SUPPLY CHAIN TOP 25
DISTRIBUTION:
11
QPS
B
DOMESTIC
EURO PE
LATIN AM
ASIA
XX
XX
XX
XX
FILENAME HERE
CMYK
VERSION
00
S p e c i al Advertising Section