Revenue And Profit Are Optimized By A Well Designed Supply Chain Management

The path a product or service follows from the originator of it to the consumer.

Revenue and profit are optimized by a well designed supply chain management. What may be debated is the idea that digitalization can be easy. A legacy information system is a powerful system capable of supporting the needs of many functional areas in business. In traditional organizations the supply chain absorbs 60 to 70 percent of the cost of inventory levels. A supply chain management system automates inventory tracking but still requires that information be transferred manually.

In a conference call with investors in february 2015 macy s cfo karen hoguet summed up the primary objective of most retailers today. Getting to the answer requires retailers to take a broader more strategic perspective of. Revenue and profit are optimized by a well designed supply chain management. A recent mckinsey company study even suggests that on average companies that aggressively digitalize their supply chains can expect to boost annual growth of earnings before interest and taxes by 3 2 percent the largest increase from digitalizing any business area and annual revenue growth by 2 3 percent.

What is a distribution chain. The distribution chain is simply the path followed from the distributor of a product or service to the end consumer. Supply chain excellence enhances shareholder value because it controls the firm s heartbeat the fundamental flow of materials and information from suppliers to customers. We are making investments in growth we want to accelerate growth but it needs to be profitable growth how can supply chain management enable profitable growth.