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Monetizing” the S&OP discussion to focus on value means translating supplychain planning unit and volume numbers into the value-driven financial measurements. In a recent web seminar entitled S&OP: From Volume to Value she asks, “How do supplychain leaders transition from a cost-based agenda to drive value?”
Here’s a simple yet illustrative example: Sara’s Sweets is a fictional bakery that collaborates with local cafes and also handles custom online orders directly from consumers. The need for supplychainsegmentation in Sara’s situation is clear, but what about your business? The solution lies in supplychainsegmentation.
Clorox based on their supplychainsegmentation work is also clearer on strategy helping the company to be more balanced cross-functionally as they face the headwinds of market turmoil. The focus needs to move from functional metrics to balanced scorecard outcomes. For example, a “buy plan” for procurement.
I also had the pleasure of hosting a roundtable session on supplychainsegmentation along with Bob Heaney , Aberdeen’s lead analyst for SupplyChain Management. It was the general consensus of the group that there is value to be delivered from supplychainsegmentation.
Clorox Performance Compared to Competitors (SupplyChain Index is a relative metric of growth.). In the beginning, the business leaders would state that the supplychain was not flexible enough and the costs were too high. Let me give you an example. Designing SupplyChainSegmentation.
Here’s a simple yet illustrative example: Sara’s Sweets is a fictional bakery that collaborates with local cafes and also handles custom online orders directly from consumers. These insights aid in making informed decisions and enhance strategic planning, ensuring efficient supplychain operations that effectively meet customer needs.
However, as carbon taxes and emissions reporting requirements continue increasing, supplychain professionals face mounting pressures from inside and outside their organizations to measure and improve performance against new, nebulous sustainability metrics.
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