Influence of Supply Chain Management on the growth of the market value of a company

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Influence of Supply Chain Management on the growth of the market value of a company Andrey A. Zaytsev, BBA Manager at Karro Holding Moscow MBA student at RANEPA and HS-Bremen Prof. Dr. Frank Giesa, Ph.D., Program Director at HS- Bremen Liberec Economic Forum 2013 16.09.2013

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Influence of Supply Chain Management on the growth of the market value of a company. Andrey A. Zaytsev, BBA Manager at Karro Holding Moscow MBA student at RANEPA and HS-Bremen. Prof. Dr. Frank Giesa , Ph.D., Program Director at HS-Bremen. Liberec Economic Forum 2013 16.09.2013. - PowerPoint PPT Presentation

Transcript of Influence of Supply Chain Management on the growth of the market value of a company

Page 1: Influence of Supply Chain Management on the growth of the market value of a company

Influence of Supply Chain Management on the growth of the market value of a

company

Andrey A. Zaytsev, BBAManager at Karro Holding MoscowMBA student at RANEPAand HS-Bremen

Prof. Dr. Frank Giesa, Ph.D.,Program Director at HS-BremenLiberec Economic Forum 2013

16.09.2013

Page 2: Influence of Supply Chain Management on the growth of the market value of a company

G20 view on the problem

Vulnerable to instability

Economic growth stimulation

Development of global value-adding chains

Economic and geopolitical

forces

Investments into reliable industries

and companies

Page 3: Influence of Supply Chain Management on the growth of the market value of a company

Additional insights

Growing prices for limited resources

Increasing competition

Market saturation

Proved tracks of effective investment decisions

Inability to launch numerous projects at the same time

Inability to increase market value via enhancing marketing activities

Inability to increase market value via expansion

Creating competiti

ve advantage

s

Investments into reliable

industries and companies

Page 4: Influence of Supply Chain Management on the growth of the market value of a company

Strategic role of SCM in the modern world

Requirements

management

Allocating

facilities

Managing process

and product

innovations

Defining investmen

t areas

Production

planning

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Operational role of SCM in the modern worldCo-realizing process and

product innovations

Managing

customer claims

Managing in-and

outbound orders

Quality control

Managing

inventory

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The role of the SCM subsystem in enhancing competitiveness of a company

The role of

SCM

Client base

expansion

Client base

retention

Cost reductio

n11% lower costs

14% lower inventory

7% higher revenues

Material flowFinancial flowInformation flow

Page 7: Influence of Supply Chain Management on the growth of the market value of a company

The mechanism of transforming the SCM subsystem into a profit center

The SCM subsystem

EliminableUnavoidable

Transformation into the profit center

RevenueIncrease

CostReductio

nIdentification of the existing

costs

Systems costs

Identification of the customer requirements

Requirements of the current customers

Requirements of potential

customers

Genuine Assumed

Sealing breach points

Development of new services/process

adaptation

Future

Other subsystems

Eliminable Unavoidable

Customer-related expenses

Genuine Assumed

Sealing breach points

Assumed

Elimination

GenuineEliminable

Unavoidable

Profit center

Cost center

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The indicator core of the SCM subsystem within growth of the market value of a business

Revenue COGS and SG&A

Capex WCR

The Indicator

Core

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Processing external and

internal information

Assessment of degree of

achievement of strategic and

tactical objectives

Information flows of the microenvironment of the

enterprise

External environmentSuppliersCompetitorsCustomersState

Making decisions on managing material flowsRequirements assessment for the SCM subsystemRequirements assessment for the system

Generating financial flows Evaluation of flows Development of measures

to enhance the final (positive) value of the financial flow

Internal environment The SCM subsystem The production subsystem

The financial subsystemStrategic business development

Influence of the

macroenvironment

The indicator

core of the SCM

subsystem

The aggregate model of the flow movement with the integrated indicator core of the SCM subsystem

Page 10: Influence of Supply Chain Management on the growth of the market value of a company

Conclusion

Turbulent conditions

Companies enhance innovative activities

Value aspect of enterprise

management

Forming a profit center on the

basis the SCM

subsystem

Integrating the SCM strategy into the general competitive strategy

Page 11: Influence of Supply Chain Management on the growth of the market value of a company

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