549ROI for Supply Chains and Other Issues
this is not the case. Even where there are tangible benets, it may be difcult to assign a
dollar value, even indirectly.
Reduced Inventory
One of the most obvious benets from integrated supply chains is reduced inventory.
This is a prime objective of a supply chain, so it follows that there should be a reduction
in the total inventory over time. Although none of the approaches are easy, it should be
possible to establish the total inventory related to the supply chain operation at some
point in time. Subsequently, the total inventory in the supply chain can be reported to
determine how much the total inventory has decreased. By using a carrying cost per-
centage (one that is accepted by other supp