Supply Chain Strategy and Financial Metrics: The Supply Chain Triangle Of Service, Cost And Cash
by Dr Bram DeSmet (Author)

About the author
Dr Bram DeSmet is the CEO of Solventure where he helps global production and retail organizations in the domain of Strategy, Supply Chain and Operations. He is a Professor in Operations & Supply Chain Management at Vlerick Business School, Belgium.

About this book
Supply Chain Strategy and Financial Metrics is a step-by-step guide to balancing the triangle of service, cost and cash which is the essence of supply chain management. Supply chains have become increasingly strategy-driven, and this Supply Chain Triangle approach puts the supply chain at the heart of the strategy discussion instead of seeing it as a result.
Supply Chain Strategy and Financial Metrics fully reflects the 'inventory' or 'working capital' angle and examines the optimisation of the supply chain and Return on Capital Employed. Including case studies of Barco, Casio and a selection of food retail companies, this book covers building a strategy-driven KPI dashboard, target setting and financial benchmarking. Regular examples and diagrams illustrate how different types of strategies lead to different trade-offs in the Supply Chain Triangle. This ground-breaking text links supply chain, strategy and finance through financial metrics, therefore creating value for the shareholder.

Table of contents
Introduction
01 The Supply Chain Triangle of service, cost and cash

• What is supply chain management?
• The Supply Chain Triangle
• Companies struggle with balance in the triangle
• Traditional organizations cause tension in the triangle
• Increased tension in the triangle as growth stalls
• Expanding the triangle from cash to capital employed
• Aligning the triangle is about optimizing ROCE
• Accounting basics: inventory, working capital, and cash generation
• Conclusion
• References
  

02 Strategy in the Supply Chain Triangle

• Treacy and Wiersema’s three strategic options
• Mapping Treacy and Wiersema to the Supply Chain Triangle
• Linking the three strategies back to ROCE
• Case study: Barco
• Case study: Casio
• Strategies: to change or not to change?
• Case study: Food retail companies
• Conclusion
• Case study: Owens Corning
• Notes
• References
  

03 Financial benchmarking in two dimensions

• Benchmarking in two dimensions
• Which KPIs to include in a benchmark
• Conclusion
• Reference
  

04 Financial target setting in two dimensions

• Adding ‘indifference’ or ‘bang-for-the-buck’ lines to the EBIT/inventory graph
• Conclusion
  

05 The impact of strategy on financial benchmarking and target setting

• Mapping Treacy and Wiersema to the EBIT% vs inventory turns graphs
• Mapping Treacy and Wiersema to the EBIT% vs CCC graphsh
• Mapping Treacy and Wiersema to the EBIT% vs fixed asset turns graph
• Conclusion
• Case study: Henkel
• Case study: Bekaert
• References
  

06 Redefining the service corner as a value corner

• Redefining the service corner as a value corner using Treacy and Wiersema
• Redefining the service corner as a value corner using Crawford and Mathews
• Defining metrics for each of our value drivers
• Conclusion
• References
  

07 Building a strategy-driven KPI dashboard

• Defining financial metrics for the cost side and the capital employed side of the triangle
• Building our strategy-driven KPI dashboard
• Understanding the impact of strategy on the dashboard
• Comparison with the SCOR model
• Conclusion
• Case study: Johnson Controls
• References
  

08 Implementing the strategy-driven supply chain

• Strategy and supply chain in the 1990s
• A shift in thinking: from agile to strategy-driven supply chains
• Defining your strategy-driven supply chain
• Implementing your strategy-driven supply chain
• Conclusion
• Case study: The Strategy Compass
• References
  

Length: 288 pages
Publisher: Kogan Page; 1 edition (May 28, 2018)
Language: English
ISBN-10: 0749482575
ISBN-13: 978-0749482572

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