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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
G20 view on the problem Economic and geopolitical forces Investments into reliable industries and companies
Additional insights Investments into reliable industries and companies Proved tracks of effective investment decisions Increasing competition Creating competitive advantages Inability to increase market value via expansion Inability to increase market value via enhancing marketing activities Market saturation Growing prices for limited resources Inability to launch numerous projects at the same time
The role of the SCM subsystem in enhancing competitiveness of a company 7% higher revenues 11% lower costs 14% lower inventory
The mechanism of transforming the SCM subsystem into a profit center Cost center Transformation into the profit center Profit center Revenue Increase Cost Reduction Identificationoftheexistingcosts Identification of the customer requirements Requirements of the current customers Requirementsofpotentialcustomers Systemscosts Customer-relatedexpenses The SCM subsystem • Eliminable • Unavoidable Genuine Assumed Genuine Assumed Future Assumed Genuine • Eliminable • Unavoidable Sealing breach points Sealingbreachpoints Other subsystems • Eliminable • Unavoidable Elimination Development of new services/process adaptation
The indicator core of the SCM subsystem within growth of the market value of a business
The aggregate model of the flow movement with the integrated indicator core of the SCM subsystem External environment • Suppliers • Competitors • Customers • State • Internal environment • The SCM subsystem • The production subsystem • The financial subsystem • Strategic business development Influence of the macroenvironment Information flows of the microenvironment of the enterprise Processing external and internal information The indicator core of the SCM subsystem • Generating financial flows • Evaluation of flows • Development of measures to enhance the final (positive) value of the financial flow Making decisions on managing material flows • Requirements assessment for the SCM subsystem • Requirements assessment for the system Assessment of degree of achievement of strategic and tactical objectives
Conclusion Forming a profit center on the basis the SCM subsystem Integrating the SCM strategy into the general competitive strategy