Although we are not sure whether the tremendous and envied popularity of Starbucks® and Krispy Kreme® is here for the long term, SCM is a sure bet. Why are we so sure it is sure? Consider the statistic promoted by ISM - Institute Of Supply Management:
"Every 1% saved in materials and/or process costs, equates to an additional 5% required by sales!"
Nothing against our dear friends in sales/marketing, but the reason SCM is five times more powerful, is that these reductions go straight to the bottom line!
As the revenue for most enterprises have remained flat or on the decline, and as we compete in the global marketplace, the paradigm is changing. Executive management is now realizing the positive impact that SCM can have on their organization. Just ask the CEOs of such corporations as General Electric, Frito Lay, McDonalds and Harley Davidson, who have publicly stated that SCM has played a significant role in their organization's success.
In the case of Harley Davidson®, SCM was primarily responsible for the company's turnaround. Chrysler Motors® had such respect for its procurement function, that it promoted its CPO - Chief Procurement Officer to President!
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