Strategic Supply Chain Management - Supply Chain Online

270 Strategic Supply Chain Management
FIGURE A–9
BICCs’ cash-to-cash cycle time.
140
120
100
Days
80
60
40
20
0
BICC Median WICC
Note: Cash-to-Cash cycle time was 1 of 4 metrics used
to determine the BICC population
© Copyright 2004 The Performance Measurement Group, LLC
planning costs is only slightly lower for BICCs than for other companies,
spending on order management, materials acquisition, and inventory management
is significantly lower.
Overall supply chain management costs are 9 to 11 percent for most
companies, whereas for the BICCs the range is 8 to 10 percent (see Figure
A-10). These companies demonstrate better asset turnover, with BICCs at
better than 4 net asset turns compared with 3 for the median companies
and less than 2.5 for the WICCs. While there could be some industryspecific
drivers or more systematic reasons for this result (e.g., inventory
levels are a component of assets), it is notable that BICCs with good delivery
performance and upside production flexibility also generated a higher
level of sales on net assets (see Figure A-11).