Supply Chain Operations Leaders<\/h3><\/div><\/div><\/div>Are your metrics strategic and diagnostic?<\/h4><\/div><\/div><\/div>![\"\"](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2021\/04\/Supply-Chain-Operations-Leaders.jpg\")
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Definition of Strategic Supply Chain Metrics:<\/h3>\n
Strategic Supply Chain Metrics<\/strong>\u00a0measure the degree of the overall health of the organizational supply chain. Another type of metric is Diagnostic Metrics, which sheds light on areas for improvement.<\/p>\nIn this article, we will provide a\u00a0Supply Chain Metrics\u00a0Framework derived from various sources. It is important that we reflect on what we as Procurement Leaders are measuring.<\/p>\n
Table 1: SCOR (ASCM) | Open Source | NLPA Metrics and Performance Assessment Matrix<\/p>\n
![\"\"](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2021\/04\/Scor.png\")
<\/p>\n
Sources:<\/strong>\u00a0Open Source:\u00a0<\/strong>https:\/\/orwiki.org\/SCPM\u00a0| NLPA: <\/strong>https:\/\/www.certitrek.com\/nlpa\/\u00a0|<\/strong>\u00a0\u00a0ASCM:<\/strong>\u00a0https:\/\/www.ascm.org\/about-ascm\/<\/p>\nThe following are explanations and formulas for some of the strategic and diagnostic metrics noted in Table 1.<\/p>\n
Order Fulfillment Cycle Time:<\/strong><\/p>\nThe measurement of the average time required to fulfill customer orders. It is the manifestation of the speed at which an organization can satisfy the demand of its customers\/clients.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations with short Order Fulfillment Cycle Times (OFCT) are more responsive to customer needs and requirements. Lengthy OFCTs may result in poor customer experiences and loss of market share.<\/p>\n
Formula<\/strong><\/p>\n(Sum of Actual Cycle Times for All Orders Delivered) \/ (Total Number of Orders Delivered) in days<\/p>\n
Data Collection<\/strong><\/p>\nThis data is collected from Source, Make, and Deliver Process Elements<\/p>\n
*******************************************************************************************************************************<\/strong><\/p>\nPerfect Order Ratio:<\/strong><\/p>\nis the measurement of the ability to deliver products and services as required, contracted, and promised. It is the % of orders delivered in-full, undamaged, and defect-free, on-time, as a percentage of the total orders delivered.<\/p>\n
\n- In-full<\/li>\n
- Damage-free<\/li>\n
- Defect-free<\/li>\n
- On-time<\/li>\n
- Error-free paperwork & documentation<\/li>\n<\/ul>\n
A Perfect Order meets all 5 of the above criteria.<\/strong><\/p>\nDegree of Importance<\/strong><\/p>\nA low % Perfect Order Fulfillment score is indicative of supply chain issues that require immediate corrective actions and customer dissatisfaction.<\/p>\n
A high %\u00a0Perfect Order Fulfillment score is indicative of a supply chain that is capable of delivering products and services as required, contracted, and promised.<\/p>\n
Formula<\/strong><\/p>\n(Total Perfect Orders) \/ (Total Number of Orders) x 100%<\/strong><\/p>\nData Collection<\/strong><\/p>\nThe measurement or calculations of supply chain performance are usually derived from Deliver Process Elements, with an impact on Delivery Enable Process Elements.<\/p>\n
The documents necessary for the support of the supply chain process should be scored across the set of Deliver process elements.<\/p>\n
*******************************************************************************************************************************\u00a0\u00a0Upside Supply Chain Flexibility:<\/strong><\/p>\nIs the measurement of the number of days needed to accomplish an unplanned and sustainable 20% increase in quantities delivered to customers.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations that are flexible increase the probability of realizing a competitive advantage<\/p>\n
Formula<\/strong><\/p>\nAfter consideration of the constraints of Make, Source, and Deliver dimensions, it is\u00a0the minimum time required<\/u>\u00a0to achieve an unplanned sustainable increase in demand.<\/p>\n
Data Collection<\/strong><\/p>\nThe data is taken from the actual planning activities realized in devising the actions to be taken to accommodate the increased quantities that are required<\/p>\n
Upside Supply Chain Adaptability:<\/strong><\/p>\nIs the maximum sustainable % increase in delivered quantities of products and services that can be realized within 30 days.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations that are adaptable increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n
Formula<\/strong><\/p>\nAfter consideration of Return, Source, Make, and Deliver processes, Supply Chain Adaptability is the least quantity sustainable.<\/strong><\/p>\nData Collection<\/strong><\/p>\nAdaptability metrics can be based on assumptions or historic events. Adaptability metrics are based on the actual number of returns compared to the maximum number of returns which can be realized within 30 days.<\/p>\n
Downside Supply Chain Adaptability:<\/strong><\/p>\nis the reduction in ordered quantities sustainable at 30 days before delivery with zero cost or inventory penalties.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations that are adaptable increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n
Formula<\/strong><\/p>\nDownside Source Adaptability + Downside Make Adaptability + Downside Deliver Adaptability Downside Supply Chain Adaptability.<\/p>\n
Data Collection<\/strong><\/p>\nAdaptability measures are assumptions based on historic events.<\/p>\n
Overall Value at Risk:<\/strong><\/p>\nIs the determination and management of the degree of impact risk possess on an organization\u2019s value creation mechanisms.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations robust Risk Management Processes increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n
Formula<\/strong><\/p>\nSupply Chain Risk VAR ($) = VAR $ (Plan) + VAR $ (Source) + VAR $ (Make) + VAR $ (Deliver) + VAR $ (Return)<\/p>\n
Data Collection<\/strong><\/p>\n***********************************************************************************************************************************\u00a0 \u00a0Cash-to-Cash Cycle Time:<\/strong><\/p>\nis the time it takes for an investment made on expenditures on raw materials to flow back into an organization. For service-oriented firms, it represents the time from the point where an organization pays for the resources consumed in the performance of a service to the time that an organization receives payment from clients\/customers for those services<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations robust Cash to Cash Cycles increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n
Formula<\/strong><\/p>\nCash-To-Cash Cycle Time = (Days Sales Outstanding) + (Inventory Days of Supply) \u2013 (Days Payable Outstanding) in days<\/p>\n
Data Collection<\/strong><\/p>\n\n- Accounts Payable<\/li>\n
- Accounts Receivable<\/li>\n
- General Ledger<\/li>\n
- Production Reporting System<\/li>\n
- Customer Relationship Management (CRM) System<\/li>\n
- Purchasing System<\/li>\n<\/ul>\n
*************************************************************************************************************<\/p>\n
Return on Supply Chain Fixed Assets:<\/strong><\/p>\nmeasures the return an organization receives from its investments on capital in supply chain fixed assets. This includes the fixed assets used in Return, Plan, Source, Make, and Deliver activities.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations with robust Return on Supply Chain Fixed Assets Processes, increase the probability of realizing competitive advantage, profitability, and customer satisfaction.<\/p>\n
Formula<\/strong><\/p>\nReturn on Supply Chain Fixed Assets = ((Supply Chain Revenue) \u2013 (Total Cost to Serve)) \/ (Supply Chain Fixed Assets)<\/p>\n
Data Collection<\/strong><\/p>\n\n- Accounts Payable<\/li>\n
- Accounts Receivable<\/li>\n
- General Ledger<\/li>\n
- Production Reporting System<\/li>\n
- Customer Relationship Management (CRM) System<\/li>\n
- Purchasing System<\/li>\n<\/ul>\n
Return on Working Capital:<\/strong><\/p>\nis a metric that determines the magnitude of an investment relative to an organization\u2019s working capital position vs the revenues generated from its supply chain activities. Components include inventory, accounts payables, accounts receivables, supply chain revenues, cost of goods sold,, and supply chain management costs.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations with robust Return on Working Capital Processes, increase the probability of realizing competitive advantage, profitability, and customer satisfaction.<\/p>\n
