The Top Ten companies ranked were Dell, Nokia, Procter & Gamble, IBM, Wal-Mart Stores, Toyota Motor, Johnson and Johnson, Johnson Controls, Tesco and PepsiCo. The winning companies carried less inventory, had shorter cash-to-cash cycles and were more profitable. A 3 percent improvement in perfect order fulfillment translates to a 1 percent increase in profits, AMR reported, while a 10 percent increase means an additional 50 cents in earnings per share. Demand forecast accuracy, perfect order fulfillment (perfect means complete, accurate, and on time), supply chain cost, and cash-to-cash cycle time are the four most critical metrics a company utilizes to make trade-offs between cost and service and how well it manages cash.
Strategies and technology for
the new custodians
Demand-driven supply chain adds a dimension to the traditional supply chain by seeking to unite channel members to deliver what consumers actually buy. This new paradigm created by Dell, Nokia and many others is transforming businesses through strategies and technologies, which are enumerated below: