This book is a milestone in the evolution of supply chain planning literature. It presents a comprehensive methodology for connecting supply chain improvements to business performance, a topic that has not often been addressed. I would recommend this book as a must-read to all supply chain practitioners.
Harpal Singh, CEO, Arkieva
Bram has been instrumental at Barco in identifying and defining our challenges in supply chain, working capital management and order fulfilment and in delivering a model that helped our organization to manage these challenges in a more thoughtful way. It drove our people to have a more comprehensive look at our business and in considering the different dimensions and possible impact in these domains.
Carl Vandenbussche, VP Investor Relations, Barco
A very timely book. As the fundamentals of supply chain are being redefined by the digital revolution, it is absolutely needed for supply chain executives to become much more proficient with the financial metrics of supply chains to assess the benefits and costs of those technologies. Metrics beyond cost, like cash, are going to define the future evolution of digital supply chains and change current practices dramatically.
Prof Dr Carlos Cordon, LEGO Professor of Strategy and Supply Chain Management, IMD
Bram is a leader in helping companies maximize value in supply chain management. This book will be helpful in changing the dialogue of supply chain leaders to balance metrics and align on supply chain strategy.
Lora Cecere, Supply Chain Visionary and Founder, Supply Chain Insights
This is a great book that makes a perfect bridge between strategy, supply chain management and finance. Too many books dig deeper and deeper within their discipline. This book is an exception and convincingly shows how strategic choices have a huge impact on the most important supply chain parameters and metrics. A true recommendation.
Prof Dr Kurt Verweire, Professor, Strategy, Vlerick Business School
This book is a great contribution in the evolution of business and supply chain excellence to a more holistic approach to create sustainable business performance and results. It provides a clear picture and extensive guidance for leaders to connect all the dots of a chosen business strategy with a supply chain strategy, and links this to the right business performance measurement. Bram DeSmet has created a masterpiece which can be used for any business transformation and I am convinced that winning companies will implement the methods described in the book as part of their business excellence journey towards sustainable success.
Frank Vorrath, VP Global Supply Chain, Johnson Controls
Bram DeSmet has created a must-read resource for anybody looking to improve financial metrics by working on supply chain strategy or even the connection between the two. In his unique style, he builds from simple concepts and takes the reader to a viewpoint that is easy to follow, while promising to deliver great impact for those who understand and implement. The connection he provides to implementable technology makes it complete and a resource for all kinds of readers, from those interested in theory, just the implementation, or a combination thereof. A must-read for supply chain professionals.
Sujit Singh, COO, Arkieva
With this decisive book, Bram DeSmet has cracked the nut of translating business strategy into practical supply chain metrics.
Martijn Lofvers, CEO and Chief Trendwatcher at Supply Chain Media
Bram DeSmet has in this book brought together very authentic and deep insights in managing supply chain strategies and their impact on financial performance; both on the P&L as well as on free cash and working capital. The dependencies in the triangle become crystal-clear. The book is a joy to read and very insightful for practical use. A treasure to have and a pleasure to read.
Ton Geurts, CPO / SVP Supply Chain Excellence, Bekaert
Supply chain management is very often only looked at from a single axis: keeping the inventory as low as possible. In some cases you will find a more mature management approach looking at two axes: minimize inventory and maximize customer satisfaction. Seldom does supply chain management focus on the impact on the bottom line of their decisions. This book provides a great outline on how to manage all at the same time.
Johan Heyman, VP Operations, Barco
Brams book very comprehensively addresses and explains the permanent supply chain challenges of balancing the dimensions of cash, cost, and service. Highly recommended.
Patrick Dittli, Global Director, Supply Chain Management, Metro
This book provides a practical guide towards formulating and implementing supply chain strategy. Highly recommended for all supply chain professionals!
Prof Dr Jack van der Veen, Evofenedex Chair Supply Chain Management, Nyenrode Business Universiteit
Excellent companies have more than good products and marketing, above all they have a perfect supply chain. By using the supply chain triangle of Bram DeSmet, organizations can fulfil their promises to their customers. The supply chain triangle takes care of the right balance between service to customers, the costs customer are willing to pay and the cash the organization must generate to be able to exist and to innovate.
Michel Van Buren, Managing Director, BLMC & Solventure Netherlands
Supply Chain Strategy and Financial Metrics
The Supply Chain Triangle of service, cost and cash
Bram DeSmet
Publishers note
Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and author cannot accept responsibility for any errors or omissions, however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publishers or the author.
First published in Great Britain and the United States in 2018 by Kogan Page Limited
Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses:
2nd Floor, 45 Gee Street
London
EC1V 3RS
United Kingdom
c/o Martin P Hill Consulting
122 W 27th Street
New York, NY 10001
USA
4737/23 Ansari Road
Daryaganj
New Delhi 110002
India
Bram DeSmet 2017
The right of Bram DeSmet to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988.
ISBN 978 0 7494 8257 2
E-ISBN 978 0 7494 8258 9
Typeset by Integra Software Services, Pondicherry
Print production managed by Jellyfish