Linking Supply Chain Management to Financial Metrics

Have you realized the promise of a Supply Chain Management strategy that is linked to enterprise-wide financial metrics?  Does your CFO take an active part in educating your SCM team about the financial role of SCM?

According to a May 14,, 2011 article from Social Sourcing Solutions,  “SCM systems have the potential to improve the three key drivers of financial performance — growth, profitability and capital utilization. Many of today’s enterprises fail to achieve these benefits because many C-level executives view SCM as a tactical back-room cost-center activity. Most SCM professionals fail to link SCM to key financial metrics because they do not speak the language of finance and are therefore unable to articulate how SCM drives financial performance. For SCM to drive performance throughout the organization, strategic and tactical decisions must be made with an enterprise-wide perspective.”

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