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Demand & Supply Chain Management Evolution


     
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Language: English

Return on Relationship versus ROI

 
 
 

Company: Logility
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Today, visionary and innovative companies have evolved beyond simple ROI analyses to the concept of Relationship Life Cycle as a vehicle to gain competitive advantage. With the Relationship Life Cycle, the returns that can be achieved for both buyer and seller far surpass any ROI achieved through internal improvement programs alone. A focus on the relationship with strategic trading partners will create a value chain (suppliers, manufacturers, distributors, retailers and carriers) that can be leveraged for greater cost reductions, improved customer service and new revenue generation. This value chain results in new and increased revenue for both partners as new products and new channels are opened, as well as reduced costs in the form of cycle time reductions, inventory reductions and generally increased efficiency.
 
This mutual, realizable, win/win approach may sound like the "Holy Grail" of the supply chain, but it is quickly becoming standard operating procedure for companies focused on the Return on Relationship versus ROI.

 

 





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