Average ROI on supply chain digital transformation investments over the past 3 years

This measure calculates the percentage of average return on investments in supply chain digital transformation over the past three years. Digital transformation involves using technologies such as cloud computing, AI, IoT, and automation to radically change business models, processes, and customer experiences. Digital transformation is not just about adopting new technologies, but rather about using these technologies to change the way a business operates, improving efficiency, productivity, and decision-making. Return on investment (ROI) measures the amount of gain made by an investment relative to the cost of the investment. The formula is as such: (Gain of Investment - Cost of investment) / Cost of Investment. This Process Efficiency measure is intended to help companies minimize waste and refine resource consumption related to the process group "Plan for and acquire necessary resources (Supply Chain Planning)".

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Measure Category:
Process Efficiency
Measure ID:
110836
Total Sample Size:
2,477 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No
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Units for this measure are percent.

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Key Terms

There are no key terms associated with this measure.
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Measure Scope

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Cross Industry (7.4)

  • 4.1.1 - Develop production and materials strategies (10221)
    • 4.1.1.1 - Define manufacturing goals (10229)
    • 4.1.1.2 - Define labor and materials policies (10230)
    • 4.1.1.3 - Define outsourcing policies (10231)
    • 4.1.1.4 - Define capital expense policies (10232)
    • 4.1.1.5 - Define capacities (10233)
    • 4.1.1.6 - Define production network and supply constraints (10234)
    • 4.1.1.7 - Define production process (14193)
    • 4.1.1.8 - Define standard operating procedures (19551)
    • 4.1.1.9 - Define production workplace layout and infrastructure (14194)
  • 4.1.2 - Manage demand for products (10222)
    • 4.1.2.1 - Develop baseline demand forecasts (10235)
    • 4.1.2.2 - Collaborate demand with customers (10236)
    • 4.1.2.3 - Develop demand consensus forecast (10237)
    • 4.1.2.4 - Determine available to promise (10238)
    • 4.1.2.5 - Monitor activity against demand forecast and revise forecast (10239)
    • 4.1.2.6 - Evaluate and revise demand forecasting approach (10240)
    • 4.1.2.7 - Measure demand forecast accuracy (10241)
  • 4.1.3 - Create materials plan (10223)
    • 4.1.3.1 - Create unconstrained plan (10242)
    • 4.1.3.2 - Collaborate with supplier and contract manufacturers (10243)
    • 4.1.3.3 - Identify critical materials and supplier capacity (10244)
    • 4.1.3.4 - Monitor material specifications (10245)
    • 4.1.3.5 - Generate constrained plan (10246)
    • 4.1.3.6 - Define production balance and control (14196)
  • 4.1.4 - Create and manage master production schedule (10224)
    • 4.1.4.1 - Model production network to enable simulation and optimization (20023)
    • 4.1.4.2 - Create master production schedule (20024)
    • 4.1.4.3 - Maintain master production schedule (17041)
  • 4.1.5 - Plan distribution requirements (17042)
    • 4.1.5.1 - Maintain master data (10252)
    • 4.1.5.2 - Determine finished goods inventory requirements at destination (10253)
    • 4.1.5.3 - Determine product storage facility requirements (19555)
    • 4.1.5.4 - Calculate requirements at destination (10254)
    • 4.1.5.5 - Calculate consolidation at source (10255)
    • 4.1.5.6 - Manage collaborative replenishment planning (10256)
    • 4.1.5.7 - Calculate and optimize destination dispatch plan (10258)
    • 4.1.5.8 - Manage dispatch plan attainment (10259)
    • 4.1.5.9 - Calculate and optimize destination load plans (10260)
    • 4.1.5.10 - Manage partner load plan (10261)
    • 4.1.5.11 - Manage cost of supply (10262)
    • 4.1.5.12 - Manage capacity utilization (10263)
  • 4.1.6 - Establish distribution planning constraints (10226)
    • 4.1.6.1 - Establish distribution center layout constraints (10267)
    • 4.1.6.2 - Establish inventory management constraints (10268)
    • 4.1.6.3 - Establish transportation management constraints (10269)
    • 4.1.6.4 - Establish storage management constraints (19558)
  • 4.1.7 - Review distribution planning policies (10227)
    • 4.1.7.1 - Review distribution network (10264)
    • 4.1.7.2 - Establish sourcing relationships (10265)
    • 4.1.7.3 - Establish dynamic deployment policies (10266)
  • 4.1.8 - Develop quality standards and procedures (10368)
    • 4.1.8.1 - Establish quality targets (10371)
    • 4.1.8.2 - Develop standard testing procedures (10372)
    • 4.1.8.3 - Communicate quality specifications (10373)