IBF On Demand

The Supply Chain Triangle of Service, Cost And Cash


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Sponsored by Arkieva, your One-Plan S&OP software. Find our more about Arkieva at www.arkieva.com 

IBF's industry-leading S&OP Assessments assess your company's maturity level and provide tailor-made recommendations to improve specific areas -  all designed to take you to the next level in your S&OP evolution. Click here for more information: https://bit.ly/3d58dMT

I interview Bram Desmet, author of 'Supply Chain Strategy And Financial Metrics', the book every executive and CEO should read! It deals with balancing the supply chain triangle of service, cost and cash and how your product strategy directly impacts how this triangle is balanced. Different strategies have different levels of complexity which come with different levels of cost, which drives different levels of inventory, and different levels of investment in fixed assets. 

05:40 How your product strategy defines product complexity, inventory and cash flow
09:50 Balancing the service, cost and cash triangle
11:00 Why Lego has very poor inventory turns and why that isn't a problem
12:40 How strategy impacts how your balance the service, cost and cash triangle
14:35 EBITDA, days of inventory and working capital
17:50 Understanding ROI for capital deployed with ROCE
20:45 Rebalancing the triangle during Covid-19
25:00 How forecast accuracy impacts the service, cost and cash triangle
30:30 My experience of different company strategies and how they impact inventory management and service levels

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IBF On DemandBy IBF0 Eric Wilson CPF

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