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Thursday, August 09, 2012

One Best Supply Chain Metric

In the Supply Chain Digest.  David Schneider suggests that the one best supply chain metric is Operating Cash flow, or OCF.    I admit I had to think about that one.  A thoughtful proposition, good post.  He explains:  ' ... "Operating Cash Flow is the cash money a company generates from the operations of the business," is what I answer. "Arguably, a better measure of the business' success than earnings, because a company can show positive net earnings and still lose cash money. Businesses use operating cash flow to pay bills and reinvest in inventory, make capital investments, eventually leveraging those assets into greater cash when the customer pays for the goods. Operating cash flow is the air a company breathes."Privacy in the cloud may be an illusion, given the known cybersecurity risks, not to mention the laws in the U.S. and around the world that permit government agencies relatively easy access to remote data including data stored in the cloud .... ' 

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