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Published by SAPinsider
The financial health of a business is directly affected by the efficacy of its supply chain: According to David Malenfant, Director of Texas Christian University’s Center for Supply Chain Innovation, 70% of profitability can be tied to its performance, while up to 90% of overall business costs are generated by the supply chain. Given its importance, the supply chain requires a forward-thinking, strategic plan that is aligned with the business. But it doesn’t end there — companies must also measure key elements of the supply chain’s performance to maintain profitability and continuously improve the business. By optimizing people, processes, and data, companies can ensure their supply chains run more efficiently to help the business achieve commercial goals. By addressing these three tasks — setting up a strategy, measuring results, and optimizing performance — companies are best set up to deliver financial value from their supply chain.
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