SCM - UPS - Goods Funds and Information Supply Chain...

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© Copyright 2008 United Parcel Service of America, Inc. All rights reserved. Goods, Funds, and Information: Supply Chain Tactics for 2010
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2 Supplier Manufacturer Distributor Retailer End User Supplier Manufacturer Distributor Retail End User The Evolving Global Supply Chain
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3 Supplier Management Information Management Regulatory Compliance Post-Sales Support Customer Compliance International Trade Management Logistics and Distribution Multi-Modal Freight and Transportation Reverse Logistics Inventory Management Order Management The Evolving Global Supply Chain The extended global supply chain is the foundation for business competition in 2010, and it is comprised of numerous disparate elements
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4 Delays, errors and missed orders Higher costs Slow response to demand variability Poor customer service Inadequate supply chain visibility Higher inventory levels Inefficiency/process redundancy Increased capital investment The Importance of Supply Chain Integration Decentralized, disconnected supply chain management produces unintended consequences.
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5 Creating Business Advantage In good markets and bad supply chain leaders have been shown to outperform their average competitors by a factor of two to one. 9.8% 4.2% 0 2 4 6 8 10 Average Top quartile Total supply chain cost Percent of revenue The global supply chain directly impacts, on average, 75% of a business’ operating results. Corporations with best-in-class freight and logistics competencies benchmark operational costs that are less than half of those of their direct competitors. They also manifest market cap growth 7%-26% above industry average. This will be an increasingly critical market advantage to possess in 2010 and beyond. Sources: CFO research and benchmarking
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6 4.3 3.4 2 3.4 5.6 2.8 6.9 6.6 3.1 3.7 12.1 8.6 8.5 8.5 10.7 10.4 11 13.1 8 8.3 0 2 4 6 8 10 12 14 Computers Electronic Equipment Automotive & Industrial Medical Device, Diagnostics & Telecom Chemicals & Advance Materials Consumer Goods Semiconductors Pharmecuticals Aerospace & Defense Best-in-Class Average Published with permission from The Performance Measurement Group, LLC, subsidiary of management consultants PRTM. No use or reproduction without written permission Total Supply-Chain Management Cost Total Supply-Chain Management Cost The Advantage of Effective Supply Chain Management Corporations with integrated best-in-class supply chain management have a distinct advantage over competitors.
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SCM - UPS - Goods Funds and Information Supply Chain...

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