If the key financial metrics for creating corporate value relate to costs, capital charges and consumption, and profitability, then the corporate capabilities or competencies required to drive those metrics must include controlling supply chain costs, managing supply chain cycle time, and optimizing responsiveness to the marketplace.
planning and controlling the supply chain
Suppliers should be identified. Planning for demand is a fact of business. Second, the company must develop a product and service bundle that will find paying customers in sufficient number at a price that yields a proper margin. Third, responding to the marketplace means being able to have the right product, in the right place, at the right time, at the right quality, for the right price so that the service level achieves an economic optimum. In other words, the service level should be such that the