Supply Chain Costing and Performance Management

Overview:

Logistics and supply chain managers have increasingly realized that the greatest potential to create financial value lies not within a single firm but across all the trading partner enterprises comprising a supply chain, particularly at the interface between trading partners.  At the boundaries of their firm - with their suppliers and customers – is where companies can identify mutually beneficial cost savings initiatives plus new and greater opportunities to reduce costs from core processes and to provide higher service levels to their customers. It is essential for organizations to measure the costs and profit margins of products, service-lines, channels, and customer to manage them.

Supply chain profitability and cost measurement has been frequently identified as a source of value creation and competitiveness. It involves the collection, expense assignment, and analysis of profit margins and cost information across all of the work activities comprising a supply chain for the purpose of identifying opportunities to obtain a competitive advantage through a combination of reduced costs or improved performance. Although managerial accounting practices and systems exist, few companies have completed the journey of inter-organizational supply chain profit management.     

Analytics with improved forecasting and reduced uncertainty are also playing a role in reducing excess inventory and cycle-time buffers as costly insurance to assure reliable on-time deliveries without stock-outs.

This presentation is based on the book "Supply Chain Costing and Performance Management" that I co-authored published by John Wiley & Sons. The book is a result of a research study to examine the application of supply chain profit and costing measurement methods in multiple industries and international settings. Here is a link to the book:

SupplyChain Costing and Performance Management, 2nd Edition | Wiley

Areas Covered in the Session:

• Why there is pressure on supply chain trading partners to collaborate rather than be adversarial.
• Why customers are the source of shareholder wealth creation for suppliers
• How to measure and manage supplier, product, channel, and customer profitability.
• Why as differentiation from product advantages is reduced or neutralized due to commoditization, then service level differentiation matters and the customer relationship grows in importance as a competitive advantage.
• How to shift the mindset from growing sales to growing profitable sales and to view customers as investments like in a stock portfolio to seek higher ROIs - return on customers (ROC).
• How to consider influencing a company’s suppliers’ suppliers and customers’ customers - second tiers and above.

Who Will Benefit:

• CxOs
• CFOs
• Financial officers and controllers
• Managerial and cost accountants
• Financial and business analysts
• Budget Managers
• Strategic planners
• Marketing and sales managers
• Supply chain analysts
• Risk managers
• CIO and Information technology staff
• Board of Directors