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Supply Chain Metrics – and the power of Commercial integration

June 6, 2011

The Husdal blog reports on a paper by University of Tennessee lecturer Priscilla Wisner relating to supply chain metrics.

I commend this as important reading for any commercial professional, whether dealing with procuremnt or customer relationships. The reasons are  that it illustrates the extent of the connection between business performance and contracted relationships; the overall impact of supply chain efficiency on financial results; and, most importantly, it confirms that ‘the supply chain’ is a holistic area that links both selling and buying activities.

The vast majority of commercial and contracts staff resolutely resist seeing any connection between the work of a sales contracts negotiator or manager and the work of their counter-parts in Procurement. This article not only shows how wrong they are to make this judgment, but in my view it also demonstrates how each reduces its value as a result of that separation.

As you read the list of measurements, think about the tremendous power and influence that an integrated supply chain operation can bring to business performance – and the consequent status of the practitioners who are part of it.

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