Formula<\/strong><\/p>\nReturn on Supply Chain Fixed Assets = ((Supply Chain Revenue) \u2013 (Total Cost to Serve)) \/ (Supply Chain Fixed Assets)<\/p>\n
Data Collection<\/strong><\/p>\n\n- Accounts Payable<\/li>\n
- Accounts Receivable<\/li>\n
- General Ledger<\/li>\n
- Production Reporting System<\/li>\n
- Customer Relationship Management (CRM) System<\/li>\n
- Purchasing System<\/li>\n<\/ul>\n
Are your metrics strategic and diagnostic?<\/h4><\/div><\/div><\/div><\/p>\n
Definition of Strategic Supply Chain Metrics:<\/h3>\n
Strategic Supply Chain Metrics<\/strong>\u00a0measure the degree of the overall health of the organizational supply chain. Another type of metric is Diagnostic Metrics, which sheds light on areas for improvement.<\/p>\nIn this article, we will provide a\u00a0Supply Chain Metrics\u00a0Framework derived from various sources. It is important that we reflect on what we as Procurement Leaders are measuring.<\/p>\n
Table 1: SCOR (ASCM) | Open Source | NLPA Metrics and Performance Assessment Matrix<\/p>\n
<\/p>\n
Sources:<\/strong>\u00a0Open Source:\u00a0<\/strong>https:\/\/orwiki.org\/SCPM\u00a0| NLPA: <\/strong>https:\/\/www.certitrek.com\/nlpa\/\u00a0|<\/strong>\u00a0\u00a0ASCM:<\/strong>\u00a0https:\/\/www.ascm.org\/about-ascm\/<\/p>\nThe following are explanations and formulas for some of the strategic and diagnostic metrics noted in Table 1.<\/p>\n
Order Fulfillment Cycle Time:<\/strong><\/p>\nThe measurement of the average time required to fulfill customer orders. It is the manifestation of the speed at which an organization can satisfy the demand of its customers\/clients.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations with short Order Fulfillment Cycle Times (OFCT) are more responsive to customer needs and requirements. Lengthy OFCTs may result in poor customer experiences and loss of market share.<\/p>\n
Formula<\/strong><\/p>\n(Sum of Actual Cycle Times for All Orders Delivered) \/ (Total Number of Orders Delivered) in days<\/p>\n
Data Collection<\/strong><\/p>\nThis data is collected from Source, Make, and Deliver Process Elements<\/p>\n
*******************************************************************************************************************************<\/strong><\/p>\nPerfect Order Ratio:<\/strong><\/p>\nis the measurement of the ability to deliver products and services as required, contracted, and promised. It is the % of orders delivered in-full, undamaged, and defect-free, on-time, as a percentage of the total orders delivered.<\/p>\n
\n- In-full<\/li>\n
- Damage-free<\/li>\n
- Defect-free<\/li>\n
- On-time<\/li>\n
- Error-free paperwork & documentation<\/li>\n<\/ul>\n
A Perfect Order meets all 5 of the above criteria.<\/strong><\/p>\nDegree of Importance<\/strong><\/p>\nA low % Perfect Order Fulfillment score is indicative of supply chain issues that require immediate corrective actions and customer dissatisfaction.<\/p>\n
A high %\u00a0Perfect Order Fulfillment score is indicative of a supply chain that is capable of delivering products and services as required, contracted, and promised.<\/p>\n
Formula<\/strong><\/p>\n(Total Perfect Orders) \/ (Total Number of Orders) x 100%<\/strong><\/p>\nData Collection<\/strong><\/p>\nThe measurement or calculations of supply chain performance are usually derived from Deliver Process Elements, with an impact on Delivery Enable Process Elements.<\/p>\n
The documents necessary for the support of the supply chain process should be scored across the set of Deliver process elements.<\/p>\n
*******************************************************************************************************************************\u00a0\u00a0Upside Supply Chain Flexibility:<\/strong><\/p>\nIs the measurement of the number of days needed to accomplish an unplanned and sustainable 20% increase in quantities delivered to customers.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations that are flexible increase the probability of realizing a competitive advantage<\/p>\n
Formula<\/strong><\/p>\nAfter consideration of the constraints of Make, Source, and Deliver dimensions, it is\u00a0the minimum time required<\/u>\u00a0to achieve an unplanned sustainable increase in demand.<\/p>\n
Data Collection<\/strong><\/p>\nThe data is taken from the actual planning activities realized in devising the actions to be taken to accommodate the increased quantities that are required<\/p>\n
