The best supply chain practices generally have flexibility, the characteristics of high cost and difficult to achieve. First need to purchase such as equipment, automation equipment and software systems such as tangible assets, through the supply chain practice, and to recover their costs, while the need to improve customer service and deliver shareholder value in the form of return investors.
From a financial point of view the supply chain optimization
In the supply chain practice, there are some items can not be measured by financial indicators, such as the business blueprint, management protocols and strategic vision in addition to all of the items, you must consider the financial returns.
One from a financial point of view, the implementation of the supply chain, with the ultimate objective is the pursuit of profit maximization. So, we need to increase sales revenue, or reduce the current expenditure, in order to reduce costs. Therefore, we usually use two methods to measure an investment, ROI, that is the cost of reduction or increase in income is in excess of the period of cash flow.
ROI - step analysis
Create a project or an investment idea, often derived from the following factors: market pressure, cost factors, security requirements, customer demand or spontaneously. But no matter what the project is out of considerations, in order to verify the correctness of your idea, you must go through the following steps.
Step One: A clear mandate
ROI evaluation process as the most important step, your task is not to verify the feasibility of the project, but will try to make your company's resources are fully utilized. A clear goal for the entire analysis process is very important.
Step two: A clear plan cycle
In determining the planning cycle, the need to combine the use of project-related fixed assets, number of years, the company's future development planning, economic expectations and environmental stability factors to consider, if these factors are not sure, you can choose a decade as the program cycle.
Step Three: Proposed target
Elaborate on the reasons for this investment, and remember. In the evaluation process, you may find some support for the project investment, new content, but the focus is still good to explore a number of potential factors. Only in this way makes the proposed project aims to systematize the supply chain, but also makes the content of ROI analysis more specific.
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