- 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.