Upside Supply Chain Adaptability:<\/strong><\/p>\nIs the maximum sustainable % increase in delivered quantities of products and services that can be realized within 30 days.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations that are adaptable increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n
Formula<\/strong><\/p>\nAfter consideration of Return, Source, Make, and Deliver processes, Supply Chain Adaptability is the least quantity sustainable.<\/strong><\/p>\nData Collection<\/strong><\/p>\nAdaptability metrics can be based on assumptions or historic events. Adaptability metrics are based on the actual number of returns compared to the maximum number of returns which can be realized within 30 days.<\/p>\n
Downside Supply Chain Adaptability:<\/strong><\/p>\nis the reduction in ordered quantities sustainable at 30 days before delivery with zero cost or inventory penalties.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations that are adaptable increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n
Formula<\/strong><\/p>\nDownside Source Adaptability + Downside Make Adaptability + Downside Deliver Adaptability Downside Supply Chain Adaptability.<\/p>\n
Data Collection<\/strong><\/p>\nAdaptability measures are assumptions based on historic events.<\/p>\n
Overall Value at Risk:<\/strong><\/p>\nIs the determination and management of the degree of impact risk possess on an organization\u2019s value creation mechanisms.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations robust Risk Management Processes increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n
Formula<\/strong><\/p>\nSupply Chain Risk VAR ($) = VAR $ (Plan) + VAR $ (Source) + VAR $ (Make) + VAR $ (Deliver) + VAR $ (Return)<\/p>\n
Data Collection<\/strong><\/p>\n***********************************************************************************************************************************\u00a0 \u00a0Cash-to-Cash Cycle Time:<\/strong><\/p>\nis the time it takes for an investment made on expenditures on raw materials to flow back into an organization. For service-oriented firms, it represents the time from the point where an organization pays for the resources consumed in the performance of a service to the time that an organization receives payment from clients\/customers for those services<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations robust Cash to Cash Cycles increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n
Formula<\/strong><\/p>\nCash-To-Cash Cycle Time = (Days Sales Outstanding) + (Inventory Days of Supply) \u2013 (Days Payable Outstanding) in days<\/p>\n
Data Collection<\/strong><\/p>\n\n- Accounts Payable<\/li>\n
- Accounts Receivable<\/li>\n
- General Ledger<\/li>\n
- Production Reporting System<\/li>\n
- Customer Relationship Management (CRM) System<\/li>\n
- Purchasing System<\/li>\n<\/ul>\n
*************************************************************************************************************<\/p>\n
Return on Supply Chain Fixed Assets:<\/strong><\/p>\nmeasures the return an organization receives from its investments on capital in supply chain fixed assets. This includes the fixed assets used in Return, Plan, Source, Make, and Deliver activities.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations with robust Return on Supply Chain Fixed Assets Processes, increase the probability of realizing competitive advantage, profitability, and customer satisfaction.<\/p>\n
Formula<\/strong><\/p>\nReturn on Supply Chain Fixed Assets = ((Supply Chain Revenue) \u2013 (Total Cost to Serve)) \/ (Supply Chain Fixed Assets)<\/p>\n
Data Collection<\/strong><\/p>\n\n- Accounts Payable<\/li>\n
- Accounts Receivable<\/li>\n
- General Ledger<\/li>\n
- Production Reporting System<\/li>\n
- Customer Relationship Management (CRM) System<\/li>\n
- Purchasing System<\/li>\n<\/ul>\n
Return on Working Capital:<\/strong><\/p>\nis a metric that determines the magnitude of an investment relative to an organization\u2019s working capital position vs the revenues generated from its supply chain activities. Components include inventory, accounts payables, accounts receivables, supply chain revenues, cost of goods sold,, and supply chain management costs.<\/p>\n
