Profit chain-of-effects models

In summary, it is more common to examine pairs of variables from a profit chain-of-effects model rather than the profit chain in its entirety. A scatter plot or correlation analysis of a pair of profit-chain variables (e.g. satisfaction and loyalty) almost always indicates a weak correlation. The weak correlation is typically interpreted as suggesting a crisis whereby the implied profit chain-of-effects or cascading model is not supported. 

Another reality in Cavinto s spectrum is that, while supply chains can be a source of operating efficiencies and competitive advantage, the lack of effective supply chains will hold a company back. That is, the lack of a formal supply chain design can be dysfunctional when it comes to reaching goals for growth and profits. We will also build the dysfunctional level into our maturity model because we have observed it often. 

Supply-Chain Council (see) A nonprofit association of companies interested in supply chain management (SCM). The Council was incorporated in June 1997 as a not-for-profit trade association. The Council offers members an opportunity to improve the effectiveness of supply chain relationships from the customer s customer to the supplier s supplier. Its primary mission is to develop and maintain its Supply-Chain Operations Reference Model, or SCOR. 

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