Monday, June 26, 2006

Coming Soon: Report of the Business Value of Supply Chain Security

For years, supply chain professionals have been begging for funding from CEOs and CFOs to enhance supply chain security within their respective company. And for years, they have been turned away because they couldn't prove the ROI. Not anymore. Thanks to Stanford University, The Manufacturing Institute, the research and education arm of the National Association of Manufacturers and 15 global companies, including IBM, a new report is being released on July 27th to answer this age old question.

The study was based the input of 11 manufacturers and 3 logistics service providers that have implemented supply chain security efforts, which have all demonstrated that investments in supply chain security can provide business value. I cannot share the actual numbers yet, but by July 27th these are the types of ROI metrics that be unveiled:

XX% reduction in theft/loss/pilferage
XX% reduction in tampering
XX% reduction in excess inventory,
XX% increase in reported on-time delivery
XX% increase in access to supply chain data
XX% increase in timeliness of shipping information)
XX% reduction in cargo delays
XX% reduction in cargo inspections / examinations
XX% reduction in transit time
XX% reduction in delivery time window
XX% reduction in customer attrition

This report has the potentially to shake up and increase supply chain security investments by several fold. Check back soon for a report abstract and the URL to download the full report.

1 comment:

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