Degree of Importance<\/strong><\/p>\nOrganizations with robust Return on Working Capital Processes, increase the probability of realizing competitive advantage, profitability, and customer satisfaction.<\/p>\n
Formula<\/strong><\/p>\nReturn on Supply Chain Fixed Assets = ((Supply Chain Revenue) \u2013 (Total Cost to Serve)) \/ (Supply Chain Fixed Assets)<\/p>\n
Data Collection<\/strong><\/p>\n\n- Accounts Payable<\/li>\n
- Accounts Receivable<\/li>\n
- General Ledger<\/li>\n
- Production Reporting System<\/li>\n
- Customer Relationship Management (CRM) System<\/li>\n
- Purchasing System<\/li>\n<\/ul>\n
<\/p>\n
Definition of Strategic Supply Chain Metrics:<\/h3>\n
Strategic Supply Chain Metrics<\/strong>\u00a0measure the degree of the overall health of the organizational supply chain. Another type of metric is Diagnostic Metrics, which sheds light on areas for improvement.<\/p>\n In this article, we will provide a\u00a0Supply Chain Metrics\u00a0Framework derived from various sources. It is important that we reflect on what we as Procurement Leaders are measuring.<\/p>\n Table 1: SCOR (ASCM) | Open Source | NLPA Metrics and Performance Assessment Matrix<\/p>\n Sources:<\/strong>\u00a0Open Source:\u00a0<\/strong>https:\/\/orwiki.org\/SCPM\u00a0| NLPA: <\/strong>https:\/\/www.certitrek.com\/nlpa\/\u00a0|<\/strong>\u00a0\u00a0ASCM:<\/strong>\u00a0https:\/\/www.ascm.org\/about-ascm\/<\/p>\n The following are explanations and formulas for some of the strategic and diagnostic metrics noted in Table 1.<\/p>\n Order Fulfillment Cycle Time:<\/strong><\/p>\n The measurement of the average time required to fulfill customer orders. It is the manifestation of the speed at which an organization can satisfy the demand of its customers\/clients.<\/p>\n Degree of Importance<\/strong><\/p>\n Organizations with short Order Fulfillment Cycle Times (OFCT) are more responsive to customer needs and requirements. Lengthy OFCTs may result in poor customer experiences and loss of market share.<\/p>\n Formula<\/strong><\/p>\n (Sum of Actual Cycle Times for All Orders Delivered) \/ (Total Number of Orders Delivered) in days<\/p>\n Data Collection<\/strong><\/p>\n This data is collected from Source, Make, and Deliver Process Elements<\/p>\n *******************************************************************************************************************************<\/strong><\/p>\n Perfect Order Ratio:<\/strong><\/p>\n is the measurement of the ability to deliver products and services as required, contracted, and promised. It is the % of orders delivered in-full, undamaged, and defect-free, on-time, as a percentage of the total orders delivered.<\/p>\n A Perfect Order meets all 5 of the above criteria.<\/strong><\/p>\n Degree of Importance<\/strong><\/p>\n A low % Perfect Order Fulfillment score is indicative of supply chain issues that require immediate corrective actions and customer dissatisfaction.<\/p>\n A high %\u00a0Perfect Order Fulfillment score is indicative of a supply chain that is capable of delivering products and services as required, contracted, and promised.<\/p>\n Formula<\/strong><\/p>\n (Total Perfect Orders) \/ (Total Number of Orders) x 100%<\/strong><\/p>\n Data Collection<\/strong><\/p>\n The measurement or calculations of supply chain performance are usually derived from Deliver Process Elements, with an impact on Delivery Enable Process Elements.<\/p>\n The documents necessary for the support of the supply chain process should be scored across the set of Deliver process elements.<\/p>\n *******************************************************************************************************************************\u00a0\u00a0Upside Supply Chain Flexibility:<\/strong><\/p>\n Is the measurement of the number of days needed to accomplish an unplanned and sustainable 20% increase in quantities delivered to customers.<\/p>\n Degree of Importance<\/strong><\/p>\n Organizations that are flexible increase the probability of realizing a competitive advantage<\/p>\n Formula<\/strong><\/p>\n After consideration of the constraints of Make, Source, and Deliver dimensions, it is\u00a0the minimum time required<\/u>\u00a0to achieve an unplanned sustainable increase in demand.