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About Hit The Number
This document discusses common practices that sacrifice supply chain performance to hit short-term targets, undermining shareholder value. It identifies five such practices: 1) Pulling forward sales to hit revenue targets, which artificially inflates demand; 2) Using on-time-in-full metrics against promised rather than requested delivery dates, giving a misleading view of customer service; 3) Prioritizing inventory reduction over customer service; 4) Using accounting practices like channel stuffing to boost reported sales; 5) Focusing financial targets narrowly on metrics like inventory reduction without considering total supply chain costs. The document suggests questions financial analysts should ask companies to ensure these value-destroying practices are not used.
Detailed Information
| Author: | ['AJ'] |
|---|---|
| Publication Year: | 2019 |
| Pages: | 6 |
| Language: | English |
| Format: | |
| Price: | FREE |
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