Supply Chain Value Creation: Supply Chain Meets Finance

An MIT Executive Forum
Co-Hosted by


	&
Supply Chain Education Partners

MIT Faculty Club

Supply Chain Value Creation:
Supply Chain Meets Finance

This session provided an open exchange and discussion among CTL sponsors, and invited industry practitioners to focus on ways to measure the value of supply chain activities to the business beyond the traditional 'cost' or lately 'service' impact. Recognizing that the supply chain plays a critical role providing economic viability (ex. $150B West Coast lockout of October, 2002), it is increasingly important to tie supply chain performance to the business objectives, and the most common way for senior managers to interpret impact is through financial measures. The event will bring supply chain leaders together with their counterparts in finance operations for an open, active and engaging discussion in a 'safe environment.'

The agenda is planned to identify recognized current best practices, emerging practices and structure, financial analysis tools, measures, incentives, and key issues. Facilitated sessions focused on four key issues helped to examine specific issues in greater depth.

Meeting Summary

May 28, 2003
MIT Faculty Club

»	Overview, Current Approaches and Status Literature - Background Review Jim Rice - MIT CTL
»	Profitability Management: Value Creation in the Supply Chain Dr. Jonathan Byrnes - MIT CTL
»	Finance & SC Work Together - Case Example from Industry Sharon Bryan (CFO - Rockport) & Lloyd Davis (VP - Logistics) Reebok
»	Supply Chain and Finance At P&G Joerg Meiner - P&G Finance Participant Discussion - Strategy
»	Supply Contracts to Balance Incentives, Costs, Risks Prof. Yossi Sheffi - MIT CTL Participant Discussion - Balancing Incentives, Costs, Risks
»	Real Options in Supply Chain Management Prof. Richard deNeufville - MIT Participant Discussion - Methods and Tools for Valuing Supply Chain

May 29, 2003
MIT Faculty Club

»	Integrated Supply Chain Management Program May 29, 2003 8 am - 1 pm A separate session was held for ISCM sponsors to give the group the chance to examine and review the learnings from the previous day's event.