<\/p>\n Data Collection<\/strong><\/p>\n The data is taken from the actual planning activities realized in devising the actions to be taken to accommodate the increased quantities that are required<\/p>\n Upside Supply Chain Adaptability:<\/strong><\/p>\n Is the maximum sustainable % increase in delivered quantities of products and services that can be realized within 30 days.<\/p>\n Degree of Importance<\/strong><\/p>\n Organizations that are adaptable increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n Formula<\/strong><\/p>\n After consideration of Return, Source, Make, and Deliver processes, Supply Chain Adaptability is the least quantity sustainable.<\/strong><\/p>\n Data Collection<\/strong><\/p>\n Adaptability metrics can be based on assumptions or historic events. Adaptability metrics are based on the actual number of returns compared to the maximum number of returns which can be realized within 30 days.<\/p>\n Downside Supply Chain Adaptability:<\/strong><\/p>\n is the reduction in ordered quantities sustainable at 30 days before delivery with zero cost or inventory penalties.<\/p>\n Degree of Importance<\/strong><\/p>\n Organizations that are adaptable increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n Formula<\/strong><\/p>\n Downside Source Adaptability + Downside Make Adaptability + Downside Deliver Adaptability Downside Supply Chain Adaptability.<\/p>\n Data Collection<\/strong><\/p>\n Adaptability measures are assumptions based on historic events.<\/p>\n Overall Value at Risk:<\/strong><\/p>\n Is the determination and management of the degree of impact risk possess on an organization\u2019s value creation mechanisms.<\/p>\n Degree of Importance<\/strong><\/p>\n Organizations robust Risk Management Processes increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n Formula<\/strong><\/p>\n Supply Chain Risk VAR ($) = VAR $ (Plan) + VAR $ (Source) + VAR $ (Make) + VAR $ (Deliver) + VAR $ (Return)<\/p>\n Data Collection<\/strong><\/p>\n ***********************************************************************************************************************************\u00a0 \u00a0Cash-to-Cash Cycle Time:<\/strong><\/p>\n is the time it takes for an investment made on expenditures on raw materials to flow back into an organization. For service-oriented firms, it represents the time from the point where an organization pays for the resources consumed in the performance of a service to the time that an organization receives payment from clients\/customers for those services<\/p>\n Degree of Importance<\/strong><\/p>\n Organizations robust Cash to Cash Cycles increase the probability of realizing competitive advantage, profitability, and customer satisfaction<\/p>\n Formula<\/strong><\/p>\n Cash-To-Cash Cycle Time = (Days Sales Outstanding) + (Inventory Days of Supply) \u2013 (Days Payable Outstanding) in days<\/p>\n Data Collection<\/strong><\/p>\n *************************************************************************************************************<\/p>\n Return on Supply Chain Fixed Assets:<\/strong><\/p>\n measures the return an organization receives from its investments on capital in supply chain fixed assets. This includes the fixed assets used in Return, Plan, Source, Make, and Deliver activities.<\/p>\n Degree of Importance<\/strong><\/p>\n Organizations with robust Return on Supply Chain Fixed Assets Processes, increase the probability of realizing competitive advantage, profitability, and customer satisfaction.<\/p>\n Formula<\/strong><\/p>\n Return on Supply Chain Fixed Assets = ((Supply Chain Revenue) \u2013 (Total Cost to Serve)) \/ (Supply Chain Fixed Assets)<\/p>\n Data Collection<\/strong><\/p>\n Return on Working Capital:<\/strong><\/p>\n is a metric that determines the magnitude of an investment relative to an organization\u2019s working capital position vs the revenues generated from its supply chain activities. Components include inventory, accounts payables, accounts receivables, supply chain revenues, cost of goods sold,, and supply chain management costs.<\/p>\n Degree of Importance<\/strong><\/p>\n Organizations with robust Return on Working Capital Processes, increase the probability of realizing competitive advantage, profitability, and customer satisfaction.<\/p>\n Formula<\/strong><\/p>\n Return on Supply Chain Fixed Assets = ((Supply Chain Revenue) \u2013 (Total Cost to Serve)) \/ (Supply Chain Fixed Assets)<\/p>\n Data Collection<\/strong><\/p>\n<\/p>\n\n
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