Creating Shareholder Value Through Supplier Management
For manufacturers, supplier relationship management has been proven to have a direct impact on shareholder value. Best-in-class OEMs understand that generating shareholder value requires that they outshine the competition at managing their suppliers.
In any business, the creation of shareholder value is fundamentally driven by profitability and return on capital employed.
Greater profitability is a function of revenue growth and cost reduction, while return on capital employed can be maximized by more efficient use of both working and fixed capital.
Leading manufacturing companies successfully manage their supplier relationships to optimize these performance drivers and create sustained shareholder value.
Specifically, best-in-class OEMs are enhancing their supplier relationships to grow revenue through successful new product introductions, reduce costs through total-cost sourcing strategies, and improve capital efficiency through inventory reductions and reduced asset intensity.
To accomplish these objectives, manufacturers are investing in a new breed of supply chain professional, and providing them with practices and technologies that enable them to build stronger and more valuable supplier relationships.
This white paper provides best practices that manufacturers must consider to enable them to unlock shareholder value by managing their suppliers.
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