| Copyright (c) 2010 Randall Mauldin | | | | percent more profitable than organizations that do |
| Supply chain management enables organizations to | | | | not standardize common components according to |
| maximize resources when sales are down and costs | | | | Ramakumar and Cooper (2004) stated in "Process |
| are rising. Below are a few benefits of an effective | | | | Standardization Proves Profitable," published in Quality. |
| supply chain management program: | | | | 3. A 40 percent return on investment can be realized |
| 1. A 2.5% reduction in procurement costs produces | | | | by lowering costs, improving productivity, and |
| the same amount of profit as a 10% increase in sales | | | | increasing opportunities with supply chain analytics as |
| as indicated by The Institute of Supply Management | | | | stated by Marabotti (2003) in "Build Supplier Metrics, |
| 2. Companies engaged in process standardization are | | | | Build Better Products," published in Quality. |
| able to manage complex value chains and are 73 | | | | |