| This concept and its real practice has been facing | | | | changes, yesterday's model was a model oriented to |
| certain changes in this business world, according to | | | | mass marketing and mass production, production |
| new world trends this requires another definition; | | | | driven in a way, tomorrow's model is oriented |
| however there are firms that are changing this | | | | basically to mass customization and one-to-one |
| concept in order to face now a days driving forces. | | | | marketing all this in a market oriented strategy, say, |
| Before continuing I would like to remind you what | | | | using virtual network, information based and |
| Value Based Management is: it's an Increasing | | | | perceived customer value oriented, based on these |
| sustainable / durable value to the company | | | | premises we urgently need what I call a Holistic |
| (capitalization), this is considered as the main goal of | | | | Supply Chain Management, all this is necessary for all |
| the company as we all know. Focused on proactive | | | | type of economies especially for emerging ones. SCM |
| management and the drivers of strategic value (EBIT | | | | encompasses the planning and management of all |
| margins, growth turnover, business and financial risks) | | | | activities involved in sourcing and procurement, |
| leading to a profitable growth of the company, focus | | | | conversion, and all logistics management activities. It |
| on cash flow (liquidity Self) and the business model | | | | also includes coordination and collaboration with |
| impacts on the ability to generate future cash flows | | | | channel partners, which can be suppliers, |
| is crucial. | | | | intermediaries, service providers, and customers. |
| One way to increase economic value of your | | | | In essence, supply chain management integrates |
| company is by pondering Free Cash Flow /EVA and | | | | supply and demand management within and across |
| WCC (Weighted Average Cost of Capital), these | | | | companies. A Holistic Supply Chain Management |
| two components of evaluations are related to four | | | | includes: Instead of looking only economies of scale |
| big value drivers which are: Innovation (time of | | | | oriented to production, they are nowadays seeking |
| competitive advantage), Operations Excellence | | | | strategies leading to reducing the overall cost of the |
| (Revenue growth EBIT margins Taxes on benefits), | | | | supply chain and a main focus towards the client. |
| Investments (Investments in working capital Other | | | | Information and Communication Technology (ICT), |
| investments) and Financing and rating (Cost of | | | | plays a very important role, it connects the point of |
| capital), the overall objective is to increase economic | | | | sale or consumption to the point of supply. The |
| value through those components of evaluation taking | | | | logistics management focuses on customer value |
| into account the value drivers mentioned. We | | | | (value for the client) that takes the nominator |
| definitely need to redefine our Operations | | | | perceived benefits (product quality, customer service |
| Management by creating new business models due to | | | | and so on.) and the denominator total costs of |
| those external driving forces that push us to change, | | | | ownership for the client. One of the main propelling |
| there is such a great advantage nowadays this is | | | | things for this besides the ICT and Globalization |
| called Technology, we have a wide variety on the | | | | trends the assignment of Managers logistics |
| use of Information and Communication Technology | | | | specialists with extensive benefits value propositions |
| (ICT) which can help us a lot achieving so many | | | | (menu offerings, Third Party Logistics Providers) |
| things and more, why is this? The main reasons are | | | | which can add value to the overall goal. |