Benefits
scprime® has a direct, positive impact on a company’s financial statements and considerable supply chain benefits, especially in multinational businesses
|
Impact on financial statements
| Functional Area |
Balance Sheet |
P&L |
| BUY |
Lower working capital (raw materials) 30-40%
|
Lower raw materials costs 3-5% Lower indirect materials costs 5-10%
|
| MAKE |
Higher return on capital employed (ROCE) 5-10%
|
Lower manufacturing costs 10-15%
|
| PLAN |
Lower working capital (finished goods) 30-40%
|
Lower supply chain costs 10-15%
|
| DELIVER |
|
Lower distribution costs 10-15%
|
| DEMAND |
|
Increase in sales 3-5%
|
|
Supply Chain benefits
|
Functional |
Cross-Functional |
| Administration overhead |
|
Less crisis management, progress chasing 15% saving
|
| Freight |
Load fill optimisation 30% saving
|
|
| Warehousing/inventory |
3PL contract/productivity management 15% saving
|
Stock reduction 50% finished goods reduction
|
| Factory overhead |
Lean manufacturing 40% less waste
|
Less crisis management, progress chasing 15% saving
|
| Factory direct |
Reduced downtime 40% increase in productivity
|
Less disruption, better run strategies 10% less waste
|
| Packaging |
Best practice procurement procedures 2% price reduction
|
VMI (where appropriate), flow optimisation 1% price reduction
|
| Ingredients |
Effective supplier interaction Price reductions
|
Demand visibility Price reduction
|
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