New tool helps SCM demonstrate its financial impact on the bottom line

| 0 Comments

 

FinancialImpact.jpgA performance assessment that helps supply chain management (SCM) organisations quantify their financial contributions to organisations was launched in January.


Return on Supply Management Assets Performance Check (ROSMAPC) assesses SCM’s value to an enterprise and helps SCM executives demonstrate the function’s financial impact on the bottom line.


In order to measure performance the tool captures hard savings benefits and the tangible value created from advanced practices, supplier innovation, and the financial re-engineering of the supply chain by indicating the overall financial productivity of SCM assets.


Derived from classic financial frameworks (such as DuPont’s investment performance measures) and shareholder value methods (such as economic value added), ROSMAPC helps SCM executives demonstrate the function’s financial impact on the bottom line.


SCM functions are able to benchmark their performance against their respective markets and industries. CPOs can use the results to establish priorities around financial results improvement, talent capability building, and organisational development.


Importantly, performance measurement is based on metrics that the financial community understands and endorses and, therefore, reflects the mindset of CFOs, encouraging their buy-in to support the SCM function.


ROSMAPC is the first initiative from an alliance to increase professional recognition for SCM professionals.


A.T. Kearney, the Institute for Supply Management (ISM), and the Chartered Institute of Purchasing and Supply (CIPS) formed the alliance to increase recognition of the discipline as a key driver of strategic business value.


“This alliance is key for SCM as we raise the profession’s profile and demonstrate its value to organisational growth,” said David Noble, CIPS group CEO. “ROSMAPC offers SCM professionals another component in their toolkit and provides a robust demonstration of their function’s financial value.”


For the past five years, A.T. Kearney has worked with dozens of CPOs and CFOs around the world to co-develop, test, validate, and benchmark this performance-measurement approach for SCM.


“Procurement’s responsibilities, specifically, have radically changed during the past 20 years, from a tactical service function to a proactive, strategic partner to the rest of the business,” said Thomas W. Derry, ISM CEO. “To meet the intricate mandates now required, the profession needs a mechanism for communication with the C-suite to increase its recognition, connect to shareholder value, and to consistently and universally track and measure its contribution and performance. ROSMAPC is the entry point.”


On a broader level, CIPS, ISM, and A.T. Kearney created the alliance to elevate the SCM profession’s stature and positioning in the boardroom and C-suite, on Wall Street, and even on higher education college campuses to attract the best talent in the years ahead.


SCM organisations can participate in ROSMAPC online via the CIPS and ISM websites.


SCM organisations can take the assessment at the enterprise level or within business units and divisions. Completion takes approximately 30 to 45 minutes. Information provided is kept strictly confidential.


Immediately upon completion, participants receive their organization’s complimentary Return-on-Supply-Management-Assets score and a customized report that assesses their procurement performance, compares it with leaders and followers, and identifies improvement opportunities.
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
An opportunity for a seasoned Procurement Manager, who ...More

Industrial Engineer

  • >500 000 Gauteng Industrial Engineer Permanent Procurement Consultant
An exciting opportunity that offers extensive exposure on ...More

Deputy Director: Procurement

  • >500 000 Contract Procurement Management Procurement Officer / Specialist Western Cape
Department of Economic Development and Tourism:Procurement Specialist, Ref ...More

DEMAND PLANNING MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k – R900K) excluding ...More

GLOBAL SUPPLIER PERFORMANCE MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Salary: R 1.3M –R1.5M, dependent on level of ...More

GLOBAL CATEGORY MANAGER

  • >500 000 Contract Gauteng Procurement Consultant Projects / Category Management
Total Cost to Company R1mil – R1.2mil excluding ...More

Project Manager

  • >500 000 Contract Procurement Management Projects / Category Management Western Cape
 Description:A well-known retail organization is looking for an ...More

PROCUREMENT ANALYST

  • >500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • Commodities Gauteng Permanent Projects / Category Management
 Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • >500 000 Commodities Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R800K – R900K) Johannesburg Our ...More

ENGINEERING STANDARDS MANAGER

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Procurement Management
(Total Cost to Company R350K – R550K) JOHANNESBURGYou ...More

Supply Chain Analyst

  • <500 000 >500 000 Permanent Procurement Officer / Specialist Supply Chain Western Cape
(Total Cost to Company R350K – R550K)  SOUTHERN ...More

Security Manager

  • <500 000 >500 000 Gauteng Permanent Projects / Category Management Strategic Sourcing
(Total Cost to Company R350K – R550K) JOHANNESBURG This ...More

Demand Planner

  • <500 000 >500 000 Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R450k – R550k, dependent ...More

Procurement Specialist-Randburg

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k – R800k including ...More

Solutions Architect

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
(Total Cost to Company R1.3Mil – R1.1Mil including ...More

MANUFACTURING MANAGER - OLIFANTSFONTEIN

  • >500 000 Gauteng Permanent Projects / Category Management
(Total Cost to Company R850k – R950K including ...More