Supply Chain Strategy and Financial Metrics
The Supply Chain Triangle Of Service, Cost And Cash
by Bram DeSmet
Pub Date 03 May 2018
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Supply chain management is the management of a 'flow of goods' and an 'inverse flow' of 'information and cash'. As consumers buy more from the store, the information of the increased sales will travel upstream in the supply chain and trigger extra production. This extra production will flow downstream to the shops. Cash is being exchanged for the goods. Organizations deliver different types of 'service' to their customers, which come at a certain cost and require a given amount of inventory or, more generically, cash. Supply Chain Strategy and Financial Metrics is a step-by-step guide to balancing this triangle of cost, cash and service, which is the essence of supply chain management.
Supply Chain Strategy and Financial Metrics fully reflects the 'inventory' or 'working capital' angle. Bram DeSmet examines the optimisation of the supply chain and Return-on-Capital-Employed as well as KPI dashboarding, target setting and benchmarking. He includes case studies of supply chain transformation programmes employed in international companies, and worksheets covering basic financial concepts, such as cash flow and working capital, with example data sets as well as guidelines and exercises.