FinListics Resource Center
Glossary
Glossary of Financial Terms
Need to become more fluent in the language of finance? Look in our glossary of financial terms
Tools
Industry Analyzer
The Industry Analyzer is an integral part of the FinListics ValueManager On-Line™ and ValueManager Express.
Compare your financial performance or that of your clients to hundreds of industry aggregates
in manufacturing, wholesale distribution, retail and many more. This comparison helps identify potential areas
of opportunities for improvement in financial performance by improving the underlying business processes.
FinListics® Solutions Supply Chain Management Application Templates
No need to reinvent the wheel, FinListics Solutions Application Templates provide a
framework for quickly translating a solution's impact into financial measurements.
Review a sample focusing on supply chain management.
Articles
“Financial Supply Chain”
Supply chain management has the potential to provide higher returns to
shareholders. Yet few companies use it to manage overall financial performance.
Read how supply chain management (SCM) has the potential to improve the three
key drivers of financial performance — growth, profitability, and capital utilization.
Benchmarking Financial Performance Gaps: A Top-Down Approach
To survive in the new economy, companies are seeking new solutions to increase
financial performance. The problem is that often a purported solution to improve
strategies and processes is explored and/or implemented before the knowing the
real question. In addition, these solutions are seldom linked to improvements
in the key drivers of financial performance. By not knowing the real question
and linkage to financial performance, the likelihood of a successful implementation
is low. And it is nearly impossible to ascertain if there is an improvement in
financial performance. To address these issues, this article describes a top-down
benchmarking methodology for uncovering opportunities to increase financial performance.
"The Hidden Costs"
Many companies focus on the management of operating costs (e.g., procurement,
salaries and wages, transportation, warehousing, etc.). However, companies
also invest hundreds of billions of dollars in capital (e.g., inventory,
facilities, systems, etc.). Yet many managers do not have the capital costs
(fair return to investors) associated with the capital they manage on their
scorecard. Read how focusing managers on the total cost of running a business
(operating costs + capital costs) leads to better decisions.
"Need for Speed: Driving Improvements with Supply Chain Management"
Profitability is declining for many companies due to increasing customer
demands, competition and disruptive technologies. Read how improved supply
chain management practices can help keep driving your company's financial performance.
Presentations
"Need for Supply Chain Speed"
Presentation made at Leveraging Programs, Resources and Technology to Grow Your Business in the State of Georgia
Many industries over the last three to five years have experienced substantial product and service
price compression and rising costs like transportation, energy and personnel.
These factors have lower profitability and overall return on investments.
This presentation explores the linkages between financial performance and supply chain management and
focuses on the tactical and strategic benefits of improved supply chain speed. It shows how improved supply
chain speed enables a company to generate higher returns and grow value-adding revenues even if these revenues
have lower profitability
Presenter: Dr. Stephen G. Timme, President, FinListics® Solutions and Adjunct Professor, Georgia Institute of Technology
Building a Better Business Case
Presented at 2004 Council of Logistics Management Executive Development Program, October 5, 2004.
An increasing number of companies are evaluating improved supply chain management (SCM)
as a means to increase financial performance. Unfortunately, many supply chain initiatives
look good on paper but only a small percentage deliver the promised financial benefits.
This presentation explores a proven seven-step process for developing a better SCM
business case. A case study is used to explore both qualitative and quantitative analyses.
Presenter: Dr. Stephen G. Timme, President, FinListics® Solutions and Adjunct Professor, Georgia Institute of Technology, and
Mr. Randy Berger, Managing Director, FedEx Supply Chain Services
“The Financial-Supply Chain Management Connection:”
Presentation Made at 2003 CLM Conference Executive Development Session
"C-Level" executives -- CEO, CFO, COO and others -- must be made to see supply chain management
in a new light-not just as a technique for lowering operating costs but also as a
powerful enabler of the key drivers of overall financial performance. When -- and
only when -- the financial-supply chain connection is made will SCM be able to complete
the transition from the backroom to the boardroom.
At many companies, a key factor inhibiting SCM's boardroom debut is that many SCM
professionals do not speak the "language of finance." Thus, they fail to articulate
the real value of their solutions at the C-level.
This presentation 1) Links supply chain management to the key drivers of financial
performance -- Revenue Growth, Profitability and Capital Utilization, 2) Presents
an approach for using gaps in key financial metrics as a roadmap for exploring potential
areas of improvement in SCM business processes, 3) Explores total supply chain costs
(operating expenses plus capital charges) and other applications.
Presenter: Dr. Stephen G. Timme, President, FinListics® Solutions and Adjunct Professor, Georgia Institute of Technology
Improved Supply Chain Management to Tighten our Grip on Working Capital
Supply chain management (SCM) has the potential to significantly improve working capital
management. Yet relatively few companies utilize SCM as a strategic weapon or tactical
tool to drive financial performance. Using a case study, a three-step top-down approach
to making the connection between working capital management and SCM is explored:
This top-down approach provides a disciplined methodology for estimating the monetary benefits
and understanding the critical success factors and the risks of SCM solutions required
for building a business case. It also often highlights the need for changes in scorecards
to facilitate an enterprise-wide view of working capital management.
Presenter: Dr. Stephen G. Timme, President of FinListics Solutions and Adjunct Professor at the Georgia Institute of Technology
