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Supply Chain Management Best Practices

ID: OP-87


24 Data Graphics

88 Metrics

22 Narratives

45 Best Practices

Pages: 135

Published: Pre-2013

Delivery Format: Shipped


License Options:


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.

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Supply Chain performance remains a key factor in corporate competitiveness as organizations improve, refine and adopt build-to-order/ mass customization programs, vendor managed inventory and othe productive initiatives.

This report can help supply chain executives maximize organizational productivity and increase competitiveness. It provides more than 20 detailes performance metrics and more than 40 best practices across critical supply chain areas including:

  • Delivery Performance (i.e. on-time delivery, performance to commit, fill rate, and return rates)
  • Cycle Time (i.e. lead time, actual lead time, and supply chain cycle time)
  • Inventory and Cash Management (i.e. inventory days of supply, days sales outstanding, days payables outstanding, and cash-to-cash conversion)
  • Supply Chain Cost (i.e. supply chain costs, order management costs, inventory carrying costs, supply chain finance and planning costs, supply chain IT costs, procurement department staffing, etc.)
By studying other organizations’ supply chain best practices, your company can better measure performance, close gaps and select productivity initiatives to maximize effectiveness and improve the corporate bottom line.

Industries Profiled:
Automobile; Transportation; Manufacturing; Computer Hardware; Computers; Consumer Products; Shipping; High Tech; Office Equipment; Electronics; Internet; Chemical; Telecommunications; Professional Services; Health Care; Energy; Retail

Companies Profiled:
DaimlerChrysler; Dana Corporation; Dell Computer; Eastman Kodak; Federal Express; FedEx; Ford Motor Company; Hewlett-Packard; HON Company; Intel; Johnson Diversey; Lexmark; Motorola; Siemens; Wal-Mart

Study Snapshot

Supply chain management is a critical component of corporate success. This Best Practices LLC report will allow companies to assess their supply chain functions against industry leaders.

This study examines the following components of industry-leading supply chain management:
  • Performance to standard measures such as on-time delivery, fill rate, lead times, etc.
  • Supply chain costs and cost saving initiatives.
  • And demand / supply chain initiatives that enhance the working relationship between vendor and customers, including BTO (build-to-order – mass customization), CPFR (collaborative planning forecasting and replenishment), VMI (vendor managed inventory), ATP (available to promise), cross-docking, and outsourcing to third party logistics providers.
Twenty-seven companies participated in the research and five executives were interviewed for this report.

Key Findings

The top three findings from this benchmark study are:

  • Several companies have perceived 100% performance at a number of key measures, including on-time delivery, and fill rate. Performance to these measures, however, sometimes comes at a penalty, since some measures can be contradictory, if not mutually exclusive.  For example, a high fill rate can be achieved by having a poor (i.e., high) inventory days on-hand measure.  Several companies in the study, however, have optimized their systems to achieve excellent performance across the board.
  • Recent supply chain management trends include increasingly powerful private trading networks, increased transparency in measuring and monitoring the value chain performance, and outsourcing of non-core activities. The report examines the use of reverse auctions for procuring commodities as well as trends in increased transparency of the chain. The use of Third Party Logistics and Fourth Party Logistics companies is also investigated.
  • Cost management techniques, along with performance improvement initiatives, have revolutionized the entire supply chain management process.  The study details more than 45 winning practices identified through partner interviews and background research on the latest keys to supply chain success.
Table of Contents

Executive Summary 
  • Project Background
  • Project Focus
  • Benchmark Class
  • Key Findings
  • Report Structure and Organization
  • Next Steps

Survey Analysis and Best Practices
  • Introduction
  • Delivery Performance
  • Cycle Time
  • Inventory and Cash Management
  • Supply Chain Cost Management
  • Productivity Initiatives
  • Supply Base Management
  • Best-in-Class Analysis

Survey Responses
  • Delivery Performance, Cycle Time, Return Rate, Inventory and Cash Management
  • Supply Chain Costs and Procurement Department Measures
  • Productivity Initiative Implementation

Lessons Learned 
  • Keys to Success
  • Other Successful Initiatives
  • Lessons Learned & Top Challenges
  • Interview Highlights

List of Charts & Exhibits

Delivery Performance To Request
Benefits of Supply Chain Software
Delivery Performance To Commit Date
Fill Rate
Return Rate
Customer Lead Time - Promised
Customer Lead Time - Actual 
Supply Chain Cycle Time
Inventory Days
Days Sales Outstanding
Days Payables Outstanding
Cash Conversion Cycle
Supply Chain Costs (% revenue)
Order Management Costs (% total supply chain costs)
Material Acquisition Costs (% total supply chain costs)
Inventory Carrying Costs (% total supply chain costs)
Supply Chain Finance and Planning Cost Costs (% total supply chain costs)
Supply Chain Information Technology Costs (% total supply chain costs)
Purchasing Employee Staffing
Purchasing vs. Overall Staffing
Purchasing Staffing vs. Revenue
Purchasing Dept. Cost Savings
Collaborative Planning, Forecasting, and Replenishment Program Implementation
Available to Promise Program Implementation
Vendor (or Supplier) Managed Inventory Program Implementation
Build to Order Program Implementation
Supply Base Management Program Implementation