SCM Best Practice is a new coaching and management tool
Who needs the SCM Best Practice applications?
SCM Best Practice can be interlinked with any information system application. It uses the familiar activity-based costing procedures. The application illustrates the importance which the order-supply chain has in the company's total profitability.
The user experiences the use of SCM Best Practice as an extension to the company own information system. The application is in English and Finnish and works entirely over the Internet.
The application consists of four different parts:
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Analysis - Profitability is a new management and coaching web tool
Analysis enables you to utilize the hidden information stored in your company's information systems. From this information will be compiled a comprehensive new database which is utilised over Internet.
In this section the company fixed expenses are allocated to products purchased and sold based on business transactions and value of inventory. After allocation you can find out how profitable each product and customer really is.
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Analysis - Materials Management is inventory management and purchasing web tool
In this section you will get all parameters and key figures to optimize the inventory and purchasing work load. In addition you can examine the purchase and sales values and level of inventory of each product in profile pictures progressing in the course of time.
When purchase lots sizes can be optimized on the basis of your own and your supplier's costs opens this up new possibilities for lowering costs and purchase prices.
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Analysis - Customer Cooperation is sustainable customer collaboration web tool
Here the supplier can create from his own sales information a comprehensive database which is served to each customer over internet. These summaries enable a new kind of cooperation in order to reduce all unnecessary costs from the order-supply chain between two parties.
The application contains also the virtual desktop where both parties can inspect the costs caused in the both ends of the common supply chain. When the customers recognize the whole costs of demand-supply chain, it is easier to discuss the number of deliveries.
When handling and transportation can be reduced, it may be possible to also lower the sales prices without affecting the margin. This may significantly increase the whole competitiveness.
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Facts & Figures is the order-supply chain mapping method
The company fixed costs are allocated to the order-supply process to ascertain the business cost drivers needed in other sections of the application.
- General management
for supervising the continuous performance improvements and to train the staff professional skills - Sales management
for segmenting customers as "good" and "poor" categories - Material managers
to streamline the supply chains and to reach the right stock turnover and purchase prices - Productivity developers
to create a new kind of cooperation between customers and suppliers - Assortment management
to recognise the products abc-distributions and actual net income - Consultants, corporate trainers
for creating very extensive and varied analysis incurred quickly with very low expenses
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