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A "how-to" guide for supply chain professionals who need accurate cost information for end-to-end processesWith the increasing pace of globalization, supply chain professionals find that they have less and less margin for error in their decisions making. Competition is getting more intense, and, unfortunately, CFOs and accountants do not currently provide supply chain managers with the information required to make better decisions. Supply Chain Costing and Performance Management, 2nd Edition, will show you (and the executives you report to) how to understand and apply various enterprise and corporate performance management (EPM/CPM) methods related to costs and profit margins and performance measurements.This book is a "how-to" guide to assist supply chain managers and employee teams to obtain interenterprise cost information on supply chain processes. It provides techniques for obtaining accurate cost and performance information on the activities performed within your firm and on activities performed by trading partners. The techniques and approaches in this book were developed from supply chain costing practices implemented by leading-edge firms. You will learn how you can gain access to reasonably accurate costs and profit margins involved with suppliers, products, stock keeping units (SKUs), service-lines, channels, and customers. In addition, you will gain insight into the activity costs in end-to-end business processes, including the "drivers" for each type of cost.* Learn how to access accurate cost and pricing information related to both your company and your trading partners* Overcome siloed information by creating your own costing practices using proven methods drawn from leading firms* Understand what drives activity costs for each step in end-to-end business processes* Assess the performance of your costing activities with step-by-step measurement guidelines* Make better decisions and improve performance and profitability with clearer, more transparent cost and price dataThe information in this book will empower supply chain managers with the ability to make better decisions and improve their organizations' performance and profitability.
This book emphasizes that the analytical tools (e.g. , balanced scorecard, activity-based management, etc. ) which presently exist have been tested and are mature, and that their integration is now the big opportunity. This means not just information technology systems integration but the integration of "thinking" (i.e.
Virtually all organizations gauge spending in terms of return on investment, and information technology (IT) tops the investment list as both the largest and most frustrating for senior executives.
Performance management is the process of assessing progress toward achieving predetermined goals. It helps companies achieve their strategic goals. Methodologies used to create a performance management strategy include activity-based management, balanced scorecard, and six sigma.
As the growth of the Internet and other factors shift power to consumers, there is relentless pressure on corporations to keep prices low. Increasingly, corporations rely on "margin management" as well as supply chain management to maintain competitiveness and raise profits.
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