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Transformational Supply Chain Performance Improvement

Author(s):

Paul J. Gaffney
Paul J. Gaffney, Executive Vice President, Supply Chain, Staples, Inc., 508/253-3050; paul.gaffney@staples.com

91st Annual International Conference Proceedings - 2006 - Minneapolis, MN
Abstract

Staples recently completed a major three-year supply chain transformation process. The goals: reduce inventory by $200 million while supporting double-digit sales growth each year; expand operating margins by over $100 million; and contribute directly to sales growth through improved use of limited resources to drive demand. To achieve these financial goals, we drove improvements in four thematic areas: improved return on resource investment; improved measures of supply chain reliability; increases in effective service; and greater coordination among supply chain participants. Within each of these areas, over the course of three years we ran over a hundred individual improvement projects. Through this portfolio approach to improvement, we have not only delivered tangible results in the immediate term but also have created an environment for ongoing improvement. Staples is now applying these concepts to drive our performance in serving our corporate customers.

Transformational Supply Chain Performance Improvement — 41 KB (PDF)