CSCMP's Supply Chain Quarterly
Finance
January 18, 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Most companies calculate total delivered cost (TDC) based on inaccurate and outdated assumptions.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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News from our sister publication
DC Velocity
Latest Video

Move It! Episode Four

See how New Era's DC handled a 100% increase in volume, explore BHFO's use of robots in its goods-to-person system, learn how voice-directed tech helps ensure order fulfillment, and tour a German beverage giant's DC and a UNICEF DC in Copenhagen.

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Perspective
Time for some scenario planning?
Be prepared: Policy changes that come about as a result of the president-elect's simplistic view of international trade could impact your supply chain costs with little warning.

Procurement Priorities
Procurement: It's time to automate!
Fintech services can free up time for procurement professionals to focus on more strategic tasks.

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
Attention, supply chain professionals: The world's problems cannot be solved without your help
Supply chain organizations should work with governments and nonprofit groups to feed the world, heal the sick, save the planet, and make money too, says a new report from the research group SCM World and the Bill & Melinda Gates Foundation.

Forward Thinking
Holiday returns volumes reach new high, UPS says
The surge in e-commerce returns has pushed retailers and carriers to cut reverse logistics costs.

Forward Thinking
New government report highlights best practices for improving U.S. port productivity
The U.S. Commerce Department has compiled suggestions for improving port operations, reducing disruptions, and improving competitiveness.

Forward Thinking
Why blockchain is not just for banks
If global supply chains are to gain the full benefit of this technology for managing payments and related data, all parties that play a role in global trade must be involved.

Forward Thinking
Luxembourg supply chain center appoints new director
Professor Benny Mantin will serve as director of the Luxembourg Centre for Logistics and Supply Chain Management, a joint partnership between the Massachusetts Institute of Technology and the Luxembourg government.

Forward Thinking
GE opens wallet to boost 3-D printing
The company now offers financing for businesses buying additive manufacturing machines.

Forward Thinking
Toyota names winners of grants to study supply chain tech
The lift truck vendor selected projects on location-based data on forklift drivers, changing material handling system requirements, and Internet of Things.

Forward Thinking
New e-book identifies five stages of supply chain design maturity
The software company Llamasoft has published a guide to making better decisions about supply chain design.

Forward Thinking
U.S. industrial property demand to stay strong in '17, CBRE forecasts
A logistics and real estate firm forecasts that e-commerce will fuel another surge in demand.

Forward Thinking
Dutch team pushes blockchain technology for logistics data
This US$2.3 million initiative would use the security protocol to protect supply chain records.

CSCMP Notebook
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.

Food from CSCMP Stop Hunger Now event being used to support relief efforts in Haiti
The food packages assembled during the pre-conference volunteer event were part of a 175,000-pound shipment of food and medicine to nonprofits providing Hurricane Matthew relief.

CSCMP Educators Conference fosters collaboration between academia and business world
Opening remarks highlight how the conference has evolved to integrate more members of the supply chain community.

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