• The success of your business is associated to the performance of your supply chain.
  • 50% of businesses, regardless of their size, fail or close down within five years of launch due to poor supply chain performance.
  • Remember, poor strategic management is a factor in 44% of business failures.
  • Customer satisfaction is highly dependent on the supply chain and to be successful, your business must manage its supply chain with that in mind.
  • In most firms, more than 60% of the total budget.
  • It is not unusual for instance, to find a 70% variation in the cost of the same item within the same marketplace.
  • Excessive inventory in the system can tie up working capital and stifle cash flow.
  • Top-performing companies that implemented supplier performance management initiatives have achieved average cost savings of around 12%.
  • Ensure that the average price paid to suppliers is at least 5% below the prevailing market price if supply chain management is properly implemented.
  • Reduce the average administrative cost per order by at least 10% in the next 12 months.
  • Life-cycle cost = Cost of Acquisition + Cost of ownership. The best long-term approach is to minimize the life-cycle cost.
  • Reduce the life-cycle cost by 15% in the next 12 months.
  • Organizations that deploy SRM successfully report additional value benefits of 2% of total spend, right through to 40+% from specific key relationships.
  • Inventory management has a significant impact on working capital.
  • The "real" cost of holding inventory often is higher than the generally assumed 20 to 25 percent.
  • A 1% improvement in the management of raw materials inventory will cause to the extent of a 9.35% increase in profitability.
  • In fact, recent research reveals that inventory holding costs could represent up to 60 percent of the cost of an item that is held in inventory for 12 months.

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