Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR Model, Second Edition

Chapter 11. Week Nine: Opportunity Analysis and Steering Team Review Number Four: Due Diligence for the Project List

Three percent profit improvement to the sales value of the supply chain: As described earlier, that’s the rule-of-thumb opportunity before the data are prepared (read: sanitized) for presentation to executives and the board. For every $100 million in revenue, that means an opportunity for an extra $3 million dollars in earnings. This gem is worth repeating.

Where any company comes in against this rule, however, depends on its distance from parity on four key metrics: perfect order fulfillment, order fulfillment cycle time, upside supply chain flexibility, and total supply chain management cost. The more of these metrics to which ...