The topic of supply chain excellence is extremely broad and spans a smorgasbord of topics associated with People, Process and Technology. However, if we focus on key decision-making capabilities that can help companies achieve supply chain excellence, we come up with the following seven areas. By mastering these capabilities, a company is almost guaranteed to succeed in the industry. In fact, supply chain decision making capabilities can result in 2-5% of revenue in bottom-line profit.
More than ever, supply chain functional or line of business teams have been frustrated by their increasing needs for broader and more-timely business intelligence (BI). The reasons are many and in increasing cases, very valid. But more than ever, teams should now be turning their attention towards leveraging processes and technology anchored in prescriptive analytics.
Financial maturity starts by first understanding how your business has performed. In other words, can you produce a P&L, balance sheet and cash flow statements for the business? As the organization matures, the financial knowledge goes deeper. Financial statements are produced faster and, more importantly, the organization starts to apply cost accounting principles to understand where it's making money (products, customers, regions, channels) and where it isn’t.
Even deeper knowledge is achieved as the organization begins to apply more complex analyses that look at marginal contribution, achieved by tagging variable, direct and indirect costs. You might be familiar with standard costing, activity-based costing and other approaches that attempt to provide additional information.
First things first: what is a decision support system (also referred to as a DSS)? In short, it's a computer solution using statistical data to help managers and operation planners overcome strategic deficiencies in order to implement streamlined, efficient solutions. DSS systems can be entirely optimized via computer, entirely human-powered or a hybrid of both.
I love lazy Sunday afternoons, especially when it’s August in Texas, the Dallas Cowboys haven't kicked off the new season, and the weatherman insists I unwind on the couch and watch a little golf.
Over the last decade, cost allocation has become a big topic of conversation. More and more frequently, people are beginning to discuss the various types of cost allocation methodologies, the benefits of each type and the differences between them.