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Best Practice Database
Business Operations » Supply Chain
Single User: Authorizes use by the person who places the order or for whom the order was placed.
Sitewide: Authorizes use of the report for a geographic site. All people at site can view the report for a year and copies can be printed.
Corporate: Authorizes use for the entire company for a year and copies can be printed. No limitations for usage inside the company.
This 36-page document highlights inventory and cash management strategies as well as productivity initiatives in supply chain management at best-in-class companies. Data is from a benchmark survey of 27 leading companies. The document also includes best practices and productivity initiatives from these companies and other best-in-class organizations. Among the initiatives discussed are build-to-order (BTO) or mass customization, collaborative planning forecasting and replenishment (CPFR), vendor managed inventory (VMI), available to promise (ATP), cross-docking and outsourcing to third-party logistics providers.
· Inventory days of supply
· Days sales outstanding
· Days payables outstanding
· Cash-to-cash conversion
· Productivity initiatives
· Best-in-class analysis
SAMPLE KEY METRICS
· Performance for inventory days of supply
· Performance for days sales outstanding
· Performance for days payables outstanding
· Cash conversion cycle across the benchmark class
· Supply chain performance programs implemented
· Supply base management programs implemented in the benchmark partners
An important measure of financial management in the supply chain is the cash-to-cash conversion cycle. Usually defined as the time it takes to take a dollar, purchase raw materials, manufacture, sell, distribute, and collect on sales.
One method of practically calculating this ratio is as follows:
CCC = DSO + ISO – DPO
Cash Conversion Cycle
One respondent boasts a cash conversion cycle of negative 7 days. 1/3 of reporting companies have a CCC of < 50 days; 1/3 are between 50 and 100 days; and 1/3 are greater than 100 days.
If you purchase Best Practice Database document(s), you will have 30 days from the date of purchase to apply some or all of the cost of the document(s) toward the cost of a Full Access Individual, Pharma, Group or University Membership. Write us at DatabaseTeam@bestpracticesllc.com or call David Guinn at 919-767-9179 if you have any questions.