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Article: Best practices, better returns: well-structured supply chains improve profitability, market cap.(Update: supply chain management)
- Article from:
- Frontline Solutions
- Article date:
- September 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 Advanstar Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Supply chain management technology can improve a company's internal efficiency, but benefits can go well beyond just reducing inventory levels if the system is implemented correctly.
There is a direct correlation between shareholder value and top line growth generated by supply chain improvements, says consulting firm PRTM, Waltham, Mass. Discrete manufacturers with mature supply chain practices are 40% more profitable than those with less mature practices, says the consulting firm. Sales growth, an important factor in shareholder return, is enabled by supply chain improvements that make companies operationally more efficient. By shaving costs and overhead, ...