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Impacts of Supply Chain Management on Company Value

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Quantitative Models for Value-Based Supply Chain Management

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 660))

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Abstract

Supply chain management (SCM) plays a crucial role in achieving competitive advantage thereby influencing company value. Nevertheless holistic models that allow for quantifying these value impacts of SCM are missing so far. Efficient approaches to calculate and compare value contributions from supply chain (SC) value drivers are needed. This chapter proposes a model to efficiently calculate and compare value contributions from four SC value drivers that affect the profitability and asset performance: sales, SC cost, working capital and fixed assets. Thereby, financial performance metrics are linked on a strategic level to the operational layer of SCM. Properties and characteristics of the quantitative model, which is based on the discounted cash flow concept, are illustrated by an industrial example. In this context, the importance of acceleration, enhancement and volatility of cash flows for value creation is systematically explored.

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Authors and Affiliations

  1. Chair of Supply Chain Management, University of Kassel, Kassel, Germany

    Dipl. Math. Marcus Brandenburg

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  1. Dipl. Math. Marcus Brandenburg
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Brandenburg, M. (2013). Impacts of Supply Chain Management on Company Value. In: Quantitative Models for Value-Based Supply Chain Management. Lecture Notes in Economics and Mathematical Systems, vol 660. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-31304-2_10

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