CSCMP's Supply Chain Quarterly
Finance
February 21, 2017

The Financial Crisis and the Money Supply Chain

The global financial crisis of 2008-2009 put many manufacturers, retailers, and suppliers at risk. This excerpt from Chapter 5 of <i>The Power of Resilience: How the Best Companies Manage the Unexpected</i> explores the supply chain strategies that helped some companies successfully manage through the crisis and the subsequent economic recovery.

Learning the language of finance

Financial fluency will allow you to better explain how supply chains affect margins, turnover, and cash flow.

Infrastructure: Supply chain's missing link

Companies that fail to take a holistic view of infrastructure&mdash;the physical and informational assets required to run a supply chain&mdash;sometimes make capital-investment decisions that are detrimental in the long run.

A different path to better inventory performance

Companies work hard to reduce inventory and increase order-fill rates, yet many continue to experience erratic, stagnant, or declining inventory performance. The comprehensive approach outlined here can help them achieve the improvements they seek.

The Supply Chain Index: A new way to measure value

Supply chain executives need a more relevant set of metrics in order to better measure performance improvement. That's why the Supply Chain Index was created.

A fresh approach to improving total delivered cost

Most companies calculate total delivered cost (TDC) based on inaccurate and outdated assumptions. Using optimization technology to more accurately forecast TDC by product and customer will help them to improve both their supply chain planning decisions and their costs.

8 steps to a "servitized" supply chain

Offering bundled packages of products and services&#8212;a strategy known as "servitization"&#8212;provides greater value to the customer and can lead to more profitable relationships between manufacturer and customer. Here's how to develop a "servitized" supply chain that supports customer-segmented service.

A better way to calculate equipment ROI

Too many companies buy warehouse equipment and technology based on a "best case" scenario. Using an "engineered" approach to evaluating the return on investment will provide a more accurate picture of cost and productivity benefits.

Does supply chain "fit" matter to investors?

Apparently it does. Companies that match their supply chains to the demand aspects of their products enjoy a higher market capitalization than those without a good supply chain fit.

Join the finance revolution

Major changes underway in supply chain thinking can improve company profitability. To participate in this financial revolution, supply chain managers need to take three important actions.

Neways invests for success

What do you do when a supplier possesses proprietary technology that adds great value to your products? For Neways Enterprises, the answer was to buy a piece of the company.

A little of everything can go a long way

When products don't sell very much, conventional wisdom calls for reducing assortments and tailoring them to local conditions. But the opposite approach—stocking small quantities of each product at every store and centralizing replenishment decisions—has been shown to increase sales and reduce inventories without raising costs.

The tax factor in global site selection

Before you pick a location for a manufacturing plant overseas, consider the impact of foreign enterprise income taxes.

At Kraft, cash is king

When Kraft Foods needed to cut costs and free up cash, its supply chain organization rose to the challenge. Better inventory turnover played a leading role in boosting cash flow by 20 percent.

Get out your calculators

The new International Financial Reporting Standards may require you to change the way you value inventory and measure other performance indicators.

A smarter way to spend your money

When executed properly, a spend management strategy can save cash and accelerate return on investments—even in a down economy.

Which customers are most profitable?

Do you know what individual customers contribute to earnings per share? Here's how to determine the impact of each customer or customer segment on your company's profitability.

Can you be green and profitable?

Profitability and sustainability don't have to be mutually exclusive. By considering environmental issues when setting financial objectives for a supply chain network analysis, companies can successfully balance the trade-offs between them.

Identifying critical costs in the supply chain

Companies need to stop beating down suppliers on costs and collaborate with them to control costs for both parties, says Jimmy Anklesaria in his book, Supply Chain Cost Management: The AIM & DRIVE Process for Achieving Extraordinary Results. In this excerpt, he explains how companies can get this process going. The most important steps include understanding how suppliers price their products and identifying suppliers' critical supply chain costs.

Supply Chain Executive Insight E-Newsletter
Each month the Supply Chain Executive Insight e-newsletter will include brief articles about developments that are often overlooked by other supply chain publications. We will present you with summaries of the latest research as well as new ideas on how to make your supply chain operations more effective. And we'll offer commentary that sheds light on what's happening in supply chains today.
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Perspective
Separation without the anxiety
When companies divest or acquire a business, it has all kinds of implications for supply chain professionals. Our special three-part series provides an idea of what may be expected of you.

Procurement Priorities
The window is open for real gains in supplier diversity
Diverse suppliers often have innovative ideas that make them stand out from the crowd. Procurement must use its influence and seek them out.

Top-Performing Supply Chains
Carter's: A story of supply chain leadership
The children's apparel company Carter's has made significant improvements to its supply chain by leveraging scale while managing complexity.

Research for the Real World
Governance models for regional logistics hubs, and why they matter
Authors of a selected Journal of Business Logistics (JBL) article explain the real-world implications of their academic research.
Forward Thinking
Forget customer service; controlling omnichannel costs is retailers' new top priority
The pressing need to handle omnichannel fulfillment profitably is reshaping retailers' supply chain strategies, according to preliminary results of the 2017 "State of the Retail Supply Chain" study.

Forward Thinking
Honolulu, Dublin to pace growth in global industrial rents through 2019, report says
Industrial rents are expected to grow above trend worldwide in next three years, according to real estate services company CBRE.

Forward Thinking
Report: global trade patterns impacted by e-commerce growth
In a recent survey, shippers named cybersecurity and changing trade regulations as their biggest e-commerce concerns.

Forward Thinking
Hot growth predicted for cross-border e-commerce
A new DHL report predicts cross-border online retail will grow at twice the rate of domestic e-commerce through 2020.

Forward Thinking
New index polls logistics managers to gauge U.S. economy's direction
Logistics Manager's Index seeks respondents for monthly poll measuring transportation, warehousing, and inventory activity.

Forward Thinking
University of Michigan revamps SCM program, debuts Supply Chain Consulting Studio
The Master's in Supply Chain Management program now places greater emphasis on data analytics and leadership skills.

Forward Thinking
Global transport will find it hard to cut carbon emissions, report finds
Transportation carbon levels won't show improvement by 2050 without drastic changes, according to the International Transport Forum.

Forward Thinking
Next-generation visibility: What will it take to get there?
Collaborative technology partnerships will play an important role in achieving greater supply chain visibility in the future.

Forward Thinking
Now more than ever, manufacturing needs to guard against cybersecurity threats
A report from Deloitte and MAPI argues that the fast pace of technology implementation is making manufacturing particularly vulnerable to cyberattacks.

Forward Thinking
Mobile robot tracks inventory on store shelves
Data from Simbe's "Tally" robot could improve supply chain visibility for retailers and distribution centers.

CSCMP Notebook
CSCMP's Mentorship Program to accept new applicants in March
This popular program pairs students and young professionals with seasoned supply chain managers.

Who is your supply chain hero?
CSCMP is accepting nominations for its Distinguished Service Award through April 30.

2016 Rainmakers and Thought Leaders Reception and Dinner
CSCMP's Supply Chain Quarterly and sister publication DC Velocity hosted their annual reception and dinner at the Council of Supply Chain Management Professionals' 2016 Annual Conference in Orlando, Florida.

MercuryGate renews conference partnership with CSCMP
Cloud-based transportation system provider will serve as the premier sponsor of CSCMP's 2017 Annual Conference in Atlanta.

CSCMP's redesigned Career Center offers expanded resources
CSCMP has updated its online Career Center to include reference-checking, resume-writing, and coaching services.

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