Supply Chain Costing and Performance Management
Gary Cokins, Terry Pohlen, Tom Klammer
- English
- ePUB (mobile friendly)
- Available on iOS & Android
Supply Chain Costing and Performance Management
Gary Cokins, Terry Pohlen, Tom Klammer
About This Book
A"how-to"guidefor supply chain professionals who need accurate costinformationfor end-to-endprocesses
Withthe increasing pace ofglobalization, supply chain professionals find that they have less and lessmargin for errorin theirdecisionsmaking. Competition is getting more intense, and, unfortunately, CFOs and accountants do not currently provide supply chain managers with the information required to make better decisions. Supply Chain Costing and Performance Management, 2nd Edition, will showyou(and the executivesyoureport to) how to understand and apply various enterprise and corporate performance management (EPM/CPM) methods related to costs and profit margins and performance measurements.
This book is a"how-to"guide to assistsupply chainmanagers and employee teams to obtain interenterprise cost information on supply chain processes. It provides techniques for obtaining accurate cost and performance information on the activities performed withinyourfirm and on activities performed by trading partners. The techniques and approachesin thisbook were developed from supply chain costing practices implemented by leading-edge firms.You will learnhowyoucangainaccess to reasonably accurate costs and profit margins involved with suppliers, products, stock keeping units (SKUs), service-lines, channels, and customers. In addition, youwillgain insight into the activity costs in end-to-end business processes, including the"drivers"for each type of cost.
- Learn how to access accurate cost and pricing information related to both your company and your trading partners
- Overcome siloed information by creating your own costing practices using proven methods drawn from leading firms
- Understand what drives activity costs for eachstepinend-to-end business processes
- Assess the performance of your costing activities with step-by-step measurement guidelines
- Make better decisions and improve performance and profitability with clearer, more transparent cost and price data
The information in this book will empower supply chainmanagers withthe abilityto make better decisionsandimprovetheirorganizations'performance and profitability.
Frequently asked questions
Information
CHAPTER 1
The Supply Chain Costing Journey: Why You Need to Take It
Understanding the supply chain's role in the profitability of your company, and the ability to use that knowledge to your company's advantage, can be your best weapon in the economic battles ahead.1
Many companies may find it near impossible to track supply chain costs, but it is a requirement for properly tracking, reporting, and measuring item performance. And it is a true prerequisite for advance supply chain and retail optimization.2
- How good are your firm's measures of supply chain costs?
- Do you know, with confidence, which products and service lines are truly making or losing moneyâand by how much?
- How good is your understanding of your trading partners' supply chain costs?
- Do you know what costs to your firm are caused by your suppliers, aside from the purchase price to them?
- Does your firm calculate and report customer profitability?
- Do you know which types of customers are more attractive to retain, to grow, and to acquire as new onesâand which types are not?
- Does your analysis enable accurate predictions of how changes in customer behavior will drive costs within your firm and the supply chain?
- Does your firm exchange cost information with key trading partners to help effectively manage these external costs?
- Is available cost information adequate to support supply chain decisions and understand how these decisions drive costs within the firm, its trading partners, and the entire supply chain?
- Are you measuring the correct key performance indicators (KPIs) to align the priorities and actions of managers with the executive team's formulated strategy?
- Do managers even understand what the executive team's strategy is? The answer of most firms is âProbably not!â
COMMONLY ACCEPTED OBSERVATIONS
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