What is return on supply chain fixed assets in SAP EPM-SCP - Supply Chain Performance Management?

SAP Term: return on supply chain fixed assets

• Component: EPM-SCP

• Component Name: Supply Chain Performance Management

• Description: Measures the return an organization receives on its invested capital in supply chain fixed assets. It is a measure of the effectiveness of an organization in managing assets to support demand. This includes the fixed assets used in Plan, Source, Make, Deliver, and Return. The levels of aggregation can be at any element associated with a supply chain asset.

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• Key Concepts: 
  Return on Supply Chain Fixed Assets (ROSCFA) is a metric used to measure the efficiency of a company’s supply chain operations. It is calculated by dividing the total return on investment (ROI) of the supply chain by the total fixed assets of the supply chain. This metric helps companies understand how well their supply chain is performing and how much value it is generating for the company.
  
  How to use it: 
  ROSCFA can be used to measure the performance of a company’s supply chain operations over time. Companies can use this metric to compare their performance against industry benchmarks and identify areas for improvement. Companies can also use ROSCFA to assess the effectiveness of their supply chain investments and determine whether they are getting a good return on their investments.
  
  Tips & Tricks: 
  When calculating ROSCFA, it is important to include all fixed assets in the calculation, including inventory, equipment, and buildings. Additionally, companies should consider other factors such as labor costs and overhead when calculating ROSCFA. This will help ensure that the metric is an accurate reflection of the company’s supply chain performance.
  
  Related Information: 
  ROSCFA is closely related to other metrics such as Return on Investment (ROI) and Total Asset Turnover (TAT). These metrics can be used in conjunction with ROSCFA to gain a more comprehensive understanding of a company’s supply chain performance. Additionally, companies can use ROSCFA in combination with other metrics such as customer satisfaction and delivery times to gain an even deeper understanding of their supply chain operations.