Why is Supply Chain Mastery So Important?

% of

Revenue

Source: PRTM’s 1997 Integrated Supply-Chain Benchmarking Study

Definition: Total supply-chain management cost is the sum of Order Management, Material Acquisition, Inventory Carrying, and Supply-Chain Finance, Planning, and MIS Costs

Total Supply-Chain Management Cost

• A $1B Company Can Save $30M – $60M

• Best-in-class Companies Have an Advantage in Total Supply Chain Cost of 3-6% of Revenue

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