Dr. Tony Vercillo

Link: http://www.ifmc-consultants.com/shop

A White Paper from Supply Chain Management Review

A company’s supply chain represents an untapped opportunity to realize increased short and long-term cash flows and cost savings. However, inefficient supply chain processes clearly have a significant effect on a company’s cash position. For example:

• The lack of a dynamic inventory planning capability can result in 10 - 15 per cent excess inventory buildup.

• Ineffective expediting techniques can degrade supplier on-time delivery by 5 per cent or more.

• The failure to benchmark freight rates and monitor the use of lowest-cost carriers can increase freight costs by 6 - 7 per cent.

Each of these broken processes represents cash ‘leaking’ out of a company’s operations, cumulative impact of which can drain its competitiveness and profitability. This paper shares insights from Genpact supply chain leaders on how companies can implement effective end-to-end supply chain processes and free up working capital and cash and push for sustained growth.