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- Category: Supply Chain Management
- Supply Chain Efficiency Matrix
Supply Chain Efficiency Matrix
The Supply Chain Efficiency Matrix is a 2x2 matrix used to measure the efficiency of a supply chain. It is used to identify areas of improvement and opportunities for cost savings.
At a very high level, the Supply Chain Efficiency Matrix is used in the context of business, supply chain management.
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- Portfolio Optimization-Value Alignment Matrix
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- Positioning Matrix
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- Product Life Cycle Matrix
- Product Portfolio Matrix
- Product Positioning Matrix
- Product Roadmap Matrix
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- Product-Market Fit Matrix
- Product-Market-Technology Matrix
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- Product-Service Mix Matrix
- Product/Market Matrix
- Productivity Improvement Matrix
- Program Management Maturity Matrix
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- Project Charter Matrix
- Project Management Capability Assessment-Value Matrix
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- Promotions Matrix
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- Quality Function Deployment Matrix
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What is the Supply Chain Efficiency Matrix?
A visual explanation is shown in the image above. The Supply Chain Efficiency Matrix can be described as a matrix with the following quadrants:
- Cost of Goods Sold (COGS): Cost of raw materials, labor, and other costs associated with producing the goods (e.g. $10 per unit)
- Cost of Inventory: Cost of storing and managing the inventory, as well as the cost of lost sales due to out-of-stock items (e.g. $2 per unit)
- Cost of Transportation: Cost of shipping the goods from the supplier to the customer (e.g. $3 per unit)
- Cost of Customer Service: Cost of providing customer support and returns processing (e.g. $1 per unit)
What is the purpose of the Supply Chain Efficiency Matrix?
The Supply Chain Efficiency Matrix is a 2x2 matrix used to measure the efficiency of a supply chain. It is used to identify areas of improvement and opportunities for cost savings. The matrix is divided into four quadrants, each of which represents a different aspect of the supply chain.
The top-left quadrant represents the cost of goods sold (COGS). This includes the cost of raw materials, labor, and other costs associated with producing the goods. The top-right quadrant represents the cost of inventory. This includes the cost of storing and managing the inventory, as well as the cost of lost sales due to out-of-stock items. The bottom-left quadrant represents the cost of transportation. This includes the cost of shipping the goods from the supplier to the customer. The bottom-right quadrant represents the cost of customer service. This includes the cost of providing customer support and returns processing.
The Supply Chain Efficiency Matrix can be used to identify areas of improvement and opportunities for cost savings. By analyzing the four quadrants, companies can identify areas where they can reduce costs and improve efficiency. For example, if the cost of inventory is high, the company may need to invest in better inventory management systems or find more efficient suppliers.
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What templates are related to Supply Chain Efficiency Matrix?
The following templates can also be categorized as business, supply chain management and are therefore related to Supply Chain Efficiency Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.
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