It is no longer sufficient for an organization to be lean, agile and efficient. Its entire supply chain must also perform as the company itself does. If some of its trading-partner suppliers and customers are excessively high-maintenance, those suppliers and customers erode profit margins. Who are these troublesome suppliers and customers, and how much do they drag down profit margins? More importantly, once these questions are answered, what corrective actions should managers and employees take?
Increasingly, organizations are solving this problem using analytical software tools, such as performance measurement scorecards, activity-based cost management (ABC/M), resource planning price quotations and process mapping tools. More recently, these analytic tools have been bundled together as enterprise performance management systems. Performance management systems align every employee’s decisions and behavior with strategy and leverage accurate work activity data. These systems stimulate the right actions and facilitate immediate communications from each tool comprising the performance management system, not from an external e-mail system.
You can download the whitepaper here: http://www.epmchannel.com/are-all-of-your-customers-profitable-to-you/
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