ABSTRACT

One important tool is provided by the way in which DuPont and EVA models represent mathematical formulae in a graphical format that is accessible to supply chain managers and which can help them identify key operations that generate corporate value. In both the DuPont and EVA models elements of accounts payable, accounts receivable, property and equipment are at the furthest reaches of the tree, and these are the metrics that constitute the interfaces that plug supply chain management into finance. An important part of the supply chain manager's role is to act as an intermediary between higher-level decision-makers and the hierarchically lower, operational level where the company's resources carry out the strategies decided by the board. The role of supply chain management in the broader matrix of a company's decision-making process is illustrated. It is up to the supply chain manager to aggregate and articulate, in a value-based fashion, all the activities that make up the company's daily operations.